Valuation Flashcards
1
Q
What are the 5 methods of Valuation?
A
- Comparative
- Profit/Revenue
- Contractors
- Investment
- Residual
2
Q
What are the steps of Contractors method?
A
- ERC -Estimate reinstatement cost
- ARC- Adjusted reinstatement cost
- Land Valuation
- Decapitalisation
- Stand back and look.
3
Q
What is a basis of value?
A
A statement of the fundamental measurement assumptions of a valuation.
4
Q
What is the Name of the Red Book?
A
RICS Valuation - Global Standards
Effective from 31 Jan 2022
5
Q
What is the purpose of the RED BOOK?
A
- Consistency
- High level of service
- Trust in the industry
6
Q
What are the 3 categories of comparable evidence?
A
Direct transactional evidence
General market data
Other sources
7
Q
A
