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: 2018/9

Email: p.wyatt@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) 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 spreadsheet templates to undertake major appraisals and/or 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.

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:

This programme is delivered via a block teaching period for each module.  The taught block teaching week includes lectures, class discussions and practical workshops arranged around a case study.

The block release taught element will be supported by the use of Blackboard.

Other contact: On-line materials and support.

Total hours: 26+ online support.

Summative assessment- Examinations:
None

Summative assessment- Coursework and in-class tests:

12th August 2019 (Out of term time)

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, depending on the balance of calculation and discussion, 4000 words excluding calculations and appendices, equivalent to a 5000 word essay (including calculation and annotation).



As this is a core Module of Special Significance 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

Assessment 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.

Additional Costs (specified where applicable):

No additional costs.

Last updated: 13 August 2018