Homburg Institute
Program: Real Estate Development, and Project and Construction Management
2021 | Instructor-Led Program |


The Commercial Real Estate Appraisal Process

Course ID: REFN0100

Category: Business


self-taught course
Duration: 10 Hours





Course Summary

This course will explore the process of appraising commercial real estate, production of a site analysis, and the performance of financial operations for appraisal and valuation. The participants will also discover how a wide range of factors can have financial implications on value, funding strategies and asset selection. This course aims to enhance the decision making process required for the commercial Real Estate professional through the practice of systematic and logical multi-factorial analysis application.


Course Rationale

The Commercial Real Estate Appraisal Process holds unique challenges for the Real Estate professional. There are a wide range of additional factors from those of the Residential Real Estate Market to be included that influence end point value and approach considerations that will need to be studied in-depth to ensure the most accurate and timely appraisal is reached.

About the instructor
Mark Polon

Mark Polon


Mark Polon is President of RIISnet, a patented transaction platform for the purchase and sale of commercial real estate. He oversees all company activities, business development, marketing strategies, and liaison to the real estate brokerage community. Prior to this, he served as Senior Executive Vice President for Pudential CRES and Vice President of Coldwell Banker Commercial Real Estate. Mark Polon has more than 25 years of experience in the purchase, management, appraisal, and sale of commercial real estate and personal property. Also he has trained over 10,000 real estate practitioners nationally and internationally. He is a graduate of UCLA where he majored in Political Science. He did his graduate work at the University of Massachusetts in Education and Psychology.

View other courses from Mark Polon


Lecture 1 - Nature, Importance, and Principles of Property Valuation

In this introductory session, Mark Polon introduces the principles of property valuation, and introduces essential concepts in zoning and ownership structures. He also provides context for the appraiser in a discussion of real estate cycles.

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Lecture 2 - Importance of Cost, Price, Income, and Market

What are the concepts of price, value, and income, and how to they relate to each other? What role do they play in the valuation of real estate? This session breaks down the variables, and presents each in ways that are easy to understand. Then, Mark Polon relates these to the real estate market.

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Lecture 3 - The Relevance of Geospatial Data

This session engages the types of data available to the appraiser, including demographic, geographic, and psychographic factors. This lively discussion defines concepts and shows how to use them.

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Lecture 4 - The Importance of Site Analysis

The course moves on to an illustration of site analysis, building analysis, and improvement analysis as methods by which appraisers can understand and appreciate the value of real estate.

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Lecture 5 - Income and Expense Forecasting

The valuation of income properties depends on a sound understanding of legal terms, as well as financial data. In this session, Mark Polon describes different types of leases and their implications on income. The lecture then explains key concepts like the capitalization rate, net operating income, and net present value.

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Lecture 6 - Mathematics of Valuation Part 1

Now that you understand the concepts, terms, and influences on a property's value, this is the time to understand how they work in valuation models. This session delves into representative capitalization, cash-flow predictions, and potential capitalization. Learn how to calculate net operating income, and the capitalization rate of real estate.

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Lecture 7 - Mathematics of Valuation Part 2

This session continues the exposition of models, including how to project income from cash flows and sales to determine value, how to understand and use a discount rate, and how to examine yield capitalization.

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Lecture 8 - Comparable Sales Approach

Mark Polon shows an important technique in valuation, being the comparison of a similar substitute property of a similar utility and desirability within a reasonable amount of time. In doing so, he explains the issues involved in selecting units for comparison, and the influence of factors like supply and demand in the marketplace.

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Lecture 9 - Residual Techniques and Band of Investment

This session explores the concept of highest and best use, introduced in previous sessions. It examines the effect of improvements, including off-site, location, on-site, and area improvements. Then, Mark Polon describes and discusses concepts like Sales Comparison, Allocation, Cost Approach, and the Quantity Survey Method.

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Lecture 10 - Making the Final Valuation Decision

In this final presentation, Mark Polon examines the reconciliation phase, the last phase of any valuation assignment in which two or more value indications derived from market data are resolved into a final value opinion.

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This course includes
  • 10 hours on-demand lectures
  • 204 Quizzes
  • 10 downloadable powerpoint slides
  • 365 day access
  • Mobile access
  • Assignments
  • Certificate of Completion
More Business Courses
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  • Business Law
  • Corporate Finance for Real Estate
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Corporate Finance

This is a 10 hour self-taught course and costs $150 USD.

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