CPPREP4101 Property Appraisal Assignment

Question 1

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

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

Question 2

1.   Explain the role of the agent in the appraisal process.

2.   How would you gather information to establish your client requirements?

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

Question 3

Communication with client is important throughout the appraisal process.

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

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

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.

Question 5

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

·       Victorian

·       Federation

·       Art Deco or Spanish Mission

·       Californian Bungalow

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

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

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

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

Question 7

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

Question 8

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

2.   How would you review the feedback and implement improvements?

3.   What documents would you keep from the appraisal meeting?

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

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.

Question 10

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

1.   Rural

2.   Commercial

3.   Industrial

4.   Retail

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.

Question 2

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

1.   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 improvements

2.   Research 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.

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

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

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.

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.

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 CMA’s, you must develop your own documents)

Question 4

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

·       property attributes

·       market conditions

·       macro factors

·       supply and demand

·       future development

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.

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