Valuation 3 Flashcards
Scatcherd Mews, Leeds, tell me about the Target criteria.
Target Criteria
Similar style property within 2 mile radius of subject.
Completed within last 12 months
Valuation figure must be no more or less than 10% of purchase price.
Talk me through your use of Rightmove Plus.
When using Rightmove Plus, I input the subject property details such as type of property, age, rooms numbers and floor area.
I then find comps similar to the subject in terms of location, room numbers, property type, floor area and sold status.
Once I find 3-5 comps I make adjustments where required to make the comp similar to the subject. I then rank my comparables with no.1 being the most like the subject.
I then provide a rationale detailing my findings and information from agents and my thought pattern.
This allows me to justify my final valuation figure.
Talk me through the adjustments that you made.
I made adjustments in terms of the solar panels on the subject property as I could not find any similar comps that had solar panels.
I made adjustments in terms of location as this was a relatively new estate and the comps found were slightly older.
I made adjustments in terms of garages as this property had an internal garage.
Tell me about your adjustment rationale.
I spoke to the agents of the sold properties to confirm their completed sale price and date. I also spoke to them about the market locally and the demand in the area. This showed me that there was a steady increase in demand locally due to the good links to city centre and motorway.
I was also able to compare floor areas using the EPCs and agent details as sense checkers.
I also talked about the ranking of each comparable and why they were ranked as they were, whether that was due to age of the sale, too many adjustments or lack of solar panels.
The adjustment rationale helped me justify my valuation approach and provide a reasonable valuation figure.
What advice did you provide in this instruction?
I provided a Valuation in line with the RICS Redbook where no advice was required apart from the rationale behind the valuation figure which was needed by Target.
Brigg Mill Court, tell me about the adjustments that you made in your comparable evidence matrix.
This was a 2 bed end-terrace for HTB.
I found 1 semi, 1 mid ter and 1 end ter. I made adjustments in terms of location, age of property, property style/layout and decor.
Dick Lane, why did you rank the two comparables lower (SSTC)?
As the properties were SSTC and had not been given an exchange of contract date these comps could be back on the open market. If they had exchanged or competed I would have ranked them higher.
Tell me about the adjustments that you made.
Garage
Location
Decor
Give me an example of reasoned advice that you have provided in relation to a valuation.
Cloisters Way, Barnsley (Case Study)
As part of the Level 3 Home survey report with additional open market valuation I valued the property £6k below the agreed purchase price.
I informed my client of the valuation and what she needed to do in order to make the house worth the agreed purchase price.
I informed her that either she carried out the necessary remedial works or the vendor reduces the purchase price or the vendor completes the works prior to completion.
Unfortunately, the vendor was unwilling to drop the price or do the works and the client didn’t want to undertake such work so the sale collapsed.
