How private appraisals differ from bank appraisal?

IBPS-Participating-BanksA lot of people are asking us if we can undertake valuations that may then be used to banks for mortgage purposes. Some also uses the bank appraisal fee as an argument to demand for a much lower appraisal fee from the private appraisers.

On the first question, our response is that some lenders do not accept a valuation from a third party appraiser, they have their own in-house appraisers. But getting the services of a private appraiser is beneficial for the landowner; it can be use in negotiation with the bank for a higher loanable amount.

Why bank appraisal has lower fee than the private? It is pretty simple, the banks will profit not in the appraisal but rather in the home loan transaction.

How then private appraisals differ from those provided by banks? Banks are interested in quick turnaround, thus the valuer assigned has to conduct valuation based on bank standards. Bank also has policies that served as guidelines to their in-house appraisers that concur to the company policies on home loans.

There are few appraisal companies that are successful in getting appraisal jobs from banks. They are mostly accredited by the Central Bank. Fees are low and turnaround time from receiving instructions to having to send the appraisal report is short. Situation that newly passed appraisers cannot cope up.

However, if a client gets the services of a private appraiser, they can instruct the valuer directly for their own purposes.  Not to side with the client, but in providing unbiased report. The most important client can expect as a minimum is a quality and independent report.

Importance of macroeconomic analysis  in real estate practice

Having a view on the macroeconomic trends is critical when analyzing the real estate market. Real estate does not operate in a vacuum. Thus, it is essential for a real estate practitioner to grasp the role of the industry and knows the current events and how macroeconomic affect the real estate market, both in the aggregate supply and demand and the expectation of the buying public.

Real estate plays an important role in the economy. Residential real estate provides housing for families. It is the greatest source of wealth and savings for many families. Commercial real estate, which includes apartment buildings, create jobs and spaces for retail, offices and manufacturing. Real estate business and investment provide a source of revenue for millions.

Rerb

Real estate, renting, business and construction are both measured by, and contributes to Gross Domestic Product (GDP). As shown in the graph, its growth continues. In 2016, it contributed P1.8 trillion,  13 percent of the country’s gross domestic product. It exceeded its 2000 record of P3.5 trillion. At that time, real estate, renting and business was a hefty 9 percent component of GDP.

Private construction, which is mostly done by property developers and individuals, contributed P1.2 trillion in the gross domestic product. It is one of the contributor in  providing employment and help in lowering  unemployment rate.

Beside GDP, real estate market in the country is fueled by increasing foreign direct investment. Since 2007, the accumulated foreign direct investment totalled to P 2.1 Trillion. Meanwhile, the overseas Filipino workers remittances increases by 17% . From 22 Million in 2013 to $ 26.8 Million in 2016.

fdi

 

Understanding key real estate relationships has a strategic implication on real estate decision making and portfolio management. The changing real estate environment can be linked to the macro-economy. Knowing the relationship between macroeconomic variables and real estate performance , and knowing whether these links are consistent or changing overtime ca provide a useful tool in leveling up our service to our clients and to our daily real estate practice.

Paradise Panglao

Every appraisal assignment gives me an opportunity to visit beautiful places of the neighborhood and nearby tourist spots. This is Panglao island, recognized as one of the premier tourist spot in Central Visayas.

1 2 312002161_1066755813342660_8430807671607186355_n

Took oath anew as Court Commissioner

11150573_1061342033884038_5252473516736476044_nAppraiser Gus took his oath last Friday, September 11, 2015 as one of the Commissioners of a Regional Trial Court in Cebu City. As one of the Commissioner, his duty is to aid the court in determining the exact property affected area and the amount of just compensation to be paid.

“Congratulations to all of you”, the lady judge happily greeted them after the oathtaking ceremony in her office. The other oath-takers were the City Assessor of Carcar, Cebu City and the Clerk of Court.

“I thank the lady-judge and the lawyers who trusted my capacity and chooses me as one of the Commissioner.” Appraiser Gus exclaimed. “With the present composition of Commissioners, the court could render wiser judgment aided by the report of each and everyone of us as Commissioners.”

Appraiser Gus was also chosen as Commissioner by the regional trial court of Lapulapu to determine the fair market value of a property in a dispute. Previously, he also served as an Associate Appraiser in Zonal Revaluation of the BIR Technical Committee in Cebu City.

Metro Manila Appraisal

It was an honor and privilege to be invited by a prestigious and one of the top appraisers company in the land to join their team in appraising property in Metro Manila.

Truly it adds value to my appraisal skills and in running an appraisal company.

Great experience.

2112022328_1062426873775554_2469452123420426286_o 11221862_1062426540442254_1175843060924474763_o  12017663_1062427097108865_7014141333815468603_o 12017729_1062426737108901_1636065483479174809_o

USC held Forum on Entrepreneurship and Management

Appraiser Planner11913087_10205251112898331_1857892936_n Gus Agosto attended the Forum with visiting professors Dr. John Leung from City University of Hongkong and Dr. Brian To from Singapore Management University as speakers. Dr. Leung discussed the topic “Entrepreneurship is Service”, while Dr. Brian To share the topic “Managing Yourself”.

Both professors were distinguished and successful on their own field. Dr. Leung is currently the Director of Executive MBA program, and an Associate Professor of Marketing at City University of Hong Kong. While Dr. Brian To is a Senior Practice Professor of Strategy and Leadership and Senior Wharton Fellow of University of Pennsylvania.

“The more I learn, the more I realize that there are more things I need to learn and discover”, Appraiser Planner Gus said. Gus is also a faculty member of the University of San Carlos.

The forum, organized by the School of Business and Economics, was held last August 24, 2015 in University of San Carlos Downtown Campus.  “The pace of innovation in business are now moving fast, and I want to learn more to provide my clients of top of the line solutions”, Gus ended.