Valuation Methods - Practical Guidance for Surveyors
It is a mandatory requirement that any chartered surveyor providing a written valuation report for clients must be registered for the RICS Valuer Registration Scheme and to be fully conversant with the requirements of the current edition of the RICS Valuations - Professional Standards (The 'Red Book'). It requires valuers to adopt ‘professional scepticism’ when carrying out valuations.
The Red Book is mainly a procedural manual providing little by way of advice on specific valuation methods and their recommended adoption. However, the International Valuation Standards, IVS 105 provides some description of the five valuation methods although still not prescribing a specific method to be adopted in carrying out a valuation.
This virtual classroom seminar will cover practical aspects of valuations for clients, especially in current markets facing changes in shopping habits, workplaces and with ever increasing considerations of sustainability (both environmentally and in respect of income). This includes the choice and use of the various valuation methodologies for commercial property valuations and reporting the valuation in a meaningful way for the client to understand.
The session will be interactive and practical with participants considering likely problems and pitfalls when carrying out valuations and how they may be resolved.
What You Will Learn
This live and interactive session will cover the following:
- The bases of value as defined by the RICS/IVS in the latest edition of the Red Book
- What advice does the RICS mean by ‘professional scepticism’ when carrying out a valuation?
- How has the commercial property market changed?
- Is reference to yield potentially misleading?
- Income approach
- Can traditional method still be used?
- Problems choosing inputs for DCF
- Problems when using profits method
- The market approach and latest RICS guidance
- Limitations on use of comparison method
- Development appraisals
- Limitations of residual method
- Considerations when carrying out financial feasibility reports
- Limitations in using depreciated replacement cost method and specific reporting requirements.
- Reporting uncertainty
Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.