RE3AV-Applied Valuation

Module Provider: Real Estate and Planning
Number of credits: 10 [5 ECTS credits]
Level:6
Terms in which taught: Spring / Summer term module
Pre-requisites: RE1IAP Investment Appraisal and RE2VAL Property Valuation
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2019/0

Module Convenor: Prof Sarah Sayce

Email: s.l.sayce@reading.ac.uk

Type of module:

Summary module description:

This module builds on your knowledge of both valuation and investment appraisal methods.  It will deepen your critical understanding and knowledge of the roles and responsibilities of the valuer and how they apply these to residential and commercial property valuations. It will enhance your knowledge of the application of valuation theory to current practice problems and challenges in residential and commercial property markets. It is taught by lecture and assessed by examination only. 

This module is delivered at University of Reading and University of Reading Malaysia.

Aims:

This module aims to:  

• deepen the student’s critical understanding and knowledge of the roles and responsibilities of the valuer and how they apply these to residential and commercial property valuations. 

• enhance the student’s knowledge of the application of valuation theory to current practice problems and challenges in residential and commercial property markets.

Assessable learning outcomes:

By the end of the module it is expected that students will have an understanding of: 

• Valuation regulation and guidance and their role in promoting standards and in valuing for different purposes; 

• The causes of uncertainty and inaccuracy in valuations; 

• Rental and capital market valuation and ‘worth’ methods, including complex calculations applied to commercial property; 

• Valuation of residential properties including affordable housing, new housing, build-to-rent housing and long leasehold interests; 

• Current practice issues related to valuations for statutory purposes e.g. compulsory purchase codes;  

• Emerging and current practice issues in valuation theory and practice; for example: dealing with uncertainty; the impact of PropTech’ (e.g. Automated valuation models and mass appraisal techniques); new models of long-term value; sustainability; land value capture and emerging asset classes. 

Additional outcomes:

The module also aims to encourage the development of written communication and independent study skills. Opportunity for discussion will be provided but is not part of the summative assessment.

Outline content:

• Valuation regulation, guidance and standards including provisions for valuing for different purposes (secured lending, financial reporting etc.)  

• Challenges presented by complex valuation issues in their current market context, including: lease terms (effective/headline rents, break clauses, voids, over-rent etc.); statutory issues (e.g. landlord and tenant legislation); lease re-structure deals (e.g. surrender/renewal; synergistic values) and the impact of Lease terms. Calculation of effective rents, synergistic values and premiums 

• Investment Value (Worth) calculations, including aspects of growth, depreciation and obsolescence 

• The causes of valuation uncertainty, accuracy, variance including valuer behaviours and the role and impact of indices  

• Current issues in the valuations for compulsory purchase and compensation 

• Valuation and sustainability 

• Prop tech: Mass appraisal, CAMA, AVMs 

• Aspects of residential valuation: valuing affordable housing; new build; build to rent; leasehold enfranchisement 

• Other topical issues in line with the learning outcomes such as: 

     • Valuations for bank lending and leverage including Mortgage Lending Value, long-term value, Sustainable Value and the impact of new mortgage models. 

     • Emerging asset classes. 

     • Aspects of taxation including land value capture. 

Global context:

Some aspects of the content are global in nature e.g.:  Regulation and guidance; accuracy etc.  For other topics international references will be made as appropriate. 

 

 

Brief description of teaching and learning methods:

Lectures.

Contact hours:

	Autumn	Spring	Summer
Lectures		20	2
Guided independent study:
Wider reading (independent)		46	5
Exam revision/preparation			20
Revision and preparation			2
Group study tasks		5
Total hours by term	0	71	29
Total hours for module	100

Summative Assessment Methods:

Method	Percentage
Written exam	100

Summative assessment- Examinations:

One two-hour examination

Summative assessment- Coursework and in-class tests:

None

Formative assessment methods:

None

Penalties for late submission:
The Module Convener will apply the following penalties for work submitted late:

where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day[1] (or part thereof) following the deadline up to a total of five working days;

where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:

A mark of at least 40% in the Examination.

Reassessment arrangements:

Reassessment will be by the same method as for the module’s original assessment requirements, subject to variation by the Examination Board where appropriate.

Additional Costs (specified where applicable):

Last updated: 8 April 2019