Questions Worth Asking About Getting a Property Valued

A bank's appraised value, your agent's suggested asking price, and the number a buyer throws out over coffee can all be wildly different for the same unit on the same street. None of them is automatically wrong — they're just answering different questions. Before you lean on any valuation, it helps to interrogate it a little. Here's a checklist to work through.

1. What is the valuation actually for?

A valuation done for a bank loan application serves a different purpose than one done to set a listing price or settle an estate. Banks tend to be conservative because they're protecting their own exposure if they ever need to foreclose and resell. A selling price, on the other hand, reflects what the market will realistically pay right now. Knowing the purpose tells you how much weight to put on the number.

2. Who is doing the valuation, and do they have a stake in the outcome?

A licensed appraiser hired independently has no reason to inflate or deflate a figure. An agent estimating value to win your listing, or a buyer's broker suggesting a number to justify a lowball offer, may have incentives pulling in one direction. That doesn't make their estimate useless — just ask what method they used and whether they'd put it in writing.

3. Is the person or firm actually licensed?

Property appraisal in the Philippines is a regulated profession. Before accepting a formal valuation report, it's reasonable to ask for the appraiser's license details and to confirm they're in good standing with the relevant professional board. This matters more for loan, insurance, or legal purposes than for a casual market check.

4. What comparable properties were used?

Any credible valuation should be anchored to recent sales or listings of similar properties nearby — similar in size, condition, floor level (for condos), lot shape, and age. If the appraiser can't point to specific comparables, or the comparables are from a different part of the city entirely, the figure deserves more scrutiny.

5. How recent is the data behind the number?

Market conditions shift, sometimes quickly in a particular neighborhood when a new development, transport line, or commercial project is announced. A valuation built on sales data that's a year or two old may no longer reflect current demand. Ask when the comparable sales actually closed, not just when the report was written.

6. Did the valuer physically inspect the property?

A desktop valuation based on public records and online listings is faster and cheaper, but it can miss things that matter: a renovated kitchen, water damage, an awkward layout, or conversely, upgrades that justify a higher figure. If your situation is important enough to need a formal number — refinancing, estate settlement, a dispute — it's worth confirming whether anyone actually walked through the unit or lot.

7. What's included and excluded from the figure?

Is parking counted separately? Does the valuation include fixtures, built-in cabinetry, or appliances? For house-and-lot properties, is the land valued separately from the structure? Misunderstandings here can create a gap between what a seller expects and what a buyer or bank is actually offering to pay for.

8. How does this number compare to at least one other source?

Never treat a single valuation as gospel, especially if money or a major decision hinges on it. Compare a bank's appraisal against a second independent appraiser, or check an agent's suggested price against what similar units have actually sold for recently, not just what they're listed at. Asking prices and closed prices are not the same thing, and the gap between them tells you something about current demand.

9. Does the valuation account for the property's specific condition and documentation?

Two units in the same building can be valued very differently if one has clean, transferable title and the other has unresolved paperwork, unpaid association dues, or an unauthorized renovation. Ask whether the valuer factored in the state of the title and any outstanding obligations, since these affect not just value but how quickly a sale can close at all.

10. What happens if you disagree with the number?

If a bank's appraisal comes in lower than expected, find out whether there's a process to request a second appraisal or submit additional comparable sales for consideration. If an agent's suggested price feels off, ask them to walk you through their reasoning property by property rather than accepting a single round figure. A valuation is a starting point for a conversation, not a verdict you're stuck with.

Putting it together

None of these questions require you to become an appraisal expert overnight. They're really about making sure the number in front of you was built on solid, current, relevant information — and that you understand what it was built for in the first place. A little skepticism at this stage, whether you're buying, selling, refinancing, or just curious what your property is worth, tends to save far more trouble than it costs.