2. Undertaking the valuation Flashcards
What are the three most importnat steps to first undertake before a valuation?
1) Competence
- (SUK) - Skills, Understanding, Knowledge
2) Independence
- THINK FIRST then check for conflics
3) ToE
- Set out in writing prior to starting work
Talk me through some statutory due dilligence for a valuation
This is required to check that there are no material matters which could impact upon the valuation.
- Asbestos register
- Business rates/council tax
- Contamination
- Equality Act compliance
- EPC
- Flooding
- Fire safety
- Legal title and tenue
- Planning history and compliance
Talk me through the timeline for a valuation instruction
- Receive instructions
- Check competence (SUK)
- Check independence (COI)
- Issue ToE
- Recieve signed ToE
- Gather info (leases/lease pack, title docs, planning, OS maps)
- DD
- Inspect and measure
- Research market, verify, analyse
- Undertake valuation
- Draft report
- Peer review
- Finanise and sign report
- Report to client
- Issue inoice
- Ensure valuation file in good order for archiving
What are the 5 methods of valuation?
DRIP-C
1) Comparable Method
2) Investment Method
3) Profits Method
4) Residual Method
5) Contractor’s Method (DRC)
What is set out in IVS 105 Valuation Approaches?
1) Income approach - converts current and future cash flows into capital value (Investment, Residual and Profits methods)
2) Cost approach - reference to the cost of the asset (DRC method)
3) Market approach - Comparable evidence (Comparable method)
