Real Estate Valuation

Course unit title

Real Estate Valuation

Course unit code


Type of course unit (compulsory, optional)


Level of course unit (e.g. first, second or third cycle; sub-level if applicable)

Third level

Year of study (if applicable)


Semester/trimester when the course unit is delivered

Semester 7

Number of ECTS credits allocated

3 credits

Name of lecturer(s)

Ass. Prof.

Victor Rakovskiy

Course objectives

1. To provide a firm foundation of knowledge about the real estate valuation process and to develop the relevant skills for the constructive use of that knowledge in a range of settings

2. To develop in students the ability to apply the knowledge and skills they have acquired to the solution of theoretical and applied problems in real estate valuation

3. To provide training in the principles of real estate valuation and their application

4. To stimulate students intellectually through the study of real estate valuation methodology and to lead them to appreciate its application to a range of problems and its relevance in a variety of contexts, e.g. real estate investment or finance questions.

Learning outcomes

During the course student gains knowledge in: techniques of real estate valuation; market analysis and highest and best use analysis; market comparison, income, and cost; the role of valuation in real estate investment; government regulation of appraisers. Also students will become familiar with The International Valuation Standards as well as with American and European Valuation Standards.

By the end of the course it is expected that the student will be able to:

  • Describe the foundations of Value theory.
  • Compare and discuss definitions of concepts and term used in real estate valuation.
  • Describe the real estate valuation process.
  • Give an overall description of how market analysis is performed, and how market information is gathered and used in the context of real estate valuation.
  • Understand and implement the three key valuation approaches, principles and definitions and explain how they relate to real estate valuation.
  • Make comparisons between the choices of the various valuation approaches and methods in the valuation of different types of property for different types of value estimate.
  • Apply the received knowledge practically and as member of a project group, carry out the valuation of a commercial property of normal character.
  • Critically analyse and judge the quality of a valuation report as well as present and defend group’s valuation report at a workshop.

The acquirement will be useful for further economical disciplines (e.g. property valuation, investment analysis, property management, etc ) as well as in diploma writing (the economical part).

Mode of deliver:

  • Face-to-face (professor – group of students)
  • The distance learning is possible to use during the course, (e.g. Scype).
  • The participation of business community is planned during course. In the period ahead it will be possible to invite the practicing appraisers.

Prerequisites and co-requisites

Local real estate market awareness is welcome. To participate in the course it is advisable to have a basic knowledge of micro-macro economics and theory of price formation.

To work in real estate, student must be proficient in Excel program.

Recommended optional program components

Optional material could be connect with Real Estate Finance and could include such components as Industrial property valuation, Housing rent valuation, Mortgage and Lending criteria during valuation process.

If student will be interested in getting supplementary books it will be possible to do during course.

Course contents

The aim of the courses is to gain an understanding of economic forces that drive real estate value in the market. Students will learn the concepts, tools, approaches and techniques for real estate valuation, based on the application of economic theory and principles of urban and real estate economics. Upon completion of the course, students will get a broad understanding of how market dynamics, constrained by the geographic, physical and legal parameters, determine values of individual assets in the market. In short, at the end of the course, students will be able answer to the following questions: “what is it worth of real estate assets?” and “how much should we pay for it if…?”

Practice (workshops, exercises, free work)

During course student should prepare the Commercial Real Estate valuation report. This activity provides an opportunity to apply the principles and concepts covered in the course and employ the specific techniques taught in a very real life situation: a complete narrative appraisal of a commercial property.

The experience of completing a full appraisal assignment is essential to ensuring that student grasp the concepts and understand the techniques of valuation, however the workload is beyond what would be expected of a single individual in this course. Working as a group, student gain the experience of a full appraisal while sharing the burden of the detailed legwork. Furthermore, working in a small group setting helps develop the interpersonal, group management, presentation and, inevitably, conflict resolution skills necessary to be successful in student career.

During course students will have some assignments. It will be different tasks and practice examples relative to studying theme.


Required reading (the Course book and Handbook)

1. The Appraisal of Real Estate (2008), 13th Edition, the Appraisal Institute, p. 742. ISBN: 978-0-922154-98-2

2. Mark R. Rattermann, MAI, SRA (2009), The Student Handbook to The Appraisal of Real Estate, 13th Edition. the Appraisal Institute, p. 437. ISBN: 978-1-935328-01-8

Recommended reading (the optional books)

1. David Geltner, Norman G. Miller, Jim Clayton, and Piet Eichholtz (2007), Commercial Real Estate Analysis and Investments, Second Edition

2. William B Brueggeman and Jeffrey D. Fisher (2010), Real Estate Finance and Investments; McGraw-Hill Higher Education, 14th Revised edition, p. 672.

3. Havard T. (2002). Investment Property Valuation Today, Estate Gazette, London.

4. Fischer D. (2002). Property Valuation Methodology, Black Swan Press, Perth.

5. J.E. Stiglitz, and C.E. Walsh (2002), Principles of Economics, 3rd Edition

6. John F. McDonald and Daniel P McMillen (2007) Urban Economics and Real Estate, Wiley-Blackwell, p.619.

7. Phillip T. Kolbe, Gaylon E. Greer (2003) Investment Analysis for Real Estate Decisions. Dearborn Real Estate, p. 489

Some course materials will be handed out in class.

Planned learning activities and teaching methods

Class time will be used for a combination of lectures and tutorials (workshops).

In additional to attending classes, students should be prepared to spend some time on activities related to this course. These activities include carrying out the required readings, keeping up with the business and analytical press regarding current issues of relevance to this course, and preparing for tests and the final exam.

Copies of relevant handouts and electronic sources are provided periodically throughout the course.

A summary of lecture notes will also be available. It is the responsibility of students to take all necessary lecture notes in addition to the information provided electronically.

Visual aids will be used to reinforce lecture points (ppt).

The course comprises 15 lectures and 15 interactive tutorials (workshops). Before tutorial student should read relevant materials and have done all assignments.

Students strongly encourage to work in small groups on assignments (workshops) and to study together for the exams. Spending time together on exercises and explaining them to each other is the best way to learn the material. However, the work student submits must be his own individual work on all assignments.

Assessment methods and criteria



Assignments (exercise)


Commercial Appraisal Project


Lecture attendance/ Class/Group Participation


Final Exam




Assessment Criteria:

Preparation and Attendance – Lectures attendance will be graded; the lecture discussion questions for the assigned lecture will be due at the beginning of the class period. Missing class or not completing the assigned lecture discussion questions on time, without being granted an excused absence in advance, will be considered an unexcused absence. Student is allowed one unexcused absence without losing points.

Group Project Participation – At the completion of the project, students’ performance will be reviewed by his fellow group members on the appraisal project.

Language of instruction

  • English is the official course language
  • All slides available in English
  • Bibliography available in English