CPPDSM4003A
Appraise property

This unit of competency specifies the outcomes required to appraise the sale price range or rental value of all forms of property for listing purposes in line with client instructions, agency practice and legislative requirements. It includes researching the property, selecting appropriate methods to appraise the sale price range or rental value of property and preparing reports on the property appraisal. It does not address the formal valuation of property.The unit may form part of the licensing requirements for persons engaged in real estate activities in those States and Territories where these are regulated activities.

Application

This unit of competency supports the work of licensed real estate agents and real estate representatives involved in appraising the sale price range or rental value of all forms of property for listing purposes.


Prerequisites

Nil


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

1Research property.

1.1 Purpose of property appraisal is established with client in line with agency practice and legislative requirements.

1.2 Methods for gathering information are selected that are reliable and make efficient use of time and resources in line with agency practice.

1.3 Information on property is gathered and organised in a format suitable for analysis and interpretation in line with agency practice.

1.4 Appropriate interpersonal communication techniques are used to access additional information from relevant people.

1.5 Source documents are obtained and analysed to determine status and ownership of property in line with agency practice and legislative requirements.

2Appraise sale price range or rental value of property for listing purposes.

2.1 Appropriate method for appraising the sale price range or rental value of property is selected in line with agency practice and legislative requirements.

2.2 Sale price range or rental value of property is appraised for listing purposes in line with client instructions, agency practice and legislative requirements.

2.3 Appraisal of sale price range or rental value of property is clear, justified and based on assessment of all factors in line with agency practice.

2.4 Limitations in appraising property are recognised and specialist advice is sought as required in line with agency practice.

3Present information.

3.1 Information on sale price range or rental value of property is presented to client within specified time, budget and quality constraints and in line with client requirements and agency practice.

3.2 Information is prepared and presented in required format, style and structure using relevant business equipment and technology in line with legislative and agency requirements.

3.3 Feedback on suitability and sufficiency of appraisal is obtained and where appropriate incorporated into advice.

3.4 Agency property records are securely maintained with due regard to client confidentiality in line with agency and legislative requirements.

Required Skills

This section describes the essential skills and knowledge and their level, required for this unit.

Required skills:

ability to communicate with and relate to a range of people from diverse social, economic and cultural backgrounds and with varying physical and mental abilities

analytical skills to interpret documents such as legislation, regulations and property reports

application of risk management strategies associated with appraising the sale price range or rental value of all forms of property for listing purposes

computing skills to access the internet and web pages, prepare and complete online forms and search online databases

decision making and problem solving skills to analyse situations and make decisions consistent with legislative and ethical requirements

literacy skills to access and interpret a variety of texts, including legislation, regulations and property reports; prepare property appraisal reports; prepare formal and informal letters and reports; and complete standard and statutory forms

numeracy skills to calculate and interpret data, such as trends in property sale prices and rents

research skills to gather information from a variety of sources on different forms of property, rents and sale price trends, and sale prices and rents of comparable properties.

Required knowledge and understanding:

agency property records, including:

key features of a records management system

reasons for maintaining property records

types of property records

determination of sale price range or rental price of properties, including:

appraisal methods

local market factors

factors that affect return on property, including:

economic

political

social

key indicators of market conditions

market conditions, including:

leasing market conditions

sales market conditions

property appraisal, including:

content and format of appraisal report

difference between appraisal and valuation

factors that influence whether properties are comparable for appraisal purposes

information required for appraisals

key sources of information required for appraisals

property appraisal methods

purpose of property appraisals

relevant federal, and state or territory legislation and local government regulations relating to:

anti-discrimination and equal employment opportunity

consumer protection, fair trading and trade practices

employment and industrial relations

financial services

OHS

privacy

property sales and management

return on property investment

role of the agent in providing property appraisal

risks and risk management strategies associated with property appraisal

sources of information on market conditions.

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Overview of assessment

This unit of competency could be assessed through practical demonstration of appraising property for listing purposes for sale or lease. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

A person who demonstrates competency in this unit must be able to provide evidence of:

appraising the sale price range or rental value of property for listing purposes

gathering and researching information on property for use in conducting appraisals

identifying the limitations of property appraisals and sourcing specialist advice as required in line with agency practice

knowledge of agency practice, ethical standards and legislative requirements associated with appraising the sale price range or rental value of property for listing purposes

knowledge of different property appraisal methods

maintaining agency property records with due regard to client confidentiality in line with agency practice and legislative requirements

presenting information on sale price range or rental value of property to clients within specified time, budget and quality constraints and in line with client requirements and agency practice

using appropriate methods for appraising the sale price range or rental value of property.

Context of and specific resources for assessment

Resource implications for assessment include:

access to suitable simulated or real opportunities and resources to demonstrate competence

assessment instruments that may include personal planner and assessment record book

access to a registered provider of assessment services.

Where applicable, physical resources should include equipment modified for people with disabilities.

Access must be provided to appropriate learning and/or assessment support when required.

Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed.

Validity and sufficiency of evidence require that:

competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace

where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence

all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence

where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time

assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.

In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed.


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below. Add any essential operating conditions that may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts.

Purpose of property appraisal may include:

establishing most likely selling price range or leasing price in the current market

establishing property's highest and best use

meeting client need for information relating to potential income or capital gain from rent, sale or development.

Legislative requirements may include:

relevant federal, and state or territory legislation and local government regulations relating to:

anti-discrimination and equal employment opportunity

consumer protection, fair trading and trade practices

employment and industrial relations

financial services

OHS

privacy

property sales and management.

Interpersonal communication techniques may include:

active listening

providing an opportunity for clients to clarify their understanding of the appraisal process

soft questioning and seeking feedback from clients to confirm own understanding of their needs and expectations

summarising and paraphrasing to check understanding of client message

using appropriate body language.

Relevant people may include:

accountants

auctioneers

clients

colleagues

estate agents

industry professionals and members of industry associations

legal representatives

supervisors

taxation specialists

valuers.

Source documents may include:

agency records

auction results

company asset documents and registers

comparative market data

depreciation schedules

financial documents

local government reports

property sales reports

property valuation statements

qualitative and quantitative data

rent reviews

reports and inventories

taxation records

titles.

Method for appraising the sale price range or rental value of property may include:

capitalisation

comparative sales

hypothetical development

replacement cost

summation.

Specialist advice may include:

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

valuers.

Business equipment and technology may include:

computers

data storage devices

email

facsimile machines

internet, extranet and intranet

photocopiers

printers

scanners

software applications, such as databases and word applications.

Feedback may include:

comments from clients and colleagues

documentation and reports

quality assurance data

questionnaires

regular meetings.


Sectors

Unit sector

Property development, sales and management


Competency Field

Real estate


Employability Skills

The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.


Licensing Information

Refer to Unit Descriptor