General Valuation

Question 1

What are the THREE steps you need to consider before undertaking a Valuation?

Answer 1

1. Am I competent?
2. Any conflicts of interests?
3. Has the client signed Terms of Engagement?

Question 2

Talk me through a Valuation instruction

Answer 2

16 STEPS

1. Receive the instruction
2. Check competence
3. Conflict of Interest check
4. Draft Terms of Engagement
5. Get Terms of Engagement signed
6. Gather information (e.g lease)
7. Undertake Due Diligence
8. Inspect and measure
9. Research market and collect comps
10. Undertake valuation
11. Draft report
12. Have the report checked
13. Make any amendments and finalise report
14. Report to client
15. Issue invoice
16. Ensure all information is saved in the file for auditing and archiving

Question 3

What is the difference between a Residual Valuation and Development Appraisal

Answer 3

A residual valuation is to calculate what a developer can afford to pay for the land.

A development appraisal is a more detailed financial analysis of a development project.