Real Estate Division

CPD 116 - Land Valuation

Pre-requisite: Recommend BUSI 330, BUSI 331, and BUSI 121.

These two lessons are intended to introduce appraisal theory as it pertains to the valuation of land, with a focus on case studies and practical applications. Lesson 1 reviews the economic principles important in land valuation, and covers the comparison-based methods for valuing land (including direct comparison, extraction, and allocation). Lesson 2 reviews the three income-based techniques for land valuation: ground rent capitalization, land residual, and subdivision analysis.

Course Outline

Foreword: Introduction to Professional Development Courses

Lesson 1: Comparison-Based Methods of Valuation

  • Instructor's Comments
  • Economic Principles Underlying Land Valuation
  • Appraisal Principles Important in Land Valuation
  • Modelling Land Value
  • Units of Comparison
  • Land Data Analysis
  • Comparison-Based Land Valuation Techniques
  • Direct Comparison
  • Direct Comparison Case Studies
  • Extraction Technique
  • Allocation Technique
  • Summary
  • Review and Discussion Questions
  • Appendices: Background Information on Case Studies

Lesson 2: Income-Based Methods of Valuation

  • Instructor's Comments
  • Direct Capitalization — Ground Rent Capitalization Technique
  • Direct Capitalization — Land Residual Technique
  • Cost of Development Method
  • Yield Capitalization — Subdivision Development Analysis Technique
  • Summary
  • Review and Discussion Questions
  • Appendix 1: Supply and Demand Analysis for Case Study One

Afterword

  • The Final Examination

If you have administrative questions, please email us at info@realestate.sauder.ubc.ca. If you have a comment on this page or a suggestion for additional website features, please email us at webfeedback@realestate.sauder.ubc.ca.