Valuation - Level 2

Question 1

What might you consider when valuing a new build property?

Answer 1

New Build benefits including first owner benefits and second owner benefits.

Question 2

Name some new build benefits

Answer 2

Environmental impact reduced over times, innovative forms of construction, evolving Building Regs

Question 3

Give an example of First Owner benefits?

Answer 3

Newness, incentives, certainty of completion, avoidance of competitive bidding, warranty

Question 4

Give an example of second Owner benefits?

Answer 4

Modern spec, high EPC, new home perks (gyms, swimming pools - flats)designed for modern living.

Question 5

What comparable evidence is required on a new build site for Countrywide?

Answer 5

In line with RICS Guidance Note(3rd Edition) valuation of individual new build homes.

A similar detached comparable from the same site, one from another similar new build development and two second hand sales of modern houses from comparable locations supported the instructed value.

Question 6

Why did you recommend sale by private treaty?

Answer 6

Property was in an area of established demand and in mortgageable condition. Exposing it to the market should ensure the best price for the client.

An auction sale may be best suited to a property where demand limited to investors/cash purchasers.