Valuation Flashcards
Level 3 (7 cards)
When wouldn’t you have to carry out a red book valuation
Stock take, market appraisal or type of valuation not relied upon
Give an example of a conflict of interest that may prevent me doing a valuation
Family member, someone I have previously worked for, acting for purchaser and vendor, anywhere I may personally benefit
Why is PI important to firms carrying out valuations
Damage limitation, cover in case there is an issue or claim
What is the comparable hierarchy
Category A - best
Category B -
Category C - worst
What to consider when analysis comps
Proximity, condition, similar conditions, land/property type, date of sale, anything such as ag ties
Discount for ag ties
30% - Antrobus II case
How to do residual appraisal of buildings
Take GDV - value once converted
Less admin costs, planning, build costs, 15% developers profit margin and risk of 10%
