Valuations Flashcards
Level 1 Tell me what are the 5 methods of valuation.
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Level 1 Tell me about how you would value a building using the profits/contractors/investment/comparable/residual method of valuation. What is PI Insurance (PII)?
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Level 1 Why do surveyors need PII?
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Level 1 Tell me about the RICS requirements in relation to PII. What is run off cover?
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Level 1 What is the Red Book?
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Level 1 Why does the Red Book exist?
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Level 1 Tell me about a factor which may impact value.
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Level 1 What is your duty of care as a surveyor when undertaking a valuation? Why is independence and objectivity important when valuing?
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Level 1 Is there a separate UK Red Book? When was the Red Book last updated? What changes were made?
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Level 1 Which sections of the Red Book are mandatory and which are advisory? What does PS1-2/VPS1-5/VPGAs relate to?
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Level 1 What type of advice does the Red Book cover?
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Level 1 If you provide preliminary advice / draft valuation report, what should you state in writing to your client?
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Level 1 What type of valuations might be relied upon by a third party?
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Level 1 Tell me what the definition of MR/MV/investment value/fair value? What is the difference between an assumption and a special assumption?
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Level 1 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?
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Level 1 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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Level 1 When might a conflict of interest exist in relation to a valuation instruction? What must be included in your terms of engagement / valuation report?
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Level 1 What is a restricted valuation service and can you provide one? How do you deal with limitations on inspection or analysis?
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Level 1 Can you revalue a property without inspecting?
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Level 1 What RICS guidance relates to the use of comparable evidence? What is an internal valuer?
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Level 1 Can an external valuer provide an internal purposes valuation?
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Level 1 What happens if market conditions change between the valuation date and report date?
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Level 1 Is special value from a special purchaser reflected in MV? Where does the definition of fair value come from?
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Level 1 Does this differ from MV? When is fair value used?
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Level 1 What are the 3 approaches under VPS5? What is the Valuer Registration Scheme?
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Level 1 Are there any instances where certain sections of the Red Book may not apply?
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Level 1 What are these and which sections dont apply?
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Level 1 What is the basis of value under UK GAAP FRS 102? What is a SORP?
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Level 1 When would you use EUV? What is the definition of EUV?
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Level 1 What additional criteria apply to secured lending valuations?
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Level 1 What information should you specifically request for a secured lending valuation? What is a regulated purpose valuation?
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Level 1 What additional disclosures must be made for a regulated purpose valuation? What is the basis of value for a statutory valuation?
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Level 1 What might a statutory valuation relate to?
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Level 1 What is the definition of the statutory basis of valuation? What is a yield?
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Level 1 What is a Net Initial Yield? What is a reversionary yield? What is an equated yield?
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Level 1 What is an equivalent yield?
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Level 1 How would a yield reported from auction differ from a Net Initial Yield?
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Level 1 What purchasers costs do you deduct from a valuation
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Level 1 How would you value a property in uncertain market conditions - does the Red Book give any guidance?
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Level 1 How could you value a long leasehold interest? How does a term and reversion and DCF differ?
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Level 1 What is the difference between a growth explicit and a growth implicit yield? Give examples of each of these types of yield.
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Level 1 How would you value an under/over rented investment property? When would you use a dual rate investment calculation?
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Level 1 Where can you find yield evidence from? What is the hierarchy of evidence?
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Level 1 What would you do if comparable evidence was limited? What is NPV?
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Level 1 What is IRR?
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Level 1 What is a term and reversion? What is a hardcore and topslice?
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Level 1 What is a Discounted Cash Flow (DCF)? What is a short-cut DCF?
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Level 1 When would you use a DCF?
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Level 1 What are the advantages of a DCF? What are the disadvantages of a DCF? What is a YP/PV/YP in perpetuity?
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Level 1 What is marriage value?
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Level 1 When would you include an element of hope value in a valuation? How would you value a ransom strip?
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