REMF18-Real Estate Appraisal and Valuation

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
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 builds off mainly the Investment Appraisal module in Term 1 and studies the market valuation process; as distinct from the wider appraisal process. It examines both the valuation process and valuation methods and as well as preparing students for the workplace, it critically examines property valuation practice at both a theoretical and applied level.

Aims:
The aim of this module is to enable students to develop an understanding of the role of property valuation in both investment and occupier markets. Students will understand the different approaches to valuation and be able to match the methods adapted to the role of the valuation. The module will build off the appraisal issues developed in the Investment and Finance core module and students will be able to distinguish between different concepts of value and the formal definitions of the bases which follow the concept. Students will be able to apply and critically evaluate different techniques and understand their limitations of the outcome, including issues such as lagging, smoothing and accuracy. Students will understand how statutory and quasi-statutory regulations influence and impact upon the valuation process. Students will understand the importance of the valuation process and the internal and external influences affecting this process and its outcomes.

Assessable learning outcomes:
•to understand the nature of property valuation in the context of institutional investment markets and corporate ownership;
•to understand and evaluate the different roles, concepts, bases and methods of valuation;
•to understand and critically debate the traditional methods of market pricing for freeholds and leaseholds and to be able to carry out the same valuations using contemporary DCF techniques;
•to develop analytical skills and conceptual framework to assess the financial viability of different occupational tenure options;
•to be able to undertake valuations for statutory purposes such as Rating, Compulsory Purchase (CPO) and/or leasehold enfranchisement;
•to understand the behavioural influences in the valuation process and to understand the responsibilities of the valuer to the client and the nature of client influence.
•to understand the limitations of the outcomes in terms of process and accuracy.

Additional outcomes:
•enhance their oral and communication skills through discussions in seminar sessions;
•develop their numeracy and report writing skills through the coursework;
•enhance their capacity to read complex published material in a critical fashion;
•construct spreadsheet templates to undertake valuations and develop their quantitative skills through coursework and seminars/practical workshops.

Outline content:
•market pricing of investment and other property;
•pricing of different lease terms;
•rent determination;
•the application of the different concepts of value and methods;
•valuations for statutory purposes (examples from one or more of Rating/CPO/Red Book/Leasehold Enfranchisement);
•behavioural and commercial influences within the valuation process; accuracy of valuations.
•valuation process issues including regulation and liability.

Brief description of teaching and learning methods:
The module will comprise lecture, class tutorial and problem solving workshops

Contact hours:
  Autumn Spring Summer
Lectures 30
Tutorials 4
Practicals classes and workshops 10
Guided independent study 156
       
Total hours by term 196.00 4.00
       
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 100

Other information on summative assessment:
The module will include a three hour formal examination paper, the precise nature of which will be specified in the module guide issued at the start of the module.

Formative assessment methods:
There will be unassessed on-line multiple choice tests linked to individual topics for students to assess their progress.

Penalties for late submission:

Not applicable.
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:
Three hours.

Requirements for a pass:
The pass-mark for the module is 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):
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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