Submission - Competencies

Question 1

What is included in Build Costs?

Answer 1

-Super structure (building work above ground)
-Sub structure (foundations)
-Preliminarys (management)

Question 2

What were you build costs for Stow Longa?

Answer 2

Stow Longa was a conversion therefore we applied a 30% discount to the BCIS NH build costs. This varies depending on the state of the building.

(Typically apply 30-50% depending on the structure of the building)

Question 3

What are the types of overages and explain them?

Answer 3

Overage is an uplift in the value of land. There are two types; sales or planning.

Sales overage is an uplift payment payable by the developer where revenue generated by the developer exceeds the expected base revenue and agrees to share this with the seller.

Planning overage is an uplift payment that is payable once planning permission is obtained as this has caused the value of the land to increase

Question 4

What are the key parts of the inspection you did for ‘x’?

Answer 4

• Date of inspection and who did it

Question 5

When was asbestos banned?

Answer 5

• Chrysotile (white) banned 1999.
• Amosite (brown) banned 1985.
• Crocidolite (blue) banned 1985.

Question 6

What are the different types of sensitivity analysis?

Answer 6

• Normal: adjusting the percentages (build costs etc)
• Scenario testing: (eg. Papworth) different planning outcomes
• Monte Carlo: online system which creates randomness (never done in practice)

Question 7

How might you differ your inputs on a Brownfield site to Greenfield?

Answer 7

(- Adjust the contingency)
- Consider contamination/ demolition works etc.
- Are there already utilities in the site?

Question 8

What are the disadvantages of ProDeveloper?

Answer 8

Cons:
- Doesn’t have the ability to do a sensitivity analysis
- All inputs put in need to be accurate

Question 9

What were the key headings of the Terms of Engagement for ‘x’ (Purchase and Sale)

Question 10

What were the key headings in the Terms of Engagement for ‘x’ (Valuation).

Question 11

What is the different between GIA, GEA and NIA?

Answer 11

GIA - total internal floor area
GEA - outside face of the external walls
NIA - useable floor area

Question 12

What IPMS did you consider when doing your development appraisal of the site at Hail Weston?

Answer 12

IPMS 1 - for build costs
IPMS 3 - for houses

Question 13

What is IPMS 1

Answer 13

Measured to the outer perimeter of external construction features

Question 14

What is IPMS 3

Answer 14

Measures the useable floor area (replaces NIA).

Question 15

What are the RICS 5 ethical standards?

Answer 15

1. Take responsibility
2. Treat others with respect
3. Act in a way that promotes trust in the profession
4. Always provide a high standard of service
5. Act with integrity

Question 16

What are the RICS Rules of Conduct?

Answer 16

list

Question 17

You state you report offers within 48 hours to comply with estate agents act, what does the estate agents act say in regards to reporting offers?

Answer 17

Estate agents must inform sellers of offers in writing – either letter, email, or fax – and they must be passed on promptly from the offer being made.

Question 18

Please can you explain an example when you provided good client care?

Answer 18

Visiting an elderly client in Doddington - marketing appraisal in writing and explained to her.

Question 19

Please can you give an example of when you negotiated effectively?

Answer 19

Guilden Morden - negotiating additional land payment

Question 20

Define an overage?

Answer 20

An overage is a contractual mechanism which allows a seller of land to potentially benefit from any subsequent increase in the land’s value after having sold it.

Two types: planning and sales.

Question 21

How did an overage benefit your client of the site in Gamlingay?

Answer 21

Potential to cut up the bigger dwelling to 2 smaller ones and therefore increase the GDV.

Question 22

For your example in Guilden Morden why did you advice the site would likely sell in excess?

Answer 22

Looking at the comparable evidence of similar properties as well as other sources and general market data it was likely a self-builder would purchase the site and therefore they may not wish to achieve the 20% profit which a developer would.

Question 23

How much did he buy the site at Alconbury for and what was it worth now?

Answer 23

Site was bought for £425,000 and it was worth £475-500k together or £525-550k if sold separately.

Question 24

With the site in Alconbury why did splitting it in to two dwellings not increase the value?

Answer 24

Market had changed - build costs increased and GDV decreased.

Question 25

What does the Home Survey Standards Professional Statement set out?

Answer 25

-Undertake inspections to support research
-Must be familiar with the locality
-Reporting surveys

Question 26

What is the structure of the Home Survey Professional Statement?

Answer 26

-Introduction
-Setting up the service
-Carrying out service
-Report

Question 27

Why did you use IPMS 3B for Great Stukeley?

Answer 27

Internal - multiple occupancy

Question 28

What is the difference between IPMS 2 and IPMS 3B?

Answer 28

Unlike IPMS 2, IPMS 3B does not include external areas like balconies or terraces.

Question 29

What is the definition of hope value and where is this defined?

Answer 29

In the Valuation of Development Property.
Hope value is an element of market value in excess of the existing use value [EUV], reflecting the prospect of some more valuable future use.