Market appraisals

Question 1

What were the micro sales market indicating in your appraisal for a flat in Islington?

Answer 1

The sales market was begging to build up due to the roll out of the covid 19 vaccine. There was a lot of pent up stock, as buyers were resistant to buy during the lockdowns.

Question 2

How did you report your market appraisal to the client?

Answer 2

I prepared a table of comparables, with a pricing schedule below it for the subject property.
Attached a brochure I had created from a previous property we had listed.
I always state that client can get in touch if they ever want something explaining or to chat it through.

Question 3

What additional services did you offer to your client?

Answer 3

I offered that we have a residential lettings property management team.

Question 4

What pricing approach did you take when appraising the flat in Islington and Angel?

Answer 4

I took the cautious rather than competitive approach due to the nature of the market is was in at the time.

Question 5

What pricing techniques did you take when appraising?

Answer 5

Value based pricing (other options are competitive or cautious?)

Question 6

What guide can you look at when referring to market appraisals?

Question 7

What is a good comparable?

Question 8

Why are market appraisals carried out?

Answer 8

Wanting to sell a property because of DDD (death, debt, divorce)
Death - probate
Seeing their what their financial assets are worth (debt) - see financial position
Whether to move or improve

Question 9

What advice should estate agents provide?

Answer 9

Under the blue book (uk residential real estate agency professional statement 2017) we should provide realistic and justifiable advice based on our best professional judgement

Question 10

What is paramount in offering market advice for a sale?

Answer 10

That it is an estimate of the market price and not a formal red book valuation.
If not it would be judged as a valuation from a registered valuer not a competent estate agent

Question 11

What must you not deliberately misrepresent in a MA?

Answer 11

The price of the property - comes under the Estate Agent Act 1979

Question 12

When reporting advice to the client what do you do?

Answer 12

Advice in writing - always have everything confirmed in person. Forms part of strategy and advice and must be transparent and clear and include information on current market conditions.
Estimated period of completion

Question 13

If a client wants to sell quickly so the price is lowered what do you do ?

Answer 13

Have to state what the property would sell for in a non restricted marketing period - shows best practice

Question 14

What do you keep records when undertaking market appraisals?

Answer 14

Comps
Full detailed records of what I used to get the comps
Inspection and measurements taken
Reasons for adjustments of comps
Must keep for 6 years - under the limitation act 1980

Question 15

What is included in a marketing strategy?

Answer 15

Price
Method of sale
Marketing period
Analyse of current market
Approach to marketing
Agreement to client regarding viewings
Arrangement for holding keys

Question 16

What is your duty of care as a real estate agent?

Answer 16

To work with due skill, care and diligence
Use our best endeavours to achieve the best possible outcome for our client
To not release or misuse any confidential information
Not appoint a sub agent without client permission
Ensure all staff are appropriately trained and supervised
To not accept instruction beyond field of experience

Question 17

When should terms of business be given?

Answer 17

Before they are committed or have any liability towards you

Question 18

What should you do before you give terms of engagement to client?

Answer 18

date and sign them