u5cAv1-L1 - Introduction 24-25

The amount of money transferred from buyer to seller in exchange for rights over an asset.

The estimated price for the transfer of an asset or liability between identified knowledgeable and willing parties.

The most probable price that would be achieved in a hypothetical exchange in a free and open market.

An approach that indicates value based on the principle that a buyer will pay no more than the cost to obtain an asset of equal utility.

Money paid for land, building design, and construction.

The value of an asset to the specific owner or a prospective owner for individual investment or operational objectives.

The respective interests of the parties involved in the transaction.

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction.

The three main approaches are the Cost Approach, the Income Approach, and the Market Approach.

Physical deterioration and economic obsolescence.

An approach that indicates value by comparing the subject asset with identical or similar assets for which price information is available.

It provides an indication of value by converting future cash flows to a single present capital value (Present Value).

RICS (Royal Institution of Chartered Surveyors).

A method that estimates the value based on the cost to replace or reproduce the property.

8 weeks.

A specified date.

The benefits that a specific person or entity enjoys from ownership of an asset, which may not be relevant to market participants in general.

Discounted Cash Flow (DCF) model.

Depreciated replacement cost.

Agency fees, legal charges, and transfer taxes (stamp duties).

A method that compares the property to similar properties that have recently sold.

It indicates the conclusion of the course material.

It is mainly used for special properties.

It refers to a valuation approach that considers the unique circumstances and fairness of a property transaction.

IVS, RICS, and HKIS.

Replacement cost method and contractor’s method.

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

It refers to the underlying principle or standard used to determine the worth of a property.

Equitable value.

Cost and price are similar for newly recreated real estate assets.

It aids in investment decision making.

The value that reflects the fair share of ownership in a property.

A statement of the fundamental measurement assumptions of a valuation.

The appropriate basis will vary depending on the purpose of the valuation.

Consultant fee and transaction cost for land acquisition (as a percentage of LV).

On ResearchGate and LinkedIn.

Market Approach, Income Approach, Cost Approach.

No, they are not mutually exclusive.

Income producing assets with very little transactions, such as hotels and shopping malls.

Professor K W Chau.

Dr Arnab Dutta.

Both direct and indirect real estate.

The nature of the asset and the purpose of the valuation.

It helps determine the value of the property for loans.

Lease modification premium assessment.

Legal and compliance costs (as a percentage of GDV).

Investment value or value in use.

It is directly observable.

IVSC, RICS, and HKIS.

Proper marketing, knowledgeable and prudent parties, and no compulsion.

It focuses on the cost to replace or reproduce the property, minus depreciation.

Physical Real Estate.

4 sessions.

Rights to transfer, rights to exclude other users, and rights to receive income.

It is the minimum price set for tender or auction sales.

Assessment of rates, government rent, and property tax.

Development profit (as a percentage of GDV).

Similar transactions used to assess the value of the subject asset, taking into account differences in characteristics.

Fair value is similar to market value in a liquid and well-functioning market.

Market value.

Comparable rental and market yields.

The specific advantages or disadvantages of ownership to the parties involved.

Yes, they may be unconnected and negotiating at arm’s length.

Monitoring of property investment performance.

The valuation will be provided after appropriate investigations.

Financial instruments that derive their value from real estate.

Design consultant fees (as a percentage of construction cost).

To provide access to research and academic resources.

Rights to exclude other users, transfer, and derive income.

RECO4006 - Introduction

Facebook.

It refers to a market where properties are bought and sold freely without restrictions.

Real estate development appraisal.

It is used to estimate the value of a property based on the income it generates.

No, the asset is not necessarily exposed in the market.

The estimated worth of an asset based on current market conditions.

Expenses incurred during the buying or selling of a property, including fees and taxes.

CC.

Costs involved in realizing a transaction, including both monetary and non-monetary costs.

Information cost, search and matching cost, contracting and enforcement cost.

The potential income generated by the property.

Valuation of physical real estate asset and Modern portfolio theory and its application in real estate investment.

Valuation.

The price at which a property would sell in a competitive and open market.

The value of a property to a particular investor based on individual investment criteria.

Rating and statutory valuation.

Transaction cost is higher.

Different definitions of 'value'.

In relatively active and homogeneous markets, such as residential properties.

Statistical methods such as regression.

It may refer to a specific lesson or module number.

The highest value user.

12 sessions.

Securitized Real Estate, or Public Real Estate.

It may reflect specific advantages or disadvantages rather than the market at large.

The nature of the hypothetical transaction, the relationship and motivation of the parties, and the extent to which the asset is exposed to the market.

Gross Development Value.

Market approach, Income approach, and Cost approach.

The amount of money required to create or produce a real estate asset, including costs for land, building design, and construction.

A combination of the Market, Income, and Cost Approaches.

They should be the same.

Due to high transaction costs.

Indirect Real Estate.

The total expenditure incurred to acquire or improve a property.

LV = GDV – CC – CF – FC – MC – LC – TA – DP - LA.

From the capital market, for example, using the capital asset pricing model.

That cost and price are similar for newly recreated real estate assets.

Even in developed markets with full private property rights.

2 sessions.

2 sessions.

Marketing and agency costs (as a percentage of GDV).

Taxes (stamp duties) for disposal of property (as a percentage of GDV).

An inspection and further investigations and enquiries.

Data on building construction costs.

Listed property companies and real estate investment funds.

It is used for compensation assessments.

It compares the property to similar properties that have recently sold in the market.

Real Estate Investment Trust (REIT).

It combines different valuation methods, such as residual valuation of land.

FC (% of GDV).

It is used for IPOs and REITs.

2 sessions.