Valuation Flashcards
What are the 5 methods of valuation?
Comparable, Investment, DRC (deprecation replacement cost)/contractors, Profits/receipts and expenditure, Residual
How do you decide what method to apply?
It is depended on the type of property and the reason for the valuation.
what is a years purchase multiplier?
What is the Red Book?
The red book details mandatory practices for RICS members undertaking valuation services.
Why does the red book exist?
As part of our commitment to promote and support high standards in valuation delivery worldwide.
What is your duty of care when undertaking a valuation?
My duty of care is firstly towards my client in providing them a good and diligent service. This may also include a duty of care to third parties in some circumstances.
Why is independence and objectivity important when valuing?
This is so that as valuers we do not have a pre-determined value and we consider all the evidence and information that is available.
Is there a separate UK Red book?
No there isnt, there is however a UK National supplement to be used in tangent with the red book.
Why does the UK national supplement exist?
Augments the Global Red book for valuations that are subject to UK jurisdiction.
When was the Red Book last updated?
The latest updated came into effect in January 2022.
