Vous êtes sur la page 1sur 12

PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT)


PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

WHY VALUE CONCEPTS DIFFER

Value has many different meanings


Generally, value is the monetary worth
of goods or services to people
The different interpretations of value
make it very subjective due to each
personal desires, needs, benefits,
interests or possible uses of a thing.

Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT)


PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

DIFFERENT VALUE TYPES AND CONCEPTS


Assessed Value Rental Value
Book Value Salvage Value
Cash Value Scrap Value
Depreciated Value Sentimental Value
Face Value Sound Value
Foreclosure Value Capricious Value
Insurance Value Leasehold Value
Liquidation Value Present Value
Loan Value Going Concern Value
Market Value
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT)
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

VALUE-IN-USE VS. VALUE-IN-EXCHANGE


Value-in-use
- refers to the value of an item or object to a
particular user. This is the subjective value
concept
Value-in-exchange
describes the value of a thing to people in general.
This can be termed as theobjective value.
- Can be estimated only for items or properties that
are commonly bought and sold in the market for
money

Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT)


PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

Fair Market Value (FMV)

FMV is the highest price estimated in


terms of money which a property will bring if
exposed for sale in the open market allowing a
reasonable time to find a purchaser, particularly
those buyers with knowledge of all the uses to
which the propoerty is adapted and for which it
is capable of being used.

Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT)


PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

Fair Market Value (FMV)

Continued

Implicit in the definition is the consummation of


a sale as of a specified date and the passing of title
from seller to buyer under the following conditions:
Buyer and seller are typically motivated;
Both parties are well informed and advised,
each acting in what he considers his own best
interest;
A reasonable time is allowed for exposure in
the open market;
Payment is made in cash or its equivalent
consideration;
No abnormal
Comprehensive pressure.
Real Estate Property Appraisal Seminar and Training (CREASAT)
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

Fair Market Value (FMV)

Continued

The following terms are further expressed in


the definition:
Highest price fair amount agreed by both
parties
In terms of money price expressed in the
usual medium of exchange
Reasonable time timeframe within which a
property may be sold
Knowledgeable buyer/seller prudent and
knowledgeable parties
No abnormal pressure both parties not
compelled to buy or sell
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT)
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

Market Value (MV)

Market Value is the amount for


which an asset could be exchanged
between a willing buyer and willing seller
in arms length transaction after proper
marketing, wherein the parties had each
acted knowledgeably, prudently and
without compulsion.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT)
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

Market Value (MV)


Continued
Arms length transaction means
Buyer and seller are not related in any way;
The product has been on the market for a length of
time that is reasonable for products of that type;
Neither buyer nor seller is acting under duress;
There are no financing or other concessions beyond
what is customary in the marketplace.

Market is a set of arrangements in which buyers and


sellers are brought together through price mechanism.
It is where buyers and sellers interact, compete and
cause identifiable changes in prices.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT)
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

Asking, Offering and Selling Price

Asking price is what the seller indicates will


be an acceptable offer

Offering price is what a buyer actually offers

Selling/Consummated price is what the


seller and buyer finally agreed on.
Note: All of these may be different from the propertys market value, as
determined by an appraiser, and none of them may be exactly the
same as the estimated market value.

Buyers market one in which there are significantly more properties


available for sale than buyers available to purchase them.

Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT)


PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

DEFINITION OF MARKET VALUE

The most probable price which a property


should bring in a competitive and open
market under all conditions requisite to a fair
sale, the buyer and seller each acting
prudently, knowledgeably, and assuming the
price is not affected by undue stimulus.

Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT)


PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.

Emer F. Gonzalez
emerfgonz@yahoo.com

Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT)

Vous aimerez peut-être aussi