Valuation Flashcards
What is meant by the term Independent Valuer?
Frequently such additional criteria provide a definition of the acceptable level of independence and may use terms such as independent expert expert valuer, independent valuer, standing independent valuer or appropriate valuer it is important that the member confirms compliance with these criteria both when confirming acceptance of the instruction and in the report, so that the client and any third party relying on the report can be assured that the additional criteria have been satisfied.
Define Subprime lending
In finance, subprime lending (also referred to as near-prime, non-prime, and second-chance lending) means making loans to people who may have difficulty maintaining the repayment schedule, sometimes reflecting setbacks, such as unemployment, divorce, medical emergencies, etc. Historically, subprime borrowers were defined as having FICO scores below 640, although “this has varied over time and circumstances.”
These loans are characterized by higher interest rates, poor quality collateral, and less favourable terms in order to compensate for higher credit risk. Many subprime loans were packaged into mortgage-backed securities (MBS) and ultimately defaulted, contributing to the financial crisis of 2007–2008.
Actions for Dampness
Depth of inspection reference points level of diagnosis recommended action comments in the report impact up on value
Market value
The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arms length transaction, after proper marketing and where the parties each acted knowledgeable, prudently and without compulsion
Projected Market Value
The estimated amount for which an asset is expected to exchange at a date, after the valuation date in specified by the valuer, between a willing buyer and a willing seller, in an arms length transaction after proper marketing and where the parties had each acted knowledgeable, prudently and without compulsion.
What is an AVM?
Automated Valuation Models use one or more mathematical techniques to provide an estimate of value of the specified property at a specified date, accompanied by a measure of confidence in the accuracy of the result, without human intervention post-initiation.
Which phrase best describes homogenous products?
A ones that have peaks and troughs
B ones that are very similar to each other
C ones are very different to another
D ones I have some similarities, but also some differences
Ones that are very similar to each other
In the context of the valuation when would you consider the concept of substitution?
A reinstatement calculation
B reporting on condition
C Comparable analysis
D Setting terms of engagement
Comparable analysis
What did issues a VM stand for?
A Automated volume model
B automated variable model
C automated valuation model
D average valuation matrix
Automated valuation model
What is the rics terminology for value that should be used for standard mortgage valuation?
Market value
Open market value
Projected market value
Forced sale value
Market value
Which mortgage product took a dive in demand in the mid-90s?
Repayment
Fixed
Endowment
Interest only
Endowment
Inelastic supply is demonstrated by?
The supply of products cannot be increased in the short term
The supply of products is fixed
The supply of products is variable
Supply of products can be easily increased
The supply of products is fixed
If the subject property has serious movement that needs further investigation what should you do in the valuation box on the mortgage report for most lenders?
Complete a valuation in its present condition
Complete a valuation as repaired
Complete a valuation and comment in general remarks
Leave the box blank and make a comment in the general remarks
Leave the box blank and make comment in the general remarks
What happened to high loan to value lending from 2008 to 2013?
High lending ratios have fallen off significantly relative to 2007
High lending ratios are fallen marginally since 2007
High lending ratios continue to rise significantly since 2008
High loan to value lending ratios have stabilised marginally since 2007
High lending ratios have fallen off significantly relative to 2007
What does Mosaic measure?
Geography
Socio-dermatitis
Geodemographics
Supply and demand
Geo demographics
