Recently, numerous clients requested for appraisal of the damage caused by Typhoon Yolanda and a government infrastructure project. In the wake of natural disasters or government infrastructure projects, property owners often face the daunting task of determining the extent of damages and securing fair compensation. A specialized appraisal method known as the Diminution in Value Appraisal or real estate damage valuation proves to be an invaluable tool in accurately assessing property losses caused by events like Typhoon Yolanda and government-driven developments. Let’s delve into the significance of the DIV Appraisal method and how it aids property owners in their quest for just compensation.

Understanding the DIV Appraisal Method

Unlike traditional market value assessments, the DIV Appraisal method hones in on the specific damages or impairments suffered by a property due to a particular event or project. Whether it’s the devastating impact of Typhoon Yolanda or the restriction of access caused by government infrastructure projects, the DIV Appraisal offers a comprehensive evaluation of the economic losses faced by property owners.

The aftermath of Typhoon Yolanda left numerous properties in ruins, necessitating a precise assessment to determine the extent of damages. In such scenarios, the DIV Appraisal method proves to be invaluable. This specialized appraisal approach focuses on assessing the specific damages or impairments suffered by a property due to a particular event or project.

The DIV Appraisal process begins by evaluating the property’s value before the event, assuming it was in perfect condition with no damages or impairments (Unimpaired Market Value). The appraiser then takes into account the economic impact of the event, considering factors such as structural damage, loss of utility, and reduced marketability (Impaired Market Value).

By subtracting the Unimpaired Market Value from the Impaired Market Value, the appraiser arrives at the Damage Value. This value represents the specific economic loss suffered by the property due to Typhoon Yolanda, providing property owners with a clear understanding of the extent of damages.

To obtain a credible DIV Appraisal, property owners must effectively communicate the loss in both legal and appraisal terms. Providing a current survey detailing the property’s condition before and after the event or infrastructure development is vital. The survey should highlight the extent of damages and the specific rights lost, assisting the appraiser in accurately assessing the diminution in value.

The DIV Appraisal method emerges as a powerful tool for property owners in the Philippines to assess damages and determine the true value of their properties after natural disasters or government infrastructure projects. Engaging competent appraisers well-versed in local real estate laws and regulations is essential for obtaining a credible DIV Appraisal. Armed with a comprehensive understanding of their property’s true value, property owners can seek just compensation for their losses and move forward with confidence.