Valuation - lvl 1 Flashcards
(134 cards)
1
Q
Tell me what the 5 methods of valuation are.
A
2
Q
Tell me about how you would value a building using the profits/contractors/investment/comparable/residual method of valuation.
A
3
Q
How do you decide which valuation method to apply?
A
4
Q
Valuation methods - when and why would you use these methods?
A
5
Q
What is a years purchase multiplier?
A
6
Q
Give an example of a good covenant and how this might impact a valuation.
A
7
Q
What is PI insurance (PII)?
A
8
Q
Why do surveyors need PII?
A
9
Q
Tell me about RICS requirements in relation to PII.
A
10
Q
What level of PII cover does your firm have?
A
11
Q
How would you distinguish limitations on liability in your valuations?
A
12
Q
Where in your valuation report do you state any limitations on liability?
A
13
Q
What would you do if you received a notice of a PII claim from a client or their solicitor?
A
14
Q
Is there a difference between being negligent when undertaking a survey/valuation and providing negligent advice?
A
15
Q
What is run off cover?
A
16
Q
What is the Red Book?
A
17
Q
Why does the Red Book exist?
A
18
Q
Tell me about a factor which might affect a value.
A
19
Q
What is your duty of care as a surveyor when carrying out a valuation?
A
20
Q
To whom do you owe a duty of care?
A
21
Q
Why is independence and objectivity important in valuing?
A
22
Q
Is there a separate Red Book?
A
23
Q
What is the UK valuation guidance called?
A
24
Q
Why does UK guidance exist?
A
25
When was the Red Book last updated?
26
Does this differ from when IVS were last updated?
27
What changes were made?
28
Which do you follow - the latest IVS or the Red Book Global?
29
Which sections of the Red Book are mandatory and which are advisory?
30
What does PS1-2/VPS1-5/VPGAs relate to?
31
What type of advice does the Red Book cover?
32
If you provide preliminary advice/draft valuation report, what should you state in writing to your client?
33
What types of valuation might be relied upon by a third party?
34
Tell me what the is the definition of market value/market rent/investment value/fair value?
35
What is the difference between an assumption and a special assumption?
36
What sources of information would you consider when preparing a valuation report?
37
If you have previously valued an asset, do you need to make any additional disclosures and what might they be?
38
If your firm is too small to have a rotation policy or valuation panel, what else can you do to ensure objectivity?
39
When might a conflict of interest exist in relation to a valuation instruction?
40
What must be included in your terms of engagement / valuation report?
41
The terms of engagement / valuation report - where is this covered in the Red Book?
42
What is a restricted valuation service and can you provide one?
43
How do you deal with limitations on inspection or analysis?
44
Can you revalue a property without inspecting?
45
What RICS guidance related to the use of comparable evidence?
46
What is an internal valuer?
47
Can an external valuer provide an internal purposes valuation?
48
What happens if market conditions change between the valuation date and report date?
49
Is special value from a special purchaser reflected in in MV?
50
Where does the definition of fair value come from?
51
Does this differ from MV?
52
When is fair value used?
53
What are the 3 approaches to valuation?
54
What is the Valuer Registration Scheme?
55
Are there any instances where certain sections of the Red Book may not apply?
56
What are instances where certain sections of the Red Book may not apply?
57
What is a yield?
58
What is Net Initial Yield?
59
What is a reversionary yield?
60
What is an equated yield?
61
What is an equivalent yield?
62
How would a yield reported from auction differ from a Net Initial Yield?
63
What purchaser's costs do you deduct from a valuation?
64
When do you deduct purchaser's costs from a valuation?
65
How would you value a property in uncertain market conditions - does the Red Book give any guidance?
66
How could you value a long leasehold interest?
67
How does a term and reversion differ from a DCF?
68
What is the difference between a growth explicit and growth implicit yield?
69
Give examples of each of these types of yield.
70
How would you value an under/over rated rented investment property?
71
When would you use a dual rate investment calculation?
72
Where can you find yield evidence from?
73
What is the hierarchy of evidence?
74
What would you do if comparable evidence was limited?
75
What is NPV?
76
What is IRR?
77
What is a term and reversion?
78
What is a hardcore and topslice?
79
What is a Discounted Cash Flow (DCF)?
80
What is a short cut DCF?
81
When would you use a DCF?
82
What are the advantages of a DCF?
83
What are the disadvantages of a DCF?
84
What is a YP/PV/YP in perpetuity?
85
What is marriage value?
86
When would you include an element of hope value in a valuation?
87
What type of properties would you use the profits method for?
88
When would you use the profits method?
89
What are the steps to providing a profits method?
90
What are the steps to providing a profits method?
91
What is Fair Maintainable Turnover?
92
What is a Reasonably Efficient Operator?
93
How do you calculate the tenant's proportion of rent in a profit's calculation?
94
What is EBITDA?
95
What is Fair Maintainable Operating Profit?
96
How do you calculate the divisible balance?
97
What accounts information would you want to review for a profits valuation?
98
Do RICS provide any guidance on RLVs or valuing development property?
99
What is an RLV?
100
What is a development appraisal?
101
How does a RLV and development appraisal differ?
102
How else can you value development land?
103
What is the basic process of undertaking a RLV/development appraisal?
104
What does a development appraisal show?
105
What are the key things you need to consider when appraising / inspecting a development site?
106
What else should you consider?
107
Tell me about your due diligence when undertaking a development approasal?
108
How can you assess development potential?
109
What is GDV/NDV?
110
How do you calculate GDV?
111
What do development costs include?
112
When do you apply VAT when assessing development costs?
113
Where can you source build costs from?
114
What are typical finance costs?
115
What do holding costs typically include?
116
How do you typically calculate developer's profit?
117
What are some typical inputs (%/£) in a RLV?
118
What is included in the development programme?
119
What is CIL?
120
What is S106?
121
What are the differences between CIL and S106?
122
What is CIL charged on?
123
What RICS guidance relates to development property?
124
Give me a limitation of this software.
125
What is viability?
126
How might onerous lease terms e.g. restrictive user, break clause, impact upon capital or rental value?
127
What liabilities may be created through valuation?
128
What is a liability cap and when would one be used?
129
Explain why the RICS are carrying out an independent review.
130
Explain what you understand by the term, margin of error.
131
How can a NIY of zero be achieved?
132
In a scenario where rents are static and the capital value increases, would you expect yields to increase or decrease?
133
What does heterogeneous mean in term of comparable evidence?
134
What does the term 'tone of value' mean to you?
