Programme overview
Introduction:
Real estate valuation, covering valuation methods, standards and valuation reports, is a 5-day course for property valuation, bank collateral, investment analysis and landholding teams that ends with a Property Valuation Report for a case organisation. Lenders, funds and public landowners often act on values set on the wrong basis, supported by unverified comparables or capitalised at yields nobody can explain, so loans, acquisitions and land decisions rest on weak evidence. Nominees already prepare, commission or review property valuations and work through case studies built on inspection notes, rent rolls and transaction evidence. CoreConcept Training Center delivers this real estate valuation course.
Course Objectives:
- Define the purpose, basis of value, interest valued and scope of work for a property valuation instruction in line with the International Valuation Standards
- Inspect land and buildings, record condition and measured areas, and check title, zoning and encumbrances before forming an opinion of value
- Value property by the comparable sales method using verified transactions and a documented adjustment grid
- Apply direct capitalisation, term and reversion and discounted cash flow techniques to let property, and the residual method to land with planning potential
- Value specialised property and special assets using depreciated replacement cost, the profits method and land-specific approaches, and state valuation uncertainty
- Prepare a property valuation report that reconciles the methods, sets out assumptions and special assumptions and withstands an independent review
Target Audience:
- Valuation teams responsible for inspecting property and preparing valuation reports for clients or their own organisation
- Bank collateral and credit teams responsible for commissioning, reading and challenging valuations that secure property lending
- Investment and fund analysis teams responsible for checking acquisition prices and periodic portfolio values
- Government and corporate landholding teams responsible for land registers, disposals, acquisitions and lease rent reviews
- Finance and reporting teams responsible for property values used in revaluations, impairment tests and fair value disclosures
- Valuation review and quality teams responsible for checking that reports follow instructions and standards
Course Outline:
Day 1: Real Estate Valuation Purposes, Bases of Value and Instructions
- IVS Valuation Framework and Real Property Interests Scope
- Market Value, Market Rent and Investment Value Compared
- Freehold, Leasehold and Partial Interests as Valuation Subjects
- Terms of Engagement Letter and Scope of Work Checklist
- Current-State Review of an Existing Property Valuation File
Day 2: Property Inspection, Measurement and the Comparable Sales Method
- Property Inspection Record for Site, Building Condition and Services
- Floor Area Measurement Bases and Lettable Area Schedules
- Title Deed, Zoning and Encumbrance Checks Before Valuation
- Comparable Evidence Search, Verification and Transaction Analysis
- Sales Comparison Adjustment Grid for Location, Age and Specification
Day 3: Income Capitalisation, Discounted Cash Flow and the Residual Method
- Rent Roll Analysis and Net Operating Income Derivation
- Direct Capitalisation With All Risks Yield and Equivalent Yield
- Term and Reversion Valuation of Over-Rented and Under-Rented Property
- Discounted Cash Flow With Exit Yield and Discount Rate Selection
- Residual Method Applied to Land With Planning Potential
Day 4: Specialised Property, Special Assets and Valuation Uncertainty
- Depreciated Replacement Cost for Schools, Hospitals and Civic Buildings
- Profits Method for Hotels, Fuel Stations and Trade-Related Property
- Agricultural Land and Plot Subdivision Valuation Approaches
- Material Valuation Uncertainty Statements and Key Input Sensitivity
- Valuer Independence, Conflict Checks and Valuation Review Procedure
Day 5: Case Study: Property Valuation Report for a Case Organisation
- Case Organisation Property Brief and Inspection Notes Review
- Method Selection and Value Reconciliation for Three Case Properties
- Assumptions, Special Assumptions and Limiting Conditions Schedule
- IVS-Based Report Structure and Executive Summary Drafting
- Property Valuation Report Completion and Review Panel Defence
Skills You Will Gain:
- Basis of Value Selection
- Property Inspection Recording
- Comparable Evidence Adjustment
- Yield and Rent Analysis
- Discounted Cash Flow Valuation
- Specialised Property Valuation
- Valuation Uncertainty Disclosure
- Valuation Report Drafting
Why Attend This Course:
- Deliver a Property Valuation Report for a case organisation to the head of valuation, the credit committee or the property owner's asset board
- Choose the basis of value and method that fits a lending, acquisition, disposal, rent review or financial reporting instruction
- Avoid overstated collateral, disputed disposals and audit queries caused by unverified comparables, unexplained yields or missing special assumptions
- Share inspection records, adjustment grids, yield workings and report templates with valuation and credit colleagues
Conclusion:
Back at work, the participant hands the Property Valuation Report to the head of valuation, the credit committee or the landholding unit, who use it to set lending limits, approve acquisitions and disposals, agree rent reviews or support reported values. The inspection record, adjustment grid and yield workings become templates for the next instruction. After the first report is used, the unit should compare reported values with later transaction prices and review outcomes, then refine comparable selection, yield evidence and uncertainty statements where the evidence differs.
Frequently Asked Questions (FAQ):
What should participants know before a real estate valuation course on methods and reports?
Participants should already prepare, commission or review property valuations and be comfortable with basic spreadsheet arithmetic. Bringing an anonymised valuation report, rent roll or transaction list helps them apply the case study work to their own properties.
How does a real estate valuation course differ from a development appraisal or plant and machinery valuation course?
It values existing land and buildings for lending, investment, disposal and reporting instructions. Development appraisal courses model scheme cash flows and financing, and plant and machinery courses value equipment; both appear here only where they affect property value.
Why does real estate valuation use more than one method for the same property?
Each method tests the value from a different angle: comparable sales from market evidence, income capitalisation from rent and yield, and replacement cost from building cost. Reconciling them exposes weak evidence and gives a supported single figure.
What do participants take back from the real estate valuation course?
Participants take back a Property Valuation Report for a case organisation, with an inspection record, a comparable adjustment grid, capitalisation and discounted cash flow workings and an assumptions schedule they can adapt to their own instructions.