Comparable Method

Question 1

What are the 6 steps?

Answer 1

1. Search and select comparables.
2. Confirm/verify details and headline rents to give a net effective rent.
3. Assemble a schedule.
4. Adjust using hierarchy of evidence.
5. Analyse to form opinion of value.
6. Report value and prepare file note.

Question 2

What is the hierarchy of evidence order for letting comparables?

Answer 2

1. Open market lettings
2. Lease renewals
3. Rent reviews
4. Third party determinations
5. Sale and leasebacks
6. Inter-company transactions

Question 3

How can comparables be found?

Answer 3

Agent for sale boards
Visiting agents
Auction results
Databases - EGi, Focus, Edozo

Question 4

Why should care be taken when using auction sale data?

Answer 4

May be special purchaser or insolvency sale.

Sale price is gross of costs

Question 5

What is crucial when selecting comparables in view of volatile market conditions?

Answer 5

Date

Question 6

Which RICS information paper outlines the process of identifying and using comparable evidence?

Answer 6

RICS Information Paper on Comparable Evidence in Property Valuation 2012.