Category: Real Property:
RP401 - Allocating Components
in Going Concerns Appraisals
Please see the "Upcoming Classes" tab below for class
offerings and registration information.
*State Approval received fromNevada, Washington, Arizona, California, Idaho, Utah and Oregon . Pending approval
in the following states: Colorado, New
This three and one-half day course introduces the
participant to the concept of appraising real estate properties with a business
component, such as car washes, gas stations and motels. It is a thorough,
hands-on learning experience designed to provide the experienced appraiser the
knowledge and understanding needed to properly allocate/segregate the components
and determine their effect on value as required by USPAP. This course
presents a clear understanding of going concern valuations and resolves current
misrepresentations surrounding the issue. The participants will be introduced to
a new set of rules to determine which property types qualify as going concern
valuations and which do not. Previously written methodologies and
techniques dealing with the segregation and allocation of values will be
examined and discussed. The course will examine a series of case studies
dealing with fueling stations, car washes and motels.
• USPAP, FIRREA,
• Going Concern– various definitions;
• Principles & Vice Principles;
• What’s included;
between BV & REA;
• Historical Methodologies;
• Brief Intro to Business
• Understanding Financial Statements;
• Case Studies; and
• Small Group Case Studies.
1. Identify properties with going concerns;
2. Determine when it is appropriate to allocate/segregate components
in going concerns;
3. Cite what rules must be followed;
4. Explain appropriate methods, techniques, and procedures
for allocating or valuing the diverse components of a going concern
• Participants will be required to read chapters
prior to each class day. Over the course of the class, students will apply
various methods and techniques to case studies dealing with appraising a going
concern. The class concludes with a four (4) hour exam. A financial
calculator is required for the course. Appraisers are expected to have the
requisite experience in commercial real estate appraising. The course is
developed from the book Going Concern Valuations for Real Estate Appraisers,
Lenders, Assessors, and Eminent Domain Professionals© written by L. Deane
Wilson, MA, ASA and Robin G. Wilson, MAI.
• This course
does not qualify participants as business appraisers.
• This course does not teach
business valuation in a formal manner.
• This course does teach how to allocate/segregate the
various components inexorably connected to the real estate.
This course is for students who
have a basic understanding of how to appraise
complex commercial real estate such as lodging properties, fueling stations,
car washes, nursing/assisted living facilities, etc. Participants are expected to
know how to use a financial calculator.