CPP41419 Property Valuation and Appraisal 3

Question 1

When presenting a price appraisal to a prospective vendor, what is the agent's primary obligation?

Accepted Answer

To provide an honest, evidence-based estimate of the property's likely selling price

Answer

To quote the highest possible price to secure the listing

Answer

To match the vendor's desired price to avoid losing the listing

Answer

To provide an appraisal identical to the council rates notice

Question 2

What role does location play in residential property appraisal?

Accepted Answer

Location is one of the most significant determinants of a property's value

Answer

Location is irrelevant if the property is well-presented

Answer

Location only matters in commercial property, not residential

Answer

Location affects rental yield but not capital value

Question 3

What does 'days on market' (DOM) indicate when assessing comparable sales during an appraisal?

Accepted Answer

How long the property was listed before it sold, indicating demand and pricing accuracy

Answer

The number of days until the settlement date

Answer

The number of days the property was tenanted before sale

Answer

The number of open home inspection days held before sale

Question 4

When completing a property appraisal report in Australia, what information should the agent always include to support their estimated price range?

Accepted Answer

Evidence of comparable recent sales, adjusted for differences in features and condition

Answer

The agent's years of experience in the suburb

Answer

The vendor's original purchase price and renovation costs

Answer

The median price for the entire capital city

Question 5

Which of the following improvements is generally considered to add the MOST value to a residential property at appraisal?

Accepted Answer

Updating kitchens and bathrooms to a modern standard

Answer

Repainting internal walls in a neutral colour

Answer

Adding a garden shed or small storage structure

Answer

Installing new letterboxes and house numbers

Question 6

What is the significance of a property's 'land size' when conducting a valuation or appraisal?

Accepted Answer

Larger land parcels generally command higher values in metropolitan areas due to development potential and scarcity

Answer

Land size is only relevant in rural or acreage properties

Answer

Land size is irrelevant if the property has a large house

Answer

Land size only affects council rates, not market value

Question 7

Under Australian real estate practice, what is the purpose of providing a vendor with a written price appraisal before signing an agency agreement?

Accepted Answer

To ensure the vendor has an informed, evidence-based understanding of the likely selling price before appointing the agent

Answer

To legally bind the agent to achieve that exact price at sale

Answer

To set the minimum auction reserve price required by law

Answer

To replace the need for a formal valuation in all circumstances