Valuation (lvl 1) Flashcards
Tell me what the 5 methods of valuation are.
Tell me about how you would value a building using the
profits/contractors/investment/comparable/residual method of
valuation.
How do you decide which valuation method to apply? When and why would you use one of these methods?
What is a years purchase multiplier?
Give me an example of a good covenant and how this might impact a
valuation.
What is PI Insurance (PII)?
Why do surveyors need PII?
Tell me about the RICS requirements in relation to PII.
What level of PII cover does your firm have?
How would you distinguish limitations on liability in your valuations?
Where in your valuation report do you state any limitations on liability?
What is the SAAMCO cap?
What would you do if you received a notice of a PII claim from a client
or their solicitor?
What is run off cover?
What is the Red Book?
Why does the Red Book exist?
Tell me about a factor which may impact value.
What is your duty of care as a surveyor when undertaking a valuation? To whom do you owe this duty of care?
Why is independence and objectivity important when valuing?
Is there a separate UK Red Book?
What is the UK valuation guidance called?
Why does the UK guidance exist?
When was the Red Book last updated?
Does this differ from when IVS were last updated? What changes were made?
Which sections of the Red Book are mandatory and which are advisory?
What does PS1-2/VPS1-5/VPGAs relate to?
What type of advice does the Red Book cover?
What type of valuations might be relied upon by a third party?
Tell me what the definition of MR/MV/investment value/fair value?
What is the difference between an assumption and a special assumption?
What sources of information would you consider when preparing a
valuation report?
If you have previously valued an asset, do you need to make any
additional disclosures and what might they be?
If your firm is too small to have a rotation policy or valuation panel,
what else can you do to ensure objectivity?
When might a conflict of interest exist in relation to a valuation
instruction?
What must be included in your terms of engagement / valuation report?
Where is this covered in the Red Book?
How do you deal with limitations on inspection or analysis?
Can you revalue a property without inspecting?
What RICS guidance relates to the use of comparable evidence?
What is an internal valuer?
Can an external valuer provide an internal purposes valuation?
What happens if market conditions change between the valuation date
and report date?
Is special value from a special purchaser reflected in MV?
Where does the definition of fair value come from?
Does this differ from MV?
When is fair value used?
What are the 3 approaches under VPS5?
Are there any instances where certain sections of the Red Book may not apply? What are these and which sections don’t apply?
What is a SORP?
When would you use EUV?
What is the definition of EUV?
What additional criteria apply to secured lending valuations?
What information should you specifically request for a secured lending
valuation?
What is a yield?
What is a Net Initial Yield?
What is a reversionary yield?
What is an equated yield?
What is an equivalent yield?