Valuation

Question 1

what is the Hiarachy of evidence

Answer 1

1. direct transcartional evidence
2. Genral market data
3. other sources

Question 2

what is the definition of speical purchaser

Answer 2

Is a buyer willing to pay more than the makret value due to unqiue advantages that the property offers them

Question 3

what is the definition of market rent

Answer 3

Market rent is defined as the estimated amount for which a property should lease on the valuation date between a willing lessor and a willing lessee in an arm’s length transaction, after proper marketing, wherein the parties had each acted knowledgeably, prudently, and without compulsion2

Question 4

what is the definition of market value

Answer 4

Market value is the estimated amount for which an asset should exchange on the valuation date between a willing buyer and a willing seller in an arm’s-length transaction, after proper marketing, where both parties act knowledgeably, prudently, and without compulsion

Question 5

why is there a redbook

Answer 5

provides constancy and best practice

Question 6

what is included in terms of engament

Answer 6

idenfitication and valuer experience / qualifcations
purpose of valuation
property to be valued
basis for value
assumptions
COI
Complaints handling
PII cover
client details

Question 7

what are market forces

Answer 7

Property characterics
future development
market trends
economic conditions