The Cost Approach

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The Cost Approach has earned an average of 4.36 out of 5 stars from 539 ratings.

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

Appraisal Continuing Education Course Ratings and Reviews

McKissock is rated 4.4 out of 5 by 4096.
Rated 5 out of 5 by from Great course - I've been appraising 30+ years - and I learned a couple new things!
Date published: 2020-06-30
Rated 5 out of 5 by from It was tough, but it was for my learning experience.
Date published: 2020-06-23
Rated 5 out of 5 by from I enjoyed this class. The instructor had easy to understand examples and the practice cost estimating calculations are so helpful. Also included web resources to cost estimate providers that I had not previously known.
Date published: 2020-06-17
Rated 5 out of 5 by from Course help an appraiser to refine their knowlege as to different depreciation methods that they may not use but could possibly need in the future.
Date published: 2020-06-13
Rated 5 out of 5 by from Great basic course for an appraiser's foundation skills.
Date published: 2020-06-05
Rated 5 out of 5 by from I have been appraising for 30 years, took class as a refresher. Good class.
Date published: 2020-05-14
Rated 5 out of 5 by from Good course
Date published: 2020-04-26
Rated 5 out of 5 by from Well organized and relevant. Easy to navigate and move at your own pace. No typos or confusion.
Date published: 2020-04-26
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Is this 7 hours of CE for license renewal ???

Asked by: richy
SC info:
Answered by: McKissock
Date published: 2020-04-22

how long after payment do I have to complete a course?

Asked by: Joe R
Your course will expire six (6) months from the date it is first opened. If a course approval is expiring with the state before that six months is up, all students enrolled in that course will be notified via email of the date by which the course must be completed in order to receive credit.
Answered by: McKissock
Date published: 2019-11-12

Does California require a final exam?

Asked by: Patrick
There will be exams for both real estate and appraisal courses.
Answered by: McKissock
Date published: 2019-10-03

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
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