Downs Close

Question 1

Talk me through your valuation of Down’s Close?

Answer 1

1. The valuation was for a residential property located in Hunstanton for enforced sale purposes.
2. I used the comparable method.
3. Sourced comparable’s from local agents and displayed this in a matrix.
4. Parcel of land at the back with potential for development, therefore included an element of hope value.
5. Issued report to client.

Question 2

What was the purpose?

Answer 2

It was for enforced sale purposes

Question 3

What was the basis of value?

Answer 3

Market Value

Question 4

How did you assess the appropriate adjustment for hope value of the development site?

Answer 4

I sourced comparable evidence for single development sites with similar characteristics and then discounted this by 33%.

Question 5

Why did you use the comparable method rather than the residual method?

Answer 5

I had comparable’s for similar sites.

Question 6

Why did you adjust the value by 33%?

Answer 6

I looked at comparable evidence for sites that had been sold without planning consent but had development potential and then made a judgement based on the fact the precedent of planning on the site had already been set.

Question 7

What is hope value?

Answer 7

The additional value of the land with the hope that you would be able to obtain a more valuable use in the future.

(difference between the existing use value and the GDV)

Question 8

When would hope value arise?

Answer 8

For land that is close to the development boundary.

Question 9

How did you reflect the fact you did an external inspection in the valuation?

Answer 9

I made an assumption the property was habitable and with no major defects that would have an impact on the valuation based on the external condition of the building and the fact it was being lived in.

I then included a caveat in my report to say that if the condition is found to differ from my assumption, then I should be made aware as it may impact the valuation.

Question 10

What are things you should consider when inspecting the site?

Answer 10

Whether there was a possibility of the site being contaminated.

Question 11

How would contamination impact your valuation?

Answer 11

It would reduce the value if contamination was found to exist.

Question 12

Why was the planning refused on the adjoining site?

Answer 12

The proposed development was not within keeping of the surrounding area.

Question 13

What did you put in your report?

Answer 13

1. I reported on the Market Value of the property
2. I included details of the parcel of land to the rear and a brief description of the planning history
3. I made an assumption that the land had not been contaminated
4. I also explained how the valuation had been arrived at with the element of hope value included.