CPPDSM4003A Property Appraisal Project

The assignment focuses on the CPPDSM4003A unit, which covers various aspects of property appraisal, including legislative requirements, methods of appraisal, and interpersonal communication skills necessary for real estate agents. Students are required to complete a series of questions and case studies that assess their understanding of property valuation, market analysis, and client communication. The project culminates in a practical application of the learned concepts, ensuring students are well-prepared for real-world scenarios in the property market.

Assessment Submission Coversheet
ASSESSMENT SUBMISSION COVER SHEET
Date course
delivered:
Trainer/assessor:
Participant ID (this is
your USI Number):
Full Participant
Name:
Unit Code / Name: CPPDSM4003A Appraise Property
National Training
Package:
CPP07
Participant
Declaration: I declare that the attached assessment is my own work except
where there is clear acknowledgement or reference to the work of
others.
I understand that I have undertaken this assessment in that
knowledge that the information gathered would only be used for
professional purposes only accessed by my employer/supervisor,
State & Federal Education Departments and ACBT.
I have complied and agreed to ACBT’s policies on Plagiarism
and Academic Misconduct provided to me in the Participant
Handbook.
I agree I am ready to be assessed.
I declare that I understand how to complete this assessment and
how it will take place.
I have kept a copy of this assessment in case of loss.
I believe that after completing this unit of competency I now have
the required skills and knowledge to demonstrate in the
workplace.
I declare that my signature on this document covers all the
attached paperwork and this signature and date (where
applicable) will apply to all unsigned sections of this
assessment.
Participant signature: Date:

Question 1
Estimated Time: 15 minutes
What is the difference between a property appraisal and a property valuation?
Property appraisal is estimating the price availed by a real estate agent with their
knowledge on the local area and sales made recently in the area to act as a guideline
regarding the price obtainable for a specific property. It’s an opinion with no legal binding
on the other hand, property valuation is the determination of the actual value of a property
from an independent view point. The valuation is provided by a specialist trained and
therefore considers all the relevant factors necessary for the accuracy of the process, the
process is formal and may have a legal binding (Joseph F. Schram, 2006).
Question 2
Estimated Time: 20 minutes
List seven legislative requirements an agent must consider when giving an appraisal?
Research and then list the act governing each requirement.
Acting in the client’s best interest governed by the Property, Stock and Business Agents
Act 2002 No 66.
Honesty, fairness and professionalism governed by the Freedom of information Act 1982
Exercising of skill, care and diligence governed by Code of Conduct for Agents and Sales
Representatives 2011
Confidentiality governed by the privacy Act 1988
Comply with the Fiduciary obligations governed by Australian Consumer Law and Fair-
Trading Act 2012
Conflict of interest governed by Real Estate and Business Agents Act 1978
Agency agreement must comply with the required regulations as per section 55 of property,
stock and business agents’ regulation act of 2014
Question 3
Estimated Time: 15 minutes
Describe the purpose of a property appraisal?

Property appraisal is conducted to assist in making property decisions. It may be necessary
in setting up the property buying and selling price, determining refinancing decisions,
gauging the financing collateral value and so on (Adair & Hutchison, 2005).
Question 4
Estimated Time: 15 minutes
Describe two methods of gathering reliable information when giving an appraisal. Out
of the two which is more reliable and time efficient. Why?
Observation, this involve the use of the senses in collecting the information necessary for
the appraisal process.
Study of existing organizational documents, forms and reports, this makes use of secondary
data to form the basis of making appraisal decision.
The use of secondary data is more reliable as it gives the trend in the past activities related
to appraisal. Also, its time efficient as it does not involve travelling every now and then to
the field for the sake of collecting information (Maliene, 2010).
Question 5
Estimated Time: 30 minutes
Using the RP data report provided in this unit for 35 William Street, Granville, 2142,
complete the below:
• Property type: HOUSE
• Zoning: Reserved Roads
• Location: 35 William St, Granville, NSW 2142 Parramatta
• Land use: Single Res Dwelling
• Bedrooms: 3
• Bathrooms: 2
• Car spaces: 2
• Year built: 1990
• Features:
External walls material; cavity brick
Roofing material; Concrete tile
Water feature; DUCK CREEK

• Number of schools in the area: 9
• Median sale price of houses in the area: $605500
• Median sale price in September 2013: $600000
• Description of household structures in the demography: the households in the
area are composed of couples with children and pay from $ 1400 to $1600
monthly mortgage fee. The people have different forms of occupations
• Average of number of house sales per annum from 2004 to 2013 (page 8): 160.2
which is approximately 160 houses
• Describe three properties for sale that are like the property for sale:
The TRONGATE GRANVILLE, NSW 2142; has 3 BED, 1 BATH, 2 CAR
LOUIS GRANVILLE, NSW 2142 HAS 3 BED, 1 BATH, 10 CAR
HAMILTON GRANVILLE, NS 2142 has 1 BATH
• Describe three properties that have been sold that are like the property for
sale.
1C BANKISIA GRANVILLE, NSW2142 has 3 BED, 1 BATH, 2 CAR, 1987
YR BUILT
1A BANKSIA ST GRANVILLE, NSW 2142 has 3 BED, 1 BATH, 2 CAR, 1990
YR BUILT, 128.M2F
WILLIAM GRANVILLE, NSW 2142 has 2 BED, 2 BATH, 1 LNH,1 DIN, 1
STUDIES. 10/ RMS, 1 CAR, 1 LUG and 1950YR BUILT
Question 6
Estimated Time: 20 minutes
What are interpersonal communication skills? What are the benefits of using such
skills as an agent? List five interpersonal communication skills used by an agent when
communicating with clients.
Definition;
These are the skills which individuals apply to interact with the others effectively. It
involves exchange of information, feelings as well as meaning through verbal and non-
verbal messages.
Benefits;
Asking questions allows the agents to identify the interests of their clients.
Listening gives the agent an idea of what the vendor needs.
Appropriate writing skills helps in the vital communication between the agents and the
clients.
A solid body language gives the clients confident on the ability of the agent
List;

Appropriate body language
Asking questions softly
Active listening
Keeping in touch
Availing opportunity for clients to clarify their appraisal process understanding (Corbin,
2008).
Question 7
Estimated Time: 10 minutes
Identify three specialists you may approach for advice regarding the current market
results and market conditions.
Values
Bankers and financiers
Investment consultants
Question 8
Estimated Time: 20 minutes
List three interpersonal communication skills you would use when trying to access
additional information from the three specialists you listed above.
Soft questioning, all question the specialists to access more information necessary for the
appraisal
Summarizing and paraphrasing the specialists’ response to gauge understanding of the
availed information
Writing to the specialists requesting for more information regarding a matter.
Question 9
Estimated Time: 30 minutes
Identify three sources of information that can be obtained and analysed to determine
the status and ownership of a property in line with agency practice and legislative
requirements. List two advantages of each source.
 City directories
The researcher will have access to the details of a specific owner of a property as per their
needs.
The internet technology has made the information contained in the city directories to be
readily available online hence easy access.
 Map collection
They can be used to identify real property units.
The GIS maps are more user friendly compared to other methods of documenting data

 Architectural archives
There is excellent presentation of information
The information is stored in many formats such as AutoCAD and MicroStation hence the
agents can choose the format convenience to them to access (Knapp & Daly, 2002).
Question 10
Estimated Time: 30 minutes
By undertaking your own research online, in your own words define each of the below
methods for appraising the sale price range or rental value of properties and briefly
describe when the ideal time would be to use each method respectively:
• Capitalisation
• comparative sales (CMA)
• hypothetical development
• replacement cost
• summation
Capitalisation; this is a measure of real estate valuation used to compare different real estate
investments. Its majorly applied when appraising commercial investments.
Comparative sales; this is the estimation of the property value by comparing it to properties
of similar nature sold recently in the locality. The method is mostly applicable when
appraising residential housing and land
Hypothetical development; this is applied through calculating the land value in cases where
it was developed to fit a maximum number of dwellings, the method is more applicable
when a large section of land is being sub divided into blocks to contain more than a single
dwelling.
Replacement cost; this an appraisal method that uses the cost of replacing a property as its
approximate value. It’s mainly used for situations which involve appraisal for insurance
purposes.
Summation; is an appraisal method where the value of land is added to the replacement cost
of the building which is affected by depreciation based on age.it is mainly applicable when
appraising unique properties which are incomparable to other things.
Question 11
Estimated Time: 20 minutes
Describe two advantages of considering each of the following when giving an
appraisal:
*Owners instruction
*Improvement
*Depreciation
*Types of land tenure

*Easements
Owners instruction; the owner is the one who knows the nature of information which he/
she needs from the appraiser
The agent is bound by regulations to act in accordance to the needs of
the property owner.
Improvement; the improvement made to the property affect its value.
The nature of the property can be altered when improvements are made and
this affect the outcome of the appraisal.
Depreciation; is an expense hence needs to be valued.
Properties that depreciate reduces in value hence such reductions are needed
to be accommodated in the outcome of the appraisal.
Types of land nature; this determines the appreciation factor of the surrounding structures.
Activities which occur in the land have direct relationship to the fixed
property value hence need to be assessed.
Easements; easements entail costs which need to be taken care of during appraisal
Question 12
Estimated Time: 15 minutes
What information must be taken into consideration when determining the rental
value of a property?
Rental rate
Market value of the property
Prevailing rental rates in the region
Additional expenses incurred in making the property suitable such as constructing
additional facilities like car parking, club house and swimming pools.
Question 13
Estimated Time: 15 minutes
List five questions to ask the Vendor or to consider when determining a clear and
justified appraisal of a sale price range.
i. Tax assessment
ii. Home size
iii. Home condition
iv. Home style
v. Pricing of the fulcrum
Question 14
Estimated Time: 10 minutes
Describe the limitation present when giving an appraisal as opposed to a property

valuation.
An appraisal is an estimate and fails to consider all the factors which are necessary for the
actual valuation for this purpose it may end up with an inefficient result.
Question 15
Estimated Time: 10 minutes
What is the purpose of a statement of limitation?
The statement of limitation highlights the weaknesses of the appraisal hence supports the
appraiser in case of legal action taken against him her.
Question 16
Estimated Time: 20 minutes
By accessing the Property, Stock & Business Agents Act 2002 provided to you in this
module, copy & paste the section of the act that refers to the following:
(a) An agent provides a copy of the reasonableness of the estimate selling price:
74 Requirement to substantiate selling price estimates—residential
property
(1) The Director-General may by notice in writing to a real estate agent
require the agent to provide evidence of the reasonableness of any
estimate of the selling price of residential property made by the agent in
a statement:
(a) orally or in writing to a seller or prospective seller of the property,
or
(b) in an advertisement in respect of the property that is published or
caused to be published by the agent, or
c) orally or in writing to a person as a prospective purchaser of the
property.
(b) The estimate selling price may be a range only if the highest price in the range
does exceeds the lowest price by more no more than 10%:
5 Division extends to estimates of price range
This Division extends to estimated price range in the same way as it
applies to estimated price and for that purpose a reference in this
Division to price is taken to include a reference to price range.
(c) All appraisals given to clients must be in writing and stored on record:
104 Licensee to make and keep certain records

(1) A licensee must make the following records:
(a) a record containing full particulars of all transactions by or with
the licensee in connection with his or her business as a licensee,
(b) such other records relating to the licensee’s business as a licensee
as may be required by the regulations.
(d) Agent’s estimate price guide must be included in an agency agreement:
56 Approved guide to be provided before agency agreement for residential
property signed
(1) A real estate agent must not enter into an agency agreement with a
person for the sale of residential property unless the agent has provided
the person with a copy of the approved guide not more than 1 month
before the agreement is signed by or on behalf of the person.
Maximum penalty: 40 penalty units
(e) Prohibition of advertising a property less than its actual estimate selling price:
51 Publishing false or misleading advertisements
(1) A licensee must not publish or cause to be published in the course of
carrying on business as a licensee any statement that:
(a) is intended or apparently intended by the licensee to promote the
sale or lease of any property, and
(b) is materially false, misleading or deceptive (whether to the
licensee’s knowledge or not).
Maximum penalty: 200 penalty units
Question 17
Estimated Time: 10 minutes
List five relevant business equipment and technology used to prepare and present
appraisal information in the required format, style and structure.
Computers
Printers
Photocopiers
Email
Internet, intranet and extranet
Case study 1
Estimated Time: 90 minutes
Print out the two forms in Appendix III and in writing complete the second column titled
“Property for sale” in Form 1 based on the information given below. Using Form 1 as a
template, create fictitious details to complete all rows in Form 2. Once you have completed
the two forms in writing, please scan the completed forms to your computer and submit it
along with all your completed assessments.

Mr. Rick McCloud signed an Exclusive Sales Agreement with your agency, Joe Blogs Real
Estate on 15/5/2016. You are the Agent currently selling his four-bedroom house at 90
Wesley Road Manly, 2095. Regardless of the property only being on the market for two
days and being worth a value of $3.5 million, it has attracted a high volume of potential
buyers inquiring about the property as well as submitting their offers. The property was
built by Mr. McCloud himself ten years ago as he wanted to build a property catering to his
every need and dream. The property rests on a lush 960m² and contains a paneled library,
large outdoor swimming pool, Jacuzzi in the backyard, open floor plans, four unsuited with
two additional bathroom for guest on each level, a theatre room seating 25 guests and much
more
Must be attached during the submission of this assessment as a scanned photo or PDF
Question 18
Estimated Time: 20 minutes
Identify five methods to obtain feedback to ensure the suitability and sufficiency of the
appraisal obtained. Describe two advantages of each method.
i. Through surveys
Setting up surveys is easy
Analyzing survey result is simple
ii. By use of feedback boxes
It allows the complains of unsatisfied clients to reach the top management.
The clients may assist the agency to gauge some of the most key factors to consider during
appraisal
iii. Direct reach out to the clients
This allows the agent to understand deeply how the appraisal obtained is helpful to the
clients.
Give the agents the capacity to solve the specific issues facing the clients.
iv. By utilizing the user activity
Viewing the data from an individual help the urgency gauge the helpfulness of their
appraisal to their clients.
The clients’ valuation of the appraisal agent can be notified and adjustments made to attract
more clients.
v. Through conducting of usability test
Usability test allows the agent to obtain immediate information regarding areas that need
correction for the appraisal to be effective.
Usability test will magnify some of the urgent issues instantly therefore making the
appraisal sufficient.
Question 19

Estimated Time: 15 minutes
Describe how you would use feedback from various sources to improve your agency
service.
The feedback received should be observed and filtered for trend identification. The issues
which constantly pop up are addressed. Afterwards a constant feedback collection
mechanism is put in place and used for periodic amendments thereby enhancing
progression in the success of the property appraisal activity.
Question 20
Estimated Time: 40 minutes
Design a layout of a database which contains a record of all the clients an agency has
previously given an appraisal to. Create at least five fictitious client entries in this
database. Note: focus on what information of the client the agency would like to have
easy access to.
Name Property type Location Attributes Unit sale ($)
George Den House Wallstreet 3Bed,1 bath,
2Car
800000
Steve Center Land William street 2Ha 580000
Ngara Duncan House Hamilton
Avenue
3Bed, 1bath 450000
Leonard Bush Car Trongate
Gransville
5 seater, saloon
car
600000
Macgor Flamor House The Avenue
William Street
@Bed, 2Car, 3
Bath
900000
Question 21
Estimated Time: 10 minutes
Describe three methods used to store agency property records securely to maintain
client confidentiality.
 Files; the files should then be stored in a remote physical location and secured with
guards and security cameras to monitor those who are able to access them.
 Reports; the reports should then be locked in safes and their access controlled
 Computers; the records stored in the computers should be locked with security
passwords and access allowed only for the authorized personnel
References
Adair, A., & Hutchison, N. (2005). The reporting of risk in real estate appraisal property risk
scoring. Journal of Property Investment & Finance. Emerald Group Publishing, 251-
264.

Corbin, C. W. (2008). Interpersonal Communication: A Cultural Approach. Sydney: Cape
Breton University Press.
Joseph F. Schram, J. (2006). Real Estate Appraisal. Rockwell Publishing.
Knapp, M. L., & Daly, J. A. (2002). Handbook of interpersonal communication. Sage Publ.
Maliene, V. D. (2010). Commercial Leisure Property Valuation: A Comparison of the Case
Studies in UK and Lithuania. International Journal of Strategic Property
Management, 30-45.