This new edition of bestselling textbook Introducing Property Valuation provides 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.
Part 1: Background
1. Economic Context
2. The Property Valuation Profession
Part 2: Valuation Mathematics
4. Compounding and Discounting
5. Sinking Funds and Mortgages
7. Alternative Valuation Tables and Formulae
Part 3: Valuation Methods
8. Methods of Measurement
9. Valuation Standards
10 Comparison Method or Market Approach
11. Investment Method or Income Approach – Traditional
12. Investment Method or Income Approach – Discounted Cash Flow
13. Residual Method
14. Profits Method
15. Cost Approach
Part 4: Applied Valuations
16. Landlord and Tenant Valuations
17. Loan and Asset Valuations