The Real Property Valuation Bill (HB 4664), which has been passed recently in the House of Representatives and will soon be deliberated in the Senate, is an important concern in the appraisal profession. There are two vital questions of the bill that need to be emphasised and clarified before arriving in a conclusion. These include question on how it will help the appraisal profession and how it will help the real estate industry.
First, how it will help the profession?
One of the major component of the bill is the establishment of a comprehensive database on land values. It will centralize actual sold property data from the Register of Deeds, Assessor, Geodetic Engineers, and Local Government Units and will be shared to private entities through subscription.This will help in fostering transparency in land transactions and will also give more credibility on appraiser’s comparable data that is vital in arriving at an opinion of value.
Investors will be more confident in the land market and real estate industry. They will be assured that what they have invested in, is the amount or value of the property in the market, through the use of appraisal methodology which is in line with the international standards adopted by the appraisers, both government and private.
Other Salient Features :
- It will establish a single and uniform standard of valuation which is based on international standards. The valuation standard that will be followed is the internationally accepted valuation standard and which requires higher degree of professionalisation in the industry.
- It will ensure that the appointment of assessor and assistant assessor should be a registered and licensed appraiser and from the local area.
- Creation of Central and Regional Consultative Committee that will ensure the representation from private national organization of appraisers, and regional organization of appraisers.
- Regular Updating of Schedule of Market Values. The bill also directs the local assessors to come up with a regular updated Schedule of Market Values, within 2 years from the effectivity of the act, and also once every three (3) years from the date of the last revision. However, instead of the local council, the Secretary of Finance will approve the draft.
Second, how it will help the real estate industry?
The revenue generated from the valuation reform act will help fund government projects such as the ‘Build, build, build” of the Duterte Administration which in turn facilitates the faster movement of goods and people in different part of the country. The provision of infrastructures in regions will unlock new markets in various part of the country, and help stimulates the real estate market. Also, the additional revenue generated by the local government units will help in funding local economic enterprises and services to the people.
In conclusion, appraisers and the people have more reasons to support the valuation reform act. It will not only raise the standard of the profession and the industry and will elevate the profession to international level, but in the broader aspect, will stimulate the real estate market and spur economic growth.