Oireachtas Joint and Select Committees

Wednesday, 13 May 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. Patrick Davitt:

Well, the plan of a blue book valuation report, which is quite a document, it is anything from probably 20 to 50 pages, the plan of that blue book document is, if I did that for you and I gave it to you, and you didn't know the property, just take it if you didn't know the property at all, somebody was buying possibly that property for you, and you looked at this valuation report, the plan of that document is, that when you look from the first page to the photograph, to the end page to where the valuation figure is, that you will know as much about that property by the time you've finished the report, as I will after writing it. That is what it's supposed to portray, with all the different headings and everything that are in it. So the assumptions are one part of that and the special assumptions are another part of it. So, like, those assumptions, first of all to do a blue book valuation, I must write you a letter or a terms of engagement. So that terms of engagement must take in what assumptions I am going to use. So if I am going to use A, B, C or D or if I am going to use special assumptions like forward looking, like planning or something like that, so they must take consideration of that.