Case Study 1: Agency requirements and appraisal process In this case study you are required to explain
Question:
Case Study 1: Agency requirements and appraisal process
In this case study you are required to explain agency requirements and appraisal processes with the client.
(a) Explain to the client the content of appraisal reports that your agency produces
(b) Explain to the client at least two (2) factors that influence whether commercial properties are comparable for appraisal purposes
(c) Explain to the client the information required to be gathered and analysed for their commercial property appraisal
(d) Explain to the client the key sources of information required for appraisal of commercial properties
Case Study 03: Documents, reports and financial data of commercial property
Refer to Sections 3 and 4 in the Learner Guide to c omplete this case study where you are required to:
• analyse required documents, reports and financial data for property
• discuss agency documentation required to be completed and maintained when appraising commercial properties
• explain basic accounting principles and techniques for checking financial data and the status of commercial properties for lease or sale
• analyse current market data and trends that may affect lease or sale of property
• identify value factors for the commercial property market, and
• verify accuracy and reliability of collated data.
(a) Name and explain 3 types of documentation/records/reports/financial data required for commercial property
(I)
(ii)
(iii)
(b) What agency documentation is required to be completed and maintained when appraising commercial properties?
(c) When considering basic accounting principles and techniques for checking financial data and the status of commercial properties for lease or sale, as well as value factors for commercial property, you need to examine:
• Commercial property and yield
• Commercial property rental rate
• WALE (weighted average lease expiry)
In the space below, discuss your understanding of the following 3 items:
(I) Item #1 - Commercial property and yield
(ii) Item #2 - Commercial property rental rate
(iii) Item #3 - WALE (weighted average lease expiry)
(d) Research current market data and trends that may affect lease or sale of commercial property.
Summarise the information you find and provide a link where you can find or research current market data for commercial properties. in South Australia.
(e) How would you verify the accuracy and reliability of collated data?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill