Proper Pricing of Property ( House and Lot )
The market values of commercial & residential properties are at an all time high & now going through consolidation. For most licensed brokers, property owners, banks and others involved in real estate, the deals are taking longer as clients / investors are finding prices way too high and for the past five years been waiting for a correction that never happened. For the sake of putting things in the right perspective and to avoid confusion in putting a true market value on a property, most seasoned brokers i know of and myself suggest the following :
When doing your valuation to a property, if the house is in good condition & has value into it ( maintained, concrete structure, etc ) , always separate the value of the house from the lot. It’s throwing off a lot of buyers and affecting the property market thus making all believe we have a property bubble. For example, for a new house in Dasmarinas Village, Makati with 600 square meters (m2 ) lot area and a floor area of 500 square meters, the proper valuation should be as follows : 600m2 x 220T/m2 ( based on land ) and the house should be computed at 500m2 x 50T/m2 ( assuming grade A materials ). Then you come out with what property appraisers use.
It is very misleading when some quote PESOS : 350,000 – 400,000 per square meter for a house and lot or whatever figure that may be in other locations ! this would then help address the issue of resistance most buyers have, standardize how everyone values a property and also make your your selling activity / process realistic. Anyway, at the end of the day, the primary objective of selling the property must be achieved !
Good day to all …
Robert G. Sarmiento Properties
Professional Affiliation :
Real Estate Broker’s Association of the Philippines
President, Greenhills Chapter 2008-2009
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Website : www.robertgsarmiento.org
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