Case Study Questions Flashcards
How did / do you confirm that there are no conflicts of interest?
In house tool which allowed me to search the name of the client, property and surveyors acting on the instruction to find any Conflicts of Interests
What would be contained within Terms of Engagement?
- Fee basis
- Personal Expenses and Disbursements
- Confirmation of a Complaints Handling Procedure available upon request
How were your clients objectives established?
Through a meeting held over teams for efficiency
How did you provide your client advice if you have a responsibility to follow their instructions?
Not exclusive. In order to achieve my clients objectives ‘reasoned advice’ must be applied
What is the definition of Market Value / Market Rent?
Easy peasy answer
Within your clients objectives you mentioned negotiating ‘the strongest possible terms’, what would the strongest terms look like?
- Offers with a low level of conditionality
- Deal Performance
- Funding position, intended use, purchaser was represented, known multiple operator
Would a 6 month timescale for the disposal of a property be considered reasonable?
Yes. Depending on my clients expectations
- Guide price (high price = lower progress with parties)
- Marketing process (better marketing = more enquiries)
What impact would a lack of onsite parking have on a licensed premises?
- Depends on the location. A countryside public house would be negatively effected by a lack of parking.
- Not as crucial for a high street pub due to ‘walking trade’
Why would you note the condition of a property within your inspection notes?
- For Stat Compliance reasons (gas and electrical safety)
- To note any potential or existing defects
If you did have the necessary information how would you approach a ‘Profits Method Valuation’?
- Last 3 years audited accounts need
- Review accounts to established FMOP / EBITDA
- Add a years purchase multiplier to establish Market Value
Why would your client not require a ‘full Red Book Valuation’.
- As my valuation was done for Agency Purposes
- Valuation wasn’t ‘Red Book Compliant’
- As stated in PS 1
What is the local authorities planning policies regarding change of use?
Policy IF6 of The Local Plan states that application for change of use or redevelopment are resisted unless:
- There is a lack of demand
- Community benefit to redevelopment
– Cost of void and viability for redevelopment would be too costly.
What do you mean by ‘higher level of subjectivity’?
Where I would have or have had to make more ‘judgement-based calls’
How would you then weight leasehold comparable transactions and evidence? Which would give a higher value?
- Transactional evidence would hold a greater weight than Rent Reviews etc.
- As it has been market tested
What would be included within purchasers costs?
- Stamp Duty
- Agency fees
- Solicitors fees
Wouldn’t 24 High Street, Windsor have a higher value due to its Class E use?
Yes, and is reflected within my estimate of value on a rate per sq ft basis.
How did you arrive at your Market Rent?
Through the analysis of Leasehold comparable evidence
- Rate per sqft couldn’t be adopted, no floor plans
- Most comparable was Crown & Cushion
Why did you guide £1m when MV was £995,000.
- Set just below for ‘Phycological pricing
- To stimulate the market and encourage healthy competition in the property
Why would a high quality brochure be important to a market strategy?
- Adds professionalism to our marketing
- Communicates the property most effectively
- Broadens our ‘marketing reach’
What are the 4 Methods of Sale?
Easy
What are the disadvantages and advantages of the 4 Methods of Sale?
Give two points for each
Wouldn’t the speed of an Auction Approach align best with your clients objective for a sale in 6 months?
Yes, fastest method of sale. However:
- No confidentiality or control of purchaser
Why would a ‘private treaty’ method of sale align best with your clients objective?
- Allowed flexibility in the marketing process / could call for bids at any point via Informal Tender
- Allowed me to speak to as many parties as possible
- Negotiations are confidential
- No bound to proceed is any offer received
How would you marketing on 3rd Party websites (Rightmove etc.) be paid for? By the client or paid by your firm and reimbursed?
Part of our upfront marketing costs which are stated within our terms of engagement
