International Conference on Business and Economy

The International Conference on Business and Economy held on February  7-8, 2017 attended by different academic institutions from Indonesia, Malaysia and Philippines.


Presenting my paper in parallel session “Determinants of Land Values in Cebu City, Philippines”. The talk highlighted on the ranking and significant contribution of determinants in land values using factor analysis and multiple regression approach.


Awarding of certificate of appreciation to the presenter by Session Chair Dr. Marrieta Israel of Far Eastern University, Manila and Louie Trapa, the rapporteur. The presenter include Dr. Khanser, Dr. Grace Lape, Engr. Carol Borres and Enp Agosto from University of San Carlos, Cebu City.

Tips in Litigation Appraisal

downloadI attended a court hearing recently, and when the presiding judge read the facts of the case and the lawyer’s motion to nominate an Appraisal Commissioner, his (Judge) immediate response is “What is the qualification of Mr. Appraiser ?”

An appraiser play an integral role in every part of today’s civil litigation. Litigation appraisal involves taxation, estate planning, expropriation, litigation support, property settlement and others. That is why when selecting a real estate appraiser, a lawyer always perform comprehensive conflict-of-interest checks  on background and qualification before hiring or accepting appraisers.

This conflict of interest check is vital in cases where a lawyer is dealing with large business that offers myriad services and types of clients. While in checking the qualification of an appraiser, a lawyer does it in a profound way through the following attributes such us technical acumen, experience in appraisal, educator and communicator and readiness to appear and have demeanor in court.

Experience in Appraisal – An appraiser should have broad experience in appraisal of different types of properties such us office, retail, warehouse, industrial, apartments, hotels, memorial. Have knowledge in different type of appraisal like fee simple, leasehold or lease fee interest, insurable, retrospective, raw land development method and prospective appraisal.

Technical acumen – associated with professional experience, organizational experience for broader real estate and economic counselling skills capability to solve complex problems requires a greater depth of skills sets. Technical skills are key to an accurate and comprehensive expert report, thoughtful review and critique of the opposing expert report, depositions, and testimony.

Educator and communicator – an appraiser should be ready to explain and discuss  the report in the commissioners meeting or in an open court. A lawyer should pursue in selecting an appraiser’s prior publications and writings. The reasons for examining the expert’s writing are two-fold. First, this type of examination can help a lawyer to further determine the appraiser’s qualifications. Second, how an appraiser presented their arguments and the manner of reasoning and  arrived at their opinion. Is their analysis persuasive? Does the report and opinion make a sense to a lay person?  Have they presented their report in an easy to read and logical manner?

Appearance and demeanor – Lawyer have confidence that the expert will come across as professional and knowledgeable.  At trial or deposition, the appraiser knows the importance of establishing and maintaining credibility, presenting an appropriate appearance and demeanor, remaining composed, considering posed questions carefully, providing a simple and direct answer, giving opinions based on facts, following the standards of generally accepted appraisal practice, being impartial and not advocating for the client, and always telling the truth.

The above characteristics are interrelated. The expert’s qualifications should  matched to the demands of the case as it relates to areas such as property type, experience, or technical requirements. The expert’s ability to articulate his or her position will allow him to better convey his or her skills and qualifications to fellow commissioners, judge, lawyers and other officers of the court. Any aspiring appraiser to be part of this challenging job should muster the above attributes and be of help in our justice system.

See you in court.

USJ-R Graduate Program featured Gus Agosto as speaker at Management Seminar

university_of_san_jose_-_recoletos_emblemUniversity of San Jose Recoletos  Graduate School of Business Management and Administration held its Management Seminar on December 9, 2016, at USJ-R Audio Visual Room, featuring guest speaker Gus Agosto, Real Estate Appraiser and Broker.

Sir Gus is a holder of degree in economics, and a candidate of masters in economics. His professional background includes managing AA RealtyPro Solutions, a real estate appraisal and consulting company he owns.  He was the former Managing Partner of Intech Property Appraisal, Inc., a Manila-based real estate valuation company. He is one of the practicing appraiser that was appointed several times, as Appraisal Commissioner, by different regional trial courts in Cebu.

Agosto’s speech was titled “The Determinants of Land Values.” He discusses the different factors that affect and influence the value of real estate properties. The seminar was designed to provide students learning and updates on latest development in the society.

In October 6, 2016, Appraiser Agosto was also the guest speaker at PAREB National Convention in Laoag, Ilocos Norte. He discusses “Top Concerns in Real Estate Appraisal”. Prior to that, he was also invited as Speaker in a seminar organized by the University of San Carlos Center for Lifelong Learning held at Cebu City Sports Club, last August 29, 2016.

He was elected as National Director of Philippine Association of Real Estate Board and has also served as the Founding President of Cebu South Real Estate Board,a local board of PAREB. Currently, he is a faculty in the University of San Carlos, Cebu City teaching real estate appraisal, real estate economics and finance, real estate consulting, ecology, planning and finance.

“Being an expert in his field, we find him fitting to be the best resource speaker to educate the students on Real Estate business.”, the Seminar Organizers told the participants and guests in introducing the speaker.


In the news

14502712_1258532074188302_6392999861770455162_nAppraiser Planner Gus Agosto was invited as a guest speaker in the recently held Philippine Association of Real Estate Board 56th National Convention and Election.  The convention was held in Laoag City, Ilocos Norte last October 6-8, 2016. He discusses the top concerns in real estate appraisal and appraisers  and how to navigate them.

Gus Agosto has been appointed Appraisal Commissioner by different regional trial courts in Cebu and former Managing Partner of Intech Property Appraisal, Inc. He is also a lecturer in University of San Carlos, Cebu City and the founding president of Cebu South Real Estate Board, an affiliate of PAREB.

“They appreciated much the discussion”,  the guest speaker said after the session.  Appraiser Gus  discussed top issues in real estate appraisal such as property identification, encroachment,  value adjustments,  highest and best use, legal documents and marketability.

The discussion was both enriching and interactive,  designed to help real estate practitioners in handling clients requirement for bank loans, buying and selling properties and properties subject to court litigations.

“There are many questions arises in the discussion. It shows of their enthusiasm to the topic. Appraisers should dare to show their crop in appraisal to appreciate and differentiate the profession.”  Appraiser Gus concluded.




Subdivision Development Method

12Land valuation is the most common appraisal assignment. An appraiser uses different method of valuation taking in consideration the purpose of the appraisal. But land differs in sizes, shapes and probable uses that an appraiser should look up to. Land which is large enough has different characteristics that warrants equal if not special attention. Besides, large tract of land requires more data and sets of comparable in using sales comparison method to arrive in a reliable and defensible market value.

An appraisal technique seldom used by appraisers in determining value of large tracts of land is the subdivision or development approach. This technique determines market value by subtracting the costs of developing a potential subdivision from its anticipated proceeds, and discounts the remainder to arrive at present value as of the date of the appraisal.

In using this technique, an appraiser should prepare a subdivision lay-out to determine the number, size and shape of lots. Through research estimate prices of lot; rental rate per square meters if improved with buildings; the development cost and developers profit and the income stream discounted to the present and arrive in its market value.

Often, land value estimates emanating from the subdivision or development approach are significantly lower than those correspondingly derived from the sales comparison approach with a lower lot sizes and different uses. In theory, if both the development method and sales comparison approach were applied correctly, the value estimates should be similar. Nonetheless, the process of reconciliation of different approaches, the appraiser should give weight to the method which is more reliable and justifiable than the other.

In the whole process of the development method of appraisal, the experience, skill and judgment of the appraiser will play with paramount of importance. There are number of methods and techniques available for the appraisers to explore and gain expertise in the practice of profession. Through our innovative effort as an appraiser, we can make an important contribution in popularizing and practicing the subdivision or development approach, in the service of our clientele and to the society.

Site Valuation

appraisallargeOne day, I was asked to observe in a meeting of real estate practitioners. They were finalizing the asking price of a property that has just listed. One of them opined that they can base it to the Bureau of Internal Revenue (BIR) Zonal Value, while the other one, succumbed to the pricing that is based on the prevailing prices of properties in the area. I almost bolted from my seat to immediately correct the practitioners.

I have appraised hundreds of properties already, and comparing prices of properties in the area is erroneous. It won’t give justice to the property of the client. Site valuation is not just as simple as comparing with other sold or offered for sale properties in the area.  For one, no two vacant lots are the same typically; no two houses are the same. Every property is unique.  There are differences in size, location, width and depth of lot, and leveling or topography of the land.  The most important to consider is the lot size. Smaller lots tend to sell for a higher price per square meter than larger lots.  However, if the end use is commercial, bigger lots command a much higher price. Once the sales price per square meter is determined for each comparable or “comps”, the reconciliation process begins. Then there are other factors that should be consider such as easement, road right of way,  encroachment, presence of informal settlers or other occupants, the neighborhood, and also, the facilities and amenities in the vicinity.

In the larger scale, one has to consider also the real estate market, from the city or municipality up to the provincial level.  All of these should be taken into account.

Meanwhile, the method of obtaining a market value from the Assessor’s Office is not reliable. We all knew that a lot owner usually declared their property at low level to minimize taxation. The zonal value also cannot be use nor relied on.  Zonal values were based on streets or zones and not on individual property. Just remember that these two were all for taxation purpose only.

In conclusion, real estate practitioners should not shillyshally in topping the services of an appraiser. An experienced appraiser can guide practitioners in arriving at a reliable price of their listings. They have the knowledge and skills in discerning the value of a property. Your client deserve the best service from you.

2 USC grads top Real Estate Appraiser Board Exam

usc logoTwo university grads, Maria Khristine Abecia Lluisma and Ely Galland Ancajas Jumao-as, of the University of San Carlos placed 4th and 7th, respectively, in the April 2016 Real Estate Appraiser Licensure Examination. Lluisma garnered an 86.50 percentage rating while Jumao-as got an 85.00 percentage rating.

It is a big boost to the Bachelor of Science in Real Estate Management (BSREM) Program which is now being offered by the University and recently produced 10 graduates. The University has a 54.67% over-all passing performance vis-a-vis the 33.5% national passing rate.

“I would like to congratulate the 2 USC grad topnochers for performing exceptionally well in the last Real Estate Appraiser board exam, and welcome to the profession, ” said Appraiser Agosto,  an Appraisal Commissioner and also a BSREM faculty member of the university.

The Professional Regulation Commission (PRC) announces that 1,271 out of 3,794 passed the Real Estate Appraiser Licensure Examination given by the Board of Real Estate Service in Manila, Baguio, Cagayan De Oro, Cebu, Davao, Iloilo, Legazpi, Lucena, Pagadian, Tacloban, Tuguegarao and Zamboanga last April 2016.

“The profession need highly competent and reliable valuer that will measure the true wealth of nation and uphold international valuation standards in the era of globalization”, Agosto ended.


List of successful examinees are as follows: