Market Appraisal 2 Flashcards
How have you demonstrated practical competence in undertaking both sale and rental market appraisals.
I successfully undertook both sales and market appraisals in line with the:
RICS- Comparable evidence in real
estate valuation 2019
RICS- UK residential real
estate agency 2017
RICS UK commercial real
estate agency 2016
RICS- Health and safety for
residential property managers 2016
I.e. 1 bedroom flat, Meanwood. Sale or rental market appraisal.
Explain your involvement with the preparation and presentation of client
reports.
I would make a report for the client in written format relating to the following:
Property listing
Viewing numbers
Feedback
Offers or Potential Offers
Marketing strategy/pricing
Online activity records- Rightmove views, online views
Similar properties that have been recently marketed.
How have you demonstrated your ability to use appraisal methods and techniques?
I have used the comparable method, for sale by private treaty method mainly.
I act in accordance with the RICS code of conduct by acting with integrity and promoting trust in the profession.
I would speak to the client about their property and record all details including site visit and talk them through the term of engagement.
How have you applied the relevant appraisal standards and guidance?
RICS Comparable evidence in real
estate valuation 2019- to help provide comparable evidence for my market appraisals.
RICS- Health and safety for
residential property
managers 2016 - When dealing with leased properties.
RICS- UK residential real estate agency 2017 &
RICS UK commercial real estate agency 2016- in dealing with clients, terms of engagements, market appraisals and dealing with offers and contracts.
RIC Surveying Safely 2018- Managing risks onsite and lone working.
Explain your analysis and interpretation of comparable evidence.
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 property 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
Hierarchy Of Evidence:
Direct Transactional comparable
General Market Information
Other Sources
How have you explained the terms of a lease and their impact on value?
-The length of the term and any break provisions
-Achieved rental price
-Rent review arrangements
-Rights to assign, sublet or otherwise share the property
-Repairing obligations
Depending on the type of property and type of tenancy agreement in place the value may be more for a longer term AST, whereas it could be less for a empty property depending on the buyers perspective and market.
How have you inspected as part of an appraisal?
Inspection of the externals, grounds and internal areas.
Measurement using IPMS 2 Residential.
Review general condition of the property.
Ask Client questions about ownership and property information and history relevant for marketing strategy.
How have you gathered information relevant to market appraisal?
Ask Client questions about ownership including proof of ownership, property information and history relevant for marketing strategy.
Explain your preparation of a market appraisal report from beginning to end.
*Abide by the RICS rules of conduct.
*Conflict of interest checks
*Confirmation of Client identity
*Terms of Engagement:
-Up-to-date Fees and Charges
-Itemised costs: EPC, Floor plan and measurements, for sale board.
-Duel fee liability- Sole agency
-Timings and Penalties
-Cooling Off Period
-Complaints Handling Procedure
-Marketing strategy
*Comparable Analysis - Market value
*Signed and dated T&C’s
How have you prepared terms and conditions of engagement?
*Property address
* full name and contact details of the client (with legal right to sell property)
* type of agency with definitions
* type of disposal (e.g. sale, assignment, letting, surrender)
* deposits/ commission
* method of, and trigger for, payment
* expenses/abortive fees
* marketing programme
* viewing arrangements
* sales boards
* sale particulars
* basis for reporting floor areas (in accordance with the RICS professional statement, RICS property measurement)
* Energy Performance Certificate (EPC)
* personal interest
*methods of reporting offers
* services to prospective purchasers
* unoccupied premises
* complaints handling
* retention of documents
* right to cancel
* Data Protection Act 2018
* electronic communication
* withdrawal
* late payment of fees
* Bribery Act 2010
* cessation of instruction without penalty in the event of money laundering
* additional services and advice
* acceptance of terms.
One-bed flat, Meanwood, tell me about your advice to dress the property.
From experience and my training I learnt that buyers need to see how the property looks when furnished as it can be difficult to picture what a property would be like if it was unfurnished.
I advised to make sure the property was clean and tidy.
I also advised on setting the table for marketing photos and ensure the property was not cluttered.
How did you source comparable properties?
I looked at the local market and sold properties of similar size and arrangement as the subject that had sold within the last 3-6 months. I confirmed completed sale prices by calling other agents or using our inhouse database of previous sales.
How did you reach a market value for the property?
I found 4-5 similar comparable properties within a 1/2 mile of the subject that had either completed or were SSTC within the last 3-6 months. Some were in better condition or not in a nice area so some adjustments were made to reach the market value.
Tell me about the terms of engagement in this instruction.
Terms of Engagement:
Conflict of interest checks
Confirmation of Client identity
Fees and Charges
Itemised costs: EPC, Floor plan and measurements.
Duel fee liability- Sole agency
Timings and Penalties
Cooling Off Period
Market Appraisal- Sale
Finalising Terms: Must be signed by both agent and client.
How was the property marketed?
The property was marketed with sole selling rights.
I drafted the marketing material, including floorplan and measurements and EPC which were approved by the client. The property was then advertised online via Rightmove and company website as well as on the shop front.
