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.
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.
Real estate valuation is the process of developing an opinion of value. It can be used in determining the value of property whether single use or mixed use development.
So far we have discussed more on the single use appraisal, now let me share and discuss the appraisal of mixed use development.
In valuing property, the first and foremost we should have to know is the intended use or the purpose of the appraisal. It will serve as a guide in appraising the mixed use property.
Mixed-use development is—in a broad sense—any single building, that blends a combination of residential, commercial, institutional, or industrial uses, where those functions are physically and functionally integrated. It may also a site or a building, complex of buildings, or district of a town or city that is developed for mixed-use by a private developer, government agency, or a combination.
In a nutshell, there are benefits in mixed use developments. For example, it reduces distances between housing and workplace, retail business and other. It is now common to have developments which align to the concept of live, work and play.
It is a great challenge to an appraiser in coming out of an opinion of value that reflects the actual use and the highest and best use of the mixed use property. An appraiser can use the different approaches in valuation such as sales comparison, cost and income approach. And since it is a mixed use, you have to use different comparable, and methods. An appraiser has to dig more data and information from the knowledgeable persons in the neighborhood, government officials and industry leaders where the property is located.
In analyzing data, we have to consider the zoning, allowable use, predominant use, conforming use, legal and illegal non-conforming use, the highest and best use, neighborhood analysis, market trends not only of the city but the region as well.
Nothing beats the importance of conducting actual inspection of the property and the neighborhood. It will give concrete data and visualization of the property. The trend of development in the locality and region, will broaden your perspective and analysis.
Valuing mixed use properties will force the appraiser to be more analytical and creative in solving problem –to determine the market value that is reliable and defensible.
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.
The WordPress.com stats helper monkeys prepared a 2015 annual report for this blog.
Here’s an excerpt:
A San Francisco cable car holds 60 people. This blog was viewed about 3,100 times in 2015. If it were a cable car, it would take about 52 trips to carry that many people.
Last December 17, 2015, Appraiser Gus Agosto attended the Philippine Association of Realty Consultants & Specialists (PARCS) Annual Election and Membership Meeting held at Tiara Hotel in Makati City, Metro Manila. The guest speaker is no other than the Chairman of Philippine Regulatory Board of Real Estate Service (PRBRES) Eduardo G. Ong. On this occasion he announced the following:
“These developments will greatly help the real estate industry”. re-elected PARCS EVP, Bong Labrador said. “With the recent announcement of the Chairman, the landscape of real estate practice is evolving towards advancement and will greatly enhance the capabilities of practitioners comes ASEAN,” Appraiser Gus opined.
PARCS on the other hand, will continue in raising the standard of its members thru educations and organizational strengthening and contribute to the industry’s surging forward.
On Tuesday, Nov. 17, the Asia Pacific Economic Cooperation (APEC) kicked-off the Small and Medium Enterprise (SME) Summit 2015, with the theme, “Innovation and Big Ideas: Pushing Boundaries” that aims to challenge the traditional framework and mindset of micro and SMEs to further innovate their businesses.
SME is the engine of growth and innovation in APEC. It comprises over 97 percent of enterprises in the region; over half of the total workforce in APEC member economies; 20 to 50 percent share to GDP; and contributes up to 35 percent of direct exports.
The process of innovation of business requires new mindset and building of credibility of their businesses. The International Valuation Standards Council (IVSC) has recognized this demand and considers it critically important to build valuation expertise and capacity through the application of consistent standards and to continue to develop a globally respected valuation profession to apply these standards with the required vigor and coherence. Having uniform valuation standards in place ensures that the environment in which SMEs operate is fair and encourages healthy competition within and across borders.
The global application of clear valuation standards can benefit SMEs and companies of all sizes in a number of ways. Practitioners, alongside their clients, liaise with a variety of third-party organizations, such as banks, grant funders, and other external parties involved in various transactions. In order to meet their expectations and develop meaningful relationships based on mutual trust, the companies need to demonstrate a high level of credibility. The consistent application of fair value measurement implemented by well-qualified valuation practitioners is an important means for achieving this goal.
All parties involved in the business process should be involve in the education on the importance of valuations standards, which, once applied, help companies to operate in a more accountable and transparent way. As such, valuation standards ultimately can improve companies’ reputation and positioning in the marketplace.
PAREB-Cebu South Real Estate Board (PAREB-CESOREB ) successfully held its first Comprehensive Development Program last October 17-18 at Elegant Circle Inn, Cebu City. More than 60 real estate brokers and salespersons participated in the seminar.
Gus Agosto, the President of PAREB-CESOREB, in his speech welcoming the participants highlighted the objective of PAREB-Cesoreb in conducting cpd seminars, “ Pareb- Cesoreb aims to help in raising the bar of real estate professional practice in Cebu.” “Thru seminars, we can produce more and more real estate practitioners who are capable in providing professionalized services to their clients and to the public in general.”
“We learned a lot in the seminar”, one of the participant said. “We are looking for the next set of seminars “, another participant shared.
The two-day seminar were the first set in the series of seminars they will be conducting. The topic of seminars included basic property management, leasing, BIR transactions, business planning, real estate service law and professional ethics.
Every appraisal assignment gives me an opportunity to visit beautiful places of the neighborhood and nearby tourist spots. This is Panglao island, recognized as one of the premier tourist spot in Central Visayas.
Appraiser Gus took his oath last Friday, September 11, 2015 as one of the Commissioners of a Regional Trial Court in Cebu City. As one of the Commissioner, his duty is to aid the court in determining the exact property affected area and the amount of just compensation to be paid.
“Congratulations to all of you”, the lady judge happily greeted them after the oathtaking ceremony in her office. The other oath-takers were the City Assessor of Carcar, Cebu City and the Clerk of Court.
“I thank the lady-judge and the lawyers who trusted my capacity and chooses me as one of the Commissioner.” Appraiser Gus exclaimed. “With the present composition of Commissioners, the court could render wiser judgment aided by the report of each and everyone of us as Commissioners.”
Appraiser Gus was also chosen as Commissioner by the regional trial court of Lapulapu to determine the fair market value of a property in a dispute. Previously, he also served as an Associate Appraiser in Zonal Revaluation of the BIR Technical Committee in Cebu City.
Real Appraisal 