EL CAMINO COLLEGE COURSE OUTLINE: RE 41

I. COURSE DESCRIPTION:

Course Title and Number: Real Estate 41 (RE41) (formerly RE15B)
Descriptive Title: Real Estate Appraisal
Discipline: Real Estate
Hours Lecture: 3
Course Units: 3
Grading Method: Letter
Associate Degree Credit
Transfer CSU - Effective Date: prior 7/92.
Recommended Preparation: Real Estate Appraisal I (RE40) OR California OREA appraisal license OR California DRE broker license.

NOTE: This course is required by the California Department of Real Estate (DRE) prior to taking the California real estate broker examination. Completion of this course is required by the California Office of Appraisal (OREA) prior to taking the California appraisal examination with a closed book final exam. This course is approved by OREA for 54 hours of continuing education (C/E) credit for appraisal license renewal with a closed book final exam.

II. COURSE OBJECTIVES AND METHODS OF EVALUATION

A. Course Objectives:
1. The student will complete an appraisal report on an income-producing property (multi-family, commercial or industrial).
2. The student will make an oral presentation of and justification for a narrative written appraisal report on a written non-residential property.
3. Written examinations are given to evaluate the appraisal concepts, theories and principles as a student assessment tool.

B. Methods of Evaluation:
1. Substantial writing assignments, including: written homework. The course primarily computational in nature.
2. Computational and non-computational problem-solving demonstrations, including: exam, quizzes and homework problems.
3. Objective examinations, including multiple choice and true/false.

III. OUTLINE OF SUBJECT MATTER

Orientation and review of basic real estate appraisal concepts
Real property rights
Legal description and tax assessor identification of real property
Real estate as an investment. Economics of rent.
Historic rent vs. contract rent vs. economic rent
Common rental factors--tenancies and terms.
Processing net income from gross income. Common categories and ratios of expenses.
The capitalization process and rates
Direct and straight line depreciation recapture of invested capital
Economic agents of production
Annuity capitalization theories use of tables
Mortgage-Equity capitalization. Investment yield analysis.
Leasehold and partial interests
Appraisal standards and ethics
Appraisal report--Oral presentation.

IV. READING AND WRITING ASSIGNMENTS

Three hours of work per week, including class time, are required for each unit of credit.

A. A representative example of an assignment.
1. The student prepare a non-residential appraisal written report.
2. Each student will prepare a narrative written appraisal report and present and defend the appraisal during class with justifications and explanations.

B. Two hours of work outside of class are required for each hour of lecture or equivalent.
Each student will be required to perform the following outside of regular class time:
1. Study.
2. Answer questions.
3. Skill practice.
4. Required reading.
5. Problem solving activity or exercise.6. Written work.

V. COLLEGE LEVEL CRITICAL THINKING ASSIGNMENTS

1. The student will demonstrate the ability to complete a non-residential appraisal form.
2. The student will demonstrate the ability to prepare a written, narrative appraisal report and present justification and explanation of the report.

VI. PLANNED INSTRUCTIONAL ACTIVITIES

This course is taught using the case-study project format to develop narrative report writing skills.

VII. APPROPRIATE TEXT AND MATERIALS

Required:
The Appraisal of Real Estate. American Institute of Real Estate Appraisers, Chicago, newest edition. American Institute of Real Estate Appraisers (AIRE) publication.

Other Required Materials:
Computer search for database comparables (such as Internet, homeseekers or similar).

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