How to successfully complete the applied experience written ...

Learning AdvisoryBy Duane Bates, AACI, P. App, Member, Learning Advisory CommitteeWrite once, write rightHow to successfully completethe applied experience writtenexaminationGetting to the stage of writing theapplied experience exam requiresexceptional time and hard work. Assuch, Candidates should not take this exam lightlyand must ensure they are appropriately preparedfor this challenge. This article details the steps thatCandidates should consider to confidently andcompetently promote successful achievement.What is being examined?Before you start preparing, think about what isbeing asked of you throughout this exam. It is youropportunity to show the marker that you haveacquired sufficient experiences and competenciesthrough guided mentorship, such that you canapply the First Principles of Value appropriately in agiven situation.This exam is not one you can study for froma text book. Therefore, before you apply to writethis exam, ask yourself whether or not you haveattained sufficient experience to successfully writeit. Ask your mentor for an honest opinion, becauseit is better that you gain more experience first thanlearn of this need through failure.How to prepare for the examAIC has prepared several online tools to helpCandidates prepare for the applied experienceexamination:• The Revised Edition of First Principles of Value• Sample CRA and AACI Applied Experience Exam• Sample Grading Sheet and Marking Criteria• Tips for Writing the Examination• Exam Writing StrategiesThe AIC Applied Experience Written Examinationweb site can be found at: http://www.aicanada.ca/cmsPage.aspx?id=164The UBC Real Estate Division’s web site alsosummarizes these resources at: www.realestate.ubc.ca/aeexamYou cannot study for this exam as you wouldfor a regular course exam, but you can prepare.Review the First Principles of Value very closely,and be prepared to speak to each with reference toyour own value-related experiences. Refer to thesample exam questions so that you know whatto expect, and read the sample exam in advanceso that you do not have to read the instructionsduring the exam time. Think of good examplesfrom your work experience that highlight challengingproblems related to one or more First Principles,and structure answers that discuss them – thiswill help you become familiar with the logic andstyle of answer required, and you may be able touse these examples on your exam. Ensure that youknow the address or can adequately describe thelocations of these examples.How to write the examefficiently and effectivelyYou have talked to your mentor, you have sufficientexperience required to tackle the exam,you have reviewed the First Principles of Value,you went through the sample exam so youknow what kind of questions to expect, and,most importantly, you looked at the gradingsheet and criteria for the allocation of marks.Now what?Have a mental plan in place for how you willapproach the exam. Some points to keep in mind:• Equate marks with time available and wordsrequired: The exam is three hours – allot yourtime accordingly. You have one case study andthree work experience questions to answer. Youhave read the marking guide, so you know howthe grading is weighted – if you have a 40-markquestion, you should be allotting roughly 72minutes for that portion of your exam. If youfinish after an hour of writing, you may want toreview your answers to ensure there is enoughcontent to justify the 100 marks. Ensure yourwork experience examples give enough detailfor the marker to identify the specific propertyand understand the scenario being described.• Get easy marks first: Answer first the questionsthat you find the easiest. This will help yourconfidence, calm you down, and may even giveyou extra time to tackle the more challengingquestions later on in the exam.• No marks if we cannot read it: write legibly! Werealize it is three hours of writing, but you mustensure that you write legibly and preferably witha pen (leave the pencils at home; you can crossthings out and use additional exam booklets ifneeded). Remember, if the marker cannot readyour writing, the chances of receiving a successfulgrade are reduced dramatically.• Answer the question – no more, no less: Readeach question fully. You will receive no marks foranswers to questions that are not being asked.This cannot be stressed enough … READ THEQUESTION.• Paint a picture, not a sketch: When asked todescribe a property, do not be vague in youranswer. For example, “A house with a basement30Canadian Property Valuation Volume 53 | book 4 | 2009 Évaluation Immobilière au Canada

on a quiet street,” will get you zero marks. Amore appropriate response would be, “A 1,200square foot 1970s bungalow, with full-finishedbasement, located at the NW corner of Mainand Fraser Streets, Woodpile, Saskatchewan.Neighbouring and adjacent properties are similarin age in utility. Middle and high school arewithin walking distance, transit is available onthe corner, neighbourhood strip mall with 12units one block away. Neighbourhood is stableand considered to have average demand. Pricinglevels have been stable for the last year due tostable local economic conditions.”You have to paint a picture for the marker, realizingthat we likely come from a different part of Canadathan you. For property location, if you cannotremember the address, then give a description –the marker must be able to tell that it is real, not ahypothetical example.• Explain your assumptions: Assumptions areacceptable and expected when answering thecase study portion of the exam, as long as theyare reasonable and kept in perspective of thesituation being addressed. If the case studyindicates there has been no market activity inthe area, do not respond by assuming that youhave adequate sales in the area to support anestimate of market value. Assumptions shouldnot be used as a crutch to easily get throughthe case study; this will return a failing grade.For example, saying, “Highest and best useis assumed to be the current use” withoutexplanation equals zero marks. You must explainto the marker the steps you would take to arriveat that conclusion.• Give answers, not questions: Do not answer thecase study question with more questions, thiswill likely result in a failing grade. Asking a stringof erroneous questions does not demonstrateto the marker that you have logically thoughtthrough the First Principles of Value to arrive at aconclusion for the situation presented.• Appropriate work examples: Your work experienceexamples should be appropriate for yourlevel of experience. If you are writing the CRAexam, then avoid work examples of propertiesthat do not conform to the CRA limitations. As aCRA Candidate, if you discuss properties beyondthe CRA’s limitations, then be cautious to explainthe limitations of your role and where additionalassistance was required. Otherwise, it is a breachof professional ethics.• Cautious terminology: Avoid slang terms, acronyms,and improper terminology. For example:- In Canada, we use CUSPAP, not USPAP;- If you are describing a retrospective report, donot call it a retroactive report;- AIC uses market value, not fair market value(an accounting term);Avoid using acronyms in your examples, asmarkers are from various regions of Canada andmay be unfamiliar with the terms, e.g., AccreditedMunicipal Assessor of Alberta (AMAA),Property Assessment Appeal Board (PAAB), etc.• Answer everything: Try and get an answer downfor all questions. If you miss answering one of thework experience examples due to lack of time,it leaves little margin for error to pass the exam,given the minimum total pass mark of 70%needed on both case study and work experience.• Be general and comprehensive: When answeringthe case study portion of the exam, avoidanswering it solely from the specialized or limitedperspective of your current job. Explainingto the marker that you need not be concernedwith market value because of assessment lawin your province will undoubtedly not cover allFirst Principles of Value. Answer the questionfrom a wider, more general, and morecomprehensive perspective.• Consider Point Form: To best answer the casestudy, you must work through all of the FirstPrinciples of Value. Using expanded point formto go through each principle can be an efficientand effective way of ensuring you are coveringall aspects of the case study.• ‘I’ not ‘we’: Be careful about the ‘team’approach – when answering the workexperience example questions, explain tothe marker what ‘you’ did, not what ‘we’did. This does not preclude teamwork, butyou must tell what you did in that team toaddress the First Principle being described.• Explain suitability: There are three parts to thework experience question: description, suitabilityand details. The second part is easily overlooked,but, if answered appropriately, it segues nicelyinto the details of the example.Answer the 5 W’s and do not forget the HFinally, keep in mind these last few importantpoints for success:• Answer the who, what, when, where, why, anddo not forget the how. At the end of the day, thehow is what the marker is looking for. How didyou determine highest and best use, how didyou find market evidence to justify the adjustmentmade, how did you analyze the economicvariables of the situation, how did you ensurethat you reviewed all possible legal issues thatcould have an effect on your estimate of marketvalue, how did you ensure the property rightswere those of the fee simple….and so on.• Make it easy for the marker to logically gothrough your exam and understand how youhave related everything back to the First Principlesof Value. Keep the verbosity in check. Forexample, “It is assumed that the property rightsappraised are those of the fee simple interest.”Do not go into an elaborate dissertation on theconcept of the Bundle of Rights if unnecessary.• Last, but not least, remember you are puttingforward a professional argument for review andexamination. Do not assume the marker knowswhat you are trying to say, tell the marker whatyou are saying. Logic of argument, compositionof material and rationale behind assumptionsall play a factor. Writing clearly, logically, andthoroughly without being long-winded andrepetitious will serve you well in presenting awell-written exam.Learning Advisory CommitteeDavid Highfield, AACI, P. App – ChairApril Green, CandidateSuzanne de Jong, AACI, P. AppWayne Kipp, AACI, P. AppVikki Leslie, Qualifications Officer, AIC - ONCharles Abromaitis, AACI, P. AppDuane Bates, AACI, P. AppDavid Shum, AACI, P. AppTo contact this committee email:lac@aicanada.caCanadian Property Valuation Volume 53 | book 4 | 2009 Évaluation Immobilière au Canada 31