Overview

Prepare a full long-form valuation report of a single detached residential dwelling cottage property which is more than 10 years old. It must be freehold title and may be occupied. Unless you reside in New South Wales, the subject property must be in N.S.W.; externally enrolled interstate or overseas students do not have to comply with this restriction.

Further criteria:

- The subject property must have a reasonable curtilage. It is prudent to select a property with no significant latent development potential in the foreseeable future.

- The property may be valued on a vacant possession basis but can be owner occupied at the date of valuation. We recommend & always prefer fee simple in possession.

- Mortgage security is explicitly stipulated for valuation purposes in accord with. 8.2 ANZVGN 2 Valuations for Mortgage and Loan Security Purposes and risk analysis will be a key focus http://anzvps.api.org.au/8-2-vgn.php

- Similarly, on-completion, rental; financial reporting/balance sheet; statutory, acquisition/disposal or stamp duty valuations are to be expressly avoided. Insurance valuations are not allowed nor forced sale value https://www.youtube.com/watch?v=uEb40MkZbx0&feature=youtu.be

- A secondary check method of valuation is compulsory.

Details

To follow the ANZPI professional standards: http://anzvps.api.org.au/index.php

Further clarification and discussion will be carried out in class. Students are expected to peruse the vUWS posted materials relating to sales evidence & the inherent/external features associated with both unimproved and improved residential property. Identifying risk factors & appropriate sighting of documents as per pp.13-14 of the Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions Version 1.1.4 (September 2016) will prove instructive.https://www.api.org.au/residential-valuation-standing-instructions

VALUATION REPORT

1. The premises are to be described in terms of size, construction and layout-and present use. Additionally, students are to outline and investigate the status of the selected property in terms of town planning considerations.

2. Having regard to the current use of the premises the basis of valuation must be "current market value"; students are to put forward prime, supporting secondary (check) methods of valuation and must identify market data presently available to the valuer (e.g. sales).

3. Additionally, students will highlight the points of comparisondiscerned in the key sales transactions identified in the rationale` section of valuation report. What attributes assisted their deliberations in arriving at the final value conclusion in accord with the stated report purpose. See Millington, Ch.7.

4. Students will prepare a full-speaking narrative professional valuation report for the selected premises. The ANZVPS Business Focus 14.3 Reports, Content and Compilation section specifically refers to self-contained or comprehensive style reporting format. http://anzvps.api.org.au/14-3-business-focus.php

Details of all valuation calculations, methodology, assumptions, and sales analysis are required. Professional standards must encompass instructions, valuation executive summary, evidence and annexures. Especially, students will identify the matters that must be conveyed to persons commissioning a valuation of the premises selected for this exercise. Observance and adherence to the APINZ Valuation and Property Standards will be strictly evaluated.

The traditional industry reporting format does not preclude scholarly discussion (where relevant) and proper referencing for this subject's purposes. For all intents and purposes i) to iii) above may be viewed as client instructions as the observant student will note that these issues should be addressed in any quality valuation report. Students will be critiqued on the appropriateness of the basis (preferably market value), purpose, interest to be valued and valuation methodologies for the chosen subject property.

Word limit is 2,500 words maximum incorporating if deemed relevant, figures, tables/charts, floor and site plans, locality maps, photos/pictures, sales transaction analysis schedules, field notes, supporting valuation calculations and workings; qualifications, disclaimers, acknowledgements, table of contents, executive summary and reference list. Students must hone, edit and re-edit their reports down to a lean, succinct, concise document. Endeavour to cultivate a superior professional and objective narrative tone that flows.

- Note exclusions: No residential flats, attached townhouses, villa units or multiple medium density buildings. No strata title or community title properties are acceptable.

It is envisaged that students will consult the lecturer/tutors associated with this topic with a view to discussing in some detail the premises that are selected for the purposes of the exercise.

This unit is not to be viewed as a discrete subject area. To this end students are encouraged to implement and incorporate any skills or ‘tools' acquired from other subject areas into their valuation assignment.