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: 2018/9

Module Convenor: Prof Sarah Sayce

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

Type of module:

Summary module description:

This module will develop your understanding of the roles, methods and limitations of residential and commercial property valuations, and enhance your knowledge of the application of valuation theory to current practice problems and challenges in residential and commercial property markets.

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

Aims:

This module will develop your understanding of the roles, methods and limitations of residential and commercial property valuations, and enhance your 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 a thorough understanding of:

· Rental and capital market valuation methods including complex calculations

· Investment valuation (worth) calculations

· Valuation regulation and guidance and their role in promoting standards

· The causes of uncertainty and inaccuracy in valuations

· Applications of valuations to financial reporting, secured lending, compulsory purchase, and performance measurement

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

· The impact of PropTech’ (eg. Automated valuation models and mass appraisal techniques) on valuation

· The impact of the sustainability agenda on valuation

Additional outcomes:

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

Outline content:

Valuations at rent review and at lease end. The impact of Lease terms. Calculation of effective rents, synergistic values and premiums

· Valuation of vacant properties, properties with break clauses and over-rented properties

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

· Valuation regulation, guidance and standards

· Valuations for financial reporting. Asset valuations

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

· Valuations for performance measurement including the role of indices and smoothing

· The causes of valuation uncertainty, accuracy, variance including valuer behaviours

· 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

Brief description of teaching and learning methods:

Lectures.

Contact hours:

	Autumn	Spring	Summer
Lectures		20	2
Guided independent study		53	25
Total hours by term		73.00	27.00
Total hours for module	100.00

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% 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):

Last updated: 20 April 2018