Appraisal services with a government institution

Appraiser Gus Agosto has just rendered appraisal services to the University of the Philippines, Cebu Campus. “It is an honor to be awarded a contract and appraised properties of a prestigious institution like U.P.”, Appraiser Gus Agosto shared.

“Government institutions and agencies are good market for real estate appraisers. Appraisers can explore and participate in government bidding and contracts.” he further said.  Last year, he was also part of an appraisal team that provided appraisal services to the Cebu Appraisal Technical Committee on Zonal Valuation of the Bureau of Internal Revenue (BIR).

To succeed, Appraisers should have working knowledge of the Republic Act 9184 or the Government Procurement Act. Every branch or agency of the government through the head of a procurement entity forms a bids and awards committee (BAC) to conduct competitive and transparent purchases by means of public bidding. There are also alternative ways government can make purchases like limited source bidding, direct contracting, negotiated procurement and shopping,

“In winning a government contract, offering the lowest price is not the key. It is knowledge, appraisal experience and excellence in appraisal that matters,” Appraiser Gus ended.

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Retrospective Value Appraisal

Most appraisals are for current market value. So the very day an appraiser comes out and inspects a property, the value will be “as of today”. But there are appraisal that determines the value of a property from the past. It is called Retrospective value appraisal.

What is a Retrospective value appraisal? It is a historical determination of the market value. With a retrospective appraisal, the effective date of valuation is what the property was worth on a particular date in the past-maybe last month, last year or last 10 years ago.

What is the purpose of a historical appraisal? Many and varied reasons. Accountants and financial planners need to determine the value of property held in estate when the owner dies. This is known as a “Date of Death” appraisal. The BIR want a professional appraisal in the file to document the value as of that date. Lawyers use the historical appraisal to determine what assets belong to which party.

Historical appraisal is also needed in court litigations involving expropriation of private lands for public use, and ejectment cases. The court will appoint appraisal commissioner to determine the market value of the property on the date of taking. If the property was taken from the owner last year or five years ago, the date of the valuation will be the same.

I recently appraised a property using retrospective appraisal. The property was expropriated for a government project. To determine the market value as basis for just compensation, my client hired my services. In this case, I valued the property based on the comparables, market data and analysis at the time the expropriation took place.

If the appraisal is for court litigation, we may be called on the witness stand to testify to our report and defend it against the opposing lawyers and his witness. There are additional fees for this type of testimony. But be sure your report is defensible and ready to thwart any questions of the opposing counsel.

In this more complicated retrospective or historical appraisal, it is important to hire an appraiser with experience and familiar in the market area. An appraiser with sufficient experience has insight in this area before, during and after changes that have occurred over.

As a professional appraiser it is my responsibility to be the best and be credible as possible for my client. If you have questions on real estate appraisal, feel free to contact me.

Insurable Value Appraisal

Appraisal is an exciting profession. We can help a lot of people through appraisal services. One of our service is insurance appraisal. The importance of valuation for insurance purposes cannot be understated. Inflated insurable property values can cause a business to pay excessive insurance premiums, while having inadequate insurance can be disastrous if a loss occurs.

Insurance appraisals start with a site inspection followed by a property analysis to determine the calculation of supportable estimates for replacement costs. The scope of work is to appraise the improvements “as-is” without the underlying land value and the subsurface structure (foundation), while depreciation should never be deducted.

In insurance appraisal the appraiser provide an estimate of the new cost of a substitute building, often called Replacement Cost New (RCN). In developing an estimate of the Replacement Cost New (RCN) for insurance placement purposes. the Cost Approach is best suited , as insurance premiums are normally based on Replacement Cost and not market value. The market and income approaches to value are therefore not applicable to the insurance appraisal assignment.

There are several additional considerations to complete an effective insurance appraisal.An appraiser should also be conversant with current laws on insurance, building code, zoning and other important laws necessary in rebuilding the property.

An insurance appraisal requires a unique set of skill, and has specific demands that go beyond a house or commercial property performed for a bank or assessment. Keeping up to date in construction methods, costs, building codes, insurance laws are critical to providing a reliable insurable value estimate. For this reason property owners are best served when they hire appraisers who are experience to do this type of work.

For comments and suggestions, you can message or contact us. Thank you.

New Cebu South Board Officers Take Oath of Office

In a ceremony that was both solemn and celebratory,the new officers of Cebu South Real Estate Board (CESOREB) took their oath of office vowing to hold inviolate the high ethics of the profession. The New Officers were sworn in by Reynaldo Lim, President of Philippine Association of Real Estate Brokers (PAREB).

The National Directorate of PAREB, officers of other Visayas Local Boards and fellow real estate brokers congratulated the new officers. “The event is a significant one, it signals the birth of new officers that are willing to serve their members and practitioners in general.” Gus Agosto, the New President of Cebu South Board, said.

In his remark, National President Rey Lim, shared the programs of PAREB and the new opportunities for the members. Local board presidents of Iloilo, Mactan, Bohol and Cebu took turns in sharing their board plans and programs.

The Oath-taking Ceremony was held on March 6,2015 at St. Mark Hotel, Cebu City.

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