Many property owners are surprised when their home or land is appraised lower than expected. In the Philippines, appraisal value is not based on emotion or online listings—it’s based on market data, condition, and legal standing.
Location (Still the Biggest Factor)
Appraisers look at the city or municipality, barangay and neighborhood reputation, accessibility to main roads, and proximity to schools, malls, hospitals, and transport. Even two similar properties can have very different values depending on location. This is why copying prices from Facebook or nearby listings often leads to overpricing.
Comparable Sales (Not Asking Prices)
Appraisers use recently sold properties, not advertised prices. They compare property type, lot area, floor area, age, condition, and location. If similar properties sold lower, your appraisal will follow—even if others are still listed at higher prices.
Property Condition & Maintenance
Appraisers consider structural condition, roof, plumbing, electrical systems, and signs of damage or neglect. Well-maintained properties appraise higher than neglected ones, even if they are the same size. Cosmetic upgrades help, but major structural issues hurt value more.
Lot Size, Shape & Usability
For land and house & lot, bigger is not always better. Irregular shapes may lower value, and flood-prone or sloping lots affect usability. A smaller but usable lot can appraise higher than a larger problematic one.
Title Status & Legal Documents
This is critical in the Philippines. Appraisers check for a clean Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT), absence of liens or encumbrances, and updated tax declaration. Incomplete or problematic documents can reduce value—or stop a sale completely.
Market Conditions
Appraisal values adjust based on supply and demand, interest rates, and buyer activity in your area. In slow markets, even good properties may appraise lower than expected.
Zoning & Land Use
Zoning affects residential vs commercial use, building restrictions, and future development potential. Properties with better zoning flexibility often have higher appraisal value.
Age of the Property
Older properties depreciate over time, may need repairs, and are compared to newer developments. However, location can outweigh age, especially in prime areas.
Why Online Estimates Are Often Wrong
Online prices are asking prices, not sold prices. They do not factor legal issues or property condition. This is why many sellers overestimate their property value and struggle to sell.
Thinking of Selling? Start With the Right Value
An accurate appraisal prevents overpricing, attracts serious buyers, and helps properties sell faster.
Not sure how much your property is really worth? Get a professional property valuation from our team and avoid costly pricing mistakes.
