REMB10-Real Estate Valuation

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Summer term module
Pre-requisites: REMB05 Real Estate Investment Appraisal
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Prof Peter Wyatt
Email: p.wyatt@henley.reading.ac.uk

Type of module:

Summary module description:

Students will understand the different roles for which valuations are needed (financial statements, bank lending security, performance measurement, sale and acquisition) including the advantages and disadvantages of various applications of techniques for each role and be able to apply these different techniques within the market context of the UK.

Aims:

The aim of this module is to enable students to develop a further understanding of the financial, technical and market context of the appraisal of property investments and to examine the different applications of techniques to the valuation of commercial real estate in the UK. 

Assessable learning outcomes:

Upon completion of this module, students should be able to:

• Understand different concepts and definitions of values in exchange and use, and academic and practitioner debates matching definitions to roles;


• Identify and discuss the major issues concerning the appraisal process, including instructions through to reporting, and the legal status of different valuations, including client influence on valuations;


• Understand and critically evaluate the appropriate techniques for different valuation/appraisal situations, and be able to undertake valuations using the five basic approaches to appraisal;


• Apply investment techniques to complex market situations in the context of the UK market, and be able to price different physical, locational and legal aspects of real estate assets for both rental and capital value;


• Understand and critically debate the limitations of different techniques within the context of a theoretical framework. 

Additional outcomes:

Outline content:

• The property valuation process, including instructions, bases, methods and reporting, 

• Valuation smoothing, lagging, accuracy, variation and bias, 

• Methods of appraisal, 

• The market valuation of property investments; theory and applied practice, 

• Identification of yields used in appraisal, 

• Pricing of locational, physical and lease structure differences for both rentand capital value. 

Global context:

This module is available to both home and international students.? The approaches are generic but the institutional context used to demonstrate and apply these approaches is based in the UK market. 

Brief description of teaching and learning methods:

The module is delivered in a block release format that involves a four day face to face teaching block with pre-course preparation plus online post-teaching support. The module is taught in an interactive format through seminars and workshops. An assessed individual project is the consolidating and integrating vehicle for the taught material. Students are encouraged to share information via Blackboard in the extended online support period which follows the face to face ele ment. An online discussion of the case studies between tutors and students supports the assessment in this module. 

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

After the end of the formal teaching block there will be a problem-solving appraisal assignment which will assess the ability of students to apply techniques to complex situations. The assignment will involve a substantial amount of calculation and annotation, plus critical debate of techniques. Guide length, depending on the balance of calculation and discussion, 4,000 words excluding calculations and appendices, equivalent to a 5,000 word essay (including calculations and annotation). 

Assignment Submission Deadline: Week 51

Formative assessment methods:

Penalties for late submission:

The Support Centres 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 (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:?https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/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:
50%

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):

No additional costs.

Last updated: 30 March 2023