Appraised Value

Appraised value is the estimated fair market value of a property determined by a licensed real estate appraiser based on professional analysis of market data, property characteristics, and economic factors. The appraised value is an independent, objective opinion of value that serves as a reference point for property transactions, financing, taxation, and investment decisions.

Licensed appraisers use three approaches: Sales Comparison Approach (comparing with recent sales of similar properties in the areau2014the most common for residential properties), Cost Approach (calculating replacement cost minus depreciationu2014used for unique properties), and Income Approach (capitalizing income potentialu2014used for rental and commercial properties). The appraiser considers location, property condition, size, age, amenities, market trends, and comparable sales data. A written appraisal report documents the methodology and conclusion.

Appraised Value: Professional estimate by a licensed appraiser. Market Value: The price a willing buyer and seller would agree on in an open market (theoretical). Zonal Value: The BIR's published value for tax purposes (usually the lowest of the three). Selling Price: The actual transaction price. These values often differu2014the appraised value is typically closest to market value but may not match the selling price. Banks use the lowest of appraised value or selling price to determine loan amounts.

Real estate appraisal is regulated by RA 9646 (RESA Law) and the PRC. Only licensed real estate appraisers can issue appraisal reports for official purposes. Banks maintain panels of accredited appraisers. The BSP requires banks to use independent appraisals for loan collateral valuation. Appraisal fees range from PHP 3,000-15,000 for residential properties. Under the Financial Rehabilitation and Insolvency Act, appraisals are required for asset valuation in insolvency proceedings.

Market Value, Zonal Value, Loan-to-Value Ratio, Real Estate Appraiser, Bank Housing Loan