Philippines affirmed the IVSC valuation benchmark for evaluation and estimation of real estate property under the framework of the Philippines rules. Real estate contractors use it as a standard for valuing land based properties.
routinely used approaches under this conditions are :
Sales Comparison method : in this method theevaluator seeks knowledge regarding the lately sold houses in that vicinity to use that information as a apartment philippines
benchmark. The appraiser uses the data to find value patterns and trends in the market. The appraiser also collects data about other buyer profiles,extent of time on the market, number of comparable listed properties accessible during this time. These data are used by the agent to appraise a market estimate. It is one of the most accepted approaches to real estate market valuation. And it holds good for residential properties.Thismethod is applicable to all sets of real property. However it is not consistent for commercial properties & it does not hold strong when market is feeble and there is inadequate market transactions.
Cost Approach : In this method a buyer 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 apt when the cost of a latest identical asset is more than the cost of building a clone of the subject asset,
Replacement cost method: it includes valuing the price that a market investor would pay and the replacement cost is fixed 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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