CPPREP4101 "Demonstrate Knowledge and Skills in Conducting Property Appraisals"

Appraise Property

CPPREP4101

19812002857500014852655141595Learning Activity Workbook

00Learning Activity Workbook

17030708595360Real Estate Institute of NSW RTO 90117

Phone (02) 9264 2343 Email training@reinsw.com.au

00Real Estate Institute of NSW RTO 90117

Phone (02) 9264 2343 Email training@reinsw.com.au

TOC h z t "EAT Main Heading,1,EAT Section Header,2,EAT Header,3" Introduction PAGEREF _Toc26619860 h 4Learning Activity 1 PAGEREF _Toc26619861 h 5Learning Activity 2 PAGEREF _Toc26619862 h 6Learning Activity 3 PAGEREF _Toc26619863 h 7Learning Activity 4 PAGEREF _Toc26619864 h 9Learning Activity 5 PAGEREF _Toc26619865 h 11Learning Activity 6 PAGEREF _Toc26619866 h 12Learning Activity 7 PAGEREF _Toc26619867 h 13Learning Activity 8 PAGEREF _Toc26619868 h 15Learning Activity 9 PAGEREF _Toc26619869 h 16Learning Activity 10 PAGEREF _Toc26619870 h 17Learning Activity 11 PAGEREF _Toc26619871 h 18Case Study PAGEREF _Toc26619872 h 19Learner Declaration PAGEREF _Toc26619873 h 20

Introduction

This workbook contains activities for the unit(s) of competency:

CPPREP4101 Appraise property for sale and lease

for more information on the units of competency go to www.training.gov.au.

The learning activities workbook has been designed to enable you to gain an understanding of the application of the learning you are undertaking.

Each activity is linked to the information contained in the Learner Guide and is a foundation for the questions in the final assessment. Please follow the instructions from your trainer to complete the activities.

Some of the activities may be done in class and other activities are a reflection of your understanding of the course content and will be done in your own time.

These activities form part of the overall assessment of the unit(s) in this cluster.

Once you have completed the workbook you will need to scan and upload to your learning portal. There are several apps for your mobile phone that will allow you to scan all the pages into one document, (please do not upload individual pages).

If you have any difficulty in answering the questions or need further clarification, please speak with your trainer.

REINSW recognises the individual needs of each learner and will provide reasonable adjustment if required.

Learning Activity 1

An agents role in appraising property includes:

Assessing the clients requirements and expectations

Confirming ownership and authority to proceed with the property appraisal

Communication strategy

Develop a list of six questions to achieve the above

How much price are you expecting for your home?

When are you looking to sell the property?

Why are you looking to sell the property?

Are you the only owner or joint owner of the home?

How long have you owned the property for?

As a part of our policy, can you kindly email your photo ID and council rates before proceeding with the property appraisal?

Learning Activity 2

An agent has a professional, ethical and legal responsibility when appraising property.

Discuss the outcomes of unprofessional or unethical behaviour. In your response refer to legislative requirements.

Learning Activity 3

Explain the difference between a property valuation and a property market appraisal.

How do economic, political and social factors affect the price of property?

In the table below match the appraisal method used to determine the propertys value to the purpose and property type

Property Type Purpose of appraisal Appraisal Method

Residential Sale and Management Comparable sales/rentalCommercial Sale Comparable sales/rentalVacant land Development Hypothetical development / TurnerResidential Rebuild SummationIndustrial Net income floor space CapitalisationResidential Replacement cost Replacement costRural Land and improvements Hypothetical development / Turner

Learning Activity 4

Discuss property attributes and how they influence the price of property including:

Property location

Building construction, faults and hazards

Building improvements and modifications

Property condition and presentation, aesthetic and design features

Heating, cooling and ventilation systems

Energy efficiency and building sustainability ratings

Learning Activity 5

To develop a market appraisal, you will need to consider several factors other than recent sales or leasing. What role do the following have on property price for both sale and lease:

Local market factors

Economic, political and social factors

Supply and demand

Future development

Return on investment

Learning Activity 6

Case Study 1 the location of this property is in your suburb

Conduct a comparable market analysis and determine your opinion of price for both:

Sale

Lease

Specialist Advice

You have been asked to appraise a property that has several heritage features and given that there have been no similar sales, discuss how you would determine your opinion of price. What specialist advice would you obtain?

Learning Activity 7

You are going to prepare an appraisal report for the property in the case study.

What agency forms and documents do you require?

Develop a list of key headings that you would use. Include any inclusions and data sources used.

From your key headings develop a draft plan of your proposed presentation.

Learning Activity 8

After your appraisal presentation you will need to obtain feedback from your client, what methods will you use?

How will you incorporate the feedback from clients to inform future presentations?

Learning Activity 9

Discuss risks that may occur during the appraisal process. These could include:

The property and inspection

Market forces

Documentation

Breach of regulatory requirements

Client complaints

Learning Activity 10

Explain the regulatory requirements for documentation for substantiation of property price.

What is required if you need to change your opinion of price?

What agency forms would be completed if the appraisal presentation was successful?

Learning Activity 11Discuss the differences in approach to conducting a market appraisal for non residential property:

Rural

Commercial

Industrial

Retail

Case Study-5175827724300Case Study 88 Young Street

Near new 3 bedroom brick veneer house with double lock up garage

Spacious main bedroom with a ceiling fan, ensuite and built in wardrobeModern kitchen design with stone benchtops, stainless steel appliancesExtra features include split system air conditioning, LED lighting

Located close to shops, schools and public transport

Learner DeclarationComplete ALL sections including your legal name and contact details. Indicate with Y for Yes or N for No

I submit this assessment and certify that:

All work submitted has been completed by me No part has been completed or copied from any other person I have referenced and/or acknowledged all necessary authors I have kept a copy of my assessments Where necessary, I have attached supporting documents which are clearly identified in line with the specific question Where required, I have completed any agreements, forms and documents required for this assessment. I understand that partial completion will not be accepted I understand that federal and state agencies have the right to access any of my assessment materials for auditing and monitoring purposes I consent that REINSW may use my de-identified assessment for internal moderation and validation purposes I understand that if a third party requests my results that REINSW will only do so with my written permission Learner Legal Name (print) Unique Student Identifier Contact Number Home Address Learner Signature Date

-1025881-914400

107951866265Property Appraisal

CPP41419

Property Appraisal

CPP41419

107953114040CPPREP4101 Appraise property for sale and lease

0CPPREP4101 Appraise property for sale and lease

-10252467466965Real Estate Institute of New South Wales RTO 90117 30-32 Wentworth Ave Sydney 2000

Phone (02) 9264 2343 Email training@reinsw.com.au Web www.reinsw.com.au

0Real Estate Institute of New South Wales RTO 90117 30-32 Wentworth Ave Sydney 2000

Phone (02) 9264 2343 Email training@reinsw.com.au Web www.reinsw.com.au

Learner Declaration

Complete ALL sections including your legal name and contact details. Indicate with Y for Yes or N for No

I submit this assessment and certify that:

All work submitted has been completed by me No part has been completed or copied from any other person I have referenced and/or acknowledged all necessary authors I have kept a copy of my assessments Where necessary, I have attached supporting documents which are clearly identified in line with the specific question Where required, I have completed any agreements, forms and documents required for this assessment. I understand that partial completion will not be accepted I understand that federal and state agencies have the right to access any of my assessment materials for auditing and monitoring purposes I consent that REINSW may use my de-identified assessment for internal moderation and validation purposes I understand that if a third party requests my results that REINSW will only do so with my written permission Learner Legal Name (print) Unique Student Identifier Contact Number Home Address Learner Signature Date

Assessment Information

Assessment for this unit covers the elements and performance criteria for the unit of competency:

CPPREP4101 Appraise property for sale and lease

The unit(s) form part of the CPP41419 Certificate IV in Real Estate Practice under the Australian Qualifications Framework.

Performance Criteria and Elements

Every assessment for a Unit of Competency within the Australian Qualifications Framework (AQF) is structured around Performance Criteria and Elements. To access the performance criteria and elements go to www.training.gov.au and search for unit code(s).

Assessment Structure

Part 1 Short Answer Questions

Part 2 Extended Answer Questions

Part 3 Workplace Situation Activities

This assessment is written at AQF Level 4, which means that your answers must show your depth of understanding and your ability to demonstrate the skills and knowledge required to complete tasks in a real or simulated real estate workplace. You should pay attention to spelling, grammar and punctuation and write in full sentences and use appropriate language.

Finding information to answer your assessment questions

To answer questions, you will need to refer to your Learner Guide, the Assessment Activity Workbook and conduct research on various websites including but not limited to:

NSW Fair Trading

Australian Legal Institute

Federal Register of Legislation

Real Estate Institute of NSW

Whilst conducting research, it is important that you ensure that the websites accessed are relevant to this state and not from other states of Australia or overseas. You must reference all sources of information.

Learners with Difficulties

REINSW recognises the individual needs of each learner and will provide reasonable adjust when required. If you are experiencing difficulties, please call (02) 9264 2343 and ask for assessment help.

Submission of Assessment

All assessment documents must be submitted via the learning portal. Ensure that you submit all required documents as your assessment will not be marked if it is not complete. In this instance you will receive an email saying that your assessment attempt was not successful, and you will be required to resubmit the missing documents.

Assessment Results

The assessment result will be either Competent or Not Yet Competent, there is no pass or fail in competency based assessment.

Your assessment results will be available within 14 - 28 days after submission.

If your assessment is found to be not yet competent, you will be provided with clear feedback on what additional information is required via the Assessment Marking Feedback document and within the assessment itself.

You will be given a further 14 days to resubmit your assessment.

If you require clarification on the requirements of your resubmission, please call (02) 9264 2343 and ask for assessment help or email training@reinsw.com.au.

Part 1 Short Answer Questions

For this section, you will need to provide answers that directly address the question, you may answer in point form. Ensure that you answer all parts of the question.

To complete this section, type your answer where you see the I insertion symbol. You have limited formatting options.

Question 1

Research and explain the regulatory requirements to provide property appraisals for sale and lease.

What ethical and professional standards would you aim to achieve when appraising property for sale or lease?

Answer

1 2 Question 2

Explain the role of the agent in the appraisal process.

How would you gather information to establish your client requirements?

How would you confirm the ownership, attributes and features of the property?

Answer

1 2 3

Question 3

Communication with client is important throughout the appraisal process.

Design a checklist to ensure that all communication points are covered.

How would you address complaints of concerns from your client during the communication process?

Answer

1 2 Question 4

Discuss the purpose and methods of appraising property for sale or lease. Include two different types of property in your answer. eg: commercial, residential.

Answer

1

Question 5

Research and describe the features of two of the following period building styles:

Victorian

Federation

Art Deco or Spanish Mission

Californian Bungalow

Why is it important to do a thorough inspection prior to conducting a market appraisal?

What effect do the location, inclusion, presentation and condition of the property have on the price of property?

How does energy efficiency and sustainability impact on the appeal of property?

Answer

1 2 3 4 Question 6

Explain the process of comparable analysis starting from property inspection to preparation of appraisal report. Include:

Sources of information

Specialist advice

Research to be undertaken

Source documents

Answer

1 Question 7

Explain the components of a market appraisal document. Include any attachments, documents and websites that would be consulted.

Answer

1 Question 8

Develop a list of five questions that could be used to obtain feedback from the client about the appraisal report process.

How would you review the feedback and implement improvements?

What documents would you keep from the appraisal meeting?

Explain how you would maintain the security of information collected to ensure confidentiality.

Answer

1 2 3 4

Question 9

List five risk areas that may occur when developing a market appraisal.

Research one legislative requirement of market appraisal. Give an overview and include penalties for breach.

Answer

1 2 Question 10

Explain at four specific attributes that would need to be considered when appraising the following property:

Rural

Commercial

Industrial

Retail

Answer

1 2 3 4

Part 2 Extended Answer Questions

For this section, you will need to provide answers that are in depth, referenced and supported by additional documentation.

Answers to questions need to be approximately 50 to 100 words, if you consult websites or publications to construct your answer, you MUST reference your source.

Read each question or scenario carefully and ensure that you answer all of the facets of the question.

To complete this section, type your answer where you see the I insertion symbol. You have limited formatting options.

Question 1

You have been asked to conduct a rental appraisal for a property that you believe is listed as a heritage property. It is slightly run down and needs some maintenance work to bring it up to a suitable standard for tenants.

As you do not have any prior experience appraising this type of property you will need to get specialist advice.

Research and explain where you could find information on this type of property and how you could verify if the property was heritage listed.

What type of repairs and maintenance are allowed on a heritage property?

List any supporting documents that you would keep about your appraisal.

Answer

Question 2

Using your own home or a property of your choice (that is suitable for sale or lease),

Prepare an inspection report and supporting notes that will be used as a basis for your comparative market analysis. In the inspection report ensure that you include:

Features inclusions eg bedrooms, bathrooms, car spaces

Attributes

Condition

Location

Amenities

Recommended improvementsResearch and find at least two other properties that could be used for comparison and list any features that are better or worse than your selected property.

You will need to print or save the photos and other documents that will be used when you prepare your CMA to present to your client.

Answer

Question 3

Research and develop a report that focuses on one of the following types of property:

Rural

Residential

Commercial

Industrial

Retail

In the report you need to discuss at least five of the following attributes:

Building construction

Aesthetics and design features

Faults and hazards

Building improvements and modifications

Heating, cooling and ventilation systems

Energy efficiency and building sustainability ratings

Compliance with regulatory requirements

Land and environmental protection plan

Local and state regulations

Include a picture of the property

Answer

Question 4

Using the risk identified in SA9, develop a risk management plan to address your identified risks.

In your risk management plan include strategies to address additional risks that may occur from:

the role of the agent in providing price range recommendations

professional and ethical practices

agency forms and documentation

client confidentiality

compliance with regulatory requirements

Answer

Part 3 Workplace Activities

For this section, you are required to read the scenario and complete the required documents. There are templates provided. If you are required to develop your own document, it should be presented in a professional manner and saved as a PDF before uploading to the portal.

There is a checklist with each question to ensure that you complete all the required documentation.

To complete this section, type your answer where you see the I insertion symbol. You have limited formatting options.

Question

Write to your clients Justine Redman and Tyler Brooks confirming your appointment to conduct a market appraisal on their home.

In your letter you will need to ask for confirmation of ownership of the property and obtain consent to proceed with the property appraisal.

Letter Template

6159520955REAL Property Professionals

30-32 Wentworth Ave

Sydney 2000

Phone (02) 6528 7895

www.realpp.com.au

REAL Property Professionals

30-32 Wentworth Ave

Sydney 2000

Phone (02) 6528 7895

www.realpp.com.au

Question 2

Create a property inspection report to be used as the basis of your property and market analysis.

In the report include the market conditions and indicators that you will take into account.

Document uploaded Y for Yes

Inspection report Question 3

Prepare two appraisal reports (CMA) for two different properties in the same geographical area.

One CMA for sale

One CMA for rent

You must choose one of the following:

Rural

Residential

Commercial

Industrial

Retail

(Do not submit a commercially generated printouts as your CMAs, you must develop your own documents)

Document uploaded Y for Yes

CMA Sale CMA Rent

Question 4

Collate the information gathered in the CMAs into a one report. The report should show at a minimum:

property attributes

market conditions

macro factors

supply and demand

future development

Report

Question 5

Case Study 2

Your clients, Justine Redman and Tyler Brooks, have complained to your office that they are dissatisfied with the findings of the appraisal report. They were disappointed that you turned up late to the appointment and were seemingly rushed, continually looking at your phone during the presentation.

They also asked several questions regarding the comparable properties used, of which you appeared defensive and could not provide clear supporting evidence of why these were used in the report.

They are now strongly considering going with another agency and are seeking an explanation from your agency as soon as possible.

Your licensee has asked you to reflect on the feedback received from your clients and document what you will do to improve future presentations.

Reflection

Question 6

Complete the risk matrix below using your identified risks associated with the process of property appraisal.

Risk Matrix

CONSEQUENCES

LIKELIHOOD Insignificant Minor Moderate Major Catastrophic

Almost certain High High Extreme Extreme Extreme

Likely Moderate High High Extreme Extreme

Possible Low Moderate High Extreme Extreme

Unlikely Low Low Moderate High Extreme

Rare Low Low Moderate High High

Risk Likelihood Consequence Rating

Upload documents for Extended Answer 2 and 3

Document uploaded Y for Yes

EA2 2 x Comparable property photos EA3 Property photo for report