Market Appraisals Level 1

Question 1

How are market appraisals composed around Client Requirements?

Answer 1

1. help to inform decision on whether to buy or sell
2. want an idea of what their property is worth
3. for receivership purposes - client wants to know if the debt could be recovered in full.

Question 2

What is the difference between a market appraisal and a valuation?

Answer 2

market appraisal encompasses advising a client who is considering putting their property on the marker what sort of price parameters are likely.

A valuation is a detailed analysis of comparable evidence and provides Market Value.

Question 3

What are the limitations of Market Appraisals?

Answer 3

providing an estimate of anticipated market price or rent and not a valuation

Question 4

Are you aware of any RICS material on market appraisals?

Answer 4

UK Commercial Estate Agency Professional Statement 2016

Question 5

Tell me about the UK Commercial Estate Agency Professional Statement 2016

Answer 5

contains a section on market appraisals
it states that when advising on the property price or rent for marketing purposes that you should provide realistic and justifiable advise and should reflect market conditions.

Question 6

What is the difference between price and value?

Answer 6

the price is the amount at which property transactions occur. The price paid may not represent the market value of the property.”