Property Valuation and Appraisal Flashcards
7 cards from real CPP41419 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Property Valuation and Appraisal flashcards as text
When presenting a price appraisal to a prospective vendor, what is the agent's primary obligation?
Answer: To provide an honest, evidence-based estimate of the property's likely selling price
An agent is ethically and legally required to provide an honest, evidence-based price appraisal, ensuring the vendor has realistic expectations about the property's market value.
What role does location play in residential property appraisal?
Answer: Location is one of the most significant determinants of a property's value
Location is consistently cited as the most significant determinant of residential property value, influencing proximity to amenities, schools, transport, and demand in the area.
What does 'days on market' (DOM) indicate when assessing comparable sales during an appraisal?
Answer: How long the property was listed before it sold, indicating demand and pricing accuracy
Days on Market (DOM) indicates how long a property took to sell after listing; lower DOM suggests high demand and accurate pricing, while higher DOM may indicate overpricing.
When completing a property appraisal report in Australia, what information should the agent always include to support their estimated price range?
Answer: Evidence of comparable recent sales, adjusted for differences in features and condition
A credible appraisal must be supported by evidence of comparable recent sales, adjusted for differences in size, features, and condition to justify the estimated price range.
Which of the following improvements is generally considered to add the MOST value to a residential property at appraisal?
Answer: Updating kitchens and bathrooms to a modern standard
Kitchen and bathroom renovations consistently deliver the highest return on investment in residential property, as they are key decision-making areas for buyers.
What is the significance of a property's 'land size' when conducting a valuation or appraisal?
Answer: Larger land parcels generally command higher values in metropolitan areas due to development potential and scarcity
In metropolitan areas, land size significantly influences value due to development potential, lifestyle appeal, and the scarcity of larger blocks, making it a key appraisal variable.
Under Australian real estate practice, what is the purpose of providing a vendor with a written price appraisal before signing an agency agreement?
Answer: To ensure the vendor has an informed, evidence-based understanding of the likely selling price before appointing the agent
Providing a written price appraisal ensures the vendor is fully informed about realistic market expectations before committing to an agency agreement, supporting transparency and informed consent.