Valuation L2

Question 1

Oakfield Campus. What is the comparable method of valuation?

Answer 1

Method that determines the value of a property by comparing it with similar properties that have recently transacted in close proximity.

Question 2

Oakfield Campus. If it was for internal purposes only, is this a Red Book valuation?

Answer 2

The client was a Housing Association and they have certain criteria and obligations to the public that they must act in accordance with, specially offering affordable, the definition of this is Market Value or Rent less a percentage.

Question 3

Oakfield Campus. Tell me about your conflict of interest check.

Answer 3

Colleagues
On our internal database for the client and properties.
Document it.

Question 3

Oakfield Campus.What were in your terms of engagement?

Answer 3

Identification and status of the value
Identification of the client(s)
Identification of other intended users
Identification of the asset(s)/liability(ies) being valued
Currency
Purpose
Basis of value (see VPS 4)
Valuation date
Nature and extent of investigations and limitations
Nature and source of information relied upon
Assumptions and special assumptions
Format of the report
Restrictions on use, distribution and publication
Confirmation of compliance with IVS
Fee basis
Reference to Complaints Handling Procedure
Statement relating to monitoring by RICS
Any limitations on liability agreed

Question 3

Oakfield Campus. What does a special assumption mean when it comes to a valuation?

Answer 3

An assumption that is not true at the time of the valuation.

Question 4

Oakfield Campus. Are there any specific terms that, as per VPS1, you must include?

Answer 4

Identification and status of the value
Identification of the client(s)
Identification of other intended users
Identification of the asset(s)/liability(ies) being valued
Currency
Purpose
Basis of value (see VPS 4)
Valuation date
Nature and extent of investigations and limitations
Nature and source of information relied upon
Assumptions and special assumptions
Format of the report
Restrictions on use, distribution and publication
Confirmation of compliance with IVS
Fee basis
Reference to Complaints Handling Procedure
Statement relating to monitoring by RICS
Any limitations on liability agreed

Question 5

Oakfield Campus. Tell me about your measurement to IMPS 3b.

Answer 5

RICS_Property_Measurement_2nd_Edition standards for measuring residential property for valuation. Similar to GIA.

Question 6

Oakfield Campus. What was the market like for new build residential in the area?

Answer 6

Good. Swindon has good connectivity and is a a home to lots of blue chip businesses in the UK as well as increasingly a more affordable commuter zone to places like Reading or even London for people that work in the office infrequently.

Question 7

Oakfield Campus. What does the RICS Valuation Global Standards 2022 say about report writing?

Answer 7

It doesn’t prescribe a certain format it does however provide a framework for things that must be included, specifically those items identified in TOE and clear unambiguous conclusions on value.