STANDARD COMPETENCIES:

 

 I.      Understand the economic principles underlying the sales comparison approach.

 II.     Outline the requirements for using the sales comparison approach including the selection of comparables and the adjustment process.

 III.    Develop an estimate of value using the sales comparison approach.

 IV.     Estimate potential gross income, effective gross income, operating expenses and net operating income.

 V.      Use operating expense ratios to assist in estimating net operating income.

 VI.     Calculate and apply gross rent multipliers.

 TOPICAL OUTLINE:

 

 I.      Rationale and background of the sales comparison approach

         A.      What is most applicable to residential properties.

 II.     A step-by-step matrix for the approach.

 III.    Adjustments to comparable properties.

 IV.     Reconciliation

 V.      Rationale and background of the income approach

         A.      Used primarily in relation to two to four family residential buildings.

 VI.     The use of Gross Rent multipliers in residential property appraisals.