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The Mass Appraisal Guidebook:

Schedule of Market Values Reform Program for LGUs

Engr. Ramon R. Albeus

Assessor, Naga City

Background

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One of the reforms instituted by the Department of

Finance through the BLGF & the NTRC, with the
technical assistance from the World Bank and the
AusAID, is the development of

The Mass Appraisal Guide Book: The

SMV Reform Program for the LGUs.

Mass Appraisal

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as a tool is used for appraising multiple properties

in a given date by a systematic and uniform
application of appraisal methods and techniques,
employing common data that allow for statistical
review and analysis of results.

The Guidebook: Features

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A Supplement to the Manual on Real Property

Appraisal and Assessment Operations issued by DOF
under LAR NO. 01-04;
Complements the Philippine Valuation Standards
(PVS)

The Guidebook: Features

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and Taxation

Focuses on valuation principles, methodology, and

practices absorbed and taken from the existing
assessors manual; hence, can be use by the
assessors/appraisers in the valuation of property
for LGUs taxation purposes.
Reflects the result of the processes undertaken
within the partner-LGUs of NAGA, ILOILO, and
MANDAUE.

The Guidebook: Objectives

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Equipt Local Assessors, appraisers and the PVO staff

of the content of the Guidebook;
Use as a tool in the preparation of LGUs SMV;

Appreciate the use of the Generally Accepted

Principles of Valuation and the International
Valuation Standards.

The Guidebook: Status

Final Draft and being readied for printing;
Training of Trainers already conducted
Core Trainors (May 31 June 4)
National Trainors (June 7 12)

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The Guidebook: Contents

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CHAPTER 1: General Valuation Concepts & Principles

Discusses the various concepts and principles on
property valuation which are generally accepted and
recognized by appraisers, valuers and assessors
throughout the world;
Fundamental principles of valuation are incorporated
in this chapter for uniformity and consistency in the
practice of valuation.

The Guidebook: Contents

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CHAPTER 2: Valuation Approaches, Techniques &

Application
Discusses various methods of valuation & concepts as
applied in a mass appraisal setting;
Three valuation approaches recognized in the
valuation process (Sales Comparison or Market Data,
Income Capitalization, and Cost Approach);
Different Applications of techniques were introduce
to better appreciation of the three approaches.

The Guidebook: Contents

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CHAPTER 3: Mass Appraisal: SMV Development

Process
Discusses the principles of mass appraisal as applied
in the development of the SMV. This chapter set out
the four stages of SMV Development, namely;
Preparatory Stage
Data Collection Stage
Data Analysis Stage, and
Valuation Testing Stage

The Guidebook: Contents

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CHAPTER 4: Preparation of the SMV

The SMV provides the matrix and other parameters
used in the appraisal and assessment of real
properties for taxation purposes. It is from this
schedule that land and building component of the
total property value is determined and transferred to
the FAAS.
Discusses principles of lands, buildings and
structures. It also discusses how LGUs SMV is being
developed.

The Guidebook: Contents

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CHAPTER 5: Plant, Machinery and Equipment

Discusses the coverage of machinery for taxation

purposes, it also provide appropriate methodology
and techniques for its valuation.
Includes Formulas for establishing Replacement Cost
(New) and Reproduction Cost, Indexing Technique,
Re-pricing Technique, and Depreciation Allowance.

The Guidebook: Contents

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CHAPTER 6: Special Purpose Properties

Property that is rarely, if ever, sold in the market
except by way of sale of the business or entity of
which it is part, due to uniqueness arising from its
specialized nature and design, its configuration, size,
location, or otherwise.

Includes discussion on the different types of

Specialized Property; Suggested Valuation
Approaches and Applications.

The Guidebook: Contents

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CHAPTER 7: Valuation Testing

It discusses statistical review and analysis of results

to determine the level of accuracy and degree of
uniformity achieved in the appraisal process.
Accuracy and Reliability of Values

Testing Reliability of Values

The Guidebook: Contents

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Addendum:
Glossary of Terms More than 100 words and terms used in
valuation were included;

Appendices:
Sample SMV Ordinance
Sample Data Collection Sheets Res/Com.-Indl.
Field Verification and Interview
Discussion on the VDIS
Others

Whats Next?

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Property Valuation
and Taxation

July 2010 Printing of the Mass Appraisal Guide Book

August2010 to March2011 - Roll-Out of the Guide
Book to selected LGUs based on given criteria
April 2011 and beyond ???

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Thank You!