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PRICING PROPERTY TO SELL
(6 hours, General)
This course presents methods and principles for pricing property. Pricing compared to appraisal, basic concepts of pricing property, principles of value, approaches to pricing property, application of the market data and replacement cost methods are covered in detail in this program.
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TIME
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CONTENT
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LEARNING OBJECTIVES
After this segment, the student will be able to:
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20 min
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Pricing vs. appraisal
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Define and distinguish between pricing and appraisal.
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20 min
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Basic concepts
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Demonstrate an understanding of market value and market price.
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60 min
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Principles of value
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Define and distinguish between the principles of anticipation, substitution, highest and best use, competition, supply and demand, value, diminishing marginal return, and conformity.
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20 min
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Misc. topics
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Define and distinguish between assemblage, plottage, regression and progression.
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120 min
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Basic approaches to pricing property
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Use these approaches to price property: Market data approach, cost approach, income approach, gross rent multiplier, and reconciliation.
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60 min
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Application of the market data approach
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Demonstrate an understanding of the factors which affect the value of a home, the information required for a market analysis, and how to complete a market analysis worksheet.
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60 min
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Application of the replacement cost method
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Describe the replacement cost method and determine when it should be used. Also, know the information required for the replacement method, how to obtain it, and how to complete one.
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