RE2VAL-Property Valuation

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:5
Terms in which taught: Autumn / Spring / Summer module
Pre-requisites: RE1IAP Investment Appraisal
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Module version for: 2016/7

Module Convenor: Prof Peter Wyatt

Email: p.wyatt@reading.ac.uk

Summary module description:
This module identifies the processes, procedures and practices necessary to value real estate, particularly commercial property investments. It examines the valuation process including regulatory framework, role of the valuation and different concepts of value. It examines in detail various methods of valuation and which ones are appropriate for which role and examines the limitations of these methods and the results.

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

Aims:
It aims to develop the students’ understanding of the underlying principles of valuation and to equip them to discriminate between approaches.

Assessable learning outcomes:
By the end of the module it is expected that students will be able to:
• Understand the different concepts and definitions of value
• Identify the different roles of and approaches to valuation
• Distinguish appropriate valuation methods for different concepts and roles
• Use and recognise the limitations of comparable data in the formulation of market valuation appraisals for both rent and capital value
• Perform different types of conventional valuations and application of the method to practical situations.
• Identify the information requirements of cash flow appraisal models
• Perform cash flow appraisals for investment value which demonstrate an awareness of the information requirements and their impact on the appraisal outcome.
• Perform residual valuations for development opportunities
• Evaluate the strengths and weaknesses of different types of development valuations
• Explain the role of institutional and regulatory guidance, and professional ethics.
•Taxation of property

Additional outcomes:
Students will develop an awareness of property market and valuation process operates, develop their understanding and abilities to carry out more complex cash flow appraisals and will further enhance numeracy and problem solving skills in the application of appraisal techniques.

Outline content:
The module is intended to build on the basics principles established in Part 1, and to establish a sound basis for further detailed study at Part 3. The module will typically cover:
• Institutional background and role of valuation in market context
• Valuation process - bases of value, institutional guidance, reporting, negligence
• The income approach to market valuation applied in UK practice and the application of comparative investment valuation techniques to commercial property
• Cash flow approaches to investment value including yield to equity and basic risk analysis
• Development valuation - residual and cash flow approaches.
• Property taxation

Brief description of teaching and learning methods:
Weekly two-hour lectures and a one-hour group workshop session provide the structure, context, and opportunity for problem solving.

Contact hours:
  Autumn Spring Summer
Lectures 20 20 2
Practicals classes and workshops 10 10
Guided independent study 54 54 30
       
Total hours by term 84.00 84.00 32.00
       
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 60
Project output other than dissertation 40

Other information on summative assessment:

Formative assessment methods:
Workshop exercises.

Penalties for late submission:
The Module Convenor will apply the following penalties for work submitted late, in accordance with the University policy.

  • where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the 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: 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.

    Length of examination:
    One three-hour examination.

    Requirements for a pass:
    A mark of at least 40% overall.

    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):
    1) Required text books:
    2) Specialist equipment or materials:
    3) Specialist clothing, footwear or headgear:
    4) Printing and binding:
    5) Computers and devices with a particular specification:
    6) Travel, accommodation and subsistence:

    Last updated: 21 December 2016

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