Property Appraisal Report: Business Development Module, University

This report presents a comprehensive analysis of property appraisal, focusing on key aspects relevant to business development. It explores the process of establishing the purpose of property appraisal with customers, considering legislative requirements and agency guidelines. The report details communication methods used to gather additional information, source documents required for determining property ownership, and various appraisal methods, including comparative, investment, residual, profit, and cost methods. It also provides a justification of selling price, specialist support to increase effectiveness, strategies for obtaining feedback, and ensuring property records safety for customer confidentiality. Furthermore, the report addresses risk management strategies in appraisal processes, covering topics such as the Privacy Act 1988 and the importance of secure record-keeping. The report concludes with a discussion of the importance of feedback and adjustments to improve the appraisal process, providing a holistic view of property appraisal in a business context.

PROPERTY
PRESENTATION TASK-3

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The way to establish purpose of property appraisal with customers in line with legislative
requirements and agency........................................................................................................1
Communication method used to access additional information to complete appraisals........1
Source documents required for determining property ownership..........................................2
Method of appraisals..............................................................................................................2
Justification of selling price....................................................................................................3
Specialist support to increase effectiveness of property appraisal.........................................3
Feedback from colleagues, supervisors and classmates to make adjustments in work..........3
Ensuring property records safety for the customer confidentiality as per legislative and agency
requirements...........................................................................................................................4
Risk management strategies to appraisal processes...............................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Effective management of property appraisal is important in order to produce quality
appraisal towards customer. The report will present the way to establish purpose of property
appraisal with customers, Communication method used to access additional information, Source
documents required for determining property ownership, Method of appraisals, Specialist
support to increase effectiveness of property appraisal, Ensuring property records safety for the
customer confidentiality as per legislative and agency requirements and finally Risk management
strategies to appraisal processes.
MAIN BODY
The way to establish purpose of property appraisal with customers in line with legislative
requirements and agency
Property appraisal are performed for lending purpose. Owners of property must be aware
of current real estate rules, regulations and legislation incorporating in Australia. The lender
must need to contact the appraiser and check the appraisal process. As per these regulations the
lender or client and appraiser must be engaged by the lending institution.
Establishing most likely selling price range or leasing price in the current market
The property is a residential house of Rosanna Danna located in 91142, West Street, Red
bud NC Australia 28801. The house was built with actual cost of $200000 including all the
elements such as material, labour cost, architecture cost and others. The current rate, where
property is established is running $2700/sq. ft. The property has been used since 1998 (Chen and
Zhu, 2017). There are some defects in property such as lose mortar, some leakages and sealing
which can be repaired with a total cost of $9000 easily. The property is located in the best area it
will be beneficial for any customer to make profits in future from rent, sale or development as
well.
Highest and best use of property
Owner can rent the portion or complete property in order to earn income from the
property. It is located in renowned area of North Carolina, Australia. The ways of transportation
such as airports, bus stands and railways are nearby from the location of residential house.
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Meeting client need for information relating to potential income
The current rent in North Carlonia ranges from Au $500 to $2500 per month. If owner
completely rents his or her property, he can earn upto $2000 per month. By partially renting the
property, owner can earn upto $1000 per month as income occurred from rent.
Communication method used to access additional information to complete appraisals
Through communication, additional information can bee access which will help in
completing the appraisal. In this context, below are the relevant personnel from whom
information can be obtain:
 Property council of Australia : is one of the biggest employer of property industry and
also provides information regarding this property effectively.
 Real estate personnels or agents: For appraisals purpose, real estate personnels or
agents can provide precise and appropriate information which can avoid errors in
appraisals process (Goderdzishvili, Gordadze and Gagnidze, 2018).
 Gumtree: is a real estate business that provides information of properties available for
selling and purchasing to customers and is also a source from which information can be
gathered.
 Land Information Centre: One can access information and services related to
conveyancing, surveying, planning and land development online on Land and Survey
Spatial Information (LASSI).
Source documents required for determining property ownership
Property legislation in all the states and territories is based on Torrens principle of
registration of title. Each state and territories has central register which shows the owner of land
and property. One can get information regarding owner of land or property from the central
register. It can be said that determination of original owner of the property is very important to
prevent chances of fraud effectively. Certificate of original documents is necessary to ensure real
ownership of the property. The new commonwealth government has established reporting
requesting that affect all the real estate property transfer in Australia. A Certificate of Title is an
official land ownership record which provides information regarding current ownership of a
property. This will help to provide current ownership details, document numbers for
encumbrances and notifications, home buyer and investor research etc.
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Method of appraisals
There are different methods of determining value of a property which are provided
below:
Comparative method: This method is used for properties where the prices are good for previous
sales (Zhang and Zhao, 2018).
Investment method: The method is used for both commercial and residential properties which
produces future cash flow.
Residual method: It is used for the redevelopment or development properties.
Profit method: The method is used for trading properties such as hotels, old age homes and
restaurants.
Cost method: It is used for special character buildings where profits cannot be obtained.
The sales comparison approach: The approach is based on substitution principle and assumes
that a person compares the asking price of property which meets his or her lowest cost of
requirements. In this approach appraiser attempt to measure parties involved in market, seller,
investor.
The cost approach: The approach was also known as summation approach. In this, property
value can be measured by summing land and depreciated value of development. The method is
not good for older properties (Son and Lee, 2018).
In order to appraise the residential house of Rosanna Danna, depriciated replacement cost
approach method is going to be used. From this approach, appraiser can analyse sales to establish
land values and determine the replacement cost of the existing improvement and allow by age or
obsolescence.
Justification of selling price
The current market value of the property is $2700/sq ft. The property is made on 1000 sq
fr that the value of land will be $2700000. In addition to this, the construction price including
material, labour, contractor and other involved in the process is $1200000. The total price of
building with land is $3900000. There are some defects also in the building such as rust in pipes,
some leakages and sealing which can be repaired with a total cost of $9000 easily. The
improvement will also enhance value of this residential property and purchaser will take more
interest in this place (Stephanow and Banse, 2017). This will be beneficial for any customer and
able to sell his property to the person who is ready to give the highest amount of this home.
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Specialist support to increase effectiveness of property appraisal
There are so many specialists available in the market who can help while feeling
difficulties with appraising the property. This will involve accountants, bankers and financiers,
business consultants, government officials, industry professionals and members of industry
associations, investment consultants, real estate agents, solicitors, subcontractors, taxation
specialists, technical experts and valuers (Chu, Liang and Huang, 2018). Real Estate Agents: Real estate agents have immense knowledge about property and best
way for appraisal. Appraisal can take their support in order to enhance the effectiveness
in the appraisal of property.
 Banking institutes: Banking institutes frequently involved in valuation of properties.
They have expertise who can provide precise and appropriate information and could
support appraisal during property appraisal process.
These all are effective towards providing professional support to enhance effectiveness of
property appraisal which also help to make a fair appraisal of the property in line agency
practice. This will also help client to obtain an official evaluation of property in case if needed
effectively. In case of unique property such specialists provide inclusive support which is
beneficial towards property appraisal and also help to make quality valuation. Customer is also
able to receive accurate information regarding property.
Feedback from colleagues, supervisors and classmates to make adjustments in work
In order to eliminate the errors, it is essential to obtain feedbacks on appraisals (Ruan and
Martin, 2017). In present context, draft of appraisal has been provided to college in order to
obtain feedback. He has expertise in property valuation and can provide authentic feedback on
appraisals. Assessor provides feedback in cost replacement approach where appraiser wrongly
calculated the depreciation cost of the residential home. Appraiser needs to rectify the cost and
revalue the property for obtaining right price. This will help to make adjustments in work in
order to make appraisal more effective and efficient. In addition to this, comments provided by
clients and colleagues, documentation and report over appraisal, quality assurance data,
questionnaires and regular meetings also help to receive recommendation in terms of feedbacks
and comments which will help to make appraisal better for client. This will help to make relevant
changes. There are no changes required for this property appraisal as it is effective to represent in
front of any customer effectively.
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Ensuring property records safety for the customer confidentiality as per legislative and agency
requirements
It is important to make sure that all the personal information gathered from clients should
be properly maintained and should not be shared with anyone. Through management system that
is being used, it enables to consider the work that needs to be done within the set time period.
Further, the need and requirements of clients will be different and so it is essential that proper
data as per the preferences of individuals should be maintained. This way, it becomes favourable
enough to cover all the aspects as per the requirement determined by clients (Qiu, Su and Wang,
2017). The Privacy Act 1988: The act contains 13 Australian Privacy Principles which
Australian and Norfolk Island Government Agencies, and most private sector
organisation must follow in order to manage personal information. It is essential for the
agency to secure the confidential information of clients in order to avoid breach of this
act.
 Keeping personal information secured: Agency must secure the personal information in
encrypted device and restricts the access to supervisors only. This will help in ensuring
customer confidentiality.
Key features required of an agency records management system Documents management facility: Agency record management system must have
document management facility which helps in managing the documents obtain from
clients. This will help effectively in appraisal process and ensure protection of client's
data. Bulk import: Bulk imports are important requirement which enables user to import bulk
documents effectively in the system. It helps in reducing time and efforts of user.
 Advance search and retrieval: Advance search of document must be available in order to
reduce the efforts of user for identifying relevant document.
Reasons to maintain property records
There are different type of property stored system used in order to make sure that all the aspects
are maintained. In other words, to fulfil the need and requirement of customers, various records
like property records, legal paper, enclosure papers, etc. are taken into consideration. Further,
there are legislations that are needed to be followed in which all the details that includes personal
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information should not be shared with any one other who are not involved in the requirement of
client. In this context, it is the duty of firm to make sure that use of appropriate application is
done in which all the details are stored. This is done so that the personal information is not
misused and are only used for the purpose for which it is stored.
Types of property records stored in a system: Residential, commercial, Torrens title, Limited
Torrens title, Strata Title, leasehold title, etc. are types of property which stored in the system.
Risk management strategies to appraisal processes
At the time of appraisal processes, there are different type of strategies that are needed to
be followed so that rate of risk can be reduced. In this context, proper inspection of the property
should be done in order to make sure that there are not any type of damage caused to the
property before it is being sold (Bidabad, 2017). Further, it need to be made sure that all the
documents provided by the client is proper and does not need any type of changes to be made.
When these strategies are followed, then it will be favourable enough to make sure that the rate
of risk faced is reduced. At the initial stage background information from client should also be
analysed in order to reduce the rate of risk.
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REFERENCES
Books and Journals
Chen, Z. and Zhu, Y., 2017, June. Personal archive service system using Blockchain technology:
case study, promising and challenging. In AI & Mobile Services (AIMS), 2017 IEEE
International Conference on (pp. 93-99). IEEE.
Goderdzishvili, N., Gordadze, E. and Gagnidze, N., 2018, April. Georgia's Blockchain-powered
Property Registration: Never blocked, Always Secured: Ownership Data Kept Best!. In
Proceedings of the 11th International Conference on Theory and Practice of Electronic
Governance (pp. 673-675). ACM.
Zhang, M. and Zhao, P., 2018. The determinants of informal housing price in Beijing: Village
power, informal institutions, and property security. Cities 77 pp.117-129.
Stephanow, P. and Banse, C., 2017, May. Evaluating the performance of continuous test-based
cloud service certification. In Proceedings of the 17th IEEE/ACM International
Symposium on Cluster, Cloud and Grid Computing (pp. 1117-1126). IEEE Press.
Ruan, A. and Martin, A., 2017. Repcloud: Attesting to cloud service dependency. IEEE
Transactions on Services Computing (5) pp.675-688.
Qiu, Y., Su, X. and Wang, Y.D., 2017. Factors influencing commercial buildings to obtain green
certificates. Applied Economics 49(20) pp.1937-1949.
Bidabad, B., 2017. Mortgage Securitization System (MSS)(a complementary system of Rastin
Banking). International Journal of Law and Management 59(6) pp.778-783.
Chu, C.P., Liang, T.C. and Huang, K.C., 2018, April. International security competition and
debates on state sovereignty in the cyberspace and suggest plausible means. In 2018 IEEE
International Conference on Applied System Invention (ICASI) (pp. 1334-1337). IEEE.
Son, K.B. and Lee, T.J., 2018. The trends and constructive ambiguity in international agreements
on intellectual property and pharmaceutical affairs: Implications for domestic legislations
in low-and middle-income countries. Global public health 13(9) pp.1169-1178.
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