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Flashcards in Level 3 - summary of experience Deck (6)
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1

Hoddesdon - How did you advise the client?

- I advised the weighting I placed on each comparable to calculate the aggregate market value. I sourced 3 sales in Clarence Lodge YTD (a purpose-built block), near-identical. £290k 2b duplex, 250k (2 bed), 210k (1 bed).
- I advised the client that following my due diligence and calculations I felt it was suitable for loan security. Low risk - a suitable product in the market, future rental income stream reliable
- I advised that a reduced sales period would reflect a 5% discount in market value. My research on new build schemes and speaking with local agents outlined sales rates were 1.5pcm, therefore 13 units wouldn't sell in 6 months. That being said, I felt a 5% deductions would be enough incentive for a quick sale.

2

Dry Drayton - How did you advise the client?

- I advised my client of the limitations of using the residual method. I outlined that this method of valuation is sensitive to minor adjustments (such as values & costs). & the importance of accurate information and inputs.
- I advised my client of the rationale of my assumptions; - 20% POC - I advised my client that this level of profit would be to low for a large housebuilder, but considering the scheme, this would appeal to suit local/regional developers.
- I advised my client that the build period would be 12 months. This info provided by the borrower and in line with my experience.
- I advised the client I felt the abnormals were low at 5% and should be 10% on build costs considering the condition of land. (New access and power source)
- I advised a sales rate of 2pcm, local evidence outlined strong market sentiment. From my RDS experience, I was aware of the demand for barn conversions.
-Under VPGA2, I cross-checked the RLV by assessing my plot values with other land comparables. I advised my client that plot values were in line with similar schemes in the Cambridgeshire hinterland.

3

Witchford - How did you advise the client?

I advised my client on the signage requirements for this new build development. I outlined my recommendations in a report.
- The use of heras fencing instead of traditional hoarding as it was more cost-effective, sustainable and would allow traffic to see the high-quality topography.
I also advised my client to install two totem signs at each end of the site to inform the passing traffic. I advised my client to speak with a planning consultant as this signage would require a planning application.

4

Orchard Park - How did you advise the client?

I advised my client that in accordance with NHBC building warranty, the developer had a mandatory requirement to complete properties to a high quality finish. I outlined the workmanship requirement within the NHBC guide and shared the document. Remeidate any superfical defects within two years of completion was quickly remediated.

5

Mill Road - How did you advise the client?

I advised my client to reduce our asking prices by 5%.
I outlined my findings and recomendations in a meeting and a report. These included;
- I advised my client of the ongoing Brexit uncertainty and how that had affected consumer confidence, fewer enquiries for high-end flats. Evidence of competing housebuilders giving away buyer incentives.
- I outlined my comparative analysis of a new build scheme (Vincent Court) recently launched in close proximity, similar product. Values 5% below our asking prices.
- I advised my client that the absence of parking spaces for two beds was a significant detriment. Market norm for 2 beds to have parking space and that a suitable discount of £20k should be expected for the absence of parking.

6

Castle Camps - How did you advise the client?

I advised the client of our sales and marketing for the upcoming agency instruction.
I advised that we should host a show weekend in October as this wouldn't collide with the school holidays.
Following the show weekend, I put forward three offers to the client. I advised my client that the use of informal tender through private treaty negotiation might be a useful method to increase offers and conclude bidding.