REAE 5334: Real Estate Appraisal

REAE 5334.031: SEMINAR in REAL ESTATE APPRAISAL

SPRING 2002

SYLLABUS
Thursday, 3:00-5:50 PM
University Center at Dallas

Instructor        J. Andrew Hansz Ph.D., CFA

Office               619 Business Building

Office Hours   Tuesday, 10:00 to 11:30 AM, Wednesday, 10:00 to 10:30 PM and by appointment.

Phone              (817) 272-5843

 E-mail             hansz@uta.edu

Course Description

Sale comparison, cost, and income approaches, with emphasis on income forecasting and capitalization.

Prerequisites

• Prerequisite: FINA 5311 or REAE 5311 or equivalent.  See graduate bulletin.

Course Format

• Discussion/Seminar – Specific text readings will be assigned for each class period.  Class will be conducted in a seminar format and it is expected that each assignment will be read prior to class and you will be ready to discuss the materials.

• Lectures and Assignments – Some lecturing will be necessary.

• Problems, problems, problems!  In-class and homework.

• Quiz, Mid-term, and Mandatory Final Exam

• Case – A real estate valuation case will be assigned, discussed in class, and graded.

• Group Valuation Project/Paper/Presentation – Groups of three students per group are responsible for writing a narrative commercial appraisal report on a property located in the Valwood Industrial Park.  An alternative to the Group Valuation Project is the Individual Research Project/Paper/Presentation – Individual students are responsible for conducting a literature review, developing a hypothesis, collecting data, running and interpreting a multiple regression model, and writing a research paper.

• Attendance and participation is required.  Due to the seminar format of this course, class discussion and contribution is critical.  Attendance will be taken.

Required Textbooks

• The Appraisal of Real Estate, 12th Edition, Appraisal Institute, 2001. (website: www.appraisalInstitute.org)

• Also, assigned articles and handouts (TBA).

Calculators and Spreadsheet

A financial calculator (HP 10-B or equivalent) and a spreadsheet (Excel or equivalent) are required.  The calculator must be able to calculate Internal Rate of Return (IRR) and Net Present Value   (NPV).  This means that the calculator must be able to deal with entry of uneven cash flows.  Check the manual before you buy a calculator.  You are responsible for learning the keystrokes.  Please, do not use any electronic devises with memory during quizzes or exams.  I also assume that you have basic spreadsheet skills.

Grading

Generally, the grading scale used by the Instructor can be:

The instructor can apply a “curve” which could lower these ranges.  

Make-up Examination Policy

The instructor reserves the rights to change the style, format, and content of a make-up examination. A make-up exam will be given if the student has a reasonable, verifiable excuse.  However, students should not expect to take more than one make-up exam.  The make-up exam must be completed before the end of the week in which the original exam was scheduled.  Once a student has taken an exam, a make-up exam cannot be given.

Policy on Attendance 

Students are expected to attend each class and students are expected to come to each classwiththeir assignments completed.Students who must miss a class are responsible for obtaining all assignments, lecture notes, handouts, and announcements discussed in class from a classmate.  You should get to know at least one student in class. 

Policy on Handing in Assignments Late

Several homework assignments will be made during the quarter. A penalty per class period will be assessed for all assignments turned in late.  Absence from class is not a valid excuse for handing in homework assignments late.

Policy on Disruptive Classroom Behavior

This course will be conducted in a professional manner.  Unprofessional behavior of any form in the classroom will not be tolerated.  Students can be withdrawn at the discretion of the instructor for unacceptable behavior.  Additionally, a portion of the final grade is attributed to class attitude/contribution.  This grade, made at the instructor discretion, is based on attendance and attitude during class.  Please disable all cell phones and pagers during class time.

Academic Honesty

It is the philosophy of UTA that academic dishonesty is a completely unacceptable mode of conduct and will not be tolerated in any form.  All persons involved in academic dishonesty will be disciplined in accordance with University regulations and procedures.  Discipline may include suspension form the University.  You are responsible to maintain the standards of Academic Honesty included in the current UTA catalog.

Bomb Threats

Effective April 8, 1996, the College of business Administration has adopted a policy to deal with the classroom disruption caused by bomb threats in the building.  (A) Section 22.07 of the Texas Criminal Law Statutes states that a Class A misdemeanor is punishable by (1) a fine not to exceed $4,000, (2) a jail term of not more than one year, OR (3) both such a fine and confinement. (B) If anyone is tempted to call in a bomb threat, be aware that UTA has the technology to trace phone calls. (C) Every effort will be made to avoid cancellation of presentation/tests caused by bomb threats to the Business Building.  Unannounced alternate sites will be available for these classes.  If a student who has a class with a scheduled test or presentation arrives and the building has been closed due to a bomb threat, the student should immediately check for the alternate site notice which will be posted on/near the main doors on the south side of the Business Building.  If the bomb threat is received while class is in session, your instructor will ask you to leave the building and reconvene at another location.  (D) Students who provide information leading to the successful prosecution of anyone making a bomb threat will receive one semester’s free parking in the Maverick Garage across from the Business Building.  UTA’s Crime stoppers will provide a reward to anyone providing information leading to an arrest.  To make an anonymous report, call 817-272-5245.

Withdrawing

It is the student’s responsibility to complete the course or withdraw form the course in accordance with University regulations.  Students are strongly encouraged to verify their grade status before dropping a course after the first withdrawal date.  A student who drops a course after the first withdrawal date may receive an “F” in the course if the student is failing at the time the course is dropped.

Drop for Non-payment

It is the policy of the University of Texas at Arlington that students who have not paid by the census date and are dropped for non-payment cannot, under any circumstances, receive a grade for the course.  Therefore, a student dropped for non-payment whom continues to attend the course will not receive a grade for that course.  Emergency loans are available to help students pay tuition and fees. Students can apply for emergency loans by going to the Emergency Tuition Loan Distribution Center at E.H. Hereford University Center (near the southwest entrance.).

Student Evaluation of Teaching

The following appears in Administrative Memorandum No. 98-5 dated August 21, 1997, from the President for academic and administrative offices. “ Beginning in Fall 1997, teaching evaluations will be conducted in every class every semester for every instructor of record”. 

Important Dates

»  January 14	First Day of Classes
Jan. 14 – 18	Late Registration
January 21	Martin Luther King, Jr. Day (Holiday)
January 30	Census Date
February 22	End of First Drop Period for Undergraduates
March 8	Midsemester
March 15	Mid-semester grades due
March 18 – 24	Spring Vacation
April 1	Current and Former Student Registration begins for Maymester and Summer
April 12	Last day for Undergraduates to Drop Courses
April 25	Registration begins for Maymester and Summer for All Students
May 3	Last day of classes
May 4, 6 – 10	Final Exams
May 10-12	Commencement Ceremonies
May 14	Grades Due
May 15	Grades available via Sam and web

Tentative Schedule:   

This is a tentative schedule.  Adjustments will be necessary during the progression of the semester.  It is the student’s responsibility to be aware of any changes announced in-class.

Week	Topics	Chapters
1	Course Administration; Introduction	1, 2, 3, 4
2	Mass Appraisal and Hedonic Modeling Group Assignment: form groups (3 per group)	Handouts
3	Fundamentals; Data Collection and Analysis Group Assignment: select property, collect data	5, 6, 7, 8
4	Data Collection and Analysis (continued) Group Assignment: collect data	9, 10, 11, 12
5	Cost Analysis Business Week 2002, February 11-15 Group Assignment: area & neighborhood analysis, property description	13, 14, 15, 16
6	Sales Comparison Analysis Group Assignment: highest and best use analysis	17, 18
7	Income Capitalization Analysis Group Assignment: land value and cost approach	20, 21,22
8	Income Capitalization (continued); Reconciliation Group Assignment: land value and cost approach	25, 26
9	Mid-term Examination (March 14th) Group Assignment: sales comparison approach
10	Spring Break (March 18-22), No Class
11	Cost and Sales Comparison Approaches Revisited Group Assignment: income approach	19
12	Income Approach Revisited Hedonic Project/Write-Up Deadline (April 4th) Group Assignment: income approach	23, 24
13	Review Appraisal/Special-Use Properties Group Assignment: reconciliation and addenda	Videos
14	Valuation Case Studies Group Assignment: report writing and editing (final draft)	Cases
15	How Appraisers Do Their Work Group Assignment: report assemblage and presentation preparation	Handouts
16	Project Presentations and Papers (papers due – May 2nd)
17	Mandatory Final Exam (Thursday, May 9, 2002)

*If you would like your final grade, before posted by the University, please bring a self-addressed envelope to the final exam.  To protect your privacy, I do not give grades over the phone or via e-mail (applies to all quizzes, mid-terms, final exams, and final grades).