Inspection

Question 1

What is the professional standard concerning comparable evidence?

Answer 1

Comparable evidence in RE valuation (2019) PS

Question 2

What should comparables be?

Answer 2

• Comprehensive
• Similar
• Recent (representative of the market)
• result of an arms length transaction
• Verifiable
• Consistent with local market practice
• The result of underlying demand

Question 3

What is a comparable ?

Answer 3

An item of information used during the valuation process as evidence to support the valuation of another similar item

Question 4

What factors of development potential might affect values ?

Answer 4

• Amount and density of permitted development
• Assumed value of completed development
• Development costs
• Risk

Question 5

What can you find within the RICS surveying safely (2018) PS?

Answer 5

• Personal and corporate responsibilities
• Assessing risks and hazards
• Visiting sites
• Fire safety
• General procurement and management of contractors

Question 6

How would you carry out an inspection risk assessment?

Answer 6

1. Identify risk
2. Assess likelihood of risk and consequences
3. Mitigation measures to reduce likelihood / severity of risk

Question 7

What what would you want to inspect when looking at a potential development site (in context of CPOing land)?

Answer 7

• Always look at the obvious constraints to development.
• e.g. Checked the flood zone risk - if it is in flood risk zone 3, it is unlikely to get planning permission
• Important to be able to dissprove hope value.

Question 8

What are some different inspection purposes?

Answer 8

Valuation (what can influence it? location, tenure, aspect, form of construction, defects, condition, occupation)

Property management (policing the lease)
- Inspection depends on occupation

Agency (marketability issues)

Question 9

How long is a red book valuation valid for?

Answer 9

3 months

However, it can be extended by another three months if a request is made within the first two weeks of the initial expiry date.

Question 10

How would you explain statutory responsibilities to your client?

Answer 10

A surveyor should clearly explain the specific legal requirements relevant to the property and the inspection type, using plain language and avoiding jargon

Question 11

What emerging legislation may impact your clients?

Answer 11

Planning and Infrastructure Bill:
This bill aims to speed up decision-making and streamline the delivery of new homes and major infrastructure projects.

Question 12

Why are property inspections important?

Answer 12

• Allow for comparisons
• Small but important details can be picked up
• Dispute prevention
• Identify potential issues

Question 13

Why is negotiation important?

Answer 13

• Resolves conflict
• Creates Value and achieves the market value
• Can always walk away

Question 14

What are some of the key documents/regulations associated with measurement and inspection?

Answer 14

• International Land Measurement Standard (2019)
• Code of measuring practice (2015 - RICS)
• Property measurement (2018 - RICS)
• Comparable evidence in real estate

Question 15

What are IPMS 1 2 3 and 4

Answer 15

• IPMS 1 measures the external area of a building, including external walls and balconies.

-IPMS 2 measures the internal area of a building to the internal dominant face, excluding areas like columns and internal walls, but it still includes the entire building footprint.

• IPMS 3 is for areas of exclusive occupation, with IPMS 3.1 measuring these spaces externally and IPMS 3.2 measuring them internally.

IPMS 4 - allows user to define their own extents IPMS 4.1: Includes all internal walls and columns
IPMS 4.2: Excludes the internal walls and columns

Question 16

How would you ensure accuracy when using a disto?

Answer 16

• Calibrate it first. Reference against a known measurement e.g. 30cm ruler on a wall.
• Repeat measurements

Question 17

Why was your valuation not red book?

Answer 17

I wasn’t advising on “specific considerations” - client asked for a “market appraisal” based on specific land.

“For clarification it was a market appraisal”

Question 18

When does the red book apply?

Answer 18

The red book always applies, but there can be exceptions within reports for internal reporting purposes or market appraisals.

Question 19

Walk me through the timeline of a risk assessment

Answer 19

Desktop RA
Confirm Suitable Route to get there
Suitable parking on site
Do you have appropriate PPE
Are you lone working?
Conduct dynamic RA when on site.