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In the news

14502712_1258532074188302_6392999861770455162_nAppraiser Planner Gus Agosto was invited as a guest speaker in the recently held Philippine Association of Real Estate Board 56th National Convention and Election.  The convention was held in Laoag City, Ilocos Norte last October 6-8, 2016. He discusses the top concerns in real estate appraisal and appraisers  and how to navigate them.

Gus Agosto has been appointed Appraisal Commissioner by different regional trial courts in Cebu and former Managing Partner of Intech Property Appraisal, Inc. He is also a lecturer in University of San Carlos, Cebu City and the founding president of Cebu South Real Estate Board, an affiliate of PAREB.

“They appreciated much the discussion”,  the guest speaker said after the session.  Appraiser Gus  discussed top issues in real estate appraisal such as property identification, encroachment,  value adjustments,  highest and best use, legal documents and marketability.

The discussion was both enriching and interactive,  designed to help real estate practitioners in handling clients requirement for bank loans, buying and selling properties and properties subject to court litigations.

“There are many questions arises in the discussion. It shows of their enthusiasm to the topic. Appraisers should dare to show their crop in appraisal to appreciate and differentiate the profession.”  Appraiser Gus concluded.

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speaker

 

Subdivision Development Method

12Land valuation is the most common appraisal assignment. An appraiser uses different method of valuation taking in consideration the purpose of the appraisal. But land differs in sizes, shapes and probable uses that an appraiser should look up to. Land which is large enough has different characteristics that warrants equal if not special attention. Besides, large tract of land requires more data and sets of comparable in using sales comparison method to arrive in a reliable and defensible market value.

An appraisal technique seldom used by appraisers in determining value of large tracts of land is the subdivision or development approach. This technique determines market value by subtracting the costs of developing a potential subdivision from its anticipated proceeds, and discounts the remainder to arrive at present value as of the date of the appraisal.

In using this technique, an appraiser should prepare a subdivision lay-out to determine the number, size and shape of lots. Through research estimate prices of lot; rental rate per square meters if improved with buildings; the development cost and developers profit and the income stream discounted to the present and arrive in its market value.

Often, land value estimates emanating from the subdivision or development approach are significantly lower than those correspondingly derived from the sales comparison approach with a lower lot sizes and different uses. In theory, if both the development method and sales comparison approach were applied correctly, the value estimates should be similar. Nonetheless, the process of reconciliation of different approaches, the appraiser should give weight to the method which is more reliable and justifiable than the other.

In the whole process of the development method of appraisal, the experience, skill and judgment of the appraiser will play with paramount of importance. There are number of methods and techniques available for the appraisers to explore and gain expertise in the practice of profession. Through our innovative effort as an appraiser, we can make an important contribution in popularizing and practicing the subdivision or development approach, in the service of our clientele and to the society.

2 USC grads top Real Estate Appraiser Board Exam

usc logoTwo university grads, Maria Khristine Abecia Lluisma and Ely Galland Ancajas Jumao-as, of the University of San Carlos placed 4th and 7th, respectively, in the April 2016 Real Estate Appraiser Licensure Examination. Lluisma garnered an 86.50 percentage rating while Jumao-as got an 85.00 percentage rating.

It is a big boost to the Bachelor of Science in Real Estate Management (BSREM) Program which is now being offered by the University and recently produced 10 graduates. The University has a 54.67% over-all passing performance vis-a-vis the 33.5% national passing rate.

“I would like to congratulate the 2 USC grad topnochers for performing exceptionally well in the last Real Estate Appraiser board exam, and welcome to the profession, ” said Appraiser Agosto,  an Appraisal Commissioner and also a BSREM faculty member of the university.

The Professional Regulation Commission (PRC) announces that 1,271 out of 3,794 passed the Real Estate Appraiser Licensure Examination given by the Board of Real Estate Service in Manila, Baguio, Cagayan De Oro, Cebu, Davao, Iloilo, Legazpi, Lucena, Pagadian, Tacloban, Tuguegarao and Zamboanga last April 2016.

“The profession need highly competent and reliable valuer that will measure the true wealth of nation and uphold international valuation standards in the era of globalization”, Agosto ended.

 

List of successful examinees are as follows:

Click to access REA0416ft_j.pdf

Click to access REA0815se_j.pdf

Cavite Appraisal

 

I appraised properties in Cavite recently. My client, which is an expat living in the US, instructed me to deliver the report within three (3) days for court submission. He gave me only the exact address of the property, the rest will be produced through research.

Early in the morning I travel to Noveleta, Cavite for my first assignment, through the Manila-Cavite Expressway or Cavitex. I arrived in the municipal hall and paid a courtesy call with the Municipal Assessor, then proceed to the site for actual site inspection and research.

Then I went to Trece Martirez City to conduct due diligence for a property under dispute. I visited the site and afterwards went to the City Hall to conduct research and investigation.

I finished the assignment in three days and submitted it. My clients were happy after reading the appraisal report I sent to them.”Thank you for excellent job.”

A commendation that makes an appraiser happy.

Let us now tour Cavite.

Cavite is a province in the Philippines located on the southern shores of Manila Bay in the Calabarzon region on Luzon island. It is bounded on the north by Manila Bay and Metro Manila, on the east by Laguna, on the west by the South China Sea, and on the south by Batangas. It is composed of 7 Cities and 26 Municipalities. With a population of 3,090,691 in 2010, it is the most populated province in the country.

You can reach Cavite from Metro Manila through Aguinaldo Highway and Manila-Cavite Expressway or Cavitex .Situated just 21 kilometers south of the capital, it is one of the most industrialized and fastest growing province because of its close proximity to Metro Manila. Many companies, such as Intel, have established manufacturing plants in numerous industrial parks in the province. As of 2012, there are 382 actively operating companies in Cavite Export Processing Zone.

Major historic events happened in Cavite that shaped Philippines today, if you want to know more about Philippine History, you can visit Cavite and it will be like seeing the history itself not just reading them from Philippine History books.

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Tool for Brokers & Appraisers

 

In our practice of real estate appraisal and brokerage, it is basic to have knowledge on site location and lot plotting. I am sharing this presentation to real estate practitioners and the general public in general.

We should continue in educating ourselves to better serve the public and raise our professional practice to a new and higher level.

 

 

Appraisal of special purpose properties

Valuation is a core function that underpins real property transactions. Many businesses see valuation as an unwanted and unnecessary expense. This is not always the case and if used effectively they can prove to add an arsenal of information and achieve business successes.

I was requested to appraise a hospital property -a special purpose property. A special-use property is defined as a building with special construction materials, unique physical design or arrangement that limits its utility to the use for which it was built. They are typically single-purpose buildings which are adaptable to only one particular process, use or even one particular company.

The purpose of my valuation is to render an opinion of market value of the property. I’m quite bit excited to do the job yet anxious of its complexity. It is not just a hospital, it is an institution built for quite a long time; its name was synonymous to a place of medical care in the region.

The improvements suitability of use and capacity has been affected by advances in technology, resulting in some older hospital facilities becoming obsolete. But in analyzing the property, it is important to take it as a whole. The property in its entirety has many potential uses. Its strength lies in its location, since it is situated along the main road of the heart of the city.

Special use properties are truly unique, they require detailed knowledge of their exclusive characteristics, and the additional skill required in their valuation process become a specialty service area.

After a month, I just read in the news that the hospital owner has just inked a joint venture agreement with a big mall company for a construction of a commercial and hospital facilities.

Truly, appraisal can be an arsenal towards business transaction success. With this assignment, I learned that appraisal of special purpose properties makes our profession more interesting. Appraisers should never stop learning.

ASEAN IS ONE TONIGHT

We welcome 2016, not just a new year, but a new era for our country and other members of ASEAN. ASEAN is one community tonight.

The ASEAN Economic Community endeavors to become a single market and production base. It will unify the 625 Million people of 10 countries under ASEAN as a single community. ASEAN will be connected thru effective air, sea and land links. Further development of regional connectivity will help people, goods and services flow across the region more quickly and cheaply.

ASEAN identifies professions that are allowed to practice in other ASEAN countries. Small-Medium Enterprises (SME) will become more competitive. Those who are open to ASEAN market can expand operations and acquire office space and industrial properties outside the Philippines.

ASEAN community gives us more opportunities. The free movement of goods, services, skilled labor and capital would require more commercial and residential buildings and other infrastructures.

At the same time, it brings challenges to connect. Bigger, skilled and more advanced real estate practitioners from other ASEAN countries can enter the local market. They need local partners and counterparts.

New era requires new mindset and system. It means old habits and comfort zones should be archived. It is an era where connectivity and excellence is a must.

Happy New Year!   Welcome to ASEAN Community.

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