A Portal of Cebu Appraisers

User login


mylugar cebu

Frequently Asked Questions

business solutions, cebuWhat is appraisal?
Technically, appraisal is defined as an estimate and opinion of values, or alternatively, the act or process of estimating value.

What are the basis of appraisal?
Basically, appraisal values are made thru: RCN, Reproduction Cost New SV, Sound Value

FMV, Fair Market Value is defined as being the amount in terms of money at which the property would exchange in the current real estate market, between a willing buyer and a willing seller, neither being under compulsion to buy or to sell, both having reasonable knowledge of all relevant facts and with equity to both.

Who needs appraisal?
Any individual or entity whose transaction, business or otherwise, requires sound basis on the value of the property needs appraisal.

Some of them are as follows:

  • General and special purpose manufacturing:
    • cement
    • domestic appliances
    • fertilizer
    • food processing
    • pharmaceuticals
    • textiles
    • timber products
    • glass
    • packaging materials
    • sugar processing
  • Public Utilities
    • electric power
    • communications
    • transport
  • Banks and Investment Companies
  • Service Industries
    • domestic and industrial gases
    • machine shops
    • shipyards
  • Government Agencies
  • Insurance Companies
  • Real Estate Developers
    • shopping center
    • subdivisions
    • park and recreation areas
    • industrial parks
    • condominium
  • Communication Media
    • newspaper
    • television
    • radio
    • publishing
  • Auditors and Management Consultants
  • Attorneys and Investment Counselors
  • Institutions
    • schools
    • colleges
    • hospitals
    • churches
    • dormitories
    • civic buildings
    • clubs
    • museums
  • Commercial and Property Owners

Why and in what insurance is appraisal required?
Basically, the need for appraisal may arise from many situations, some of them are:

  • Financing purpose
    A lending institution may sometime require collaterals from their clients in security for their applied loan. Thus, appraisal report from an independent appraisal company can answer this question.
  • Insurance Purposes
    Standard fire insurance policies requires proof-of-loss cause which makes the property owner responsible for substantiating value of the property destroyed or damaged by fire. A need for current and accurate property record and appraisal are essential. An adequate insurance coverage is assured only if the current cost of reproducing the property is known.
  • Depreciation studies
  • Property records
  • Taxation
  • Management information
  • Possible Purchase/Sale

What is an appraisal report?
Usually, it is a written document containing the appraisers estimate of value of the describe property as of specified date and includes an analysis and interpretation of all relevant data and other supporting materials.

What are the types of appraisal report?
There are three (3) types of appraisal report:

  1. Certificate or letter form - a statement of appraiser's opinion of value.
  2. Short form report - usually employed for mass appraisal.
  3. Narrative report - a complete and comprehensive form of reporting containing all the supporting data and information.

What are the necessary documents needed for appraisal?
Generally the documents needed in order for the property to be appraised are the following:

  • Land
    • Photocopy of TCT
    • TD
    • Lot plan
    • Vicinity map
    • Subdivision.
    • Plan/site development plan (subdivision only).
  • With improvements
    • Plans & Spec's of building
    • As built are preferred if there is
    • Letter of authority to inspect the property
  • For condominium units
    • Condominium certificate of title
    • Location/vicinity map
    • Letter of authority to inspect

What are the bases of appraisal value?
In appraisal, there are three approaches used in valuing the property. These are:

  • Cost Approach
    The current cost of reproducing a property less loss in value from deterioration and functional and economic obsolescence (accrued depreciation)
  • Market Date
    The value indicated by recent sales and gathered listings of comparable properties in the market.
  • Income Approach
    The investment value that the properties net earning power will support based upon a capitalization of net income.


  • Management services such as property feasibility, and market studes;
  • Real estate documentation, title search, verification and transfer;
  • Plotting (Auto CADD) per title
  • Business Education Services
  • Internship
  • In-House Seminars