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Basic Appraisal Procedures

    Online Education
Category  General/Residential [G/R]  
Level  I  
Attendance Hours  28.0  
Exam Hours  2.0  
Current Price  $ 364.00 AI Price  
$ 444.00 Full Price  
Thomas R. Kirby, MAI, SRA  
Appraisal Institute - Online Education
Click Here to check state approvals
  Sponsor / Contact  
  Appraisal Institute  
Phone  (877) 674-2447  
In this thirty-hour course, you will apply the principles and concepts you learned in Basic Appraisal Principles. The course will take you step-by-step through the valuation process including identifying the problem, collecting and analyzing data, reaching a final opinion of value and communicating the appraisal. You will learn about the three approaches to reaching an opinion of value-income capitalization, cost, and sales comparison-and apply them in true-to-life case studies and problems. After examining income capitalization methods and formulas, you will learn how rates and multipliers are derived. Through case studies you will discover the steps and concepts involved in the cost approach-how appraisers estimate the cost of constructing a reproduction of or replacement for an existing structure; the three major components of depreciation and methods for estimating and allocating depreciation; and land and site valuation. The course will guide you through the sales comparison approach including researching the market, verifying information, selecting units of comparison, conducting a comparative analysis, making adjustments, and reconciliation. You also will complete key sections of an appraisal report. In addition, the course provides an introduction to property description and construction and design basics. By successfully completing the course and exam you will have met most states’ education requirements for content identified as basic appraisal procedures.

Students have 45 days from the session start date to complete the course material for this program. This course is completed at the student's own pace.

Do I have to take the 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: The Valuation Process
Module 2: From Analysis to Solutions
Module 3: Introduction to Income Capitalization
Module 4: Income Capitalization Formulas
Module 5: Income and Expense Analysis
Module 6: Application - Problem Solving
Module 7: Construction and Design Basics
Module 8: Introduction to the Cost Approach
Module 9: Components in Cost Analysis
Module 10: Estimating Cost - Complex Residential Example
Module 11: Commercial Costs and Depreciation Basics
Module 12: Applied Depreciation
Module 13: Land or Site Valuation
Module 14: Property Description
Module 15: Sales Comparison Approach
Module 16: Comparable Property Selection
Module 17: Adjustments
Module 18: Oak Street Case Study - Market Grid Application
Module 19: Oak Street Case Study - Sales Comparison (Market Grid Application, cont.)
Module 20: Reconciliation and Communication
Module 21: Exam Content Review

Learning Objectives:
    • Identify the eight steps of the valuation process.
    • Identify the basic components and processes used to derive a value indication when performing the income capitalization approach.
    • Identify the six procedures for analyzing land or site value.
    • Identify the three cost-estimating methods used by appraisers.
    • Apply component costs to estimate the cost of residential building improvements.
    • Identify typical elements of comparison used in the sales comparison approach.
    • Analyze sales to select appropriate comparable properties.
    • Derive adjustments using paired sales analysis.
    • Reconcile the indicated values derived in the sales comparison approach to a single point value opinion.
    • Recognize the types of reports used to communicate and appraisal analysis.

AI CE Credit for Designated members, Candidates for Designation and Practicing Affiliates
• Attend Only = 150 points
• Attend and Pass Exam = 200 points
• Pass Exam Only = 150 points

The cost of this course includes a student manual that will be available for immediate download via the knowledge center. The handbook is also available for download within the course itself under the resources tab as well within the Introduction Module via the Software Requirements and Resources page.

A financial calculator is required for this class. The allowed calculators are: HP 10b, HP 10bii, HP 12c, HP 17bii, HP 19bii calculators or Texas Instruments (TI) BA II PLUS. Other calculators are prohibited. You can take one of the approved calculators into the exam provided you clear the memory banks beforehand.
Successful completion of Basic Appraisal Principles is strongly recommended.
  For Further Reading  
  Basic Appraisal Procedures Student Handbook (PDF)  
  The Appraisal of Real Estate, 14th ed.  
  The Dictionary of Real Estate Appraisal, 5th ed.  
  Appraising Residential Properties, 4th ed.  
Cancellation Policy
If you are unable to complete an online program once it begins, you may cancel out of the program within 30 days after the official end date. Absolutely no cancellations will be processed after 30 days of the official end date. Once you cancel out of a program, you must start the program over at the beginning in any later enrollments. You cannot be placed into the program where you left off before canceling.

The following refund policy is in effect for canceled online programs based on the amount of material completed in a program:

 Less than 25% of the program completed: $60 cancellation fee

 More than 25% of the program completed: no refund

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".

If you have any questions, please email us at

  Online Education Homepage  


Promotional Package
Save $ 119.00 AI Price / 139.00 Full Price   Package - Online Basic Principles + Procedures $ 609.00 AI Price  
$ 749.00 Full Price  

Basic Appraisal Principles Course
[G/R]   30      Appraisal Institute - Online Education                   
Basic Appraisal Procedures Course
[G/R]   30      Appraisal Institute - Online Education                   

Save $ 158.00 AI Price / 188.00 Full Price   Package - Online Education 75-Hours Appraiser Trainee Licensing $ 845.00 AI Price  
$ 1,025.00 Full Price  

Basic Appraisal Principles Course
[G/R]   30      Appraisal Institute - Online Education                   
Basic Appraisal Procedures Course
[G/R]   30      Appraisal Institute - Online Education                   
15 Hour National USPAP Equivalent Course (Online) Course
[SPP]   15      Appraisal Institute - Online Education                   


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