REAA - CPPREP4101 and CPPREP4504 - Written Questions v1

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Academy of Real Estate *

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CPPREP4101

Subject

Economics

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Feb 20, 2024

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docx

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Uploaded by AdmiralPowerWhale26

Written Questions What you need to do: For this assessment task you will undertake research and report on various aspects of working in the real estate industry. A template has been provided to you to use to structure your report to cover all the required information. You are required to answer all questions correctly. If correct, you will see ‘Satisfactory’ or if incorrect you will see ‘Not Satisfactory’ in your grades section of your learner portal next to the assessment name. The assessor will provide feedback and a Record of Results in the assessment task once graded. You will be required to resubmit your work for any ‘Not Satisfactory’ assessment tasks. What you will need: You will need to research information about real estate agencies to assist with your responses for this task. Use the learner material provided in your online student portal as well as research materials such as books, internet, magazines, workplace documentation etc. to assist you in gaining the knowledge required to answer the questions. Remember that the assessment is completely self-paced and open book, so you are able to use whatever resources you have to answer the questions. What you need to submit: The answers to these questions. How to Submit your Assessment: Upload your completed document into your learner portal following the instruction s within the assessment task. You can drag and drop the file into the window or use the add file icon in the top left of the submission window and select the file you wish to upload by using the browse/choose file option. Click on “finish attempt ” to submit it for grading.

Question 1 List sections of the legislation that apply to conducting a property appraisal. -Estate Brokers -Land Selling Act of 1962 -Residence Tenancies Act of 1997 -The Australian Consumer Law and Fair Trading Act was passed in 2012, -The Retail Leases Act of 2003. Question 2 A client has phoned in a complaint about a recent property appraisal that was conducted at their home. They have indicated that the agent was talking on his phone at the time of arriving at the property after being 10 minutes late and the client felt dismissed by the agent and was no longer wanting to work with the agent to sell her property. In 100 – 150 words explain the communication strategies (what you would do or say) you would use to respond to client’s complaints. I want to start by apologising for any inconvenience. It makes sense that the customer should be treated with the utmost respect and care when performing his task. Our agents have a lot of expertise and are qualified to offer top-notch service. Sometimes, clearing up doubts and responding quickly to emergencies cause agents to get obsessed. We appreciate each person equally, just like you, our valued consumer, and we must help them. Thus, we'll make sure our representative shows up on time and isn't distracted by other tasks the following time. I am always pleased to serve you. Question 3 What is the difference between a property appraisal and a property valuation? A simple estimate or judgement of a property's current market value, taking into account how the market is reacting and other considerations, constitutes an appraisal. Real estate firms frequently provide this as a free service. A fee is levied for the valuation service, which entails the preparation of a written report on the property Questions 4 Complete the table below in reference to how each of the listed property attributes impact on the agent’s appraisal of the property. Property Attribute Explain the Positive/Negative Impact of your example • Building construction - Asbestos Positive - Asbestos has no positives. Negatives - Until removal property will lose value. • Building construction – steel frame Positive - A strong sturdy foundation and house will increase the value of the property.

Negative - Corrosion is a possability with steel. • Aesthetic and design features – e.g. Neutral colour palette Positive - Modern architure. Negative - Lacks vibrance in the absence of furniture. • Faults and hazards - Positive - Problems can be found and fixed. Negative - If the upgrades do not match the rest of the facade, the value may decline. • Building improvements and modifications Positive - Can raise the home's value Negative - If the upgrades do not match the rest of the facad, the value may decilne • Property condition and presentation Positive - If the condition and presentation are maintained, value may increase. Negative - If the condition and presentation are poor, the value may decline. • Heating, cooling and ventilation systems Positive - Ducted heating and cooling systems add value. Negative - If systematic problems continue, property values may decrease. • Energy efficiency and sustainability ratings Positive - Value rises if energy rating is greater Negative - Value may decline if maintainence is required. Question 5 List and explain (3) reasons that an owner may contact an agent for an appraisal on their property? Three reasons that an owner may contact an agent for an appraisal on their property are: i.)Appeals against tax assessments, In many places, the fair market value of your home is used to determine how much property taxes you owe. If your home's worth looks to be higher than what is indicated on your property tax bill, perhaps because housing prices in your city or area have dropped, you might be entitled to contest the assessment. A stronger argument supported by an objective assessment can lead to a decrease in your yearly property tax bill. Check to see if your state or municipality allows homeowners to submit their own appraisals when disputing property tax assessments because the process varies by state and municipality. ii.)A home equity loan is a second loan on top of an existing mortgage, as opposed to refinancing. The amount you are eligible to borrow with a home equity loan mostly depends on how much equity you have left over after deducting the balance of your mortgage from the house's current value. If your house's value has decreased, you might not be eligible for a home equity loan. iii.)No matter if you're beginning a family, expanding your family, or dealing with an empty nest, your demands change as your lifestyle and family do. A valuation will guarantee that you are aware of your property's current value if you need more

room and are searching for the next step, or if you want to downsize since you no longer require the family home. This implies that you aren't basing your estimate of the property's value on an outdated appraisal or the price at which the house next door sold. Question 6 What source documents need to be obtained and analysed for property appraisals? 1. Past sales 2. Present sales 3. Land, title, and lot plans 4. School districts 4. Market prices Question 7 What are (4) examples of indicators that can be used to measure the sales market? 1. Qualified leads from marketing A lead that is prepared to be forwarded to your sales team for follow-up. By defining what a qualified lead looks like for your company—whether through form submissions, website usage patterns, or some other action—you can track the steps that lead to a contact's readiness for sales. 2. Cost per Customer Acquisition The price of each step taken to persuade a potential client to buy is taken into account when calculating the cost per customer acquisition. 3. ROI in marketing The phrase "return on investment" (ROI) refers to a statistic used to assess how much revenue a marketing campaign earns in relation to its execution costs. The return on investment is the most important statistic to monitor and assess. 4. Sales Qualified Leads (SQLs) The sales qualified leads metric is a representation of the number of prospective customers who turn into sales prospects. By knowing how many leads your team turns to sales, you can evaluate the strengths and weaknesses of your lead generation and sales pipeline processes Question 8 What are (3) physical indicators/signs of wear and tear and defects that may affect your property appraisal? 1. Mold on walls or wood 2. Damp or wet spots that suggest water leaks 3. Structural harm

Question 9 What is the role of the agent and real estate personnel in providing property appraisal, price range and rental value recommendation? Clients should receive property appraisals from an agent and real estate professionals. An assessment of the value of the client's property in the present market is referred to as a property appraisal. Real estate agents must specialise in determining the value of customers' property by conducting a comparative market analysis. The comparative market study should be used by real estate professionals to establish a price range. It can be challenging to find many options that are exactly the same when dealing with established houses. Also, real estate brokers must be prepared to make suggestions regarding rental value. Typically, they have access to a wide range of resources. They have thorough knowledge of the zoning regulations, the specialists required to finish the sales, and the housing codes. Question 10 Explain in 100 – 200 words professional and ethical practices associated with conducting property appraisals and delivering presentations to clients in real estate. An appraisal is carried out to achieve one or more of the following goals: to form

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