Appraisal Institute

Valuing subdivisions offer appraisers unique challenges. This new seminar provides a complete look at subdivision valuation methodology as it relates to valuing improved subdivisions. Appraisers who provide opinions of value for proposed subdivisions or a group of existing lots of units will find this seminar a valuable source of reference and ideas. Students will come away with techniques appraisers need to value a group of lots or units that must be marketed over a period of time. Comprehensive examples are provided to explain how line item profit and discount rate selection are handled in conjunction with discounted cash flow analysis. Ample time is given to typical problems encountered by appraisers in specific valuation scenarios.

At this seminar, participants should learn how to:

• Recognize elements of a subdivision and when to apply subdivision analysis to reflect a bulk sale value. • Differentiate between a “bulk “ sale for a group of lots and applying subdivision analysis to reflect vacant land value. • Understand how to apply subdivision valuation methodology to solve for a wide variety of valuation scenarios at different points along the time line. • Recognize the strengths and weaknesses of the three approaches to value as they relate to subdivision analysis. • Analyze risk and when it occurs in the three general development phases.

Program Overview
• Table of Contents and Overview (PDF)
• Schedule (PDF)

Type
General

Ordering Information
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Tuition
Please contact the sponsoring chapter for information on fees applicable to chapter programs.

Required
A financial calculator is required. The accepted model used in the course is the HP-12C. Students should have general working familiarity with spreadsheet applications dealing with DCF analysis and present value concepts. This is not an introductory seminar in subdivision valuation and /or DCF techniques.

Level
Intermediate

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Overview
Valuing subdivisions offers general appraisers unique challenges. This new seminar provides a complete look at subdivision valuation methodology as it relates to valuing improved subdivisions. Appraisers who provide opinions of value for proposed subdivisions or a group of existing lots of units will find this seminar a valuable source of reference and ideas. Students will come away with advanced techniques appraisers need to value a group of lots or units that must be marketed over a period of time. Comprehensive examples are provided to explain how line item profit and discount rate selection are handled in conjunction with discounted cash flow analysis. Ample coverage is given to typical problems encountered by appraisers in specific valuation scenarios.

Advanced examples using the income approach are provided explaining how line item profit and discount rate selection are handled in conjunction with discounted cash flow analysis. This sets the stage for more detailed coverage of income, sales comparison and cost approach applications in subdivision valuation.

Seminar Coverage
This seminar provides an introduction to valuation methodology applicable to "improved" subdivisions" or groups of lots or units. It excludes mega projects and large mixed use planned developments.

This seminar provides coverage and examples for:

• Group of existing lots
• Existing and proposed projects
• Phased projects and remaining land for future phases
• Valuation of typical suburban subdivisions
• Seminar examples use vacant lots for simplicity
• Explanation and examples for all three approaches to value
• Marketability analysis using the six step process
• Inferred method of market analysis (Market study levels A & B)