The Cost Approach

4.45 Average Customer Rating

5 stars
4 stars
3 stars
2 stars
1 stars
The Cost Approach has earned an average of 4.45 out of 5 stars from 599

As one of the three primary approaches commonly used by appraisers to value real property, the cost approach is a critical part of your appraisal knowledge base. A thorough working knowledge of the cost approach will help you produce a credible indication of value and will help provide you with the tools to do business with a wide range of clients. Your instructor, Alan Simmons, will equip you with the terminology and procedures associated with cost approach, in addition to related concepts such as alternative methods of site valuation, replacement and reproduction cost, accrued depreciation, and market extraction.

In this course, you will learn:

  • The sales comparison method of site valuation and the common types of adjustments that illustrate this methodology
  • Alternative modes of site valuation, including extraction, allocation, subdivision development  land residual, and ground rent capitalization
  • The role of the cost approach in site valuation
  • The differences between replacement cost and reproduction cost
  • The basic kinds of depreciation, including physical deterioration, functional obsolescence, and external obsolescence
  • The breakdown method and the market extraction methods of estimating accrued depreciation 

Chapter list:

1. Review of Definitions
2. Site Valuation by Other Methods
3. Cost Approach, Concepts and Definitions
4. Replacement Cost and Reproduction Cost New
5. Cost Approach, Accrued Depreciation
6. Cost Approach, Breakdown and Market Extraction Methods of Depreciation
7. Conclusion

Course ratings and reviews

McKissock is rated 4.4 out of 5 by 3707.
Rated 5 out of 5 by from The course is well prepared, comprehensive, and easy to follow
Date published: 2019-09-04
Rated 5 out of 5 by from Difficult material ws presented in an easy-to-understand format. Obviously a lot of thought went into the presentation.
Date published: 2019-05-27
Rated 5 out of 5 by from Really good course to take. I learned a lot of things that I would not have known otherwise. Really would recommend this class.
Date published: 2019-05-19
Rated 5 out of 5 by from The Cost Approach is a great tool to have in your appraisal tool box. But you have to know the basics of how it works and when to apply it. The course offers a review of the major concepts and several helpful examples.
Date published: 2019-05-07
Rated 5 out of 5 by from Good refresher course. Principles are well explained with good examples.
Date published: 2019-04-22
Rated 5 out of 5 by from Excellent course with very valuable information and well supported examples of the Cost Approach.
Date published: 2019-04-19
Rated 5 out of 5 by from This course had some tough areas which helped shake out some cob-webs from my brain.
Date published: 2019-04-07
Rated 5 out of 5 by from Good course. Basic but very good review. Enough challenging material to keep your interest.
Date published: 2019-03-13
  • y_2019, m_9, d_16, h_4
  • bvseo_bulk, prod_bvrr, vn_bulk_2.0.13
  • cp_1, bvpage1
  • co_hasreviews, tv_3188, tr_519
  • loc_en_US, sid_MCK-1112, prod, sort_[SortEntry(order=RATING, direction=DESCENDING), SortEntry(order=SUBMISSION_TIME, direction=DESCENDING)]
  • clientName_mckissock
  • bvseo_sdk, p_sdk, 3.2.0
  • CLOUD, getContent, 79.91ms

Is there a final exam Are there chapter quizzes to complete This is for a Florida and Illinois license

Asked by: Mark j
There are chapter quizzes throughout the course. FL also requires a final exam.
Answered by: McKissock
Date published: 2019-04-30
  • y_2019, m_9, d_16, h_4CST
  • bvseo_bulk, prod_bvqa, vn_bulk_2.0.13
  • cp_1, bvpage1
  • co_hasquestionsanswers, tq_1
  • loc_en_US, sid_MCK-1112, prod, sort_[SortEntry(order=LAST_APPROVED_ANSWER_SUBMISSION_TIME, direction=DESCENDING)]
  • clientName_mckissock
  • bvseo_sdk, p_sdk, 3.2.0
  • CLOUD, getContent, 35.64ms