The Red book Flashcards
What’s the contents on the red book
- INTRODUCTION
- GLOSSARY
- PROFESSIONAL STATEMENTS
- VALUATION TECHNICAL & PERFORMANCE STANDARDS
- VALUATION APPLICATIONS
- INTERNATIONAL VALUATION STANDARDS
What are the exemptions of the red book
- Agency
- Litigation
- Internal
- expert witness
- Statutory Function
What PS is mandatory in the red book
PS 1- Terms of Engagement
PS 2 - Inspections, investigations
Where it is inappropriate to apply in the red book what should you state
Departure - confirmed and agreed as a departure by the client
What is an assumption?
A supposition taken to be true. It involves facts conditions or situations affecting the subject of, or approach to a valuation that by agreement do not need to be verified as true
What is in a terms of engagement
The Client The property The valuer The purpose The basis of value Valuation date Assumptions and Special Assumptions Extent and Limitation of inspections and investigations The fee
What is an assumption?
The building is completed
Special Assumption
You know not to be true - ie it has planning permission, vacant possession Development completed Property changed in a defined way Property is vacant Let on defined terms
What are the basis of value
Market Value
Market Rent
Investment Value
fair value
What is the definition of investment value
The value of an asset to the owner or a prospective owner for individual investment or operational objectives
What is investment value
The value of an asset to the owner or a prospective owner for individual investment or operational objectives
What are the methods of Val
Comparative Investment Residual Profit Accounts (DRC)
What is Zoning
Zoning is a valuation technique not a measurement technique
What is taken into the all risks yield
The physical characteristics The tenants covenant strength The unexpired lease terms The other lease terms including rent Anticipated rental growth
What is another name for the All Risk Yield
The Market Capitalisation Rate
