Tips and Tricks
by Augusto “Gus” Agosto, REB, REA, EnP
Pricing a listing is one of the hardest— and perhaps the most important task in real estate.
Sellers can get it wrong in either direction: If the asking price is too low, the sellers might
end up leaving money on the table; if it’s too high, they won’t tap into the right target group,
will lose a lot of time and may then end up selling for even less.
Can you rely on a “mata-mata” or guessing? The answer is “NO”. You cannot. Relying on a
guess or the word of a non-registered and unlicensed individual is inaccurate and will not
estimate the true market value of a property. However, with the educated and experienced
real estate appraiser, who apply the methodology of appraisal and employ the ethical
guidelines for determining values, can be relied on as unbiased and independent.
The most important aspect of the appraisal is the identification of the property, both in
property site and legal documents. Thus, the due diligence task of a broker can be lessen.
In addition, appraiser conduct analysis of the market to determine the highest and best use
of the property, thereby come up with a different alternative uses of the property.
Buyers, particularly foreign investor and businessmen, tend to buy property with confidence
if it was appraised by a third party. They know that the opinion of value of an appraiser is
crucial in any business transaction.
In our real estate profession where trust is the most important aspect, a real estate
professional-broker and agents, should encourage in acquiring the services of a licensed
appraiser. It is more beneficial to the clients having it appraised and help in fostering our
relationship with them. In the long run, boost the confidence of the public on real estate
practitioners. Add credibility to your listing price; get the services of a real estate appraiser.
Gus Agosto is a practicing real estate appraiser, broker and environmental planner.
Currently, he is PAREB National Director and professor of real estate management and
finance at the University San Carlos, Cebu. He graduated Bachelor of Arts in Economics, and
currently studying Master of Arts in Economics at the University of San Carlos, Cebu City.