Appraisal and Assessment in the Government

Sector by Michelle M. Esperal

PRELIM EXAMINATION

Completed on Wednesday, 18 October 2023, 6:32 PM

Time taken 1 hour 2 mins
Grade 100.00 out of 100.00
Question 1
Choose the best answer.
To determine market values, the assessor must be familiar with all aspects of the local real
estate market True

Before appraising a parcel of property, the assessor determines its market value. True
Assessors who utilize computers are more efficient than those who do it by hand. CAMA
algorithms are used to appraise sales and estimate values for many properties at the same
time. True

Each year, your assessor will need to go through all the properties in the municipality to
determine which assessments need to be changed to keep the roll consistent.
True

A special assessment is used to recoup 90% of the cost of a public project that benefits the
property.
False

A property's market value is the price it would sell for in an open market under normal
conditions. True

The assessor is required by law to attend all public hearings of the Board of Assessment
Review (BAR). The BAR may require that the assessor produce evidence in support of True
preliminary assessments that taxpayers are contesting.
Operating expenses, insurance, maintenance costs, financing terms, and predicted earnings
are all considered. This is referred to as the income approach True

. Once the Board of Assessment Review (BAR) has acted on assessment complaints and
ordered necessary revisions, the preliminary assessment roll is considered final.
True
The assessor is obligated to keep assessments at a constant proportion of market value
each year. The assessor takes an oath to that effect while verifying the preliminary True
assessment roll, which is the document that contains each property assessment.
All real property, sometimes referred to as real estate, is valued. Real property includes
land and any permanent structures attached to it. True

The Local Governments Unit or LGU in the Philippines has the jurisdiction to produce
revenue sources according to Republic Act 7160 or the Local Government Code, which
was established in 2001 False

Assessment records are updated, and any exceptional circumstances affecting the transfer
are also confirmed. At the real estate closing, the results are reported on form RP-5217.
This form is corrected by the assessor. True

Aside from mortgage and association fees, one of a homeowner's obligations is to pay the
real estate or real property tax regularly.
True

The assessor verifies the correctness of every real estate transfer, including the buyer,
seller, and transaction price True

The assessment roll shows both assessments and any appropriate exemptions True
The assessor is a local government official who determines the value of real estate within
the boundaries of a city, town, or village True

The Real Property System also incorporates computer-assisted mass appraisal applications
for estimating value and updating assessments True

The BAR makes its conclusions and orders any necessary adjustments to the assessment
roll before it becomes final after meeting in secret without the assessor. True

Real property includes houses, gas stations, office buildings, vacant land, hotels, shopping
malls, saleable natural resources (oil, gas, timber), farms, apartment complexes, industries,
restaurants, and, in most situations, mobile homes. True

The real estate tax in Metro Manila is one percent, whereas it is two percent in the
provinces.
False

The assessment level might be as little as 5%, as much as 20%, as little as 50%, or as much
as 100%. True
 The ad valorem tax on idle lands is set at 15% of the assessed value of real property tax.
False

The Real Estate Tax is an international government tax levied on commodities such as
land, buildings, land or building renovations, and machinery False

The physical description (or inventory) and estimated value of each parcel must be kept up
to date. True

Question 2
Clean up messes and clutter. A clean home that’s free of clutter
makes rooms look bigger and more spacious, allows the appraiser to
better view the features of your home, and shows that you take care of
the home. True

Inspect the interior and exterior of the home. This should

include your major systems and appliances and note any areas of
concern. If something needs to be repaired or updated, get that done
before the appraisal. True

Before a lender agrees to lend large quantities of money, they analyze

several papers and statements, one of which is an appraisal.
True

The real tax rates are dependent on the location of the property in the
Philippines. The real property tax rate in Metro Manila is12% of the
assessed value of the property, whereas the provincial rate is 2%. False

Some older homes were built using outmoded materials that are now
considered unsafe. This contains asbestos tile and insulation, as well as
lead paint. Even though the materials are safe, if they haven't been
upgraded, your home may be less energy-efficient, lowering its value. True
This is particularly true with older windows and doors.

When you find a house, you love and the seller accepts your offer, the True
sale is "conditional" until all conditions (if any) are met. Financing is
one of the most typical situations.
 Land, buildings, improvements to land and/or buildings, and machinery
are all examples of taxable property.
True

As a result, lenders often need properties to be evaluated by an assigned

appraiser who determines the property's worth based on current market
circumstances. If the appraisal comes in lower than what you agreed to
pay for the house, your mortgage will most likely be refused. True

In addition to the extraordinary real estate tax, local governments pay

an extra tax to fund the Special Education Fund. The assessed value of
the real estate is increased by 1%, with the earnings going to the local
education budget. False

A real property tax is a sort of tax levied by the local government on

real estate that property owners are required to pay. True

Work with your agent. If you have concerns, talk to your real estate
agent, and see if there’s anything else you or they can do. True

In 1881, Republic Act 7160, often known as the Local Government

Code, was approved. This act grants local governments the authority to
generate and collect their funds to pay for public expenditures. Real
property taxes are one of these revenue streams. False

Builders have discovered new methods, technologies, and even

materials that may make the home stronger, more energy-efficient,
safer, and hence more valuable over time. True

Improve your curb appeal. It’s the first thing the appraiser will see
when they arrive at your home, so start on the right foot. It can also
indicate that you’ve maintained the rest of the home as well, so if your
exterior looks are a little ragged, make sure you clean it up. True e
Securing a mortgage is an important component of the home-buying
process. However, getting a mortgage is easier said than done.
True

Do your research. This should include the current market conditions

and the sale price of similar homes in your area that have recently sold,
which are referred to as comps. True

Provide proof of upgrades. If you’ve made upgrades to your home,

show proof. Create a file that details all these improvements and
includes sales receipts. True

Being a property owner entails a never-ending list of responsibilities. True

A unique or remote home might be difficult to evaluate due to a scarcity
of comparables. Because rural locations have fewer residences, it may
be difficult to identify many properties that have sold in the area. These
estimates are less precise and could mean the home is undervalued. True

Anyone who owns real estate or whose name appears on titles and
certificates of ownership in the Philippines must exempted to pay land
taxes, whether the property is for residential or commercial use. Answer
20Choose...FalseTrue

At this phase, the lender evaluates all financial records to ensure that the
borrower is eligible for a house loan in the amount requested. And not Answer
only must the borrower qualify, but so must the property. 21Choose...FalseTrue

Several factors might devalue a home and cause your appraisal to be

lower than you thought. You may be able to avoid the reduced
valuation if you are aware of some of the factors that might harm a Answer
property evaluation. 22Choose...FalseTrue

Updating appliances or key systems, such as plumbing, electrical, or

HVAC, may be costly, so if yours are outdated, the entire value of the
property may suffer. And if the inside hasn't been updated in decades, it Answer
may not appeal to purchasers, causing the value to fall. 23Choose...FalseTrue

Outdated fixtures like these may also indicate that the home has not Answer
been properly maintained and that further problems lay beneath.
24Choose...FalseTrue

Make sure your decor and home improvements aren’t too

personalized. You’ll want potential buyers to be able to picture
themselves in the home and the appraiser will know when they’re Answer
unable to do that. 25Choose...FalseTrue