Q & A questions Flashcards
What is IVS
IVS are the International valuation standards which have been incorporated within RICS Valuation - Global standards 2021 Effective Jan 2022.
They are published by the International Valuation Standards Council and consists of mandatory requirements that must be followed in order to establish a framework for uniformity and best practice on an international scale.
What is included in IVS
IVS 101 Scope of work
IVS 102 - Investigations and Compliance
IVS 103 - Reporting
IVS 104 - Basis of Value
IVS 105 - Valuation approaches and methods
What is Market, income and cost approach
Market approach is used to determine the value of a subject business by comparing it to a similar business in the marketplace
Income approach has a number of variants. When applied it measures the value of an asset by the present value of its future economic benefits. DCF is usually used to establish this.
Cost approach indicates the value of an asset by the cost to create or replace it with another similar asset
IVS 101 Scope of work
Usually referred to as terms of engagement. Sets out fundamental terms of valuation such as
the asset being valued
Purpose of valuation
responsibilities of parties involved in the valuation
IVS 102 - Investigations and Compliance
Must be conducted in accordance to the principles within IVS. This is to include
providing sufficient evidence
Keeping an accurate record of work
Complying with other statutory, legal, regulatory requirements
IVS 103 - Reporting
Reports must provide the intended users with clear understanding of valuation. Minimum is
Scope of work
intended use
intended users
purpose
approach adopted
method applied
key inputs used
assumptions made
conclusion
date of report
IVS 104 - Basis of Value
Describes the bases that the valuation has been reported on. This could include market value, market rent or investment value
IVS 105 - Valuation approaches and methods
A prelimary statement
This sets out the different approaches and methods to be used. Consideration must be given when choosing the correct approach and/or method
Endorsements
A review of the lease with relevant clauses such as the term,repairs clause, decoration clause, clean windows clause
Schedule of fabric dilaps which will list all relevant clause, category/breach works required and cost
Summary of dilaps
What is in a schedule of dilaps
A Prelimary statement - includes who carried out the inspection, the date and who it was on behalf.
Endorsements
Documentation review - includes key and relevant clauses within the lease such as repair clause, decoration clause, alteration clause
Schedule of dilaps - lists all works to be carried out, with relevant clause and costs associated with it.
Summary of dilaps costs
What checks would you carry out before measurement
Check disto is calibrated and look at plans to understand layout.
Why was the IVS brought in to be included with the Valuation Re Book
They are there to promote consistency in the ways we value properties within the UK and Europe
What are the different sections of the Red Book
Part 1 Introduction
Part 2 Glossary
Part 3 Professional standards which includes professional and ethical standards, member qualification, COI, Reviewing another valuers valuation and terms of engagement
Part 4 Valuation technical and performance standards which includes Terms of engagement format, valuation records, valuation reports, basis of value, assumptions and special assumptions, approaches and methods
Part 6 - International valuation standards
Describe the offices in crawly
Mid-1980s building
ground floor and 3 upper floors with office an ancillary accommodation
Concrete frame construction with brick and glazed curtain walling clad elevations under a flat roof
one lift which fits 13 persons WCs secondary fire escape staircase
Open plan with columns, natural light, powder coated aluminum framed double glazed windows
Carpeted solid floors with under floor trunking, gas fired central heating with wall mounted radiators
mix of metal tiled and mineral tiled suspended ceilings with recessed lighting and air conditioning units
Describe offices in London
Located in St James’ Sq, mid terraced building
offices over 8 floors
Build in 1902
traditional mansonry construction with period facade with rusticated stone cladding
Windows are timber framed, double glazed with double slate mansard roof
Clean modern Grade A office space. Plaster and painted ceiling and walls, flat profile mounted LED lighting, full access raised floors, underfloor air con, 2 WC’s on each floor.
Describe industrial unit in Heathrow
Steel portal frame construction with profile metal sheeting clad elevations under a profile metal sheeting clad pitched roof
Min eaves height of 12m with painted concrete floor, suspended lighting and heating. 4 roller shutter doors with secure gated and fenced service yard. with offices and ancillary accomodation
Approx site cover 50%
