Valuation of Commercial Building is quite challenging since there is no building plan available , I have to measure from corner to corner to get the rough estimate of the area of the building , It takes around an hour and a half to inspect and measure the building area . Using AutoCAD software , I can easily plot every area of the building :
Then I plot the land area :
Always remember to take pictures from every angle of the building for later reference and for your addenda of the appraisal report. From the building information , I have an updated Construction Cost Data as of the actual year . Cost per square meter for Commercial buildings in the Philippines would range up to Php 40,000 to Php 50,000 including electrical , mechanical and plumbing services. For my replacement cost new , I apply Php 45,000 per sqm to be multiplied to the building area . For the Physical Depreciation ,, using straight line method , the effective age of the building is around 5 years since it undergone gradual renovation , the economic life of the building is set to 50 years. Functional Obsolescence and External Obsolescence is 0%. By deducting the total Replacement Cost new to the depreciation to get the Market Value of the building . For the Market Value of the Land , approaches to value is the Market data approach , I collected three comparable data that is similar to the characteristics of the land and adjusted the elements of comparison and reconcile to get the Market Value of the land. The Total Market Value of the Land and Building is then added for our Appraised Value.
