Property: Value, Price and Worth

Through a series of lectures and workshops, this course provides an essential insight into the role of valuations in property investment and the importance of pricing to market. Participants will, during the course, undertake an appraisal based on their own perceptions of risk and market changes. A bespoke Excel spreadsheet will be provided as an educational aid. 

Course Content

• Definitions of price, value and worth and the distinction between price paid and investment value
• Valuing in the current market and Valuation Uncertainty
• Expectations and forecasts – taking account of rental and capital changes (positive and negative) both in the current market and in the future in the context of uncertainty.
• An examination of valuation models that highlight the distinction between discounted cash flow (DCF) and implicit valuation techniques
• Understanding price relative to future potential cash flows and ensuring that assets are priced to market
• Monetary measurement of risk and uncertainty
• Factors affecting performance measurement of property

This course is designed for valuers and other professionals using commercial property valuations as part of their decision-making investment activities.

Learning Objectives

By the end of the course you will be able to:

• Understand the role of valuations in the investment process
• Appreciate the difference between ‘value’, ‘price’ and ‘worth’ in the context of property investment
• Understand the importance, and shortcomings, of valuations in the investment process
• Appreciate different valuation approaches and models used for the valuation of different asset types
• Appreciate how to interpret valuations and the implicit assumption underpinning the market value figure
• Use the knowledge gained to assist you in the practical application of valuation models in investment analysis