Course Title: Residential Valuation

Part A: Course Overview

Course Title: Residential Valuation

Credit Points: 12.00

Terms

Course Code	Campus	Career	School	Learning Mode	Teaching Period(s)
OMGT1116	City Campus	Undergraduate	325H Property, Construction & Project Management	Face-to-Face	Sem 2 2006, Sem 2 2007, Sem 2 2008, Sem 2 2009

Course Coordinator: Matt Myers

Course Coordinator Phone: +61 3 9925 1726

Course Coordinator Email: matt.myers@rmit.edu.au

Course Coordinator Location: 8.8.33

Course Coordinator Availability: Wednesday's 1pm-3pm or by appointment

Pre-requisite Courses and Assumed Knowledge and Capabilities

None

Course Description

This course introduces students to the principles of property valuation, with particular emphasis on how residential property valuations are carried out. It covers:
• the factors that create and influence value in the marketplace
• the theory of value, including current market value, value in exchange, and statutory definitions of value
• sourcing and analysis of data; use and application of GIS in the valuation process
• valuation methods, and when to use the various approaches
• physical and legal attributes of land, buildings and other improvements, and their impact on value
• the impact of cash flows on property markets
• the effect of planning on value and the valuation process
• professional practice standards
• ethics
• writing a property analysis report

It also explores the factors that contribute to the exchange of property at ’market value’, and the factors that contribute to the exchange of property at other than market value.  Historic, contemporary and legal attitudes are considered, as is the role of the property professional in the property industry and finance sector.

Objectives/Learning Outcomes/Capability Development

Capabilities
Capabilities in this course build on those formerly developed in the following courses:
• Property Concepts
• Residential Design and Measurement
• Construction Technology (Residential)
• Construction Science

Capabilities in this course will be developed concurrently in the following courses.
• Property Economics
• Construction Technology (General)
• Financial Reporting

Capabilities in this course will be developed subsequently in the following courses.
• Urban Economics
• Property Law
• Investment Evaluation
• Property Investment
• Property Development
• Statutory Valuation
• Urban Valuation
• Rural Valuation
• Advanced Valuation
• Asset Management

The specific graduate capabilities specified in the Program Documentation that will be addressed, further developed and refined in this course are:
• Evidence based practice identifying a problem

The enabling knowledge and skills created through examination of the:
• factors that create and influence value in the marketplace
• theory of value

Problem diagnosis and solving
• resolve problems using sound problem-solving methodologies

The enabling knowledge and skills created through examination of:
• Valuation methods, and their application
• Physical and legal attributes of land, buildings and other improvements, and their impact on value
• The impact of cash flows on residential property markets
• The effect of planning on value and the valuation process
• The impact of legislation and judicial precedent on valuation theory and practice

Communication.
• gather and synthesise information from a wide range of people, to achieve an informed outcome.
The enabling knowledge and skills are created through writing a valuation report. 

Strategic thinking and action
• link strategic thinking and operational action – to use holistic perspectives to inform day to day decisions and actions.

The enabling knowledge and skills created through:
• Understanding value and the history of valuation
• Examination of valuation theory and practice
• Learning how to source data
• Learning how to analyse data

Integration of personal values with professional and service values
• clearly articulate and promote an ethical position that guides personal behaviour in all aspects of professional practice.

The enabling knowledge and skills created through the development of an understanding of the application of:
• Ethics
• Professional practice standards

What can I expect to learn by studying this course?
This course deals with property valuation: a critical profession within the property industry. It is an area that is no longer controlled tightly by legislation or government registration of valuers in some jurisdictions. Valuation is an area where there is increasing litigation as a result of allegations associated with negligence, and resulting from risk-transfer. Having studied this introductory course in valuation you should be able to demonstrate an awareness of the common law and contractual obligations of those in the valuation profession.

At the end of the course you should also be able to:
• understand the definition of value, and the forces that create and modify value
• have knowledge of the role and responsibility / liability of the valuer in society, and the relationship between valuers and other property professionals
• be able to discuss various methods of determining value, and the types of properties to which the various methods are likely to apply
• be able to demonstrate by use of basic worked examples, the process a valuer undertakes in collecting information and the actual analysis and application of this information
• be able to undertake an analysis of a property and produce a professional-standard report in respect of that property
• be able to discuss the need for valuations of property, and list and competently explain the factors that create value and what their inter-relationships are
• be able to articulate the basics of sales analysis, and the methods used to arrive at the value of a property
• be able to write a property analysis report in respect particular property
• be able to delineate between ethical and unethical behaviour in relation to valuation practice 
• be able to gather and synthesise information from a wide range of people, to achieve an informed outcome

Overview of Learning Activities

This course is run with a weekly lecture and supporting tutorial sessions. As most, if not all, of the material being introduced will be unfamiliar it is expected that you will have undertaken some pre-reading prior to any particular topic being introduced. It is recognised that for many, much of the material will need inter-action between the class and the lecturer or tutor. It is recognised that lectures provide limited opportunity for questions, so the supporting tutorials provide the opportunity for inter-action and explanation, in many cases by example. 

Lectures and tutorials rely on you undertaking base reading and referencing in the non-contact hours each week. 

The tests, auction exercise and property analysis report exercise are all designed to assist your deeper understanding of the topic area.

The final closed book exam will test your overall appreciation of the course, and will concentrate on of the learning outcomes detailed above, with questions designed to test as many as possible within the list of topics set out. The exam will be of three hours’ duration.

Overview of Learning Resources

Students are expected to have read the respective weekly chapters in the course text, and any other reading materials posted on DLS, outside of the teaching contact times. 

Lecture and tutorial notes / handouts will be posted on DLS several days before the respective lecture or tutorial.  Students are encouraged to printout and bring to lecture.  This is done so that students can listen to the lecture, not just spend time writing down notes from the screen.  Also, some of the tutorials will require that you complete the exercise BEFORE coming to the tutorial session.

Through out the semester Lecture may provide additional learning exercise, readings, etc that will be posted online.

IMPORTANT NOTICE: All course notes, handouts, etc will only remain online for 10 days ONLY.  It is the student’s responsibility to download each week to keep up. 

Overview of Assessment

Assessment of the course comprises tests (two), an attendance and accompanying task at a residential property auction, a property analysis report exercise and a formal exam. The Final Examination will carry 50% of the possible course marks awarded, with the tests (30%), auction exercise (5%), and the property analysis report (15%) carrying the remaining 50%.

Further details of the exercise, tests and the property analysis exercise will be posted on DLS.

The pass mark will be an overall aggregate of 50%, but in order to secure a pass students must achieve a minimum of 40% of the marks available on the final examination as well as a minimum aggregate of 40% for the auction exercise/test and property analysis exercise component.

Changes to Assessment
The method of assessment (including submission date) in the course guide may be altered by the lecturer with the approval of the Program Director and the agreement of 70% of the students enrolled in the course. Any alterations will be notified to all students concerned by email.

Attendance Requirements
Attendance is not a requirement. You need, however, to be aware that significant non-attendance may seriously jeopardise your chances of success in the course. The educational experience provided in classes is an essential component of the course and may be difficult to obtain other than by attendance.