Overview. This course provides students with an understanding of valuation theory and the mechanics underlying real estate appraisal practices. This class explores the unique nature of the market within which property interests are created, allocated or transferred, with emphasis on real estate transactions. This class also covers the valuation impacts of various external factors including macroeconomic conditions, capital flows, fiscal and monetary policy, global forces, and structural shifts affecting real estate supply and demand. The course exposes students to proprietary valuation models, as well as quantitative tools for estimating market prices and attribution analysis. The course focuses on commercial, income-generating properties and valuation of raw land. Going beyond conventional current real estate appraisal practice, this course will seek to add the valuation perspectives of financial modeling whereby analysts seek to evaluate discrepancies between fundamental or intrinsic values and current market prices as well as to forecast future performance of real estate assets. Additionally, this course explores the valuation of intangible assets and sustainable real estate practices. This deeper analysis adds value by providing better information on which to base real estate decisions.

Positioning. This is a core course that extends the principles laid in the Real Estate Process, with special attention paid to linking urban land economics theory to real estate valuation theory and reflects the imperfect, behavioral nature of the real estate market.

Spring Quarter: Mondays and Wednesdays, 3:30am-5:30pm

Instructor: DeLisle