Appraisal Report (Prepared by USC REM Students)

2015
APPRAISAL REPORT
4th
Year Real Estate Management
Students:
Arengo, Manilyn Rose O.
Billones, Suzanne Rafaela G.
Eregil, Mario A.
Gantalao, Alene D.
Vapor, Maria Gretchen M.
PreparedFor : Ramon C. Marfori
REM PIONEERS APPRAISALFIRM
M. Roa Street
Barangay Capitol
CebuCity
Philippines
Member of:
Philippine Association
of Realty Appraisers (PARA), Inc.
Website: appraisers.ph

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REM PIONEERSAPPRAISALFIRM
FOR CLASSPROJECTPURPOSES ONLY
Disclaimer: Attained position,education &achievementindicated are fictitious
APPRAISAL SUMMARY
Prepared For Ramon C. Marfori
Location M. Roa Street Barangay Capitol Cebu City
Date of Appraisal September 12, 2015
Purpose For possible sale
Interest Valued Fee Simple
TCT Number 107-2011004219
107-2011004218
107-2011004215
107-2011004214
Register of Deeds Cebu City
Property Owner Ramon C. Marfori
Land Area 1,200 sqm
Lot Identification Lot No. 3, Block No. 29
Lot No. 4, Block No. 29
Shape Rectangular– Regular
Topography Flat
Brief Description The property is a parcel of land – commercial lot – currently
vacant. It is easily accessible from the Osmeña Boulevard main
road bounded Southeast by road lot 33-A, PCS 565 F. Ramos Ext.
St. and road lot 26-B, PCS 565 Gov. M. Roa Street in the
Northwest. In the Southwest, it is bounded by Lots 1 and 2 Block
29 FLS – 1544-D and Lot 7 & 8 Block 29 FLS 1544-D in the
Northeast. Coordinates:1020’43.67”N, 12354’13.22”E,
1018’37.82”S, 12352’5.30”W.
Highest and Best Use Commercial
Basis of Valuation The valuation is based on market value which is the estimated
amount for which a property should exchange on the date of
valuation between a willing buyer and a willing seller in an arm’s
length transaction after proper marketing, wherein the parties
has acted knowledgeably, prudently and without compulsion.
Market Value Php 50,438,000.00
Certification This certifies that we have inspected the property described
above and believe to the best of our knowledge that the valuation
is the market value of the property as of the date of the appraisal.

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19 September 2015
Mr. Ramon C, Marfori
Property Owner
369 Sta. Catalina St.,
Carcar Cebu, Philippines
Subject: Appraisal of Property
Dear Mr. Marfori:
In fulfillment with our agreement, we are delighted to present our valuation report on the
opinion of the market value of a certain property located at M. Roa Street, Barangay Capitol
Cebu City Philippines appraised as of 12 September 2015. The report includes my value
conclusion along with supporting data and reasoning that constitutes the basis of our
opinion.
Our valuation is made based on the market value defined as: “the estimated amount for
which a property should exchange on the date of valuation between a willing buyer
and a willing seller in an arm’s-length transaction after proper marketing wherein the
parties had each acted knowledgeably, prudently and without compulsion.”
The value opinion reported is qualified by certain definitions, limiting conditions and
disclaimers, set forth on this report. With this analysis, we developed an opinion for the
Market Value, as of 12 September 2015, isFifty Million Four Hundred Thirty-Eight
Thousand Pesos (Php 50,348,000).
Should you have any questions concerning the report, please contact REM Pioneers
Appraisal Firm at (+032)888-8888.
Respectfully Yours,
Mario A. Eregil Jr., REB, REA
Certified Property Valuer
Lic. No.: 39810
RAMON C. MARFORI APPRAISAL REPORT
M. Roa Street Barangay Capitol Cebu Ctiy 12 September 2015

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THE PROPERTY
The property bears the postal address Lot No. 2 to 6 Block No. 29 M. Roa Street,
Barangay Capitol Cebu City. The property is composed of 4 parcels of land – commercial lot
– currently vacant. It is easily accessible from the Osmeña Boulevard main road bounded
Southeast by road lot 33-A, PCS 565 F. Ramos Ext. St. and road lot 26-B, PCS 565 Gov. M.
Roa Street in the Northwest. In the Southwest, it is bounded by Lots 1 and 2 Block 29 FLS –
1544-D and Lot 7 & 8 Block 29 FLS 1544-D in the Northeast. Coordinates: 1020’43.67”N,
12354’13.22”E, 1018’37.82”S, 12352’5.30”W.
Representative photograph of the property

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Location Map of the Property within Barangay Capitol Cebu City
Road map courtesy of Google Earth
Neighborhood
The subject property is a 1,200 sqm commercial vacant lot owned by Mr. Ramon
C.Marfori. It is located at the center of Cebu City along M. Roa Street Barangay Capitol and
just few meters away from major landmarks. It is 50m away fromCebu Doctor’s Hospital,
169m from the Provincial Capitol Building, 106m from the DYHP Broadcasting Station,
764m from Robinsons, 952m from Velez College and 843m from the Redemptorist Church.

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Accessibility
It is easily accessible by way of Osmeña Boulevard connecting from the Fuente
Circle or through Escario Street that connects from either Banawa or Lahug Cebu City.
Public transport such as jeepneys and taxi cabs are available on both roads. On Osmeña
Boulevard to Escario Street, jeepneys with the codes 17B, 14D, 15 passes by.
General vicinity map showing Barangay Capitol, Cebu City Philippines.
Map courtesy of Google
Community Facilities and Utilities
Electric power, water supply and telecommunication facilities are available in the
vicinity. Electricity is powered by Visayan Electric Company (VECO) and Metro Cebu Water
District (MCWD).
Brief Profile ofBarangay Capitol,Cebu City
Geographic Location, Topography, Climate and Soil Type.
Cebu City is classified as the 1st Highly Urbanized Municipality in the province of
Cebu with 80 barangays, one of which is Barangay Capitol located at the Eastern shore of
the Cebu Island. Cebu City’s terrain is relatively flat on the coastal plain and becomes
rolling and hilly at elevations of 40 to 200 meters, then generally rugged and mountainous
at elevation of 200 to almost 800 meters above sea level. The slopes vary from 0 to 60
degrees. Its relatively flat terrain is only approximately 15% of the total land area.
The Cebu Metropolitan Area has what is termed by the Weather Bureau as the third
type of climate in which there is no distinct wet or dry season. There is more rainfall during
the southeast monsoon seasons in the month of September. The summer heat which

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generally comes in March reaches its peak in April and May. Humidity is approximately
77%, decreasing during the summer months and increasing during the rainy days by a few
percent. As per records of the Weather Bureau, the average temperature in Cebu City is
27.4 0C or 81.3 0F
The top soil of Cebu City on the higher elevation is primarily Faraon Clay. It is
residual since it is derived from limestone. The top soil for the lower elevation is primarily
clay loam. It is fertile since it is organic in nature, and it can also retain water very well. The
primary composition of the sub-strait is limestone interspersed with bedrock formation.
Severe erosion has extremely exposed the limestone and rock foundation in some areas.
According to the Bureau of soils, the type of soil common in the different districts of the city
and its environs are Faraon Clay, Mandaue Clay, and silt-loam, Baguio and Bolinao Clay.
These types are responsible for the production of different kinds of vegetables and root
crops, the ever popular Guadalupe mangoes, the much talked about grapes, sugar cane,
corn and other staple products.
Lot Data and Technical Description
Based on the information furnished to us, the land subject of this appraisal consist of
4 parcels of land, containing areas of 297 sqm, 302 sqm, 298 sqm and 303 sqm totaling to
1,200 sqm, more or less, technically defined as Lot Nos. 5,6,4,3 Block No. 29, situated along
M. Roa Street, Barangay Capitol Cebu City. Below are the 4 Parcels’ technical descriptions:
1. Lot No. 4 Block No. 29 of the subdivision plan FLS-1544-D, sheet No. 3being a portion
of Lot No. 850 of the Banilad Estate G.L.R.O. Record No. 5988 situated in the City of
Cebu, island of Cebu. Bounded on the NE by Lot. No. 3 Block No. 29 of the subdivision
plan, on the SE by Lot No. 1 Block No. 29 of the subdivision plan, on the SW by road Lot
No. 26-B on plan PCS-565 and on the NW by Lot No. 5, Block No. 29 of the subdivision
plan. Beginning at a point marked “1” on plan being N. 14DEG 18’E, 889.86M more or
less from mon “C” of the Banilad Estate.
2. Lot No. 5 Block No. 29 of the subdivision plan FLS-1544-D, sheet No. 3 being a portion

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Cebu, island of Cebu. Bounded on the NE by Lot. No. 6 Block No. 29 of the subdivision
plan, on the SE by Lot No. 4 Block No. 29 of the subdivision plan, on the SW by road Lot
No. 26-B on plan PCS-565 and on the NW by Lot No. 8, Block No. 29 of the subdivision
plan. Beginning at a point marked “1” on plan being N. 23DEG 00’E,91166M more or
less from mon “C” of the Banilad Estate.
3. Lot No. 3 Block No. 29 of the subdivision plan FLS-1544-D, sheet No. 3 being a portion
Cebu, island of Cebu. Bounded on the NE by Lot. No. 33-A on plan PCS-565, on the SE by
Lot No. 2 Block No. 29 of the subdivision plan, on the SW by road Lot No. 4 Block No. 29
of the subdivision plan; and on the NW by Lot No. 6 Block No. 29 of the subdivision plan.
Beginning at a point marked “1” on plan being N. 24DEG 18’E,889.86M more or less
from mon “C” of the Banilad Estate.
4. Lot No. 6Block No. 29 of the subdivision plan FLS-1544-D, sheet No. 3 being a portion
Cebu, island of Cebu. Bounded on the NE by Lot. No. 33-A on plan PCS-565, on the SE by
Lot No. 3 Block No. 29 of the subdivision plan, on the SW by road Lot No. 5 Block No. 29
of the subdivision plan; and on the NW by Lot No. 7 Block No. 29 of the subdivision plan.
Beginning at a point marked “1” on plan being N. 23DEG 00’E,91156Mmore or less from
mon “C” of the Banilad Estate.
These 4 parcels of land are owned by Ramon C. Marfori, of legal age, married to Pilar
S. Marfori, Filipino Citizen living at 369 Sta. Catalina St., Carcar Cebu and Gregorio C.
Marfori, of legal age, married to Margaret Ann Weis, American Citizen living at
Sykesville Baltimore, Maryland U.S.A.
SITE

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Highest and Best Use
Real estate is valued in terms of its "Highest and Best Use". The highest and best use
of the land or site, if vacant and available for use, may be different from the highest and
best use of the improved property. This will be true when the improvement is not an
appropriate use and yet makes a contribution to total property value in excess of the value
of the site. Considering the property’s size, shape, topography, current zoning classification
and the prevailing land uses and trend of development in the area, in our opinion, that a
commercial usewould represent the highest and best use of the site as though vacant.
ValuationMethodology
The purpose of this appraisal is to estimate the Market Value of the property, as of
the date of inspection, 12 September 2015, applying the valuation of the Property by the
use of the Market Data (or Sales Comparison) Approach.
In valuing real property, the Market Data (or Sales Comparison) Approach which
is the most common technique used for valuation, and is the most preferred method when
comparable sales are available, the sales of similar property or parcels of land are analyzed,
compared, and adjusted to provide a value indication for the property being appraised. The
comparison process is based on an analysis of the similarity or dissimilarity of the
comparables.
The appraiser gathers data on actual sales as well as listings, offers, and renewal
options; and identifies the similarities and differences in the data; ranks the data according
to their relevance; adjusts the sales prices of the comparables to account for the
dissimilarities with the land being appraised; and forms a conclusion as to the most
reasonable and probable market value of the subject property.
The elements of comparison include property rights, financing terms, conditions of
sale (motivation), market conditions (sale date), location, physical characteristics, available
utilities, zoning, and degree of development. The most variable elements of comparison are
the site's physical characteristics, which include its location, size and shape, topography,
access, degree of development and existing use.
Comparable Properties
In the course of our investigation, We looked at a recent sale transaction as well as
current market listings of comparable properties in the area – this includes, among others,
an investigation of the current market, sales and holding prices.

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SUBJECT
PROPERTY
COMPARABLE 1 COMPARABLE
2
COMPARABLE 3
LOCATION M. Roa St.,
Brngy.
Capitol Cebu
City
Capitol Site Cebu
City (few meters
from the road)
Capitol Site
Cebu City
(along the road)
Escario St., Brngy.
Camputhaw Cebu
City
LOT SIZE (in
sqm)
1,200 1,132 387 600
TOTAL PRICE
(in Peso less
5% broker's
fee)
32,262,200 17,100,000 34,825,000
PRICE PER
SQM (in Peso)
28,500 44,186.05 58,041.67
SHAPE Regular Regular Almost Regular Regular
TOPOGRAPHY Flat Flat Flat Sloping
CORNER
INFLUENCE
Not Corner Corner Corner Corner
Adjustments:
Location: 2 -3 4
Lot size -2 -5 -3
Price (per sqm) -6 5 7
Shape 0 1 0
Topography 0 0 2
Corner
Influence
-6 -6 -6
Total
Adjustments
-12% -8% 4%
ADJUSTED
VALUE
25,080 40,651.17 60,363.34
INDICATED
VALUE (Peso
per sqm)
42,031.68
TOTAL
INDICATED
VALUE (In
Peso)
50,438,000.
00

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The ‘Market Data Table’ shown above contains a summary of previously described
adjustments, which provides an indication as to the degree of adjustment made to the
different elements in comparison. A numeric indicator indicates the level of adjustments, in
terms of percentage when compared with the subject property. The use of (-) indicates a
negative adjustment and a (+) indicates a positive adjustment. A downward adjustment (-)
used is made to reflect superior characteristics of the comparable sale/offer, while an
upward adjustment (+) reflects inferior characteristics of the comparable sale/offer.
Finally, a zero (0) is used to confirm similarity between the comparables and the subject or
is used when market information is unavailable or does not support an adjustment for any
particular element of comparison.
Adjustments for conditions of sale reflect the motivations of the buyer and seller.
The conditions under which a parcel of land may be sold could differ from property to
property. Industry practice dictates that listings/asking/offers have a mark-up allowance
of 5% for broker’s fee. In this report, however, we applied an adjustment of -5% for the
total price of the comparables to refer to this allowance.
On the basis, therefore, of our ocular inspection, research, investigation and
analysis, it is our professional opinion that the Current Fair Market Value of subject
property (being a vacant commercial lot) as of September 12, 2015 is:
FIFTY MILLION FOUR HUNDRED THIRTY-EIGHT THOUSAND PESOS ONLY
(Php 50,438,000.00)

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PROFESSIONAL PROFILE
Mr. Eregil Jr. will have extensive experience in multiple sales, lease, appraisal and
transaction consultancy services of properties and investment portfolios on behalf of
financial institutions and property clients such as REMgers Money Bank, RDC Savings Bank
and Colliers-REM International.
He will be one of the country’s leading real estate practitioners and is recognized across the
industry. He will also be the President and past Chairman of the largest national association
of appraisers, the Philippine Association of Realty Appraisers (PARA) and in the future hold
concurrent position as Treasurer of Federation of Real Estate Association.
He completed his undergraduate studies at University of San Carlos with the course in Real
Estate Management. He will be conducting seminar as director in real estate practice
examination review courses and lecturer at 10 REM UniversityCebu City, Philippines.
Mario A. Eregil Jr. is a Certified Property Valuer of REM
Pioneers Appraisal Firm. With a group of appraisal
teams under him namely Suzanne Rafaela G. Billones,
Alene D. Gantalao, Maria Gretchen M. Vapor and Manilyn
Rose O. Arengo. He will be appointed by the Head
Technical Appraisal by the Bureau of Real Estate
Management District 2, Finance Cluster as consultant to
the Technical Assistance team for the National Adviser
Pool Valuation Standards in 2012-2014. He will also sit
on the Bureau of taxes sub technical committee to assist
in the Zonal valuation of Focal Point Districts.
Mario A. Eregil Jr.

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Certified Property Valuer:
Eregil, Mario Jr. A.
Appraiser Team Lead:
Vapor, Maria Gretchen M.
Appraisal Team:
Arengo, Manilyn Rose O.
Billones, Suzanne Rafaela G.
Gantalao, Alene D.

Appraisal Report (Prepared by USC REM Students)

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Appraisal Report (Prepared by USC REM Students)