GENERAL

 Kind of property for appraisal - commercial lot with 2 storey building

  Address – Barangay Bonbon, Butuan
  Purpose - fair market value appraisal
  Rights to be appraised - fee simple interest
  Party requesting appraisal – Rubielyn Campania
  Valuation date – January 13, 2020
  Date of report – January 27, 2020
  Appraiser – REM Pioneers Appraisal Firm

VALUATION TERMINOLOGIES

1. Market value- is the 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 after proper
marketing wherein the parties each acted knowledgeably, prudently and without compulsion.

It is the highest price in terms of money which the property will be bought if exposed for sale in
an open market, allowing a reasonable time to find a buyer who buys with knowledge of all uses
to which it can be adapted and for which it is capable of being used. It is sometimes called
objective value.

2. Special value- value that may arise if an asset has attributes that makes it more attractive to a
particular buyer or to a limited category of buyers than to the general body of buyers in a market.
Special value is normally higher than market value. It is value to a special purchaser. An owner
of land may pay a premium price for adjacent property.

3. Fee simple- absolute ownership subject only to limitations imposed by the State such as
axation, police power, eminent domain and escheat.

4. Highest and best use- the most probable use of a property which is physically possible,
appropriately justified, legally permissible and financially feasible and which result in the
highest value of the property being valued.

5. Assumptions and Limiting conditions- assumptions are suppositions taken to be true like
values of comparable properties given by fellow brokers, appraisers and other informants of
values used in the valuation. Limiting conditions are conditions in the valuation that maybe
imposed by the client or the valuer. Example, this valuation does not cover actual surveying or
relocation of the property and whatever area appears in the title is presumed correct.