Valuation L1 Flashcards
Tell me what are the 5 methods of valuation.
- Profits
- Residual
- Investments
- Comparable
- DRC (
Tell me about how you would value a building using the
profits/residual/investment/comparable/DRC method of
valuation.
Profits - Residual - Investments - Comparable - DRC -
What is PI Insurance (PII)?
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Why do surveyors need PII?
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Tell me about the RICS requirements in relation to PII.
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What is run off cover?
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What is the Red Book?
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Why does the Red Book exist?
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Tell me about a factor which may impact value.
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What is your duty of care as a surveyor when undertaking a valuation?
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Why is independence and objectivity important when valuing?
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Is there a separate UK Red Book?
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When was the Red Book last updated and what changes were made?
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Which sections of the Red Book are mandatory and which are advisory?
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What does PS1-2/VPS1-5/VPGAs relate to?
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What type of advice does the Red Book cover?
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If you provide preliminary advice / draft valuation report, what should you state in writing to your client?
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What type of valuations might be relied upon by a third party?
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Tell me what the definition of MR/MV/investment value/fair value?
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What is the difference between an assumption and a special assumption?
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What sources of information would you consider when preparing a valuation report?
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If you have previously valued an asset, do you need to make any additional disclosures and what might they be?
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If your firm is too small to have a rotation policy or valuation panel, what else can you do to ensure objectivity?
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When might a conflict of interest exist in relation to a valuation instruction?
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What must be included in your terms of engagement / valuation report?
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What is a restricted valuation service and can you provide one?
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How do you deal with limitations on inspection or analysis?
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Can you revalue a property without inspecting?
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What RICS guidance relates to the use of comparable evidence?
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What is an internal valuer?
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Can an external valuer provide an internal purposes valuation?
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What happens if market conditions change between the valuation date and report date?
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Is special value from a special purchaser reflected in MV?
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Where does the definition of fair value come from?
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Does fair value differ from MV?
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When is fair value used?
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What are the 3 approaches under VPS5?
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What is the Valuer Registration Scheme?
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Are there any instances where certain sections of the Red Book may not apply?
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What is the basis of value under UK GAAP FRS 102?
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What is a SORP?
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What is the definition of EUV and when would you use it?
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What additional criteria apply to secured lending valuations?
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What information should you specifically request for a secured lending valuation?
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What is a regulated purpose valuation?
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What additional disclosures must be made for a regulated purpose valuation?
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What is the basis of value for a statutory valuation?
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What might a statutory valuation relate to?
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What is the definition of the statutory basis of valuation?
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What is a yield?
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What is a Net Initial Yield?
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What is a reversionary yield?
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What is an equated yield?
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What is an equivalent yield?
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How would a yield reported from auction differ from a Net Initial Yield?
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What purchaser’s costs do you deduct from a valuation?
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How would you value a property in uncertain market conditions - does the Red Book give any guidance?
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How could you value a long leasehold interest?
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How does a term and reversion and DCF differ?
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What is the difference between a growth explicit and a growth implicit yield?
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Give examples of each of these types of yield.
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How would you value an under/over rented investment property?
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When would you use a dual rate investment calculation?
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Where can you find yield evidence from?
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What is the hierarchy of evidence?
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What would you do if comparable evidence was limited?
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What is NPV?
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What is IRR?
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What is a term and reversion?
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What is a hardcore and topslice?
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What is a Discounted Cash Flow (DCF)?
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What is a short-cut DCF?
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When would you use a DCF?
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What are the advantages of a DCF?
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What are the disadvantages of a DCF?
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What is a YP/PV/YP in perpetuity?
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What is marriage value?
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When would you include an element of hope value in a valuation?
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How does market value differ to investment value/fair value?
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What is a dual capitalisation rate and when would you use one?
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Is the profits/DRC method used for specialised or specialist property?
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What type of properties would you use the profits method for?
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When would you use the profits method?
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What is intangible goodwill?
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What is turnover / gross profit / net profit?
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What are the steps to providing a profits valuation?
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What is Fair Maintainable Turnover?
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What is a Reasonably Efficient Operator?
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Does the assessment of the REO include personal goodwill and trading potential?
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What is personal goodwill?
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What is trading potential?
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How do you calculate the tenant’s proportion of rent in a profits valuation?
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What is EBITDA?
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What is Fair Maintainable Operating Profit?
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How do you calculate the divisible balance?
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What accounts information would you want to review for a profits valuation?
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Do RICS provide any guidance on RLVs or valuing development property?
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What is an RLV?
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What is a development appraisal?
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What is the basic process of undertaking a RLV/development appraisal?
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What does a development appraisal show?
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What are the key things you need to consider when appraising / inspecting a development site?
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Tell me about your due diligence when undertaking a
development appraisal.
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What sources of information do you use when undertaking a development appraisal?
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How can you assess development potential?
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What is GDV/NDV?
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How do you calculate GDV?
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What do development costs include?
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Where can you source build costs from?
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What are typical finance costs?
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What would you apply finance costs to and on what basis?
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What is an S curve?
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What do holding costs typically include?
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How do you typically calculate developer’s profit?
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What are some typical inputs (and %/£) in a RLV?
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What other criteria might be assessed in terms of performance measurement for a RLV?
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What are the advantages/disadvantages of a RLV?
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What is CIL?
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What is S106?
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What are the differences between CIL and S106?
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What is CIL charged on?
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What is a Monte Carlo simulation?
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What is a sensitivity analysis?
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How do you carry out a sensitivity analysis?
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Tell me about your understanding of incorporating affordable housing into development appraisals.
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What RICS guidance relates to the valuation of development property?
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How would you deal with depreciation/obsolescence?
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What types of obsolescence are there?
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What are the three ways to deal with depreciation?
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Is the cost approach a market valuation?
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How might onerous lease terms, e.g. restrictive user, break clause, impact upon capital or rental value?
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What liabilities may be created through valuation?
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What is a liability cap and when would one be used?
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