Shopping Cart    

Residential Site Valuation and Cost Approach Education Schedule (PDF)
Education Catalog (PDF)
Some AI educational programs may not be approved in every state.
Students should check state approvals prior to registering for any Appraisal Institute program.

ClassroomOn-Demand Online EducationLive Online (Synchronous)

Designed for participants with introductory experience and understanding of fundamental concepts of appraising, it focuses on the valuation of vacant land parcels and the development of the cost approach. Develop your skills by creating a current cost estimate using market extraction, interview techniques, and information provided by professional cost data sources.

An in-depth case study takes you from the origin of the appraisal assignment to a final value estimate using various cost approach applications. The case study is presented in three modules. It features the valuation of a two-unit residential rental property and demonstrates the fundamentals of site valuation, estimation of current improvement cost, and various methods of recognizing and measuring accrued depreciation. There are seven mandatory student exercises based on the case study, presented throughout this course. Through these exercises you will have a chance to demonstrate you knowledge about the basic concepts. Please note that the instructor may take up to a week to grade your case study exercises. Please plan your time accordingly. You can advance through the course while you are waiting for your instructor to grade your work. If you plan to take the exam and receive QE credit for this course you will need to have your assignment approved before receiving your certificate of completion.

Do I have to take the 1-hour course exam?

You are required to complete and pass a proctored offline exam if:

    • you are taking this class to meet state qualifying education requirements
    • you are taking this class to meet the qualifying education requirements for an Appraisal Institute designation

You may be required to complete and pass a proctored offline exam if:

    • you are taking this class to meet state continuing education requirements.  Most states do not require the exam for CE credit, but please confirm this with your state licensing board.

You are not required to complete and pass a proctored offline exam if:

    • if you are taking this class to meet the continuing education requirements of an Appraisal Institute designation
You will have 90 days from the time that you complete the course to take the proctored exam. Testing center locations in your area can be found by clicking on this link:

Module 1: Introduction to the Cost Approach
Module 2: Cost Estimating Methods
Module 3: Depreciation Concepts
Module 4: Breakdown Method of Depreciation
Module 5: Practice Problems in Estimating Depreciation
Module 6: Introduction to Campus City Case Study, Cost and Depreciation
Module 7: Overview of Site Valuation and Campus City Case Study
Module 8: Site Valuation Procedures - Part 1
Module 9: Site Valuation Procedures - Part 2
Module 10: Campus City Case Study - Part 3
Module 11: Extraction and Allocation Methods of Site Valuation
Module 12: Cost Approach Review and Reconciliation and Exam Review

Learning Objectives:
    • Study in detail the development of a complete cost approach. The step-by-step process of estimating current construction cost is the focal point.
    • Learn about Data sources and the comparative-unit method of cost calculation are explored in detail, and the specifics of the age-life and market extraction methods of estimating depreciation are discussed.
    • Apply the breakdown method for estimating depreciation techniques, including physical deterioration, functional obsolescence, and external obsolescence.
    • Discuss cost approach summation, including reconciliation of depreciation estimates.
    • Learn residential site valuation principles, the concept of market analysis, and the development of a highest and best use conclusion.
    • Study the elements of comparison and the units of comparison as they are applied in the sales comparison approach for estimating site value.
    • Understand the extraction and allocation methods of site valuation and discuss reconciliation of the value indications to a final opinion of site value.

AI CE Credit for Designated members and Practicing Affiliates
• Attend Only = 70 points
• Attend and Pass Exam = 140 points
• Pass Exam Only = 125 points

Residential [Res]

Successful completion of Basic Appraisal Principles and Basic Appraisal Procedures is required. Completion of Residential Market Analysis and Highest and Best Use is recommended.

This course is designed for individuals with introductory experience and an understanding of the fundamental concepts of appraising who wish to become a licensed and/or certified appraiser. It translates theory into practice through extensive and varied activities. By applying concepts to real-world situations, students can discover new ways to use their knowledge and analytical skills.

Required Technology

A Financial Calculator is required for this class.You must be familiar with calculator operation. Answers to problems in course material are shown using the HP-12C. Please do not expect to be taught how to use a financial calculator.

You may bring their own calculator to use during the final exam. The center you may provide one, but it should not be offered. The Appraisal Institute courses are developed with HP12C keystrokes, and using an HP12C is highly recommended.

IMPORTANT! You will be asked to clear the calculator's memory before and after the examination. Only one calculator is permitted in the testing room.

Recommended Text
• The Appraisal of Real Estate, 14th ed.
• The Dictionary of Real Estate Appraisal, 5th ed.

AI Price: $ 280.00
Full Price: $ 330.00

Click Here for State Approvals

Arlen C. Mills, MAI, SRA

I agree to the terms and policies set forth under the Appraisal Institute Online Education Policy. I also certify that I am the person identified above under Personal Data and that I will personally complete each assigned module of instruction and any examination(s). I understand and agree that if I misrepresent my identity or arrange for someone else to represent himself or herself as me at any time during the Appraisal Institute online course or seminar, I will be immediately removed from the course or seminar and I will not be entitled to any refund. I further understand that if I am a member of the Appraisal Institute and participated in any misrepresentation of identity, by affirmative act or failure to act, that I will be the subject of a peer review proceeding under Regulation No. 6 for violation of the Appraisal Institute''s Code of Professional Ethics and Standard of Professional Appraisal Practice, and that such peer review proceeding may result in termination of my Appraisal Institute membership.

Additional Information
Please allow 1 hour after registration to start an online session in progress (on or after the session start date). Go to and log in with the username and password you used when you registered. You will automatically be taken to the "My Appraisal Institute" page. Near the middle of that page your course will be listed with a link next to it that says "Go To Class".

Online Class Schedule

Can I enroll in a session that is already in progress?

08/15/2015 - 09/14/2015
Instructor: Mills, Arlen C., MAI, SRA

09/01/2015 - 10/01/2015
Instructor: Mills, Arlen C., MAI, SRA

09/15/2015 - 10/15/2015
Instructor: Mills, Arlen C., MAI, SRA

10/01/2015 - 10/31/2015
Instructor: Mills, Arlen C., MAI, SRA

10/15/2015 - 11/14/2015
Instructor: Mills, Arlen C., MAI, SRA

11/01/2015 - 12/01/2015
Instructor: Mills, Arlen C., MAI, SRA

11/15/2015 - 12/15/2015
Instructor: Mills, Arlen C., MAI, SRA

12/01/2015 - 12/31/2015
Instructor: Mills, Arlen C., MAI, SRA

12/15/2015 - 01/14/2016
Instructor: Mills, Arlen C., MAI, SRA

01/01/2016 - 01/31/2016
Instructor: Mills, Arlen C., MAI, SRA

01/15/2016 - 02/14/2016
Instructor: Mills, Arlen C., MAI, SRA

02/01/2016 - 03/02/2016
Instructor: Mills, Arlen C., MAI, SRA

02/15/2016 - 03/16/2016
Instructor: Mills, Arlen C., MAI, SRA

 Online Ed FAQ's and Contact

 How Online Education Works

 Online State Approvals

Pop up content here.

Agree Disagree