This fundamental review course that all reviewers of assignments involving income-producing and other nonresidential properties should have in their educational background. It is a required course for individuals pursuing the Appraisal Institute General Review Designation (AI-GRS, Appraisal Institute General Review Specialist). At the core of this course is the review process. Participants explore the seven steps outlined in this process as they apply to nonresidential properties. To be a reviewer, an appraiser must learn how to develop opinions of completeness, accuracy, adequacy, relevance, and reasonableness relative to the work under review. These opinions must be refined through tests of reasonableness to develop reconciled opinions of appropriateness and credibility. The material provides a refresher on key valuation skills often required of reviewers, such as measuring financial feasibility in highest and best use analysis and various applications of the income capitalization approach. In addition, the course covers reporting reviews for income-producing property and the use of commercial review report forms, narrative reports, and oral review reports. Participants will gain practice in writing a scope of work statement for three types of assignments. They will also develop a template for a narrative review report on a property type of their choice (office, retail, apartment, etc.). By taking this course, participants will gain invaluable confidence in the fundamentals of review through the review process, which is the core of this course. To be a reviewer, an appraiser must learn how to develop opinions of completeness, accuracy, adequacy, relevance, and reasonableness relative to the work under review. These opinions must be refined through tests of reasonableness in order to develop opinions of appropriateness and credibility. By taking this course, participants may gain invaluable confidence on the fundamentals of review.
This course synthesizes the three approaches to value, examines their applications, and helps you apply basic and advanced valuation techniques. Case studies teach you how to address common but complex appraisal issues, including a leased fee not at market rent, a proposed property, a property in a market not at equilibrium, and a subdivision. The course emphasizes the need to test the reasonableness of all the conclusions in an appraisal.
Note. This is primarily a synthesis course, not a review course. Like all advanced education courses sponsored by the Appraisal Institute, the course naturally reviews many concepts taught in previous courses. However, it includes some new material and does not include a complete overview of the other courses. Therefore, Advanced Concepts & Case Studies should not be considered an adequate review for the comprehensive exam. To prepare for the comprehensive exam, participants must review all four advanced education courses, as well as basic concepts from qualifying education for certified general real property appraisers.
Course Overview:
The Uniform Standards of Professional Appraisal Practice (USPAP) establishes a framework that appraisers use when developing an opinion of value. The valuation process is a systematic procedure an appraiser follows to provide answers to a client’s questions about real property value.1 It is a model that can be adapted to a wide variety of issues related to value, mass value, review, litigation support or consulting assignments.
The goal of the valuation process is to deliver well-researched and supportable conclusions. The Critical Thinking & Junk Science course includes both principles and case studies for the appraisal professional. The three approaches to value (cost, income and sales comparison), coupled with complex issues set forth in USPAP AO-9 (cost, use and risk effects) established a solid valuation framework.
Critical Thinking and Junk Science expands an appraiser’s professional skill set by focusing upon five topics within the context of real estate valuation:
1. Epistemologies. The academic community has long identified research methods to collect and build credible knowledge and are discussed within the context of valuation.
2. Critical Thinking. Appraisers must employ an objective analysis that allows them to form credible opinions, especially when involving complex or “atypical” properties and conditions.2
3. Logical Fallacies. Appraisers should avoid invalid or faulty reasoning. USPAP sets forth guidance on a variety of issues, and the Appraisal Institute sets forth many established methodologies.
4. Cognitive Bias. Appraisers should avoid any systematic pattern of deviation from rationality or established standards and ethics of the appraisal profession.
5. Junk Science. Appraisers should avoid unproven or untested tactics or theories when presenting an opinion of value. These tactics are explored, along with how to rebut them.
Course Description
This important course provides information about standards and ethics requirements for valuers in general and, more specifically, for valuers who belong to the Appraisal Institute. Through discussion questions and examples, you’ll identify behavior and actions that illustrate violations of the Code of Professional Ethics, and you’ll learn how referrals can be made. You’ll get an introduction to the Appraisal Institute Guide Notes to the Standards of Professional Practice and see how the Guide Notes can be used to resolve everyday appraisal practice problems. Finally, you’ll learn about common errors in appraisal reports and review reports, and they respond to questions about challenges that arise in appraisal practice such as requests for updates and requests to change or add intended users.
The content emphasizes:
- Business practices issues, such as how to respond to seemingly unreasonable requests, how to address client pressure, and how to approach a complex assignment
- Which standards apply to Appraisal Institute Designated Members, Candidates for Designation, Practicing Affiliates, and Affiliates, and when they apply
- The key principles of the Standards of Valuation Practice
- How to identify and avoid behavior that violates the Standards of Valuation Practice
- The correct way to use the Appraisal Institute designations, emblems, and logo
- Understanding of the Appraisal Institute enforcement process
CHECK IN 7:30 AM
CLASS STARTS 8:00 AM
LUNCH: ON YOUR OWN
FREE PARKING
Mandatory Requirement for Initial State Licensing / Certification (QE) and Renewal (CE)
Includes the required open-book exam
Instructor: Jacinto A. Munoz, MAI, SRA, AI-GRS, AI-RRS
Appraisers recognize that they have regulatory obligations but understanding which ones apply when doing federally related and real estate related lender work is challenging. A review of sanctions and disciplinary actions taken against appraisers by the Bureau of Real Estate Appraisers makes it clear that many details and nuances of the appraiser laws and regulations are being misunderstood. Common, unintentional errors impact both the reputations of individual appraisers as well as confidence in the competency and ethics of the appraisal profession. This seminar is designed to help you recognize and understand the laws and regulations most important to appraisers practicing in California.
– Learn about the revised & reduced AQB RP Appraiser Qualification Criteria effective May 2018
– Understand the context of and recent amendments to the California “Laws” & “Regs”
– Find out about your new “mini-resume” on the BREA website
– Understand BREA’s new & revised definitions that affect your daily appraisal practice
– Become familiar with the new Federal & California Appraisal Management Company (AMC) Laws & Regs
– Look out for these BREA laws that result in immediate license suspension
ENROLLMENT
Enrollment is on a first-come, first served basis. If the event is filled, a waiting list will be retained. The Southern California Chapter reserves the rights to cancel, limit, or reschedule this event if the minimum enrollment level is not reached, and to change faculty assignments and facility locations at any time. Prospective students should confirm their registration before making any non-refundable airline reservations. There are NO transfers; you must cancel out of the offering.
ATTENDANCE
The Appraisal Institute enforces attendance requirements mandated by state licensing and certification regulatory agencies. The Appraisal Institute issues certificates for state certification/licensing or state continuing education credit that verify successful completion and attendance of 100%, with your grade notification letter for courses, or at the conclusion of seminars. One hundred percent (100%) attendance is required for all Appraisal Institute education programs. This follows Appraiser Qualification Board minimum criteria requirements.
ATTENDANCE CERTIFICATE:
With the recent transition to the Appraisal Institute’s NetForum registration system, attendance certificates will be available for download directly through the AI’s national website. The procedure to obtain your certificate is:
Go to www.appraisalinstitute.org
Log into Your AI Account
Select Education/Events on the right sidebar
See List of All Offerings
Scroll to the specific offering which shows Registered and click
At the very bottom of the screen, click Retrieve Certificate
NOTE: Allow a minimum of ten business days for certificates to be available. The Chapter office cannot view, nor can we retrieve copies of your attendance certificate. Anyone having difficulty accessing their certificate should contact the Education Delivery Services Dept. directly at education@appraisalinstitute.org.
Program materials can be downloaded by the student.
Course Description
The course delves more deeply into inverse condemnation, an exciting niche market with increasing demand for appraisers. One of three courses in the Litigation Professional Development Program, this course offers hands-on applications giving you the opportunity to solve problems and put theory into practice. Specialized topics covered include environmental contamination, ad valorem tax assessments, construction defects, bankruptcies, fraud and misrepresentation, income and estate tax disputes, inverse condemnation, contract disputes and equitable distribution in divorces cases. Through problem-solving activities, you’ll apply new concepts and address how to best handle valuation and reporting issues in a professional legal setting. You’ll gain an understanding of the terminology and concepts involved in litigation valuation services in specialty areas and will learn about the many opportunities available for expanding their practices in litigation valuation.
This course is in the Litigation Professional Development Program. View this list of FAQs, which includes information regarding the courses you’ll need to complete the program successfully.