Here are the problems questions that need to be answered. insufficient information. 1.

Some of these have

Prepare a lot plan based on the given technical descriptions and boundary. A parcel of land (Lot 1, Plan PSD-008-008, (LCR) Record No. 008) located at municipality of Marikina, Metro Manila, Island of Luzon, bounded on the NE, along the line 1-2 by Lot 2, on the SE, along line 2-3 by Lot 3; on the SW., along line 3-4 by Road 1; and on the NW, along line 4-1 by Lot A, Plan PSD-200-008. Beginning at a point marked 1 on plan being N.50 deg 30E, 800M. from BLLM no. 1 Municipality of Marikina. Thence S.45 deg. 30E., 10.00M to point 2; Thence S.40 deg. 00W., 15.00M to point 3; Thence N.45 deg. 30W., 10.00M to point 4 Thence N.40 deg. 00E., 15.00M to the point of beginning containing an area of One Hundred Fifty (150) square meters more or less.
(1996#1)

2.

As appearing in the xerox copy of the title furnished to you, the technical description partly reads: Beginning at a point marked 1 on plan, being N. 89 degrees 59W., 6,000 meters from BLLM#1, Municipality of XYZ. A. B.
(1998#2)

Draw a rough sketch of the propertys location. What is the market value of the land today if your investigation show that prevailing land prices along the highway ranges from P1,000.00 to P1,500.00 per sq.m. Support your conclusion. (INSUFFICIENT DATA)

3.

In your investigation, you gathered several market data regarding improved properties and among the typical sales are the following: Sale # 1 A property with an area of 500 sq.m. located along Dian Street was sold 6 months ago at Php3,500,000.00. It is improved with a 2-storey apartment building, with a monthly rental of Php20,000.00 A property located along the same street with an area of 700 sq.m. Improved to a 3-storey building with monthly rental of Php26,000.00 was sold last year for Php5,000,000.00 A property with an area of 1,000 sq.m. located along the same street, improved also to a 3-storey building with monthly rental of Php40,000.00 was sold recently at Php6,000,000.00

Sale #2 Sale #3

Your inspection of the above properties disclosed that the buildings are of similar structure to the property you are asked to appraised located along the same street with an area of 750 square meters improved with a 3-storey commercial building. The monthly rental is Php25,000.00.

(1995#2)

4.

A parcel of land, containing an area of 5 has. planted which is a portion of 20 has. government owned land, was awarded to a tenant-beneficiary in 1989 by the Department of Agrarian Reform. All documents were presented to the Office of the Assessor in 19999 for appraisal and assessment purposes. Assessors data are as follows: P30,000 - schedule of unit values per square meter for 1993 and prior years P40,000 schedule of unit values per square meter for 1994 up to present The government owned land has not yet been appraised and assessed by the Assessors Office hence the property is being declared for the first time. For taxation purposes, compute the market value of the land?
(1999#5)

5.

The prices of typical lots in Filinvest II in Quezon City are as follows: 1988 Php 1,800 A. B. B.
(2/1994#4)

1989 Php 2,200

1990 Php 2,100

1991 Php 2,400

1992 Php 2,600

1993 Php 2,900

1994 ?

If the base year is 1989 = 100, find the price index for 1993 The probable price based on the index of 1994 = 85 Suppose the base year where price index is 85; find the probable selling price for this year.

6.

In January 1993, a shop owner observed that due to frequent brownouts, he needed a small generator set. A new one cost P20,000.00. Estimated useful life is 10 years. The expenses for one year operation (300 days at 5 hours a day) are estimated to be, gasoline and oil P18,000.00, maintenance and spare parts P2,000.00
(2/1994)

The shop owner recalled that in 1990, a friend who is an engineer, recommended to him a solar system with the same output, almost for free. At that time is USD5,000.00 Manila price including taxes and expenses, that is P100,000.00, the exchange rate being at that time is 1USD = P20.00. The engineer told him that this solar system was actually convenient to solve the brownout problem, in place of a noisy, stinking gen-set. A solar systems is silent and needs no maintenance, but some distilled water refill of the batteries at P200.00 per year. He wondered what might be the price in January 1993, with USD at P25.00. The supplier is willing to give a 20% discount within a month, provided he got full payment in USD before the end of January.

The shop owner will borrow from his bank abroad with 10% interest per year, and he must come up for all decision by the end of January 1993. Questions: A. What should be the price in January 1993 for the solar system? B. Appraise the value of the second hand generator set in January 1993 and compare it with the offered price. C. Which machine should the shop owner choose in January 1993, on the basis of which is economical for a 300 days year operation (debt service + operation + maintenance) 1. New gen-set 2. The second hand gen-set 3. The solar system
(8/1994#3)

7.

A 15-year old residential apartment has a reproduction cost of Php250,000.00 situated in a neighborhood where apartments sell for 50 times the monthly rental. Yearly allowance for ordinary structural deterioration is 1% applicable to 40% of reproduction cost. Deterioration of the remaining cost is judged to be 20%. However, economic obsolescence result in a rental loss of Php3,000 per year. Problem: a. Derive the value by Cost Approach b. What is the percentage of total depreciation?
(12/1994#3)

8.

As an appraiser, you are valuing a tract of vacant land suitable for residential subdivision development. The immediate neighborhood comprises single family homes which has the following data: Typical property Land and building value Php 1,500,000.00 Typical homeowners income Php 25,000.00 / month Land-to-building ratio 1 is to 5 Marketing/Selling expenses 10% gross sales Developers profit 25% gross sales Development cost 75% more than developers profit Based on your study, the subject land can be sub-divided into 250 sites typical in the area. Selling and development would take 3 years and developers discount for interest the price paid for raw land if it takes 3 years or longer to develop.

If you are to use 16% discounting rate, what is the value of the raw land?
(1995#4)

9.

Based on plans and specifications, you are appraising a proposed restaurant to be built on a site adjacent to the present operation. The present building is being taken in a street widening program. You are to include the new equipment in your appraisal. The lease, on a year-to-year basis, will develop a net income before capital recapture of Php800,000.00. The equipment will cost Php1,200,000.00 and will have an economic life of 20 years. The land value is well supported at Php1,500,000.00. The prevailing interest rate is 8% It is estimated that the economic life of the improvements is 30 years, what is the value of the entire property?
(1995#5)

10.

Refer to figure No. 1 in solving this problem The unit construction costs per square meter of a residential house are as follows: Bedrooms Toilet/Bath Living/Dining Kitchen Porch/Carport Landscaping and fence Land Value P 7,500.00 P 10,000.00 P 8,000.00 P 9,500.00 P 4,500.00 P 160,000.00 lump sum P1,500,000.00

Using the above data, determine the value of the real property. The following depreciations were noted on the improvements 1. Physical deterioration 2% 2. Functional obsolescence 3% 3. Economic obsolescence 4%
(1998#3)

(NO DIAGRAM PROVIDED) 11. You are to appraise a proposed 20-hectares residential subdivision in Tagaytay City. Market absorption shows 200 developed lots of 350 square meter each may be programmed to be sold per year. The industry practice indicated that the gross annual sales equal the raw land value plus the cost of development and developers profit. The cost of development during the first year Php500 per square meter of saleable area and is expected to increase by 10% per year. The average selling per year is Php2,500 per square meter. The developers profit (including sales expense) is estimated at 35% of gross annual sales. What is the indicated discounted unit raw land value at 14% interest per year?
(2/1994#1)

12.

You are to appraise a commercial parcel of land situated at Shaw Boulevard, Mandaluyong City, Metro Manila. The land is improved by a 10-year 10-storey office building. The land area is 1,220 square meters, more or less, has a market value of P50,000.00 per square meter. 40% of the land is used as a parking area. The depreciation as observed is Physical curable: 10% , physical incurable; 6%. Estimated economic life of the building is 50 years and interest rate is 10%. Construction cost of the building is as follows: Ground floor Second floor to 10th floor Basement = P 7,500.00 per sq.m. = P 7,000.00 per sq.m. = P 6,000.00 per sq.m.

The rent available for the building are as follows: Ground floor = P300 per sq.m., rentable space =70% Second floor to 4th floor = P280 per sq.m., rentable space = 80% th th 5 floor to 10 floor = P320 per sq.m., rentable space = 80% Allowance for bad debt and vacancy = 10% Operating expense = 25% a) b) c)
(1999#6)

Estimate the value of the property by COST APPROACH Estimate the value of the property by INCOME APPROACH Estimate the final value of the property by using the two approaches with the following condition: For cost approach = 40% is the accuracy of the data and for income approach = 60% accuracy of data.

13.

Solve for value, given mortgage and peso estimate of the resale price. The estimated resale price is Php500,000.00 Other date given: A. Php400,000 term B. C. D. E. F. G. H.
(2/1994#6)

mortgage principal (12% interest, 25 years, debt service of Php50,555 per year) annual net operating income annual debt service annual cash flow projection period mortgage balance at end of projection period rate for 10 years annuity resale price in 10 years

Php65,000 Php50,055 Php14,455 10 years Php351,000 15% Php500,000

14.

A commercial supermarket property is under lease for 20 years, made 5 years ago, with 10 years option to renew on same terms. Rental is Php250,000.00 per year, against 7/8 of 1% sales. Consistently, the supermarket averaged Php30,000,000.00 in annual sales.

The prevailing economic rent is 1% of sales. The owners expenses average Php80,000.00 per year. The tenants interest rate is at 10%. If properties of this type sells at 8.5% over-all rate, what would be: 1. The value of lessees (tenants) interest. 2. The over-all rate for lessor.
(12/1994#5,1996#4)

15.

The following data through sales of townhouses, units similar to the one you are appraising disclose the following: Sale 1. Sold for Php1,800,000.00 and had a net income of Php260,000.00 Sale 2. Sold for Php1,500,000.00 and had a net income of Php230,000.00 Sale 3. Sold for Php1,200,000.00 and had a net income of Php180,000.00 You find the interest rate demanded is 12% per annum and that there is a well defined ratio of building to land value of 5 to 1. From the above, what is the market indicated recapture of capital rate?
(8/1994#2)

A vacant industrial parcel of land was leased 25 years ago for a 50-year term, at a fixed net rental of P20,000.00 per year payable at the end of the year. Ten years ago, the lessee erected a warehouse building and subleased the entire property for 15 years to S.M. for a fixed net rental of P70,000.00 a year. Present land value is estimated at P500,000.00 and forecasted to triple after 20 years. Present economic rent is P150,000.00 Remaining economic life of the building is estimated to 15 years. A) at 16%, what is the indicated value of the leased fee? B) at 18%, what is the indicated value of the sandwich lease interest? C) at 18%, what is the indicated value of the remaining lease interest? Factors for 15 years: 16% = 7.469444 18% = 5,928841
(8/1994#5)

16.

An office building you are appraising was built on a land leased for 33 years at Php1,000.00 per month. The lease has 20 more years to go and the land is currently valued at Php350,000.00. The gross rental of the office building is Php120,000.00 a year. Vacancy and bad debts are estimated to be 5% while annual expenses are janitorial services Php 10,000.00, electricity and water Php 9,000.00, insurance Php4,000.00, repair and maintenance Php6,000.00 and taxes Php7,000.00

a) Assuming that 8% is fair rate of interest and 33 years is a reasonable estimate of economic life of the building, what is the indicated value of the property by income approach? b) If 7% is fair rate for the leased fees of the estate, what is the value of the leased fee, assuming the land will remain the same at the termination of the lease?
(12/1994#1,1996#2)

17.

A parcel of land owned by ABC Corporation containing an area of 10,000 square meters is leased by XYZ Company at Php5.00 per square meter per month for 20 years. During the data gathering, you found the following: The owner nets Php3.75 per square meter per month. The lease contract life is 10 years. The interest rate for the lessor is 12% while the interest rate for the lessee is 16%. The same lot can be subleased for Php6.00 per square meter per month. The land is currently valued at Php 450.00 per square meter and forecasted to increase five times its value at the end of the lease. If the payment is made yearly, compute the following: a. Lessors interest b. Lessees interest
(12/1994#2,1996#3)

18.

Commercial stall X is being appraised. It is very similar to stall Y, but stall Y has on the ground electric conduit valued at P7,000. Stall Y sold two months ago for P78,000. What is the market value of stall X using the formula for the sales. (a) comparison approach? (b) cost approach (c) income capitalization approach?
(2002#5)

19.

A structure with an obsolete floor plan is being appraised. A comparable structure with the same floor plan recently sold for P142,000. A comparable structure with a more desirable floor plan recently sold for P156,000. What is the loss in value attributable to the floor plan?
(2002#6)