Becoming Proficient in Fractional Interest Valuation
4 Hour Zoom
**Please Note** We are offering this course at a minimal price for those interested in the topic. For those that wish to t incorporate this into their business, instructor Dennis Webb ASA, MAI, FRICS does have an accompanying textbook and software. These are NOT required for the course but encouraged to take the topic further. These will be offered to purchase at a reduced price for those taking the course.
Approvals for 4 hours for AI, DC, VA, MD, NJ. If seeking approval for PA or DE, please contact Tiffany Lewis at tiffany.lewis@appraisalinstitute.org.
Course information:
This seminar is about real breakthroughs in fractional interest valuation, as well as fundamental keys to successful multidisciplinary valuation assignments. It offers the appraisers who have a foundation in the income approach exactly what they need to understand, communicate and execute fractional interest valuations and gain their client’s trust; plus, emphasize their objective judgment, thereby proving their worth against the coming threats of AI and AVMs. The keys and resources you need to accomplish this are available to you in this eye-opening 4-hour seminar.
· Part 1 – Fundamental Realities is about the real fundamentals of multidisciplinary valuation and the unfortunate roots of fractional interest valuation.
Learning objectives
1. Know the fundamental challenges of multidisciplinary valuation
2. Understand why machines cannot replace our “good” judgment
· Part 2 – The Story of Shared Ownership shows you how intangible benefits create shared ownership in the first place, and how understanding those benefits will allow you to help your clients with buyouts and other market demands.
Learning objectives
1. Become familiar with the lifecycle of fractional interest holdings.
2. Recognize intangible benefits that have major effects on value.
3. Assist client with partner and inter-generational buyouts.
· Part 3 – Mastering the Method offers a view of the fundamental differences between real property appraisal methods and business valuation methods. We then follow a case, demonstrating how the income approach (2.0) is applied to the facts & circumstances of fractional interest holdings.
Learning objectives
1. Learn how available methods connect with the partnership facts, or don’t.
2. Understand how a familiar DCF model (2.0) works for fractional interests.
· Part 4 – How You Can Do It Now briefly demonstrates PrimusPVX® online software that values fractional interests. The software’s dashboard guides the user through a carefully organized checklist of all of the facts and circumstances that are likely to be important for the holder of a fractional interest in real estate. It’s algorithm completely eliminates the need to build valuation models, while providing instant results for all input changes.
The result is that the valuer is free to focus entirely on the right questions to ask in all required valuation “languages,” and apply their judgment exactly where it matters in the valuation process.
Learning objectives
1. Learn to ask the right questions, regardless of your disciplinary expertise.
2. Incorporate the facts and circumstances of the case in your story of value.
3. Discover how you can fit the scope of your work to your client’s needs.
4. Become proficient in fractional interest valuation.
Attendees will have what they need to add fractional interest valuation to their real property practice, or to support their existing valuation practice with essential fact checklists and supplemental models.