Case Study

Your subject property is a late Federation bungalow home located on 746 sq. m of prime land in one of the

suburb's most highly sought avenues. This original character home features a deep sheltered verandah,

period craftsmanship and two fireplaces combined with a modernised kitchen, air conditioning and three

generous bedrooms. The vast, level landscaped gardens are privately screened from the street and

include the convenience of a double lock-up garage.

Question 1

Mr and Mrs Gibson are considering selling their property and would like you to provide them with a market

appraisal. They are, however, disappointed with the estimate that you provide. They recently had a formal

valuation conducted on the property with a very pleasing price of $950,000. Your estimated market range

is $870,000 - $900,000. They are concerned that there could be such a discrepancy in pricing. How would

you explain to the Gibsons the difference between a formal valuation and your market appraisal?

Question 2

Mr and Mrs Gibson believe that their property is worth at least $925,000 and were hoping to place the

property on the market for around $950,000. What resource tool will you use to overcome their price

objection? Your answer should contain an explanation of how you would objectively overcome the issue of

overpricing and strategies that you might adopt to manage the issue.

Question 3

What searches would you conduct and what matters would you specifically investigate about the Gibsons'

property before finalising a price? You should be able to raise at least 5 points.

Question 4

One buyer is very interested in the property as an investment and has asked you for a rental appraisal.

Discuss at least four reliable information sources you would use to arrive at an informed rental price.

Question 5

You have a young sales assistant whom you are mentoring to become a sales agent. Discuss at least

three important rules that you would highlight to ensure that he does not breach the Rules of Conduct

when appraising a property's estimated selling price.

QUESTION 8

What factors influence whether properties are comparable for appraisal purposes

QUESTION 9

How is the return on a property investment determined

QUESTION 10

Suggest a possible risk when appraising the sale price range or rental value of a property. What strategy could an

estate agent use to avoid this

QUESTION 11

Outline the key legislations that apply to providing property appraisals.

QUESTION 12

What information is required for property appraisals?

QUESTION 13

List the roles of an estate agent in providing property appraisals

QUESTION 14

Identify and describe the leasing and rental market indications that could be used to measure the rental market.

QUESTION 15

What are the main purposes of a property appraisal?