Despite a slowdown in residential construction, real estate sector posted growth in regions, according to Philippine Statistics Authority (PSA).
“The recent statistics released by PSA is a welcome development for regions” Gus Agosto Faculty of School of Business and Economics, University of San Carlos said in a briefing in Cebu City.
PSA recently reported a 4.3% contraction in residential construction and 46.6 % decline in residential construction in the fourth quarter of 2017. However, as embedded in the same report, other regions outrank National Capital Region, in terms of number of construction.
Calabarzon led other regions with a total construction of 7,292. Central Luzon ranked second with 3,611 constructions. Other regions in the top five were Central Visayas and Davao Region.
A lot of developers and investors are now pouring investments in regions.
“We’re seeing a lot of new growth areas that will unlock new opportunities in different regions across the country,” Agosto said.
The decline in residential construction is normal sans the quarter to quarter report of the previous years. In the second quarter, residential construction posted a negative growth compare to last year, but it bounces back in the third quarter. Nevertheless, real estate is one of the driver in economic growth in the last quarter according to the National Economic Development Authority.
“The decline and adjustments in terms of residential real estate is a signal to players to conduct market analysis. Real Estate practitioners must also venture other regions and be trained in marketing non-residential development such as commercial, industrial, agricultural and institutional. ” #
Gus Agosto is the Vice-President for Visayas of the Philippine Association of Real Estate Board (PAREB). He is a faculty of University of San Carlos, Cebu City and took up Master of Arts in Economics (Candidate) in the same university.
Cebu City – AA RealtyPro Solutions is now formally in the heart of Cebu City with the blessing of its new office at Ramos Street in Cebu City last 08 March 2018.
Fr. Joseph Suson, SVD led the blessing of the said office which was graced by the presence of Dr. Tess Khanser, Full Professor and book doctor from the University of San Carlos; Emily Cabillada, Past President of Philippine Association of Real Estate Board; and Atty. Nelson Chua, President of PAREB Cebu South Real Estate Board.
AA RealtyPro Solutions, is the real estate solutions arm of AA brand. It is led by Gus Agosto, a notable real estate appraiser practitioner together with his associates Raylan Librando and Avelino Bunac.
Since its founding in 2012, it has appraised different property types such as residential, commercial, industrial, institutional and machinery and equipments. They have served mostly in Cebu and the Visayas-Mindanao area, but also served Metro Manila and Luzon clients.
Some of its prominent clients are the following: Centurion, Vivant Corporation, General Milling Corporations, Cordova Gabi Beach Resort, University of the Philippines, Southwestern University, Miraizo Group of Hongkong, Fineworth Story Law Firm, Grotewohl Law, GSE Law Firm and CBASE Law.
AA specializes in litigation support appraisal, commercial appraisal and property research. Their expertise has been proven and tested in different court litigation. They had been tap by different regional trial courts in the country to serve as commissioner that will help the court in determining the value of a property under litigation. They also extended representation in court abroad and served as expert witness in California, USA and provided litigation support in Federal Court of Australia.
Prof. Gus Agosto, along with Atty. Darlon Sereno, faculty members of the University of San Carlos appeared on radio station, Dyrf 1215khz, to discuss financial forecasting on March 9, 2018. Gus was invited to talk about financial forecasting. During his interview Gus spoke about a wide range of issues such as forecasting, investments and real estate.
You can listen here.
AGOSTO, one of the trusted property appraisal and research brand made it to the Top 100 Most Subscribed Real Estate Appraiser Youtube Channels List by ViralVagon.
The ViralVagon list featured the top 100 real estate appraisers based on subscriber and viewers. Viralvagon is a social media influencer platform that bridges influencers and advertisers worldwide.
“I am elated having made it to the top list of real estate appraisers worldwide”, Appraiser Agosto exclaimed. He created videos on appraisal since 2014 and uploaded it in youtube.
Agosto added “ I believed that the real property worth of individuals should be properly valued, particularly in the times of upsurges in real estate. Proper valuation will help in valuing the true wealth of a nation. I am humbled by the response of the audience on my youtube posts.”
As more clients move to digital communications, Appraiser Agosto continues to innovate and create strong credible content and will tap social media influencers to measure achievements.
“We hope to build on this remarkable achievement and make 2018 an even greater and better year for us.”
A credible and convincing determination of value is essential in properties under litigation or disputes. Lawyers acquire the services of appraisers to perform duties as appraiser. Courts also appoint commissioners that will help in determining the just compensation of the properties in disputes.
“Most cases we underwent were for expropriation and eminent domain. While in the international level, we have assignments for marriage property dissolution and matrimonial property proceedings.” Appraiser Gus shared to Real Appraisal.
Appraisal for the court is performed when the property disputes are heard since usually the question on amount of controversy arises. The questions on specific amount of controversy always arise in a court session and only independent appraisal for the court will be able to become the critical factor which leads to a decision. In such cases the court needs a competent expert appraiser.
“We have the Finemore Walters & Story Solicitors, Grotewohl Law Firm in California, USA and Brisbane, Australia. In the local level we have GSE Law firm, CBASE Law among the list of big legal firms as clientele.”
AA Appraisal core services lies in an extremely well researched, documented and written appraisal reports. It ensures the quality of reports being generated because it is the fundamental building block in a successful litigation assignment.
Appraiser Agosto has been appointed recently by the regional courts of Talisay and Cebu City as an Appraisal Commissioner that will help in determining the market value of properties subject for just compensation.
“We were elated knowing that more and more lawyers and courts acquired our services.”
A leading power company acquired the services of AA Property Solutions to conduct due diligence and valuation of National Power Corporation (NAPOCOR) properties in Luzon.
The properties include a 25-hectares industrial lot which houses the biggest power plant in Northern Luzon. “The assignment is quite challenging, both the scope of work and the timetable.” Agosto explains.
The appraisal is in line with the state-run Power Sector Assets and Liabilities Management Corp. (PSALM) thrust on disposing its non-power assets as part of its real estate asset privatization program.
AA Property Solutions is not new in this kind of assignment. Having appraised properties of the shipyard and warehouses owned by SMC Lighterage Corporation in Iloilo, multipole properties and equipment of Pilipinas Water Resources Inc. in Cebu and a mountain resort in Toledo City, and their knowledge in intensive research and property search made the assignment a big success.
AA Property Solutions is a company founded by Appraiser Gus Agosto, serving as its Owner and Principal Appraiser. AA Appraisal has been chosen and trusted by more and more corporation, lawyers and government agencies. It continues in raising the standard of appraisal practice through intensive research and market analysis.
“Our appraisal is more intensive and detailed in analyzing the relation of the market, urban economics and environment to the market value of a property”, he said.
The appraisal firm now strengthened its valuation services along the lines of market studies, highest and best use, socio-economic studies, due diligence, title and property search.
The firm has also lend its expertise before courts, universities and government institutions, both here in the Philippines and abroad.
During the site inspection
Paperless office is one of the major tasks for every practicing real estate professional. Technology streamlines transactions and assignments to free more time for building relationships with the clients and in providing quality report.
Appraisers have lot of documents, photos, maps and sketch plans. Storing them in the cloud has made it easier to share and organize. You can share your data easily with clients and can even jointly collaborate on documents with others online.
“If you can perform the major tasks anywhere and away from office, you’re untethered,” Gus Agosto, the Owner-Appraiser of AA Realty Solutions, have said.
With your documents on the cloud, you avoid bogging down devices with every photo you’ve ever taken of your assignment. The other benefit is you won’t lose any of files if your computer crashes.
What’s important for appraisers, besides a comfortable camera, drone and high-tech computers, is always being able to access your programs and data WHEREVER YOU ARE: at home, office, branch office, breakfast, lunch, travelling, on client appointments, and at the title company.
Learning to make the most of new technology can be challenging, but staying on top of tech trends for business has become an important factor in every success.
“Real estate appraisal is overdue for cloud storage. Practitioners should appreciate the benefit of cloud computing. This is the future of real estate appraisal.”
Real estate transactions involve a significant amount of money and rights of individual. The due diligence process minimizes the risks and provides safeguards against determinable issues that may affect the real estate transaction.
Making the right decisions in real estate transactions can be a challenge without complete and accurate information. A traditional legal principle is “caveat emptor” or “buyer beware.” This is from the traditional rulings that courts would make that the buyer was stuck with whatever he or she purchased and would have limited recourse. Due to this likely result, buyers had to be extra cautious when making buying decisions.
Due diligence provides for a thorough investigation into a transaction. It helps the buyer learn more about the property, the documents, environment and operational fundamentals of the deal. This process helps avoid surprises after the transaction when remedies may be limited.
The actual scope of the due diligence process depends on the buyer’s needs and the transaction itself. If the buyer is a developer, he or she may have very different needs than when the buyer is purchasing the property for lease or investment. There are individuals who have a pending court case and interested in knowing the property to determine the site and use as evidence in court.
The due diligence process begins by determining the expected use of the property and use this information as a framework. Due diligence seeks to address a number of issues and identify important information for buyers. This information includes determining the property’s owners, boundary lines, the rights that come with the sale, the expected future use of the property and highest and best use as development options. The process should identify any issues related to the property title, easements, encumbrances, liens or other hurdles to complete ownership. Additionally, the due diligence process can reveal if there are any restrictions that might affect the use of the property or its development, such as environmental issues, zoning restrictions or legal compliance matters such as abiding by Agrarian Reform Law, NIPAS Act, Agriculture and fisheries Act, road right of way act, government programs and more.
The due diligence process can also reveal information as it is uncovered. For example, the technical description plotting cannot be close may pop up after the document analysis is conducted. Additionally, it is important to determine the real estate market and demographic data to predict the future demands in the area. Site inspection will determine the actual topography, terrain, shape, boundaries, neighbourhood and existence of any occupants or informal settlers in the property.
Last but not the least, is the environmental assessment, to uncover any daunting environmental hazards or issues of the property such as gas leak, wet lands, or use of the property as manufacturing in the past.
The due diligence process is very important. Adequate time must be reserved for this process to be conducted thoroughly and carefully. Party in a transaction should be encouraged to provide specified documents and information to ease the transaction. Be aware of all interests, liabilities, expenses and possible uses for the property.
This information will allow parties in transactions to make an informed decision.