1.
Preparatory Stage
1.1. Identification of the Date of Valuation
1.2. Preparation of Work Plan
1.2.1. Development of Valuation Models
1.2.1.1. Cost Approach
1.2.1.1.1. Current Construction Costs
1.2.1.1.2. Depreciation Types
1.2.1.2. Sales Comparison Approach
1.2.1.2.1. Collection of sufficient current sales records in the area
1.2.1.2.2. Interview of buyers and sellers in the area
1.2.1.3. Income Approach
1.2.1.3.1. Gathering of reliable income and expense data as well as
overall rates and required rates of return
1.2.1.4. For Special Purpose Properties
1.3. Budget Preparation
1.4. Team Organization
1.4.1. Assign roles and responsibilities
1.4.1.1. Team 1- Data Gathering Team
1.4.1.2. Team 2- Database and Value Analysis Team
1.4.2. Provide training on mass appraisal techniques and tools
1.5. Establishment of the Base Valuation Date
2. Data Collection Stage
2.1. Identification of Market Area
2.1.1. Residential Market Area
2.1.1.1. First Class Residential Lands
2.1.1.2. Second Class Residential Lands
2.1.1.3. Third Class Residential Lands
2.1.1.4. Fourth Class Residential Lands
2.1.1.5. Fifth Class Residential Lands
2.1.2. Commercial Market Area
2.1.2.1. First Class Commercial Lands
2.1.2.2. Second Class Commercial Lands
2.1.2.3. Third Class Commercial Lands
2.1.2.4. Fourth Class Commercial Lands
2.1.3. Agricultural Market Area
2.1.4. Industrial Market Area
2.1.4.1. First Class Industrial Land
2.1.4.2. Second Class Industrial Land
2.1.4.3. Third Class Industrial Land
2.1.5. Special Market Area
2.2. Establishment of Database Inventory
2.2.1. Primary Data
2.2.1.1. Sources of Primary Data
2.2.1.1.1. Information from Registry of Deeds and Notary Publics
2.2.1.1.2. Assessor’s Office
2.2.1.1.3. Banks
2.2.1.1.4. Buyers and Sellers
2.2.1.1.5. Sales Agents, Brokers and Developers
2.2.1.2. Cost Data
2.2.1.3. Income Data
2.2.1.3.1. Rent
2.2.1.3.2. Income From Yield
2.2.2. Secondary Data
2.2.2.1. Opinions
2.3. Examination of Transaction Database/Inventory
2.4. Review of Sales Prior to Inspection
2.5. Investigation of Properties
2.5.1. Conduct of Field Inspection and Verification
2.5.1.1. Locate and review each FAAS (Field Appraisal and
Assessment Sheet)
2.5.1.2. Inspect the Property
2.5.1.2.1. Land
2.5.1.2.2. Building
2.5.1.2.3. Machinery
2.6. Collection, Validation and Filtering of Data
2.6.1. Collection Format
2.6.1.1. Data Collection Sheet (DCS)
2.6.2. Sales Data Integrity`
2.6.3. Data Integrity Code
2.6.3.1. 1= Highly Reliable
2.6.3.2. 2= Reliable
2.6.3.3. 3= Guide Only
2.6.3.4. 4= Probable not reliable
2.6.3.5. 5= Known to be unreliable
2.7. Data Entry Into the Valuation Database Information System (VDIS)
3. Data Analysis Stage
3.1. Review/Amend existing sub-market areas
3.2. Analyse Transaction Data
3.3. Process Analysed Data
3.3.1. Determine Typical Base Lot Descriptions
3.3.2. Preliminary Cross-Referencing of Sub- Market Areas
3.3.3. Unit Building Construction Cost Schedule
3.3.4. Cross-referencing of Cost Schedule with Actual New Buildings
3.3.5. Establish Replacement Cost New (RCN)
3.3.6. Review and Analysis of Land and Improvements Sale
3.3.7. Establishment of Depreciation Table
3.3.8. Determination of Value for Other Structures
4. Testing of Schedule of Market Value (SMV)
4.1. Set Interval or Value Ranges
4.2. Create the Working Land Value Map
4.2.1. Maps
4.2.2. Other Visual Representation
4.3. Testing the Developed SMV
4.3.1. One on one Test on Sample Sales
4.3.2. Test on One Sub-market Area versus Another Similar One-Submarket
Area
4.3.3. Statistical Test: Coefficient Dispersion Test
4.4. Checking of Values of Adjoining LGUS
4.5. Adjustments on Developed/Proposed SMV
4.6. Preparation of the Final Draft of SMV
