CONS08014 2022 Specialist Valuations

General Details

Full Title
Specialist Valuations
Transcript Title
Specialist Valuations
Code
CONS08014
Attendance
N/A %
Subject Area
CONS - Construction
Department
CENG - Civil Eng. and Construction
Level
08 - NFQ Level 8
Credit
05 - 05 Credits
Duration
Semester
Fee
Start Term
2022 - Full Academic Year 2022-23
End Term
9999 - The End of Time
Author(s)
Trevor McSharry, Aisling Doyle, Ms. Laura ODonnell
Programme Membership
SG_SREAL_K08 202200 Bachelor of Science (Honours) in Real Estate Development and Valuation (Add-on)
Description

The module encourages the learner to consider topical theoretical and practical issues that impact on the valuation profession and changing national and international property markets and to formulate informed opinions in response to the challenges identified. It explores the theory and application of both traditional methods and discounted cash flow (DCF) quantitative valuation techniques for development projects. Conduct and appraise the impacts of sensitivity analysis on the DCF. 

The module also explores the techniques and application of valuing specialist property such as forestry, institutional buildings, such as schools, garda stations and "going concerns" such as hotels, licenced premises, supermarkets, filling stations. 

 

Learning Outcomes

On completion of this module the learner will/should be able to;

1.

Develop traditional development appraisals and sensitivity analysis, calculate developers’ equations and discuss the benefits and risks of assessing development land values in this way

2.

Explain and critically evaluate the valuation of going concerns using the traditional profits method and the application of advanced DCF valuation techniques.

3.

Apply the appropriate valuation techniques to the valuation of ‘going concerns’ such as hotels, licenced premises, supermarkets, service stations, etc.

4.

Explain the methodology for forestry valuations as an investment. Apply the valuation techniques for same. 

5.

Examine and explore the valuation methodologies for institutional buildings such as "Schools" "Garda Stations" etc. Apply the valuation techniques to same. 

Teaching and Learning Strategies

This module will be delivered through lectures.

Moodle is used by lecturers to direct and manage the learning process and facilitates formal learning, posting of lecture notes and continuous assessments, additional resources and supporting documents.  Informal learning: social communication between learners.

Moodle will also be further used as a means of assessment, utilising online quizzes, for the uploading of assignments of reports.

Module Assessment Strategies

This module will be assessed as follows:

40% Continuous Assessment

60% Final Exam

 

Repeat Assessments

Students who fail an element of the module will need to repeat each element (exam and or final exam) as instructed by the module lecturer.

Indicative Syllabus

Develop traditional development appraisals and sensitivity analysis, calculate developers’ equations and discuss the benefits and risks of assessing development land values in this way 

Development Valuations for zoned land, brown field sites, green field sites using residual valuation methods and DCF methods  

Assessing the development land values by applying sensitivity analysis and critiquing the results of same. 

Redbook standards for development valuations and report writing on same  

 

Explain and critically evaluate the valuation of going concerns using the traditional profits method and the application of advanced DCF valuation techniques. 

Explore the Profits Method. The types of property suitable for this method include going concerns such as  

  • Licensed Premises  

  • Supermarkets  

  • Petrol filing stations 

  • Hotels 

  • Caravan & Mobile Home Parks 

  • Nursing Homes 

  • Primary Healthcare Centers 

  • Accounts – Understanding accounts, how to interpret them. 

  • Goodwill, Ad backs, Capex, EBITDA, Multiplier, Depreciation, FF&E 

  • Redbook standards for Profits Method and report writing on same  

 

Explain the methodology for forestry valuations as an investment. Apply the valuation techniques for same. 

Forestry as an investment  

Entry vehicles, returns, risks, risk mitigation  

Forestry Valuation  

Purpose, methodology, forest life cycle, grants, and premiums 

 

Examine and explore the valuation methodologies for institutional buildings such as "Schools" "Garda Stations" etc. Apply the valuation techniques to same. 

Explore the contractor's method of valuation and the use of the comparable method alongside this. 

Adjustments for depreciation and redevelopment  

Coursework & Assessment Breakdown

Coursework & Continuous Assessment
40 %
End of Semester / Year Formal Exam
60 %

Coursework Assessment

Title Type Form Percent Week Learning Outcomes Assessed
1 Continuous Assessment Coursework Assessment Assignment 40 % OnGoing 1,2,3,4,5
             
             

End of Semester / Year Assessment

Title Type Form Percent Week Learning Outcomes Assessed
1 Final Exam Final Exam Closed Book Exam 60 % End of Semester 1,2,3,4,5
             
             

Online Learning Mode Workload


Type Location Description Hours Frequency Avg Workload
Lecture Not Specified Lecture 1 Weekly 1.00
Directed Learning Not Specified Directed Learning 1 Weekly 1.00
Independent Learning Not Specified Independent Learning 5 Weekly 5.00
Total Online Learning Average Weekly Learner Contact Time 2.00 Hours

Required & Recommended Book List

Recommended Reading
2012-01-11 Property Valuation Principles Red Globe Press
ISBN 9780230355804 ISBN-13 0230355803

A user-friendly introduction to property valuation for students and practitioners who are new to the subject. The text is packed with worked examples and photos and covers the five main methods of valuation, their application in a variety of markets and their relation to the wider economic context.

Recommended Reading
2014 Property Valuation Routledge
ISBN 041571768X ISBN-13 9780415717687

The third edition of Property Valuation: The Five Methods introduces students to the fundamental principles of property valuation theory by means of clear explanation and worked examples. An ideal text for those new to the subject, the book provides 1st year undergraduate students with a working knowledge and understanding of the five methods of valuation and the ways in which they are interlinked. In this fully revised edition, the new author team have: restructured the chapters to ensure a more logical order outlined economic theory of value and the rules and constraints under which a valuer works provided detailed consideration of each of the five recognised approaches placed a larger emphasis on the Discounted Cash Flow approach These revisions are all written in the concise and accessible style which has made previous editions of the book so successful. The new edition of this textbook will be essential reading for undergraduates on all property, real estate, planning and built environment courses.

Recommended Reading
2019-01-23 Modern Methods of Valuation Estates Gazette
ISBN 1138503517 ISBN-13 9781138503519

Modern Methods of Valuation covers real estate valuation theory and methods, UK valuation standards compliant with international standards and the application of these methods to the valuation of most types of property for most value purposes. Significant changes in this new edition include: New international Valuation Standards 2013 New RICS Valuation - Professional Standards 2014 Replacement of RICS code of Measuring Practice (6th edition) with RICS property measurement incorporating International Property Measurement standards 2015 Amendments to areas of statutory valuations; in particular those recently introduced specifically for HS2 and those set out in the Localism Act 2011 and The Housing and Planning Act 2016. Budget and regulatory changes affecting taxation and Business Rates Various new and revised RICS guidance notes and emerging areas relating to professional valuations such as International Professional and Ethical Standards, Sustainability and sustainable values. Modern Methods of Valuation is packed with practical examples and presents the most comprehensive study of the subject of Property Valuation available in the UK. It is an essential text for all three years of University and College degree programmes in Real Estate and related postgraduate conversion courses. It also supports RICS student members preparing for their Assessment of Professional Competence (APC).

Recommended Reading
2016-08-08 Introducing Property Valuation
ISBN 1138929956 ISBN-13 9781138929951

This new edition of bestselling textbook Introducing Property Valuationprovides students with a comprehensive introduction to the concepts and methods of valuing real estate, helping them to progress successfully from basic principles to a more sophisticated understanding. Taking a practically oriented rather than purely theoretical approach, the textbook equips readers with the skills to undertake their own valuation calculations. Fully updated to reflect recent developments in regulation and practice, experienced tutor and valuer Michael Blackledge demonstrates how the principles can be applied in professional practice in line with the requirements and guidance provided by the International Valuation Standards Council and the Royal Institution of Chartered Surveyors. Online material accompanies the new edition with Q&As and pre-programmed excel spreadsheets enabling students to prepare their own calculations. The five traditional methods of valuation are outlined and the practical applications of the two main approaches, the comparison and investment methods, are fully explored. The use of discounted cash flow and quarterly in advance calculations, topics which are not always adequately covered elsewhere, are also explained. Accessibly written with a full range of worked examples, case studies, clear chapter summaries and extensive further reading suggestions, this book is essential for any student of real estate and its valuation.

Recommended Reading
2013-10-11 Principles of Valuation Taylor & Francis
ISBN 9781135335656 ISBN-13 1135335656

An entry level introduction to valuation methodology, this book gives a straightforward narrative treatment to the subject matter with a multitude of examples and illustrations, contained in an easy to read format. There is a strong emphasis on the practical aspects of valuation, as well as on the principles and application of the full range of valuation methods. This book will serve as an important text for students new to the topic and experienced practitioners alike. Topics covered include: property ownership concepts of value the role of the valuer property inspection property markets and economics residential property prices and the economy commercial and industrial property methods of valuation conventional freehold investment valuations conventional leasehold investment valuations discounted cash flow contemporary growth explicit methods of valuation principles of property investment.

Recommended Reading
2017-12-14 The Income Approach to Property Valuation
ISBN 113863963X ISBN-13 9781138639638

Revised edition of the authors' The income approach to property valuation, 2011.

Module Resources

Non ISBN Literary Resources
URL Resources

Farmers-Handbook-2021.pdf (farmershandbook.ie)

Forestry - Teagasc | Agriculture and Food Development Authority

http://www.coford.ie/publications/books/

A guide to the valuation of Commercial Forest Plantations:  http://www.coford.ie/media/coford/content/publications/GuideValuation30042013091019.pdf 

www.scsi.ie

www.rics.ie

 

Other Resources
Additional Information