Question

Ms Jones intends to give her guest house for lease for four years. The house is comprised of 08 rooms with a living room and a big backyard. You, as a real estate appraiser, have been given a job to confirm the client's instructions and discuss the agency's appraisal process and requirements. Select appropriate appraisal method, analyse market trend, required documents and financial data of the property. Record outcomes of the analysed data and prepare appraisal report highlighting findings and rationale. Submit this appraisal report for the assessment.

Use the appraisal template to record details of the process.

Answer 1

To assess the lease value of Ms Jones' guest house, the appropriate appraisal method would be the income approach. The market trend can be analyzed by reviewing recent rental prices of similar properties. Required documents include the lease agreement, property tax statements, and an income statement.

Step-by-step explanation:

As a real estate appraiser, the appropriate appraisal method for assessing the lease value of Ms Jones' guest house would be the income approach. This method focuses on the potential rental income that the property can generate. To analyze the market trend, you can review the recent rental prices of similar properties in the area to determine the potential rental income.

Some of the required documents for the appraisal process would include the lease agreement, property tax statements, utility bills, and an income statement that shows the expenses and income generated by the property.

In terms of financial data, you would need to gather information on the rental rates in the market, vacancy rates, and operating expenses for the property. This data will help you assess the value of the property and determine an appropriate lease amount.

Once you have collected and analyzed the data, you can prepare an appraisal report that highlights your findings and the rationale behind your assessment. The report should include details about the property, the market analysis, and your final value conclusion.