Appraisal 101

Sales Partners General Assembly

Goldmine Residences
Soong, Lapulapu City
September 5, 2014

Augusto B. Agosto
Real Estate Appraiser & Broker
www.appraisalcebu.wordpress.com
 Topic Outline

1. Importance of Appraisal
2. How appraisal helps Brokers/Agents
- Comparable Market Analysis
3. Conclusion
 What is Appraisal?

• Real estate appraisal or property

valuation is the process of
developing an estimate of the value
of a real property . It includes all of
the research, data, reasoning,
analysis, and conclusions necessary
to arrive at a value estimate.
 VALUATION STANDARDS
• It is a detailed process and guided by the
standards set by International Valuation
Standard (IVS), Philippine Valuation
Standard and Generally Accepted
Valuation Principles (GAVP)
 On Value

• Zonal Value - is a value placed on real estate

based on where it is located by the BIR
• Assessment value - the financial worth placed on
a property by the town or city’s assessor’s office for the
purpose of determining the tax due said property
• Market Value - estimated amount for which a property
should exchange on the date of valuation between a willing buyer
and a willing seller in an arm’s length transaction
 APPROACHES TO VALUE

1.Market Data
2.Cost
3.Income
 Comparative Market Analysis
• Choose comparable and
make adjustments-
superior and inferior. If a
“comps” is superior to the
subject property a
downward adjustment is
made to the sale, and if a
“comps” is inferior to the
subject property an
upward adjustment is
made.
 Comparative Market Analysis

COMPS House 1 House 2 House 3

Size +10 % - 10 % -20 %
Location + 20 % + 10 % +10 %
Frontage - 10% - 10 % -10%
Features + 10 +20% -15%
Total Adjustments +-
 SUBDIVISION

COMPS SUBDIVISION SUBDIVISION SUBDIVISION

1 2 3
Size +10 % - 10 % -20 %
Location + 20 % + 10 % +10 %
Number of Units - 10% - 10 % -10%
Amenities + 10 +20% -15%
Total Adjustments +-
Map of Lapulapu
 Economic Principles
that affects Value
• Principle of Anticipation- The principle of anticipation holds
that value is simply a function of the present worth of future benefits, that is, people
are paying current dollars for future benefits.

• Principle of Balance- relates both to the property as

well as the environment in which the property is located.
• Principle of Progression- holds that the worth of a
residence of less expensive will tend to be increased by being in association
with residences of higher one in the same area. The opposite of the
Principle Of Regression.
 CONCLUSION
• There are no "guesstimates" when it
comes to appraisal.

• In our real estate profession where

TRUST is the most important aspect, a
real estate professional-broker and
agents, should recommend in acquiring
the services of a licensed appraiser.
Contact an Appraiser
Landline: (032) 421-2003
Mobile : (0917) 488 5555
Email: appraiserph@gmail.com