NAC645C.244. Required instruction: Content of courses.

The content of the following courses required pursuant to NAC 645C.235 to 645C.243, inclusive, must be as follows:

     1. For a course on basic appraisal principles:

     (a) Real property concepts and characteristics, including basic real property concepts, real property characteristics and legal descriptions;

     (b) Legal consideration, including forms of ownership, public and private controls, and real estate contracts and leases;

     (c) Influences on real estate values, including governmental, economic, social, environmental, geographic and physical influences;

     (d) Types of value, including market and other value;

     (e) Economic principles, including classical economic principles and application and illustrations of economic principles;

     (f) An overview of real estate markets and analysis, including market fundamentals, characteristics, definitions, supply analysis, demand analysis and use of market analysis; and

     (g) Ethics and how they apply in appraisal theory and practice.

     2. For a course on basic appraisal procedures:

     (a) An overview of approaches to value.

     (b) Valuation procedures that include:

          (1) Defining the problem;

          (2) Collecting and selecting data;

          (3) Analyzing;

          (4) Reconciling and final value opinion; and

          (5) Communicating the appraisal.

     (c) Property descriptions that include:

          (1) Geographic characteristics of the land or site;

          (2) Geological characteristics of the land or site;

          (3) Location and neighborhood characteristics;

          (4) Land or site considerations for the highest and best use of real estate;

          (5) Improvements by architectural styles and types of construction; and

          (6) Residential applications.

     3. For the National USPAP Course:

     (a) Preamble and ethics rules;

     (b) The first standard of the USPAP;

     (c) The second standard of the USPAP;

     (d) The 3rd through 10th standards, inclusive, of the USPAP; and

     (e) Statements and advisory opinions.

     4. For a course on residential market analysis and analysis of the highest and best use of real estate:

     (a) Residential markets and analysis that includes:

          (1) Market fundamentals, characteristics and definitions;

          (2) Supply analysis;

          (3) Demand analysis; and

          (4) Use of market analysis.

     (b) An analysis of the highest and best use of real estate that includes:

          (1) Test constraints;

          (2) Application of the highest and best use of real estate;

          (3) Special considerations;

          (4) Market analysis; and

          (5) Case studies.

     5. For a course on valuation of a site and cost approach for a residential appraiser:

     (a) Valuation of a site that includes:

          (1) Methods; and

          (2) Case studies.

     (b) Cost approach that includes:

          (1) Concepts and definitions;

          (2) Replacement or reproduction cost new;

          (3) Accrued depreciation;

          (4) Methods of estimating accrued depreciation; and

          (5) Case studies.

     6. For a course on residential sales comparison and income approaches:

     (a) Valuation principles and procedures by sales comparison approach;

     (b) Valuation principles and procedures by income approach;

     (c) Finance and cash equivalency;

     (d) Financial calculator introduction;

     (e) Identification, derivation and measurement of adjustments;

     (f) Gross rent multipliers;

     (g) Partial interests;

     (h) Reconciliation; and

     (i) Case studies and applications.

     7. For a course on residential report writing and case studies:

     (a) Writing and reasoning skills;

     (b) Common writing problems;

     (c) Form reports;

     (d) Report options and compliance with the USPAP; and

     (e) Case studies.

     8. For a course on statistics, modeling and finance:

     (a) Statistics;

     (b) Valuation models, including automated valuation models and mass appraisal; and

     (c) Real estate finance.

     9. For a course on advanced residential applications and case studies:

     (a) Complex property, ownership and market conditions;

     (b) Deriving and supporting adjustments;

     (c) Residential market analysis; and

     (d) Advanced case studies.

     10. For a course on general market analysis and analysis of the highest and best use of real estate:

     (a) Real estate markets and analysis that includes:

          (1) Market fundamentals, characteristics and definitions;

          (2) Supply analysis;

          (3) Demand analysis; and

          (4) Use of market analysis.

     (b) The highest and best use of real estate that includes:

          (1) Test constraints;

          (2) Application of the highest and best use of real estate;

          (3) Special considerations;

          (4) Market analysis; and

          (5) Case studies.

     11. For a course on the valuation of a site and cost approach for a general appraiser:

     (a) Site valuation that includes:

          (1) Methods; and

          (2) Case studies.

     (b) Cost approach that includes:

          (1) Concepts and definitions;

          (2) Replacement or reproduction cost new;

          (3) Accrued depreciation;

          (4) Methods of estimating accrued depreciation; and

          (5) Case studies.

     12. For a course on sales comparison approach for a general appraiser:

     (a) Value principles;

     (b) Procedures;

     (c) Identification and measurement of adjustments;

     (d) Reconciliation; and

     (e) Case studies.

     13. For a course on income approach for a general appraiser:

     (a) Overview;

     (b) Compound interest;

     (c) Lease analysis;

     (d) Income analysis;

     (e) Vacancy and collection loss;

     (f) Estimating operating expenses and reserves;

     (g) Reconstructed income and expense statements;

     (h) Stabilized net operating income estimate;

     (i) Direct capitalization;

     (j) Discounted cash flow;

     (k) Yield capitalization;

     (l) Partial interests; and

     (m) Case studies.

     14. For a course on report writing and case studies for a general appraiser:

     (a) Writing and reasoning skills;

     (b) Common writing problems;

     (c) Report options and compliance with the USPAP; and

     (d) Case studies.

     (Added to NAC by Comm’n of Appraisers of Real Estate by R158-05, 9-18-2006, eff. 1-1-2008; A by R026-08, 8-26-2008; R196-08, 2-11-2009)