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:
Module version for: 2017/8

Module Convenor: Prof Neil Crosby

Email: f.n.crosby@henley.reading.ac.uk

Summary module description:
Students will understand the different roles for which valuations are needed (financial statements, bank lending security, performance measurement, sale and acquisition) and the advantages and disadvantages of various applications of technique 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 technique to the valuation of commercial real estate in the UK.

Assessable learning outcomes:

- 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:
- Construct complex spreadsheet templates to undertake major appraisals and utilise appraisal packages.

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 rent and capital value.



 


Brief description of teaching and learning methods:
Coursework: Lecture, problem solving workshops and discussion seminars

Contact hours:
  Block Release
Lectures 10
Tutorials/seminars 10
Practicals 10
Other contact (eg study visits) On-line Discussion Board
   
Total hours 30 + on-line learning support
   
Number of essays or assignments 1 appraisal assignment

Summative Assessment Methods:
Method Percentage
Written assignment including essay 100

Other information on summative assessment:

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 technique to complex situations. The assignment will involve a substantial amount of calculation and annotation, plus critical debate of technique. Guide length 5000 words excluding calculations and appendices.

The calculations and annotation should be equivalent to a 5,000 word assignment so a guide to the annotation would be 2,500 words in addition to the calculations which are also equivalent to 2,500 words.





As this is a core Module of Special Significance for all students joining the MSc Real Estate part time programme from September 2012, a mark of 40 must be achieved in order for the MSc to be awarded.


Formative assessment methods:

Penalties for late submission:

Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx



Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Length of examination:
None

Requirements for a pass:
50%

Reassessment arrangements:

Resubmission of project which will achieve a maximum mark of 50.

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



 


Last updated: 21 July 2017

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