This document provides an overview of real estate appraisals. It defines appraisal as estimating the value of a property based on research and analysis of comparable properties. The document outlines the importance of appraisals for brokers and agents in determining market value. It also discusses the standards and approaches used in appraisals, including the market data, cost, and income approaches. Comparable market analyses and adjustments to comparable properties are explained. The conclusion emphasizes that appraisals provide accurate property valuations essential for the real estate profession.

1. Appraisal 101
Augusto B. Agosto
Sales Partners General Assembly
Real Estate Appraiser & Broker
Goldmine Residences
Soong, Lapulapu City
September 5, 2014
www.appraisalcebu.wordpress.com

2. Topic Outline
1. Importance of Appraisal
2. How appraisal helps Brokers/Agents
- Comparable Market Analysis
3. Conclusion

3. 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.

4. 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)

5. 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

6. APPROACHES TO VALUE
1.Market Data
2.Cost
3.Income

7. 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.

8. Comparative Market Analysis
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 +-

9. 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 +-

10. Map of Lapulapu

11. 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.

12. 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.

13. Contact an Appraiser
Landline: (032) 421-2003
Mobile : (0917) 488 5555
Email: appraiserph@gmail.com