General Valuation Flashcards
1
Q
What are the THREE steps you need to consider before undertaking a Valuation?
A
- Am I competent?
- Any conflicts of interests?
- Has the client signed Terms of Engagement?
2
Q
Talk me through a Valuation instruction
A
16 STEPS
- Receive the instruction
- Check competence
- Conflict of Interest check
- Draft Terms of Engagement
- Get Terms of Engagement signed
- Gather information (e.g lease)
- Undertake Due Diligence
- Inspect and measure
- Research market and collect comps
- Undertake valuation
- Draft report
- Have the report checked
- Make any amendments and finalise report
- Report to client
- Issue invoice
- Ensure all information is saved in the file for auditing and archiving
3
Q
What is the difference between a Residual Valuation and Development Appraisal
A
A residual valuation is to calculate what a developer can afford to pay for the land.
A development appraisal is a more detailed financial analysis of a development project.
