Valuation L2

Question 1

Prospect Avenue, Northamptonshire – How did you prepare the Discounted Cashflow valuation? What did you include?

Answer 1

By using information that is relevant for revenue, expenditure, discounted rates and interest rates.

Question 2

Prospect Avenue - What was the purpose of the valuation?

Answer 2

Inform the client’s decision-making process regarding the purchase of an affordable rented properties portfolio.

Question 3

Canter Street – What is Argus Developer?

Answer 3

This is a development software that used for financial modelling and analysis

Question 4

Canter Street - Talk me through your residual valuation. What elements did you include?

Question 5

What is the difference between a development appraisal and a residual valuation?

Question 6

How did you collate the comparable evidence?

Question 7

Tell me why terms of engagement are important

Question 8

What checks do you undertake before accepting a valuation instruction?

Question 9

How do you ensure you know who your client is when undertaking a valuation instruction?

Question 10

Are there any additional requirements when undertaking a valuation in which the public has an interest or third parties may rely?

Question 11

Are there any additional requirements for loan security valuations?

Question 12

Talk me through an example of when you have agreed terms of engagement with a client.

Question 13

What are the key elements included within terms of engagement?

Question 14

What does the Red Book say about terms of engagement?

Question 15

What does the Red Book say about inspections?

Question 16

What does the Red Book say about reporting requirements?

Question 17

What are the differences between a desktop and a full valuation report?

Question 18

Tell me about how you ensure that information relied upon in your valuation is appropriate and reliable?