Obvious Case Study Questions

Question 1

How did you strike a balance between the conflicting objectives?

Answer 1

The offer eventually accepted was in line with Montagu Evans assessment of value – but also achieved exchange of contracts prior to the end of March. Whilst it may have been possible to achieve a higher price, this was not guaranteed and so I feel an appropriate balance between the two was struck.

Question 2

What was included in your internal conflicts of interest check?

Answer 2

• I considered my own interests, personal and financial.
• I also sent an email around the firm that I was instructed on Kitchener House, and asked if anyone believed there were any conflicts.

Question 3

What was included in your internal terms of engagement

Answer 3

 Identification of the surveyor
 Scope of services
- Review of legal due diligence and title docs
- Inspection and Measurement
- Appointing and managing a marketing agents
- Overseeing legal process to completion
 Professional standards which govern the engagement?
 Period of engagement
 Confirmation of terms (signature)

Question 4

What other stations are near to the property?

Answer 4

Woolwich Arsenal (1.2 miles) (DLR to bank)
Eltham (1.5 miles) - SE rail to Cannon Street and Victoria

Question 5

What did your desktop risk assessment consist of?

Answer 5

• I liaise with FM and PM colleagues as to whether PPE is required or what potential hazards there may be on site.
• Reviewed the internal files to understand if there were any active building works
• Looked online at the site to see if there were any obvious hazards nearby
• Once safe to proceed planned my journey and considered my organisations lone working policy.

Question 6

What is your company’s lone working procedure?

Answer 6

1) Lone working assessment – determines whether further support is required.
2) If deemed further support required 1:1 session organized with line manager to discuss the risk in more detail.
3) Mitigate the risk by implementing 1 or more of the following
- 1. Text messages, arrival to site, leaving site etc
- 2. Phone calls, keeping in touch whilst working alone
- 3. Agree a buddy system where 2 or more colleagues keep in touch
- 4. Keep sites locked whilst working alone
- 5. Known issues: reasonable adjustments may be considered in the interim

Question 7

What local facilities and amenities did you identify?

Answer 7

• 0.8m from shops on shooter’s hill and Herbert road.
• 122 bus to Woolwich arsenal station every 10 mins from Academy Road
• Concierge and on site gym 20 metres from flat

Question 8

What type of brick wall - what was the method of construction?

Answer 8

Constructed in 2011, constructed with a yellow brick cavity brick wall, on piled foundations with a flat roof and double glazed windows.

Reinforced concrete frame and floors with a flat felt roof.

Question 9

What fixtures and furnishings did it have?

Answer 9

• Quartz stone worktop and upstand
• Stainless steel sink with chrome mixer tap
• Feature under unit lighting
• Living room, kitchen and hallway in oak Tilo single plank boards
• Bathrooms in Minoli tiling
• Oven, gas hob, extractor hood, fridge/freezer, and dishwasher

Question 10

What other factors affected value?

Answer 10

Location, Car parking, proximity to transport (upcoming Crossrail from Woolwich saw an initial spike - not as much as other properties in the area due to being a 33 minute walk from the station).

Woolwich is expected to see over 3000 new homes delivered from 2015-2020 and so demand for similar new build schemes much further from the station is likely to fall.

Question 11

Why did you measure on a GIA basis?

Answer 11

As per the information paper, comparable evidence in property valuation, 2012“ Whatever the property type and the basis of measurement, it is essential to ensure that the valuer applies the same method of measurement to the property being valued as is used in analysing the comparable evidence.” – This has since been corroborated by the latest comparable evidence guidance note – comparable evidence in real estate valuation (1st edition 1st October 2019, effective 9th October 2019)

Also due to the residential agency guidelines in the code of measuring practice.

Question 12

How would you measure differently today? What difference would that have made in practice to your measurement?

Answer 12

I would measure using IPMS 3B, I would measure to the internal dominant face which would have been the surface of the large longer window in the bedroom.

Question 13

What is the definition of external valuer?

Answer 13

A valuer who has no external links with the asset to be valued or the client

Question 14

What is VPS 1-5?

Answer 14

VPS 1 - Terms of engagement (scope of work)
VPS 2 - Inspections, Investigations and records
VPS 3 - Valuation report
VPS 4 - Bases of value, assumptions and special assumptions
VPS 5- Valuation approaches and methods

Question 15

What is PS 1-2?

Answer 15

PS 1 - Compliance with standards where a written valuation report is required
PS 2 - Ethics, competency and disclosures

Question 16

How did PS 1-2 apply to your valuation in practice?

Answer 16

PS 1 - I ensured I had complied with IPMS and IES

PS2 - I checked I was sufficiently competent, knowledgeable and experienced to provide the required valuation advice. Ultimately I knew my client would not be reliant on the advice however.

• I ensured no conflicts of interest exist or that they are managed appropriately

Question 17

How did you apply the hierarchy of evidence?

Answer 17

• I focussed on recently completed transactions for which full data was not available but which sufficient evidence could be obtained.
• I did not use any asking prices or historic evidence

Question 18

How did Montagu Evans go about their revaluation?

Answer 18

I sent my comparable evidence to Montagu Evans and asked them to provide a new red book valuation.

Question 19

What is gazundering?

Answer 19

To lower the amount of an offer that one has made to (the seller of a property), typically just before the exchange of contracts. It is likely to happen on properties with limited interest as the purchaser will still think there is a good chance of the revised offer being accepted.

Question 20

What reference checks did you take on the agents?

Answer 20

Experian

Question 21

How did this confirm if they were solvent? What does solvent mean?

Answer 21

In accounting “solvent” or “solvency” describes a company that is able to meet its financial obligations in the longer term.

Question 22

How did you comply with GDPR?

Answer 22

• I complied with GDPR as good principles because I knew it was coming into effect imminently and my organisation already had controls in place to start handling data in the correct way and compliance with GDPR was already organisation policy.
• For example, memorandum of sale, contract for sale and completion statement are stored on a password protected folder.

Question 23

What is the hierarchy of evidence for sales within that paper?

Answer 23

Category A - direct comparables (categories only in new paper)

1) Near identical, full information available
2) Completed transactions, full details
3) Completed transactions for which full data is not available but for which reliable enough data can be obtained and used.
4) Historic evidence of same or similar properties
5) Asking prices

Category B - general market data

• Indices
• Historic Data

Category C

• Transactional evidence from other real estate types
• Other background data (interest rates/start market movements and returns)

Question 24

You mention C3b use class

Can you name a few other common use classes?

Answer 24

Class A – shops (including some services)
 A1 – shops and retail outlets
A2 – professional services
A3 – food and drink
A4 – drinking establishments
A5 – hot food and takeaway

Class B – further business and industrial activities
B1 – business
B2 - general industrial use
B8 – storage or distribution

C - hotels hostels and dwelling houses

C3(a): those living together as a single household as d what could be construed as a family.
C3(b)
C3(c): allows for groups of people (up to six) living together as a single household - not families (religious group possibly)

D - non residential dwellings