module specification

This module builds on previous learning around the principles of valuation and valuation methods, extending critical understanding of the role of the valuer, the valuation process and professional conduct. It will enable you to apply valuation theory to current problems and challenges in the commercial property market, including emerging investment asset classes and sustainability.

The module applies valuation principles to more complex situations and introduces discounted cash flow techniques and specialist valuation processes. It considers the application of RICS regulations in valuation work, including professional negligence and duty of care. You will be given the opportunity to apply your valuation skills to a variety of different situations.

The role of the valuer in the context of sustainability and commercial benefit of sustainability will be examined throughout the module, linking with other modules at this level of study.

As is required of any real estate professional, you will be expected to keep up to date with current issues and analyse current economic data to appreciate the effect on real estate valuations.

• Recap on previous learning around traditional methods of valuation (LO1)
• Importance of inspection and information gathering to valuations (LO2,3)
• International valuation standards (LO1,4)
• Discounted cash flow valuations (LO1)
• Residual valuations (LO1)
• Modern methods of valuation (LO1,2,3)
• The role and function of Automated Valuation Models (AVMs) and relevance in commercial valuation (LO1,2,3)
• Valuation and the impact of environmental, social and governance criteria (LO3)
• Specialist valuations (LO1,3)
• RICS regulations and guidance (LO4)

Lectures will help develop your knowledge and understanding gained from the level 4 and 5 valuation modules.  Seminars, workshops and other activities will allow you to apply your learning to a range of situations, helped by peer and tutor support.

Study will be supported via lectures, seminars, workshops, and guided asynchronous activities. Where appropriate, activities, will be captured and made available to allow asynchronous access. The value of this blended approach is that you will be able to continue to explore topics beyond the classroom and interact with your cohort to expand on discussions and debates.

You will receive formative feedback at regular intervals.  Formative means that the feedback will not go towards your final mark for the module, but you will be able to use the feedback to learn, improve your knowledge of key topics and to develop your academic writing skills. Students will be given the opportunity to self-assess their learning in small group sessions and discussions.

You will be asked to do independent and guided reading and research to support your learning, this will help you to build a wider knowledge of economic theory and how it relates to the built environment and how it will affect you as a real estate professional.

On completion of the module the learner, operating independently and applying their knowledge and skills, should be able to:
1. Generate more complex valuations, justifying the method employed and the data used.
2. Analyse current market data and explain how this can influence real estate valuations.
3. Critically examine external influences on real estate valuations.
4. Evidence adherence to professional guidance and regulations in relation to the valuation of commercial real estate.

There is no single text currently in publication that provides a comprehensive coverage of all aspects of this module. There are several books, publications and online resources which cover various parts of the module in some detail, and these are included in the core text list.

Core:
Basic Tasks in Excel
Begg, D., Vernascu, G., Dornbush, R. and Fischer, S. (2020) Economics. 12th edn. London: McGraw Hill.
Association of Real Estate Funds (AREF)
CoStar news
EG Radius
JLL Research
Marshall, D. (2023) ‘How can valuers break ESG valuation deadlock?’ RICS Property Journal. Available at: https://ww3.rics.org/uk/en/journals/property-journal/ESG-valuation-deadlock.html (Accessed: 12 May 2023).
RICS Valuation Standards
RICS Rules of Conduct
Scarrett, D. and Osborn, S. (2014) Property valuation the five methods. 3rd edn. Abingdon: Routledge.
Wilcox, J. and Forsyth, J. (2022) Real estate: The basics. Abingdon: Routledge
Williams, M. (2023) ‘Are interest rates dampening demand for office space?’ RICS Modus. Available at: https://ww3.rics.org/uk/en/modus/built-environment/commercial-real-estate/commercial-property-monitor-may-2023.html (Accessed 12 May 2023).
Wyatt, P. (2022) Property valuation. 3rd edn. Chichester: Wiley Blackwell