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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  $ 389.00 AI Price  
$ 459.00 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 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. 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
    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, 6th 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 up to 17%    $ 133.00 Off AI Price or $ 153.00 Off Full Price   Package - Online Basic Principles + Procedures $ 645.00 AI Price  
    $ 765.00 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 up to 19%    $ 213.00 Off AI Price or $ 238.00 Off Full Price   Package - Online Education 75-Hours Appraiser Trainee Licensing $ 880.00 AI Price  
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    Basic Appraisal Principles Course
    [G/R]   30      Appraisal Institute - Online Education                   
    Basic Appraisal Procedures Course
    [G/R]   30      Appraisal Institute - Online Education                   
    15-Hour Equivalent USPAP Course (Online) Course
    [SPP]   15      Appraisal Institute - Online Education                   

    Save up to 17%    $ 394.00 Off AI Price or $ 454.00 Off Full Price   Package - Online Education 150-Hours Licensed Residential Appraiser $ 1,915.00 AI Price  
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    Basic Appraisal Principles Course
    [G/R]   30      Appraisal Institute - Online Education                   
    Basic Appraisal Procedures Course
    [G/R]   30      Appraisal Institute - Online Education                   
    15-Hour Equivalent USPAP Course (Online) Course
    [SPP]   15      Appraisal Institute - Online Education                   
    Residential Market Analysis and Highest & Best Use Course
    [Res]   15      Appraisal Institute - Online Education                   
    Residential Site Valuation and Cost Approach Course
    [Res]   15      Appraisal Institute - Online Education                   
    Residential Sales Comparison and Income Approach Course
    [Res]   30      Appraisal Institute - Online Education                   
    Residential Report Writing and Case Studies Course
    [Res]   15      Appraisal Institute - Online Education                   


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