Course Content Guidelines - Qualifying Education

(1) Acceptable Courses. An applicant applying for licensure as a state licensed real estate appraiser or for certification as a state certified residential or state certified general real estate appraiser shall meet his or her respective qualifying education requirements outlined in rules 1255-01-.05, 1255-01-.07 and 1255-01-.08 by successfully completing courses in the following areas: (a) Courses on basic real estate appraisal principles, which include, but are not limited to the following course topics: 1. Real property concepts and characteristics: (i) Basic real property concepts (ii) Real property characteristics (iii) Legal description 2. Legal considerations in real estate appraisal: (i) Forms of ownership (ii) Public and private controls (iii) Real estate contracts (iv) Leases 3. Influences on real estate values: (i) Governmental (ii) Economic (iii) Social (iv) Environmental, geographic and physical 4. Economic principles: (i) Classic economic principles (ii) Application and illustrations of the economic principles 5. Overview of real estate markets and analysis: (i) Market fundamentals, characteristics, and definitions (ii) Supply analysis (iii) Demand analysis (iv) Use of market analysis EVALUATION OF APPRAISER EDUCATION CHAPTER 1255-02 6. Ethics and how they apply in appraisal theory and practice (b) Courses on basic real estate appraisal practices/procedures, which include, but are not limited to the following course topics: 1. Overview of approaches to value 2. Valuation procedures: (i) Defining the problem (ii) Collecting and selecting data (iii) Analyzing (iv) Reconciling and final value opinion (v) Communicating the appraisal 3. Property description: (i) Geographic characteristics of the land/site (ii) Geologic characteristics of the land/site (iii) Location and neighborhood characteristics (iv) Land/site considerations for highest and best use (v) Improvements – architectural styles and types of construction 4. Residential applications (c) Courses on residential market analysis and highest and best use, which include but are not limited to the following course topics: 1. Residential markets and analysis: (i) Market fundamentals, characteristics, and definitions (ii) Supply analysis (iii) Demand analysis (iv) Use of market analysis 2. Highest and best use: (i) Test constraints (ii) Application of highest and best use (iii) Special considerations (iv) Market analysis EVALUATION OF APPRAISER EDUCATION CHAPTER 1255-02 (v) Case studies (d) Courses on residential appraiser site valuation and cost approach, which include, but are not limited to the following course topics: 1. Site valuation: (i) Methods (ii) Case studies 2. Cost approach: (i) Concepts and definitions (ii) Replacement/reproduction cost new (iii) Accrued depreciation (iv) Methods of estimating accrued depreciation (v) Case studies (e) Courses on residential sales comparison and income approaches, which include, but are not limited to the following course topics: 1. Valuation principles and procedures – sales comparison approach 2. Valuation principles and procedures – income approach 3. Finance and cash equivalency 4. Financial calculator introduction 5. Identification, derivation and measurement of adjustments 6. Gross rent multipliers 7. Partial interests 8. Reconciliation 9. Case studies and applications (f) Courses on residential report writing and case studies, which include, but are not limited to the following course topics: 1. Writing and reasoning skills 2. Common writing problems 3. Form reports 4. Report options and USPAP compliance EVALUATION OF APPRAISER EDUCATION CHAPTER 1255-02 (g) Courses on statistics modeling and finance, which include, but are not limited to the following course topics: 1. Statistics 2. Valuation models (AVM’s and mass appraisal) 3. Real estate finance (h) Courses on advanced residential applications and case studies, which include, but are not limited to the following course topics: 1. Complex property, ownership and market conditions 2. Deriving and supporting adjustments 3. Residential market analysis 4. Advanced case studies (i) Courses on general appraiser market analysis and highest and best use, which include, but are not limited to the following course topics: 1. Real estate markets and analysis: (i) Market fundamentals, characteristics and definitions (ii) Supply analysis (iii) Demand analysis (iv) Use of market analysis 2. Highest and best use: (i) Test constraints (ii) Application of highest and best use (iii) Special considerations (iv) Market analysis (v) Case studies (j) Courses on general appraiser sales comparison approaches, which include, but are not limited to the following course topics: 1. Value principles 2. Procedure 3. Identification and measurement of adjustments 4. Reconciliation EVALUATION OF APPRAISER EDUCATION CHAPTER 1255-02 5. Case studies (k) Courses on general appraiser site valuation and cost approach, which include, but are not limited to the following course topics: 1. Site valuation: (i) Methods (ii) Case studies 2. Cost approach: (i) Concepts and definitions (ii) Replacement/reproduction cost new (iii) Accrued depreciation (iv) Methods of estimating accrued depreciation (v) Case studies (l) Courses on general appraiser income approach, which include, but are not limited to the following course topics: 1. Overview 2. Compound interest 3. Lease analysis 4. Vacancy and collection loss 5. Estimating operating expenses and reserves 6. Reconstructed income and expense statement 7. Tabilized net operating income estimate 8. Direct capitalization 9. Discounted cash flow 10. Yield capitalization 11. Partial interests 12. Case studies (m) Courses on general appraiser report writing and case studies, which include, but are not limited to the following course topics: 1. Writing and reasoning skills 2. Common writing problems EVALUATION OF APPRAISER EDUCATION CHAPTER 1255-02 3. Report options and USPAP compliance 4. Case studies (n) The fifteen (15) hour National USPAP course or its equivalent, which includes, but is not limited to the following course topics: 1. Preamble and Ethics Rules 2. Standard 1 3. Standard 2 4. Standards 3 to 10 5. Statements and Advisory Opinions (2) If appropriate, the Commission may grant partial credit for courses that cover one (1) or more modules. (3) Unacceptable Courses. Examples of some courses that are not eligible for approval of qualifying education, but could be acceptable for continuing education are listed below. The following list does not represent all of the courses which are not acceptable for qualifying education: (a) Courses which focus all or a majority of their instruction on only one (1) comparatively narrow aspect of real estate appraising and which examine that one (1) aspect in depth. Examples are: 1. Estimating building costs 2. Estimating accrued depreciation 3. Cash equivalency 4. Use of financial calculators in appraising 5. Subdivision analysis 6. Valuation of partial interests (b) Courses which focus primarily on advanced concepts/methods, a specialized aspect of real estate appraising, or appraising one specific type of property. Example of these types of courses are those which focus primarily on the following topics: 1. Real estate investment analysis 2. Feasibility analysis 3. Condemnation appraising/right of way appraising 4. Review appraising 5. Mass appraisal EVALUATION OF APPRAISER EDUCATION CHAPTER 1255-02 6. Litigation/testifying as an expert witness 7. Appraising condominiums 8. Appraising manufactured housing 9. Appraising office buildings 10. Appraising farms 11. Appraising land 12. Appraising machinery and equipment (c) Courses intended specifically to prepare students for a real estate appraisal licensure/certification examination. (4) Qualifications of Instructors for Qualifying Education. (a) At least one of the course instructors for the National Uniform Standards of Professional Appraisal Practice Course shall be an Appraiser Qualifications Board Certified instructor who is also a state certified residential real estate appraiser or state certified general real estate appraiser. (b) The instructor shall not have been disciplined by any licensing or certifying body in any manner. For purposes of this rule “disciplined” means any order containing a finding of improper conduct by the instructor. An instructor may make a written request to the Commission to have this restriction waived. The Commission shall consider the request and the Commission may grant or deny the request based on the discretion of the Commission. (c) An instructor must satisfy at least one (1) of the following qualification requirements in order to be approved by the Commission: 1. A baccalaureate degree in any field and three (3) years of experience directly related to the subject matter taught, 2. A master’s degree in any field and one (1) year of experience directly related to the subject matter taught, 3. A master’s or higher degree in a field that is directly related to the subject matter taught, 4. Five (5) years of real estate appraisal teaching experience directly related to the subject matter taught, or 5. Seven (7) years of real estate appraisal experience directly related to the subject matter taught. 6. Except for the seven (7) hour and fifteen (15) hour National Uniform Standards of Professional Appraisal Practice Courses, the instructor must have authored, developed or taken the course or its equivalent prior to teaching and shall provide the Commission with evidence thereof. For the purposes of the seven (7) hour and the fifteen (15) hour National Uniform Standards of Professional Appraisal Practice Courses, the instructor must be certified by the Appraiser EVALUATION OF APPRAISER EDUCATION CHAPTER 1255-02 Qualifications Board and be a state certified real estate appraiser in good standing.