Flashcards in Vals Deck (13):
Types of investment valuation
Term and reversion
What methods do you have exp in?
What makes a good comparable
Properties with similar features such as :
Age, location, construction, condition, size, adjacent uses, transport, tenant incentives
What RICS guidance for comparable?
RICS comparable evidence 2012
What guidance is there out there for valuers
Red book (2014)
Five methods of valuation
Contractors method (depreciated replacement cost)
What is fair value?
The price that would be received to sell an asset
Not market tested
What bases of valuation are there?
(See VPS 4 - Bases of Value in the red book)
What is market rent / value
Defined in VPS4 - bases of value
After proper marketing
Parties acted prudently without compulsion
What is WAULT
Weighted average unexpired lease term. Calculated by dividing the sum of all the remaining contractural payments by the annual rent of a property
What is the margin of error for vals?
10-15% (Singer v John Wood)
Red book sections?
Ps 2 - ethics
VPS 1 - minimum toe
VPS 2 - inspections
VPS 3 - valuation reports
VPS 4 - basis of value
Vpga- specific methods...