Monday, November 23, 2020

Understanding Real Estate Market Valuation Reports (Real Estate Appraisal): Basics of the Narrative Report

 

 

With the recent COVID 19 pandemic, people are more having a tighter grip on their funds and some have opted to forego their plans for acquisition of properties or other investments. The future seems to be a bit dim right now but there is a glimmer of hope over the horizon on the course of  vaccination discovery in the time of this writing and full production in the coming months by 2021.

We recently received a call from Mr. C who happens to own a vacant residential lot somewhere in the town of Floridablanca, Pampanga. He was referred to us by a colleague and fellow real estate broker by Ms. DD. He was requesting if we can make an appointment with them on the property and possibly discuss the hiring the services of a professional real estate appraiser. However, in our recent discussions with Mr. C as he was hesitant in getting his property appraised because it is an added cost and burden in his part as we have told him that appraisal report may be a cost a bit for the owners but the benefits of the market valuation report could benefit him more and give him another perspective if he decides to stay or build his house on the subject property or just sell it off as it is if he intends to?

In our previous appraisal or market valuation reports, we give the clients an detailed idea on how appraisal works in the determining their property values from the Three Approaches in Determining Value are - Market Data / Sales Approach, Income Approach and Cost Approaches and these are what we have been using on how real estate appraisers determine one's real property value

However, some clients cannot understand the jargon on the real estate market valuation of their property knowing only the certificate of valuation is the only thing that they want to view. But to delve and understand how we arrive on our estimations we clearly explain and show them on how did this happen not only in our conclusions but also in our face to face or virtual conferencing settings for them to get the gist of this discussion. 

Valuation Reports have no predetermined value in mind as we have used different methods, processes and techniques in determining it. Based on our experience, it requires 7 calendar days for a vacant residential to complete such work or task and also we do research on other factors that can determine or affect the value of property which we have listed below:

§  Location of the property, accessibility, and neighborhood quality;

§  Size, shape, elevation, street frontage;

§  Highest and best-legal use of the land;

§  The asking prices of comparable properties in the adjoining areas;

§  Personal judgment, observation, experience of the appraiser;

Furthermore, we value our genuine work, opinion of value and stand firm on our judgement and experiences on the  valuation process as we put hard work in assembling a market valuation report unique with every client's needs and with our intentions of providing best real estate appraisal services in Pampanga and Central Luzon. 
 
Have other questions in real estate market valuation / appraisal on one's property? Visit our website at www.cfbaluyutrealty.com or send us a message in this link.
 
 
Photo by energepic.com from Pexels  
 
 
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.






 
Other articles to read:

What You Should Know About Estate Settlement https://bit.ly/33fWUzV
Why Should Avail Your Tax Amnesty For Your Real Estate Properties https://bit.ly/3n6ItWP
 

 

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