PELLISSIPPI STATE TECHNICAL COMMUNITY COLLEGE MASTER SYLLABUS
INCOME PROPERTY VALUATION  REA 1950
Class Hours: 3.0								Credit Hours: 3.0
Laboratory Hours: 0.0								Date Revised: Fall 05
NOTE: This course is not designed for transfer credit.
Catalog Course Description:
		This course introduces the student to the concepts and techniques used in the appraisal of income-producing real estate. It begins with basic definitions and an examination of the nature of money. The course then examines the various techniques and methodologies associated with income analysis, including both theory and illustrative examples. Students will complete an appraisal of an income-producing property and report the results using form, narrative and oral formats as part of the course
Entry Level Standards:
		College level math skills
Corequisite:
		REA 1850 or equivalent
Textbook(s) and Other Course Materials:
		Income Property Valuation, 2^nd Edition Jeffrey D. Fisher & Robert S. Martin, Dearborn Real Estate Education
I. Week/Unit/Topic Basis:
		Week					Topic
		1					Introduction and Basic Principles                                                        Definitions Valuation Principles USPAP Highest & Best Use The Appraisal Process
		2					The Nature of Money I                                                                          Compounding & Discounting Theory Income Analysis Mathematics The Six Functions of a Dollar The Nature of Money II                                                                         The Six Functions of a Dollar (cont) Cash-flow Forecasting Investment Return Calculations
		3					Financial Analysis                                                                                                  Definitions Balance Sheets Income & Expense Statements Financial Instruments Leveraging & Other Tools
		4					Income Capitalization I                                                                           Definitions Capitalization Rates Types of Income & Expenses Income Stream Analysis Residual Theory Income Capitalization II                                                                         Forecasting Income Estimating Expenses Vacancy & Collection Loss Reversion Capitalization Techniques
		5					The Sales Comparison Approach                                                     Exam #1 (50 minutes) Data Sources & Collection Definition of Unit Value Measures Adjustment Techniques Reconciliation
		6					The Cost Approach                                                                                                Reproduction vs. Replacement Cost Data Sources & Collection Site Valuation Depreciation Structuring the Cost Calculation
		7					Leased Fee and Leasehold Valuation                                                                  Definitions Elements of a Lease Leased Fee Analysis Leasehold Analysis
		8					Income Property Analysis I                                                                                  Acquisition Operations Disposition
		9					Income Property Analysis II                                                                                 Discounted Cash Flow Analysis Mortgage Equity Technique
		10					Income Property Analysis III                                                                                Income Multipliers Special Properties Non-typical Mortgage Financing
		11					Other Topics I                                                                                                         Exam #2 (50 minutes) Form Reports Narrative Reports Income Property Appraisal Assignments
		12					Other Topics                                                                                                            Discount Rate Analysis Risk Analysis Tax Considerations Partial Interests
		13					Income Property Appraisal Assignment I                                          Oral Reports Income Property Appraisal Assignment II                                         Oral Reports
		14					In-Class Appraisal Assignment III                                                      Oral Reports
		15					Review and Final Exam
II. Course Objectives*:
		A.			Discuss the theories applicable to the appraisal of income-producing real estate. I, II
		B.			Discuss the techniques applicable to the appraisal of income-producing real estate. I, II
*Roman numerals after course objectives reference goals of the Business and Community Services department.
III. Instructional Processes*:
Students will:
		1.				Take part in course assignments such as team discussions; team case studies;   team projects; experiential exercises; oral, written, PowerPoint, and/or email   presentations; Internet research; etc. to help develop teamwork, leadership, and   follower-ship skills. Communication Outcome, Social/Behavioral Sciences Outcome, Technological Literacy Outcome, Transitional Strategy, Active Learning Strategy
		2.				Perform course assignments such as team discussions; team case studies; team   projects; experiential exercises; oral, written, PowerPoint, and/or em presentation;  Internet research; etc. to help develop critical thinking, problem solving, goal  setting, and planning skills. Communication Outcome, Social/Behavioral Sciences Outcome, Technological Literacy Outcome, Transitional Strategy, Active Learning Strategy
		3.				Practice elements of the work ethic such as professionalism, preparedness, punctuality, honesty, cooperation, dependability, contribution, effectiveness, and  good manners. Transitional Strategy
*Strategies and outcomes listed after instructional processes reference TBR’s goals for strengthening general education knowledge and skills, connecting coursework to experiences beyond the classroom, and encouraging students to take active and responsible roles in the educational process.
IV. Expectations for Student Performance*:
Upon successful completion of this course, the student should be able to:
		1.			Define and discuss the nature of money. A, B
		2.			Apply capitalization techniques to income streams. A, B
		3.			Evaluate financial statements & instruments. A, B
		4.			Conduct time-flow analysis of income streams. A, B
		5.			Appraise an income-producing property. A, B
		6.			Prepare form and narrative appraisal reports. A, B
		7.			Deliver an oral appraisal report. A, B
*Letters after performance expectations reference the course objectives listed above.
V. Evaluation:
		A. Testing Procedures:
				Two exams worth 10% of grade (each) Final exam worth 40% of grade
		B. Laboratory Expectations:
			N/A
		C. Field Work:
			Appraisal Assignment worth 40% of grade
		D. Other Evaluation Methods:
			N/A
		E. Grading Scale:
			90 - 100     A  80 -  89      B  70 -  79      C  60 -  69      D  Below 60  F
VI. Policies:
		A. Attendance Policy:
			Pellissippi State Technical Community College expects students to attend all scheduled instructional activities.  As a minimum, students in all courses must be present for at least 75 percent of their scheduled class and laboratory meetings in order to receive credit for the course. Licensing/Education Credit Limitation: Students desiring to use this course to meet education requirements of the Tennessee Real Estate Appraisers Commission for licensing purposes must attend all class meetings and must receive a passing grade for the course. If a class is missed due to unavoidable circumstances, the student may arrange, with the permission of the instructor, to make-up the missed class at another time convenient to both the student and the instructor. A student who does not desire to use the course for licensing or education credit needs not make-up a missed class.
	B. Accommodations for disabilities:
			If you need accommodations because of a disability, if you have emergency medical information to share, or if you need special arrangements in case the building must be evacuated, please inform the instructor immediately. Please see the instructor privately after class or in his/her office. Students must present a current accommodation plan from a staff member in Services for Students with Disabilities (SSWD) in order to receive accommodations in this course. Services for Students with Disabilities may be contacted by going to Goins 127 or 131 or by phone: 694-6751(Voice/TTY) or 539-7153.