Home Valuation Guide Philippines
Philippines endorsed the IVSC computation standard for valuation and estimation of real estate property under the framework of the Philippines orders. Real estate investors use it as a standard for valuing land based properties.
usually employed approaches under this framework are :
Sales Comparison approache : in this method theassessor examines information in connection with the recently sold houses in that vicinity to use that info as a benchmark. The valuator uses the data to find value patterns and trends in the market. The valuator also accumulates data about other buyer profiles,scope of time on the market, number of similar documented properties available during this time. These value are used by the agent to appraise a market estimate. It is one of the most widespread approaches to real estate market valuation. And it holds good for residential properties.Thisprocedure is usable to all categories of real property. However it is not consistent for commercial properties & it does not hold firm when market is weak and there is insufficient market transactions.
Cost apartment philippines Approach : In this practice a player of a real estate should not pay more for a property than the cost of substituting it with an identical property minus the applicable depreciation.Three methods are used practically in this method.They are:
Reproduction cost method : This method is fitting when the cost of a latest equivalent asset is more than the cost of forming a clone of the subject asset,
Replacement cost method: it involves evaluating the price that a market player would pay and the exchange cost is adjusted for physical diminish and all applicable forms of degradation.
Summation method : Mainly used for investment companies, the steps involves evaluating each of the elementary assets and summing the value to find the main asset value.
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