Real Estate Appraisal for two storey residential building appraisal report takes around 7 to 10 days depending on the data availability . I asked the owner of the property for the photocopy of the title and tax declaration for due diligence and lot plotting of the property . For the approaches to value since there is no bill of materials , construction cost data available , I have to measure the entire area of the building using laser distance meter and have it drawn using AutoCAD Software to easily get the area by polyline command . For the computation of the Building , I will use the Cost Approach , since the building is almost new , using the Replacement Cost New less Depreciation . To arrive at the replacement cost new using cost per square meter method , I inquire the expert contractor here in Cagayan de Oro ,how much is the range of cost to build the high end model of the building , after that we could easily get the Replacement Cost New of the building . The depreciation of the building as of 2021 since it is almost new , by using straight line method on Physical Obsolescence is just around minimal percentage . No functional obsolescence deducted since the building is not yet outdated . For external obsolescence , due to pandemic (Covid 19) , I deducted small percentage for the depreciation. After summing up the Physical , External and Functional Obsolescence , you can easily deduct from the total replacement cost new of the building to arrive at the final market value of the building . Computation for the land by using Sales Comparison Approach adjusted by element of comparison such as location , size , shape , corner lot influence and time adjustment . For the final market value of the property , just add the value of the land and building .
