REAL ESTATE APPRAISAL

CERTIFICATE OF VALUATION
For

Ms. Jonalyn P. Ceria – Heir of Tomas Puruganan

Pursuant to your request, I have made an investigation and appraisal of a certain real estate properties exhibited to
us covered by Tax Declaration No. D-0003-00019 (Land) & Tax Declaration No. D-0003-00017 (Building) for the
purpose of expressing an opinion of the market value of the properties as of May 17, 2019

The appraisal includes One (1) parcel of land and One (1) unit residential building. Both are located at No. 20 Rizal
Street, Brgy. III, Vigan City, Ilocos Sur, Philippines.

I have personally inspected the property, investigated local market conditions, and have given consideration to the:
Extent, character and utility of the property;
Sales and holding prices of similar land;
Highest and best use of the property

Based on the above investigation and an analysis of all relevant factors, and as supported by the
accompanying narrative report, it is in my opinion that the market value of property appraised as of May 17, 2019
is reasonably represented around Php 9,950,000.00 (PHP: NINE MILLION NINE HUNDRED FIFTY THOUSAND
ONLY).

I have made no investigation of and assume no responsibility for the Tax Declarations or liabilities against the
properties appraised.

I am submitting herewith this appraisal report which was prepared in accordance with the Philippine Valuation
Standards. Attached herewith are the following:

Certificate of Valuation;
Appraisal Assumptions and Limiting Conditions of the Undersigned Appraisers;
Narrative Report; and
Appraiser Credentials

I HEREBY CERTIFY that I have neither present nor prospective interest on the property appraised or on the value
reported.

Very truly yours,

JOHN MARINIUS B. DE LA CRUZ, REB, REA

PRC Reg.No. 0006550
PTR No. 8883783 Y

APPRAISAL ASSUMPTIONS AND LIMITING CONDITIONS

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1. The properties description supplied to the appraisers is assumed to be correct;

2. No survey of the property has been made or reviewed by the appraisers, and no
responsibility is assumed in connection with such matters. Illustrative materials,
including maps utilized in this report are included only to assist the reader in visualizing
the properties. Properties dimensions and sizes are considered to be approximate;

3. No responsibility is assumed for matters of legal nature affecting title to the properties,
nor is any opinion of title rendered. Properties title are assumed to be good and
merchantable unless otherwise stated; (if the Land subject for appraisal has an existing
Land Title).

4. Information furnished by others is believed to be true, correct, and reliable. However, no

responsibility for its accuracy is assumed by the appraisers;

5. All existing mortgages, liens, encumbrances, leases, and servitudes, if any, have been
disregarded unless so specified within the report. The property is assumed to be under
responsible, financially sound ownership and competent management;

6. It is assumed that there are no hidden or unapparent conditions of the properties,

subsoil, or structures which would render the property more or less valuable. No
responsibility is assumed for such conditions or for arranging for engineering studies
which may be required to discover them;

7. Unless otherwise stated in this report, the existence of hazardous material, which may
or may not be present on the properties, was not observed by the appraisers. However,
the appraisers are not qualified to detect such substances. The presence of substances
such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous
materials may affect the value of the properties. The value conclusions in this report are
predicated on the assumption that there is no such materials on or in the property that
would cause a loss of value. No responsibility is assumed for any such conditions, or for
the expertise required to discover them. The client is urged to retain an expert in this
field if desired. The analysis and value conclusions in this report are null and void should
any hazardous material be discovered;

8. Unless otherwise stated in this report, no environmental impact studies were either
requested or made in conjunction with this report. The appraiser reserves the right to
alter, amend, revise, or rescind any opinions of value based upon any subsequent
environmental impact studies, research, or investigation;

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9. It is assumed that there is full compliance with all applicable state and local
environmental regulations and laws unless noncompliance is specified, defined, and
considered in this report;

10. It is assumed that all applicable zoning and use regulations and restrictions have been
complied with, unless non-conformity has been specified, defined and considered in this
report;

11. It is assumed that all required licenses, certificates of occupancy, consents, or other
legislative or administrative authority from any local, state, or governmental or private
entity or organization have been or can be obtained or renewed for any use on which
the value estimate is based;

12. The appraisers will not be required to give testimony or appear in court because of
having made this report, unless arrangements have previously been made;

13. Possession of this report, or a copy thereof, does not carry with it the right of
publication. It may not be used for any purpose by any person other than the client
without the written consent of the appraisers, and in any event, only with properly
written qualification and only in its entirety;

14. Neither all nor any part of the contents of this report, or copy thereof, shall be conveyed
to the public through advertising, public relations, news, sales, or any other media
without written consent and approval of the appraiser. Nor shall the appraisers, client,
firm, or professional organization of which the appraisers are a member be identified
without the written consent of the appraisers;

15. The liability of the appraisers, employees, and subcontractors is limited to the client
only. There is no accountability, obligation, or liability to any third party. If this report is
placed in the hands of anyone other than the client, the client shall make such party
aware of all limiting conditions and assumptions of the assignment and related
discussions. The appraisers are in no way responsible for any costs incurred to discover
or correct any deficiencies of the property;

16. Erasures on appraisal date and values invalidate this valuation report.

17. Acceptance and/or use of this report constitutes acceptance of the foregoing
assumptions and limiting conditions.

NARRATIVE REPORT
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SCOPE OF WORK

 Evaluate documents as presented.

 Inspect the offsite, onsite of the property.
 Determine the present market value of the properties during the inspection.
 Prepare report to the properties appraised with certification.

GENERAL

This report covered an appraisal of One (1) parcel of land and One (1) unit of residential building located
at No. 20 Rizal Street, Brgy. III, Vigan City, Ilocos Sur, Philippines upon the request of Ms. Jonalyn
Puruganan Ceria, one of the Legal Heir of the registered owner.

The intended use and purpose of appraisal was to determine the market value of the properties to its
highest and best use as of May 17, 2019 for Settlement of State purposes.

Real estate property is defined as the land, improvements and the ownership rights (right to possess, to
use, to enjoy, to fruits, to dispose and to vindicate/recover).

The term Market Value is defined as the estimated amount for which a property should exchange on the
date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper
marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
In this definition, it is assumed that any transaction shall be based on cash or its equivalent
consideration. The price which the property would fetch if offered for sale in the open market would
undoubtedly be affected, should the sale be on terms, whether favorable or unfavorable.
It is further assumed that the fee simple ownership to the property is good, marketable and free from
liens and encumbrances, and that fee simple ownership is transferable.
The rights appraised in this report are the property rights in fee simple, free and clear. Fee Simple is
defined as the absolute fee without limitation to any particular class of heirs or restrictions but subject to
the limitations of eminent domain, escheat, police power, and taxation.

PROPERTY LOCATION AND IDENTIFICATION

The subject properties appraised are located in Barangay III, Vigan City, Ilocos Sur, subject properties are
within the city proper of Vigan City, more or less 400 meters west of the City hall of Vigan. The properties
are along Rizal Street (10 meters wide) connecting to Manila- North National Road and within the 500
meter radius of Plaza Maestro Commercial Complex (Central Business District of Vigan City). Its also have
an estimated distance of 800 meters to St. James Hospital, Vigan Coop Hospital, St, Paul College of Vigan,
and Bantay Arcade (Bantay Commercial Complex).

LAND DATA
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The property appraised is identified and located per submitted documents as follows:

Per submitted photocopy of Tax Declaration.

Tax Declaration No. TD No. D-0003-00019

Lot Area 600 square meters

Registered Owner Tomas Puruganan

Location Rizal Street, Brgy. III, Vigan City, Ilocos Sur

Classification Residential

Actual Use per Tax Declaration Residential

BOUMDARIES
NORTH Property Index No. 09
SOUTH Property Index No. 11

EAST Property Index No. 07

WEST Rizal Street

Per Assessors Property Identification No.

BOUNDERIES

NORTH Property Index No. 09

SOUTH Property Index No. 11

EAST Property Index No. 07

WEST Rizal Street

Subject lots appraised has an irregular rectangle and square in shape respectively, flat topography and
observed to be at road level of Rizal Street and it has a wide frontage.

NEIGHBORHOOD DATA

The properties are located in an area where land development is predominantly Residential and
commercial in nature with the presence of residential and commercial activities of people. It is also
noticed in the area this establishments such as Hotels, specifically The Vigan Tourist Inn and other
Hotels, Government Offices such us the Provincial Capitol of Ilocos Sur, Vigan City Hall, and Department
of Labor & Employment, Metro Vigan Water District. It is also near to Banks like China Bank, Land Bank
and other Known Banks.

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The area is provided with concrete paved roads, water sources are served through Metro Vigan Water
District and deep well domestic water pumps and electricity is provided by ISECO (Ilocos Sur Electric
Cooperative). Major thoroughfares are concreted, with widths ranging from 10 to 20 meters with
underground/ open canals and lighted with street lights. Cellular communication is through Globe and
Smart; Landline communication is provided by PLDT (Philippine Long Distance Telecommunications.

The developed and built ups establishments in Vigan City are just near the subject properties. The
property is approximately 400 meters away from the City proper.

Vigan City was known as one of the seven wonder city of the world. Foreigners and residents from other
localities visit the city. Travel and Tourism is highly promoted thus increasing the Demand of Hotels,
service establishments and transportation within the city and its neighboring towns.

Streets, boulevards and provincial roads pass through the subject property. Bus lines links Vigan City
from other towns to Manila, La Union, Abra, Ilocos Sur, Cagayan Valley, Benguet and to other provinces.
Public Utility Vehicles such as Jeepneys and Tricycles also link Vigan City to nearby towns of Ilocos
Province. Mode of public transportation to short distance trips is through tricycles and kalesa.

Plaza Maestro Commercial Complex, JTC Mall, Two Brothers Supermarket, and Puregold Supermarket are
the noticeable shopping areas of the residents.

PROXIMITY/DISTANCE TO SIGNIFICANT LANDMARKS

Vigan City Hall 400 meters

Vigan Public Market 1.1 kilometre

Bantay Arcade/Public Market 500 meters

Plaza Maestro Comm’l Complex 500 meters

St. Paul Cathedral Church of Vigan 600 meters

Vigan Heritage Site ( Crisologo St.) 1.2 Kilometre

Vigan Plaza Burgos 600 meters

Vigan Plaza Salcedo ( Dancing 550 meters

Fountain)

Metro Vigan Cooperative Hospital 500 meters

St.Paul College of Vigan 500 meters

DESCRIPTIONS OF THE IMPROVEMENT/RESIDENTIAL HOUSE

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The land is improved with a bungalow residential house (Family house before of the late Manuel
Purugunan).

BUNGALOW RESIDENTIAL HOUSE constructed of Cemented Hollow blocks and woods, tile
flooring, plastered cemented CHB walls and partitions, CGI sheet roofing over plywood ceiling
and roof eves, jalousie windows. It is provided of a four (4) bedrooms, living area, porch, kitchen
and dining area. With an estimated total floor area of One Hundred Twenty (120) sq. meters.

Total Floor Area 120.00 sq.M

Useful Life 40 years

Remaining Useful life (RUL) 0 year

PERCENTAGE COMPLETION 100%

Status Outdated/ fully dilapidated

HIGHEST AND BEST USE

Based upon the analysis of prevailing land usage in the neighbourhood and the property itself, I am of
the opinion that commercial development would represent the highest and best use of the property.

“Highest and Best Use” is defined as the most probable use of a property which is physically possible,
appropriately justified, legally permissible, financially feasible and which results in the highest value of
the property being valued.

VALUATION

The market value of the land was arrived by using the prevailing Sales Comparison Approach. In this
approach, the value of the land is based on sales and listings of comparable property registered within
the vicinity.

The technique on the Sales Comparison Approach requires the establishing of comparable property
registered within the vicinity by reducing reasonable comparative sales and listings to a common
denominator. This approach requires a very careful selection of comparable listings within the immediate
vicinity of the subject property. The basis of comparison being premised on such factors as location, size,
shape, neighbourhood, elevation, terrain and time element.

Based on the foregoing, the following is the valuation of the land and the residential house improvement
erected thereon.

ON LAND:

In valuing the land, records of recent sales, offerings and recent appraisal of similar lands are analyzed
and comparison made for such factors as location, size, shape, neighborhood, elevation and terrain
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For the purpose of comparison, the following comparables are considered sufficient to provide a
reasonable indication of value.

LAND MARKET SURVEY

From Banks: INFORMANTS VALUE RANGES PER SQ.M. Along Rizal Street
Land Bank of the Philippines -Vigan P 20,000.00 to P 25,000.00
BPI P 15,000.00 to P 20,000.00
BDO P 15,000.00 to P 20,000.00

Listings:

1. Comparable 1 Consummated Sale of Three (3) Lots Consolidated into one (1) lot and with a total
land area of Four Hundred Thirty Four (434) square meters, a prime lot, along Rizal Street,
Barangay III, Vigan City, Ilcoos Sur, acquired year 2017, Presently Utilized as Commercial
Property, It is where the Vigan Tourist Inn erected.
Acquired @ P18, 000.00/square meter.
Source: CRB Felipe Navaro – Broker, President Real Estate Brokers Association of the Philippines
- Abra –Ilocos Sur Chapter.
Contact No: 09399255730

2. Comparable 2 Consummated Sale – year 2014, a prime residential/commercial lot, with an area
of Six Hundred Eighty One (681) Square meters, along Rizal Street, in front of subject property, it
is a vacant lot as of ocular inspection in the area.
Acquired @ P8, 000.00/square meter.
Source: Kervin King, Realtor, Friend of owners of the Lot (New Born Lumber & Hardware Family)
Contact Info undisclosed.

3. Comparable 3 Consummated Sale- Year 2015. A prime commercial lot, Along Burgos Street
Conner Rizal Street, with a land area of Six Hundred (600) Square Meters. With ongoing
construction of four Storey commercial building. Presently owned by Charles, Clifford & Snooky
Ting.
Acquired @ P 24,000.00
Source: CRB Felipe Navaro – Broker, President Real Estate Brokers Association of the Philippines
- Abra –Ilocos Sur Chapter.
Contact No: 09399255730

LAND GRID ANALYSIS:

Comparable 1 Comparable 2 Comparable 3
Market Value/ sq.m. P18,000.00 P8,000.00 P24,000.00
Physical Adjustment
Location 0% 0% -10%
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Size +5% +10% 0%

Frontage +10% +5% +10%
Neighborhood 0% 0% 0%
Potential Use -5% -10% -10%
Access Road 0% 0% -10%
Corner Influence 0% 0% -10%
Terrain 0% 0% 0%
Time Element +10% +25% +15%

Concluded Adjustment 0% +25% +15%

Adjusted Value P18,000.00 P10,000.00 P27,600.00
Weight Distribution 20% 20% 60%
P3,600.00 P2,000.00 P16,560.00
Adopt Value P22,160.00
Adjustments Non-Titled Ownership
(15% or less P3,324.00)
Unsettled Estate Tax
(10% or less P2,216.00)
Net Value/Sq. M P16,620.00
Market Value/SQ.M. Say (rounded to) P16,500.00

ANALYSIS OF LISTING
As a general rule, when the comparable sales or listings are superior compared to the subject property
under appraisal, we deduct the adjustment percentage factor for location, size, corner influence, shape,
marketability, neighborhood, elevation, terrain and time element.
When the comparable sales or listing are inferior compared to the subject property under appraisal, we
add the adjustment percentage factor for size, shape, corner influence, elevation, terrain and location,
and time element
Based on the indicative market values of the above land rating grid chart, the market value of the subject
properties as of May 17, 2019 is estimated at P16,500.00 (Sixteen Thousand ) per square meter.
Considering the foregoing and such factors as property location, desirability, neighborhood, utility,
characteristics of the land, size and time element involved, the Market Value of the appraised property is
estimated as under:

LAND VALUATION
Tax Declaration No. Lot No. Lot Area Market Value Total Market Value
Per SQ.M. (MV/Sq.M x Area)

1. TD No. D-0003-00019 1811 600 Sq.m P16,500.00 P 9,900,000.00

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TOTAL MARKET VALUE P 9,900,000.00

ON IMPROVEMENT

In arriving at the value of improvement, the undersigned appraiser adopted the Modified Quantity
Survey Method. Briefly describe, this method requires an analysis of the improvement by breaking them
down into major components such us foundation, columns, beams, floorings, walls, roofing, etc. using
workable units as linear meter, square meter, cubic meter or other appropriate basic unit. Bills of
quantities for each building component using the appropriate basic unit are the prepared and related to
the unit cost for each component developed on the basis of current cost materials, labor, plant and
equipment prevailing in the locality to arrive at the direct cost of the building. Indirect cost such as
contractor’s profit, overhead, taxes, fees, and other related expenses are the added to arrive at the
reproduction cost new (RCN) of the improvement. Adjustment are then made to reflect depreciation
resulting from physical deterioration, functional and economic obsolescence based on personal
inspection of the improvement, and comparison with similar new properties.

I have conducted a personal Inspection of the premises and based on my observation and findings, the
improvement was outdated already and totally condemned by time.
Floor
Area Remaining Present Market
( Sq.m.) Reproduction Cost New Useful Life Value
4 Bedrooms Bungalow 120.00 P15,000.00 P1,8000.00 0.00 P50,000.00
Residential House Sq.M ( Salvage Value)

TOTAL MARKET VALUE P50,000.00

RECONCILIATION OF VALUE AND FINAL OIPINION OF VALUE

After analysis of the sales comparison gathered and considering all factors directly and indirectly
affecting value using sales comparison approach & cost approach, in my opinion, the Market Value the
property appraised is follows:
Land 9,900,000.00
Improvement (Bungalow Residential House) 50,000.00

APPRAISED VALUE 9,950,000.00

TOTAL APPRAISED VALUE (SAY) 9,950,000.00
**PHP: NINE MILLION NINE HUNDRED FIFTY THOUSAND ONLY**

VICINITY MAP

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SITE

SITE

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RIZAL STREET

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FRONT VIEW

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FRONTYARD

NORTHERN PART

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BACKYARD

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BACK OF THE HOUSE

LIVING AREA

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DINING AREA

KITCHEN

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HALLWAY (KITCHEN TO LIVING AREA) BEDROOM 1

HALLWAY TO BEDROOMS BEDROOM 2

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TOILET & BATHROOM 1

TOILET & BATHROOM 2

CEILING

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COMPARABLE PROPERTIES

COMPARABLE 1

COMPARABLE 2

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Tax Declaration of Lot

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Tax Declaration of Building

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Property Identification Map Map

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APPRAISER’S CREDENTIALS
Mr. De la Cruz passed the Real Estate Appraisers Licensure Examination conducted by the
Professional Regulation Commission on August 2015, and also passed the Real Estate Brokers
Licensure Examination last February 2016.

Mr. De la Cruz graduated with the degree of Bachelor of Science in Business Administration –
Major in Banking and Finance at the University of Northern Philippines, Vigan City on 2002.

Company name: YLOCOS ESPLANADE REALTY COMPANY

Position: GENERAL PARTNER

Previous Employment.

RANG-AY BANK – VIGAN BRANCH MICRO FINANCE ACCOUNT November MAY 2008
OFFICER 2006
RANG-AY BANK – VIGAN BRANCH CI/APPRAISER MAY 2008 OCTOBER
2014
RANG-AY BANK – VIGAN BRANCH AREA OPERATION OCTOBER OCTOBER
SPECIALIST 2014 04, 2015
RANG-AY BANK – BANGUED SR. BRANCH MANAGER OCTOBER 05, APRIL 10,
BRANCH 2015 2018
RANG-AY BANK – VIGAN CLUSTER SR. BRANCH MANAGER ARPRIL 11, MAY 10,
2018 2019

REA PRC Reg. No. 0006550, PRC ID No. 18-1327842, Until 08/02/2022, PTR No. 8883783 Y

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