Market Appraisal 1 Flashcards
Explain how you have prepared and provided properly researched market appraisal, enabling clients to make informed decisions regarding marketing their property.
Comply with RICS Rules of Conduct.
RICS (PS) UK Residential Real Estate Agency 2017
-Verify property and client information.
-Terms of engagement plus CHP, fees, costs and sole agency information.
Inspected property and talked to client to find out information.
RICS Comparable Evidence In Real Estate Valuation 2019
-Used comparable sold or completed sales of similar properties to inform client of potential sale prices.
-Sign and date terms of engagements
-14 day cooling off period.
How have you demonstrated your knowledge and understanding of the purposes for which market appraisals are undertaken?
1 bed flat, Meanwood- I spoke to vendor over phone prior to appraisal to get property information and client information. I found comparable of similar 1 beds. Inspected property and noted dated décor.
Informed the vendor of options and gave them our terms of engagement and proposed marketing strategy. The vendor decorated and furnished the property. Upon signing of terms of engagement and receiving of sign up fees and sold the property within 1 month.
What relevant appraisal methods and techniques have you used?
Comparable method and listen to the vendor and put property slightly under best price to achieve demand and can increase purchase price.
What are the appropriate standards and guidance you must adhere to in
appraisal work?
UK Residential Real estate agency 2017, 6th edition
Comparable evidence in Real estate valuation 2019
Estate Agents Act 1979.
What are the limitations of market appraisal advice?
-Any figure you provide should be given in good faith and should reflect current market conditions. A market appraisal can last for 3-6 months.
-Not a formal valuation of the property.
-Only provide advice on an appropriate price if you have a thorough knowledge of the market.
Explain the principles and application of open market appraisal for sale purposes, including relevant appraisal standards, methods and techniques.
Refer to:
-UK Residential Real estate Agency 2017
-Comparable evidence in real estate valuation 2019
-Real Estate Management
-Real Estate agencies and Brokerage
A comparable can be defined as an item of information used during the valuation
process as evidence to support the valuation of another, similar item.
Ideally, comparable evidence should be:
* comprehensive – there should be several comparables rather than a single transaction or event
* very similar or, if possible, identical to the item being valued
* recent, i.e. representative of the market on the date of valuation
* the result of an arm’s-length transaction in the market
* verifiable
* consistent with local market practice
* the result of underlying demand, i.e. comparable transactions have taken place with enough potential bidders to create an active market.
Explain your understanding of client requirements in the market appraisal
process.
Rule 3 of the Rules of conduct which states that members and firms must provide good-quality and diligent services.
A client wants to achieve the best possible market price for their property, carried out by a an agent with adequate skill and knowledge.
What do you understand about the Estate Agents Act 1979?
-Act in the best interests of their clients.
-Both buyers and sellers are treated honestly, fairly, and promptly.
- Provide information on service and fees
- Inform of any conflict of interest.
-Estate agents could be banned for non-compliance
How did you follow the Estate Agents Act 1979?
Complied with section 18 of the Estate agents act 1979 - provide the client with information regarding fees and services prior to signing terms of engagement.
Section 21- I must not enter into a transaction that I or anyone near me has a personal interest without it being disclosed to the relevant parties.
