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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, this program focuses on the valuation of vacant land parcels and the development of the cost approach. You will 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 an appraisal assignment to a final value estimate. The case study 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.

Please note that participants must complete 7 mandatory assignments in the program, based on the case study. Feedback will be at the discretion of the instructor. If you have questions about the assignments, or would like to request specific comments on a submitted assignment, please contact the instructor. Please allow up to 5 days for the instructor to reply to your review request.

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. The accepted model used in the course is the HP-12C. Candidates taking most AI exams may bring their own calculator to use during the exam. Candidates should be fully aware that AI courses are developed with HP12C keystrokes, and that 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.
  • Laptops, cellular phones, tablets, iPads, wearable technology (smart watch, Apple Watch, Google Glass, etc.), and other devices that can store data or connect to the Internet are NOT permitted during the exam. In addition, all watches, wallets, bags, and purses must be removed and stored out of reach prior to taking the exam.
  • HP-12C calculator user's manual
  • You must be familiar with calculator operation when the course begins. Answers to problems in course material are shown using the HP-12C. Do not come to class expecting to be taught how to use a financial calculator.
  • Free Review:Using a Financial Calculator; Formulas, Symbols, Math Review, and Sample Problems and Financial Calculator Practice Exercises
  • For additional help with the HP-12C calculator, take our online seminar, Using Your HP-12C Financial Calculator
  • Recommended Text
    • The Appraisal of Real Estate, 14th ed.
    • The Dictionary of Real Estate Appraisal, 5th ed.

    AI Price: $ 279.00
    Full Price: $ 329.00

    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".

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