appraisal 101
DESCRIPTION
Presentation in Goldmine Residences' Sales Partner General Assembly held at Lapulapu City.TRANSCRIPT
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Appraisal 101
Augusto B. Agosto Real Estate Appraiser & Broker
www.appraisalcebu.wordpress.com
Sales Partners General AssemblyGoldmine ResidencesSoong, Lapulapu CitySeptember 5, 2014
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Topic Outline
1. Importance of Appraisal
2. How appraisal helps Brokers/Agents
- Comparable Market Analysis
3. Conclusion
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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.
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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)
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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
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APPROACHES TO VALUE
1.Market Data
2.Cost
3.Income
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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.
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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 +-
Comparative Market Analysis
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SUBDIVISION
COMPS SUBDIVISION 1
SUBDIVISION 2
SUBDIVISION 3
Size +10 % - 10 % -20 %
Location + 20 % + 10 % +10 %
Number of Units - 10% - 10 % -10%
Amenities + 10 +20% -15%
Total Adjustments +-
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Map of Lapulapu
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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.
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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.
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Contact an AppraiserLandline: (032) 421-2003Mobile : (0917) 488 5555Email: [email protected]