3-6 Real Estate Appraisal - Site Location and Map Reading
Study online at [Link]
Graduate of relevant bachelor's degree As per RESA, the following is qualified to be a real estate appraiser
It refers an estimate of value as of a particular point in time
Appraisal
expressed in peso amount
The following appraisal report is no longer allowed under the Real
Oral report
Estate Service Act of the Phtlippines
It is not a purpose of appraisal
(a. Purchase
Capital gains tax
b. Insurance
c. Property Disputes
d. Capital gains tax)
A purpose of appraisal where it is used to determine the fair market
Partitioning of Estate
values of properties for distribution to heirs
Demand A principle of appraisal is that supply is influenced by
The following are required to post a bond before engaging in
Private real estate appraiser
practice
Another term used to refer to a private real estate appraiser and
Valuer
is used in the RESA is
The value of replaceable property tends to be indicated by the
Substitution value of an equally desirable substitute property is called the
principle of
When one talks about the use which at the time of appraisal is
Highest and Best use
most likely to produce the greatest net return, it refers to
The application of larger and larger amounts of the agents in
Increasing and decreasing returns production will produce greater and greater net income (increasing
returns) up to a point (surplus productivity) is
A principle that is comprised of reasonable degree of social and
Conformity
economic homogeneity
The principle that value is the worth of all present and future
Principle of anticipation
benefits arising from ownership and use of real property
In an area in the city, a building valued at P 30,000,000 was
Progression built right beside an old dilapidated establishment which tends to
increase the value of such establishment and is a principle called
This is considered a factor that influence or create value to real
Social ideals and standards
estate
When a real property's value depreciates in view of the decline in
Functional obsolescence
the utility of a feature of the property may be referred to as
A beautiful two-storey house was located in the city, but thereafter
Regression a shanty was put up beside the property and its value will be
negatively affected and which is the principle of
It is considered an approach to value in real estate appraisal under
Income approach
the *principle of anticipation*
In making a survey of similar properties in the area, the appraiser
Substitution uses the *market data approach* which is based on the principle
of
It is an approach which utilizes the concept of determining *re-
Cost approach
placement cost* and adjusting for depreciation of a house and lot
It generally requires an estimate of the actual or stabilized gross
income less provisions for vacancy and bad debts, operating
Income approach
expenses such as building insurance, real estate taxes, repairs
and maintenance, and administrative charges
If a building is depreciated at 2% per year, what will be the life of
the building using the *simple depreciation method*
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3-6 Real Estate Appraisal - Site Location and Map Reading
Study online at [Link]
50 years
(1 yr. / 2% = 1/0.02 = 50 yrs.)
Annual gross income The *gross income multiplier* may also be used to determine the
- value of the property and may be computed by dividing the *selling
(GIM = SP / AGI) price* of a comparable property by the
Market data approach (a.k.a. sales comparison approach)
(Three basic approaches to valuation:
It is considered an approach to value in real estate appraisal
Market data approach,
Income approach,
Cost approach)
A 7 door apartment was sold for P 6,600,000 in the area which
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had an
-
annual gross income of P 600,000, what is the *gross income
(GIM = SP / AGI = 6,600,000 / 600,000)
multiplier*
P 8,400,000
A property has an annual gross income of P 1,400,000. In his
-
market study, an investor found that a comparable property with
(Selling Price / Annual Gross Income
an annual gross income of P 1 Million was recently sold for P 6
x / 1.4 M = 6 M / 1 M [ratio]
Million. Using GIM, what is the estimated value of the property?
x = 6 * 1.4 / 1)
P 9,600 Lot A was being sold by the owner and had the lot appraised by
the appraiser who got the following information: corner influence
(10 - 5 + 15 = 20% -10, topography -5, shape +15 of Lot B which was recently sold
8,000 x 20% = 1,600 at P 8,000 per sq. meter. What is the estimated value per square
8,000 + 1,600) meter of Lot A
Under the RESA, a private real estate appraiser must pay the
P 20,000
following bond to engage in practice
In order for an assistant city assessor to be promoted to the higher
Be a licensed real estate appraiser
position of chief assessor, it is required that he/she
The real estate appraiser refers to the private real estate appraiser
Public real estate appraiser
and
It is considered an imaginary line used by the geodetic engineer
Tie line
in plotting and locating a specific property
A map which provides the general location of a real property
Vicinity map including the surrounding landmarks and reference points is re-
ferred to as
The person who is a licensed professional who undertakes resur-
Geodetic engineer
vey, survey and determination of boundaries of a lot is called
To determine the slope and dimensions of the lot being purchased,
Lot plan
the buyer must be able to obtain a copy of this plan
It is the counting the number of steps in a required distance to
Pacing
determine the distance
It is the angle less than 90° measured from N or S (meridian) and
Bearing
referred to in plotting a lot as
60 minutes
In plotting the technical description or lot, one degree is consid-
(1 deg = 60 min. ered equivalent to
60 min = 60 sec.)
A map that identifies flood-prone and landslide-prone areas in the
country and shows which areas have high chances of soil erosion
Geohazard map
and which areas are low-lying and flood-prone areas is referred to
as a
Topographic map
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3-6 Real Estate Appraisal - Site Location and Map Reading
Study online at [Link]
The map showing all the details that make up the surface features
of
the earth is generally called a
In a topographic map, these are lines that indicate variation in land
Contour lines
elevation referred to as
It is a plan showing the general features and layout of a subdivision
Subdivision plan
including block and lots and opens spaces
A common point of reference is seen in the technical description
Bureau of Lands Barrio Monument
as BLBM which means
Surveys whose principal purpose is the determination of data
Hydrographic survey
relating to bodies of water are referred to as
These involve the classification of the country's unclassified public
Land classification survey
forests into alienable or disposable lands
The shape and details of a lot may be more accurately plotted
Transfer certificate of title
using the description found in the
Private survey In a title, the letters "Psu" appears which would mean
In case several lots were acquired to be developed into a subdi-
vision,
Pcn
the survey would be a private consolidation subdivision survey
indicated by the letters
Psd A private subdivision survey is indicated using the letters
A lot buyer wanted to have the 6 parcels of land he just bought all
Private consolidation survey adjacent to each other into one title. He will have this survey
undertaken
In order for Mr. Eneer to plot the shape and details of the lot he just
Bearings and distance from lot points bought from the transfer certificate of title, he must have at least
the following data
It is the relationship between a thing desired and a potential
Value
purchaser
An observation in the principles of appraisal is that the desire for
Purchasing power
property to be effective must be backed by
It is not a value factor in the appraisal of a parcel of land
(a. Sun orientation
Sun orientation
b. Frontage
c. Depth
d. Shape)
It reflects the loss in value brought about by the *wear and tear*
Deterioration
and the action of natural elements
The subdivision plan of a parcel of land which has been subdivided
Bureau of Lands into several lots will have to be approved by this government
agency
A city assessor, under the RESA, after raking the licensure exam-
Licensed real estate appraiser
ination and passing the same will be given a license as
Generally referred to as a surveyor, a function of which is to
Geodetic engineer undertake land surveys to determine their metes and bounds and
prepare the plans thereof for titling and for other purposes
In order to mark the lot plan boundaries on the parcel of land, the
Cylindrical concrete monument
following is used as the marker
Sales comparison approach Market data approach in appraisal is also called
The cost to create a virtual replica of an existing building using the
Reproduction cost
same design and similar building materials is referred to as
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