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Information, knowledge, and awareness: resources for real estate analysts and valuers.

Abstract

This is a column about resources for appraisers and real estate market analysts--books, articles in a variety of publications, presentations, and websites. It's about current happenings, trends in, and influences on, the real estate market. It's about the psychology and sociology of the market. It's about all manner of information for appraisers.

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Let's take a look at a newly available resource for valuers and users of appraisals.

The Student Handbook to The Appraisal of Real Estate, 14th ed.

(Chicago: Appraisal Institute, 2014)

382 pages

The Appraisal Institute's recently published text The Appraisal of Real Estate, 14th edition (TARE) was reviewed in the preceding issue of The Appraisal Journal, so a review of that text won't be repeated; here, we only survey and evaluate TAREs companion student handbook.

The Student Handbook to The Appraisal of Real Estate, 14th Edition, is a 382-page optional companion publication, available in softcover and digital formats, that complements and enhances each of TARE's 35 chapters.

The Student Handbook provides the following benefits for the reader-user.

Organization and Content

The Student Handbook chapters and subheadings are parallel with the TARE text, so looking something up is a snap. Further, the handbook is available in a pdf edition, which makes looking up a key word very easy--painless, in fact.

The ten major parts of the TARE text have different trim or theme colors; however, the Student Handbook does not. This was a helpful touch in TARE and would have been nice to also see in the handbook. A minor point, but perhaps worth considering in the next printing.

Let's take a look at how the chapters in the text work with the material in the Student Handbook.

Each chapter in TARE has subheadings for the major topics covered; these topics are basically the same in the Student Handbook. No new or additional topics are covered in the Student Handbook, but the narrative material is different. The handbook topic explanations provide alternatives to the text in TARE, and the Student Handbook is complementary or supplemental to that text. The handbook material is not simply a duplication of the text--it is not just a paraphrasing or rewording--but differs from TAREs wording enough to provide a helpful or different view or slant on the topic.

Each chapter in the Student Handbook concludes with a "Review Exercises" section, which helps the reader-user evaluate his or her understanding of the material. Suggested "Solutions to the Review Exercises" are provided conveniently in the pages immediately following the exercises. These suggested solutions not only provide answers to help the reader-user get a feel for understanding and progress, but provide the page reference that has the material containing the appropriate specifics.

Both the text and the handbook have set-asides, or call outs, with definitions or explanations in embedded text boxes. Again, the material in the Student Handbook does not simply repeat the text, but has different content--explanations, definitions, important points highlighted, and such. Some sidebar discussions that stand out include the following:

* Advocacy and Client Pressure (Introduction)

* Personal Property and Intangible Property (Chapter 1)

* Distinctions Between Extraordinary Assumptions and Hypothetical Conditions (Chapter 5)

* Mortgage Types, Terms, and Definitions along with mortgage basic formula and illustration (Chapter 10)

* Common Environmental Problems (Chapter 12)

* Site Visit, Measuring Buildings, and Uniform Appraisal Dataset Condition Ratings and Definitions (Chapter 13)

* Consistent Use and Probability of Zoning Change in Highest and Best Use Considerations (Chapter 16)

* Cascading Errors or Inbreeding Data (Chapter 18)

* Gross Sale Price, Concessions, Financing Adjustments (Chapter 19)

* Interests Valued, Common Lease Structures, Common Rent Types, Capital Expense and Replacement Allowance (Chapter 21)

* Lease Data (Chapter 22)

* Income Stream Patterns (Chapter 24)

* Estimating Entrepreneurial Incentive (Chapter 28)

* Functional Obsolescence Procedures (Chapter 29)

* Reconciliation Checklist, Consistency Checklist, Rounding (Chapter 30)

* Fair Housing, Lending, and Appraisal Reporting (Chapter 31)

* Components of an Appraisal Review Report, Common Issues Found in Appraisal Reviews (Chapter 32)

* Acronyms in Valuation for Financial Reporting (Chapter 34)

Several of the chapters in the handbook also have a short list of "Key Terms" at the bottom of the chapter's first page, giving the reader a heads-up of concepts to keep in mind when going through the chapter.

The handbook does not have an addenda section or appendix; nor does it include any commentary or material found in TARE's addenda (Professional Practice and Law, Regression Analysis and Statistical Applications, Financial Formulas, and Bibliography).

For the Practitioner

While the word student is in the title, the handbook is a good augmenting reference book for practitioners, who can turn to the handbook as a refresher or citation base for terms, concepts, methodology, and technique.

For the Student

The Student Handbook provides amplifications of key topics and points as well as review exercises with suggested solutions. These features help students assess their understanding and offer examples and applications beyond those of the text. Used with the TARE text, the handbook provides alternative explanations, discussions, and examples, which are often helpful when understanding new, unfamiliar, material.

For the Educator

Education professionals teaching a variety of educational courses, whether in Appraisal Institute classes or in academic institutions, will find this handbook a valuable source for augmenting and enhancing the text. For instructors, the handbook provides alternative ways to present much of the TARE information. The handbook has amplification of the text topics, concepts, terms, and examples plus discussion and quiz materials.

Authorship

This large book is written by one of the outstanding, long-time, respected educators in real estate and real estate appraisal--Mark R. Ratterman, MAI, SR A. He has a clear, logical, straightforward writing style that is direct and to the point, respectful of the reader's time and intelligence. Ratterman is well versed in the subject matter thanks to years of practical appraisal experience. He is not only quite capable, but also understanding of reader/student needs, and teaching/ learning technique due to his extensive experience as an educator and writer. You're in good hands here. And the reader-user has the benefit of the collective authorship of the accompanying 14th edition of The Appraisal of Real Estate, so you're in very good hands indeed using these two publications together.

Conclusion and Recommendation

The handbook is more helpful augmenting some chapters of TARE's text than others, for example, the chapters covering statistics, market analysis, and discounted cash flow. In several chapters, readers will notice TAREs text has explanations that are more in-depth and complete than found in this handbook. But then, it's important to remember that the Student Handbook has fewer than half the pages in TARE. Also, the Student Handbook includes important review questions and solutions, a crucial aid to learning, understanding, and progress for the reader-user. The text of TARE 14th edition is quite thorough, complete with a myriad of diagrams, exhibits, and examples to augment the narrative. It's important to appreciate the Student Handbook is not intended as a substitute for that text. Further, the reader should understand that the handbook does not introduce and discuss additional topics beyond those found in the text of TARE.

The Student Handbook is an exceptionally good augmentation to The Appraisal of Real Estate, 14th edition, particularly because of its alternative explanations and discussions, and its valuable Review Exercises and Suggested Solutions sections. The handbook is not essential and TARE is not incomplete without it; but the Student Handbook is delicious frosting on the cake since it does add value to the text and is a worthy aid particularly for students and educators--its intended readers and users.

Dan Swango, PhD, MAI, SRA, is president of Swango Real Estate Counseling and Valuation International in Tucson, Arizona. He is experienced in valuation and consulting involving equity investment, debt security, risk reduction, profit optimization, estate planning and settlement, buy/sell opportunities, and eminent domain. Swango is an instructor and communicator with domestic and international experience. He is namesake of The Appraisal Journal's Swango Award, past Editorial Board chair and editor-in-chief of The Appraisal Journal, and a current member of the Journal's Review Panel.

by Dan L. Swango, PhD, MAI, SIL4

Contact: danswango@yahoo.com
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Title Annotation:RESOURCE CENTER
Author:Swango, Dan L.
Publication:Appraisal Journal
Article Type:Report
Geographic Code:1USA
Date:Jun 22, 2014
Words:1337
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