Market Appraisal 3 Flashcards
How have you prepared client reports based on interpretation of locational market trends?
I would make a report for the client in written format relating to the following:
-RICS Comparable Evidence In Real Estate Valuation 2019: Hierarchy Of evidence
Property listing
Viewing/enquiries 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 explained your knowledge of investment proposals in a site’s location?
I have not dealt with investment proposals however, I would advise my client to speak to local planning officers, specialist estate agency and financial advisers.
How have you advised on the likely availability and conditionality of finance for the local market for both the construction period and for prospective future customers?
I do not have the qualifications to advise on mortgages and finance options therefore would recommend that they seek specialist advice form a mortgage advisor.
How have you advised on the application of suitable statistical and mathematical techniques to identify long term market and financial trends in the locality of a site?
Some online resources provide long term statistical technique to look at the property market however, I would advise care should be taken as some of these sources are a general overview and do not take into account unique characteristics and it is not known how often the data is updated.
How have you presented conclusions to clients using effective IT techniques showing predictive modelling?
Although this is not something I do not rely on when undertaking market appraisals, as this IT modelling can be vague and generalised to the area and not the specific property. However, it may provide an indication on the market direction or General market information which would form part of the hierarchy of evidence.
However, I would seek advice from my manager or other professionals in the area who may be able to provide adequate information so I could help advise my client on how and where to see such information.
How have you reported to include recommendations based on the market viability of a site?
Not something I have experience in so would defer the client instruction. However, would recommend on seeking advise form local planning officers, building regulations and architects.
Lower Oxford St, Castleford, what work was required within the ‘full refurbishment’?
Damp issue to ground floor walls with perished plaster throughout. The kitchen and bathroom were very old and in poor condition. Lack of central heating to parts of the house.
What was the cost of the conversion to three-bed?
The cost was roughly £6k which involved splitting the front bedroom into two via stud wall.
Updating electrics and installing extra radiator and window. Building regulations sign off.
How did you ensure the financial viability of the works/ how did you ensure cost of kitchen update would sufficiently increase the price?
Lower Oxford St-Based on comparable sold 3 bedroom properties on the same street and within 1/4 mile radius I could see what a similar 3 bed property could achieve. When comparing a 2 bed end value to the 3 bed end value the difference was £20k.
Forest Close- From looking at similar house on the estate that had sold I could see that the houses that had been finished to a high spec had sold much quicker and achieved a higher price than the average standard houses. Average cost of a new kitchen was £3k.
Potential sale price was £6k higher with the upgrade. Achieve £7k more.
How much did the property sell for?
Lower oxford st- sold for £104K. As a 2 bed would have achieved £80-£85k.
Forest Close- £187K
Brigshaw Lane, what was the potential price difference between the two and three-bedroom house?
Brigshaw Lane - £143k sold as 3 bed
£120k as 2 bed.
Hathaway Walk, what do you mean by ‘full refurbishment’?
No central heating,
Old metal double glazing,
Old Metal doors,
Dated décor throughout,
Talk me through the best and final offers process regarding this property.
Multiple offers on the table so recommended the achieve best possible price in a quick time to undertake best and final offers by close of business on a certain date.
The buyers would need to provide info regarding their legal advisers, proof of funds and MIP, date of exchange, buying position, any conditions, any fixtures or fittings.
Once received all best and final offers I spoke to the vendor about each one and they decided to accept a first time buyer as they had no chain.
