Monday, February 17, 2020

How Real Estate Appraisers Determine One's Real Property Value

Photo by energepic.com from Pexels

Previously, I was discussing to an old lady about her properties located in Pampanga. She mentioned  to me that she has a number of real estate properties located in the formerly lahar affected areas back in early 1990s. The community or neighborhood of those affected areas are recently revitalized with the return of number of the former residents in their homeland which is mostly agricultural and are located in barrios. 

She was adamant in selling her properties but was asking me a lot of questions regarding the pricing of the said properties. I told her, I have no idea on how much the properties are because it will be hard for me to determine the exact values because there are no definite prices and the property prices may vary depending on the owners.

At the same time, we advised them that real estate appraisal would be better to determine the properties in question. This process will entail research on other properties in determining the right price using appraisal methods as a measure of value and be used as a base line or reference in selling the properties.

For vacant land only (commercial / industrial / residential) - it will be ideal to use Sales Comparison / Market Approach. However, income approach could also be used if the property generates income or profit through leasing specifically for large tracts of land use for agriculture or for commercial properties like hotels and warehouses which are leased in a number of years.

For residential homes, it will require Sales Comparison Approach or Market Data Approach and Cost Approach of the property to replicate the construction cost in current time. However, other methods could be implemented on the determination of the subject property.   

For office buildings, either of the two out of three approaches can be used in determining the true value of the property depending on the methods employed by a real estate appraiser.


Need help in your Proper Property Valuation / Appraisal 

C. F. Baluyut Realty offers real estate appraisal services that precisely correct and appropriate for one's existing property. They have technical expertise on the aspects of valuation using the three approaches and other methods under Philippine Valuation Standards and have satisfied clients over the past few years.


About the Writer



CRB Benedict Baluyut is a professional real estate broker, real estate appraiser and associate of C. F. Baluyut Realty. He is currently the Vice President for External Affairs, Real Estate Brokers Association of the Philippines, Inc. (REBAP) - Pampanga Chapter. You can get in touch with him at https://www.cfbaluyutrealty.com.






Related Posts:

Inside Real Estate:  Can You Really Afford the Monthly Mortgage?
Determining your Net Assets thru Real Estate Appraisal



Copyright 2004 - 2019 C. F. Baluyut Realty | Real Estate in Pampanga, Philippines. All Rights Reserved.

No comments: