The Income Approach In The Valuation of Real Estate Properties

 

In the process of market valuation, income approach is not commonly reported by appraisers because of the complexity of developing a opinion of value on a property. Right now, the ones that are ideal for making income are residential apartment complexes, residential condominiums, hotels, commercial buildings, subdivided warehouses and many more.

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?

A Property Appraisal Case Study For Australian Immigration Visa Application

Photo by Hugo Heimendinger from Pexels

This is one of the cases we handled over the past few years in giving our clients the tailor fit services in their compliance with their immigration requirement under Australian laws where they wish to migrate.

As a real estate professional we are happy to be of services to such people who are in need of such particular services that can help them fulfill a part of their dreams of living outside of their original home country. Such as this former clients of our who we had withheld their names and specific location and their current whereabouts.

How Real Estate Appraisers Determine One's Real Property Value

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.

House Bill 4664: Reforming Real Estate Property Valuation Into One Standard

There has been a hot debate on the creation of House Bill 4664 also known a Real Property Valuation
and Assessment Bill which has reached third reading in the past few months and gained traction with a voting confidence of those in favor at 224 against 7 not in favor while one representative abstained in this creation of this bill. HB 4664 is one of priority bills of Duterte's administration.

Impact of Republic Act 9649 or RESA Law in Real Estate Industry

REBAP Greenhills Chapter is the host chapter of this event

Recently we were invited on the 1st National General Membership Meeting at Real Estate Brokers Association of the Philippines in Le Pavillion, Pasay City last 9th of April 2009. We were honored and privileged to have Professional Regulation Board of Real Estate Services (PRBRES) Chairperson Dr. Pilar Torres-Banaag in person on the updates on the practice of Republic Act 9646 or Real Estate Service Act of 2009 also known as RESA. 

Dr. Banaag stance was to educate people on the this law which is already 10 years in effect with the effectivity of the Implementing Rules and Regulations (IRR) back in 10th of July 2010 (see link) on our first organizational event for 2019.

This is a warning to all practitioner who are not licensed or not even accredited as real estate salesperson here in the Philippines. At this time there were are number of people already filed with cases with PRC Legal offices and a task force anti-colorum initiated by the stakeholder real estate organizations and individuals have also spearheaded this momentous task of cleaning and policing the profession.

Determining your Net Assets thru Real Estate Appraisal

Photo Credits

By: Benedict F. Baluyut, REB, REA

A years ago, we have had received a numerous requests from would be clients who asked for our professional services in determining the value of their properties for use in different types of requirements. Some of our friends in the industry or most of the time our clients are asking for hypothetical estimate or Broker’s Price Opinion (BPO) which is cheap and fast but not that as accurate and precise as with a formal appraisal report determined by a seasoned real estate appraiser.

 

Real estate appraisal have very useful functions especially in determining the Fair Market Value (FMV) of a property for the purposes of tax payments required in Bureau of Internal Revenue, personal records of a client in the process of selling or lending confirmed offered price of real property, offering subject property for sale, settlement of disputes involving real estate properties and documentary requirements for support visa application / immigration and many more.