October 30, 2018

To: Eden C. Saunders

Subject: Market Value Appraisal

As requested, we examined and appraised a certain real property owned by

Nestor H. Teñoso , and now wish to submit our report as follows:

It is our understanding that the appraisal is required for valuation purposes, and
we express an opinion of the Market Value of the property as of October 27,
2018.

The scope of the appraisal covers land and improvement located at Brgy.
Baybayin, Rosario, Batangas.

We have personally inspected the property, investigated and researched local

market conditions and have given consideration to the following:

 Extent, character and utility of the property;

 Comparable properties which have been sold recently, plus current

asking prices;

 Zoning and current land usage in the locality; and

 Highest and best use of the property

Based on our investigation and analysis of all relevant factors, it is our opinion
that the Market Value of the property appraised subject to the attached limiting
conditions is:

PHILIPPINE PESOS: TWO MILLION ONE HUNDRED SEVENTY FOUR

THOUSAND FOUR HUNDRED ( Php 2,174,400.00 )

The supporting data, analysis and conclusion upon which this value is based are
contained in the accompanying narrative report.

We hereby certify that we have neither present nor prospective interest in the
property appraised or in the value reported.
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We further certify that the appraisal was performed in accordance with

Philippine Valuation Standards.

Respectfully submitted,

ERWIN L. MAKALINTAL
PRC Lic No.0001555
Valid until August 7,2020

LIMITING CONDITIONS

1. All existing liens and encumbrances, if any, have been disregarded and
the property is appraised as though free, clear and under responsible
ownership.

2. We assume no responsibility for titles to or liabilities against the property

appraised.

3. No relocation survey was made to pinpoint the exact location and

boundaries of the property. It is then assumed that the property as
indicated on plans or as shown by the owner/representative(s) is the
property described in the title furnished to us.

4. Plat Plans and other illustrative data used in the report are presented as
aids in visualizing the property and its environs. Although preparation of
material was based on the best available data, it should not be
considered as a survey nor scaled for size.

5. The appraiser, by reasons of this appraisal is under no obligation to give

testimony or attendance in court or to any governmental agency with
reference to the subject property unless arrangements have been
previously made therefore.

6. We have assumed in our valuation that the property as currently used is

not in contravention of any planning or similar governmental regulations.

7. Erasures on appraisal date and values invalidate this appraisal report.

8. The appraisal was made based on the actual use of the property and did
not consider whether it complies with the government requirements for
a specific business establishment.

9. Neither in whole nor in part of this valuation report, nor any reference
thereto, be included in any document, circular or statement, unless with
our written approval of the form and context in which it will appear.

10. This appraisal report is invalid unless it bears the signature of the
appraiser.
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NARRATIVE REPORT

GENERAL

This report covers an investigation and appraisal of certain real property located
at Brgy, Baybayin, Rosario, Batangas. The appraisal was made for the purpose
of expressing an opinion of the Market Value of the property as of October
27, 2018.

“Market Value” is 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.

In this definition, it is assumed that any transaction shall be based on cash or its
equivalent consideration. The price which the property would fetch if offered for
sale in the open market would undoubtedly be affected should the sale be on
terms whether favorable or unfavorable.

It is also assumed that title to the property is good, marketable, free from liens
and encumbrances, and in fee simple.

The rights appraised in this report are the property rights in fee simple, free and
clear. Fee Simple is defined as a fee without limitation to any class of heirs or
restrictions on transfer of ownership but subject to the limitations of eminent
domain, escheat, police power and taxation.

PROPERTY LOCATION AND IDENTIFICATION

The property appraised bearing address at Brgy.Baybayin, Rosario Batangas. It

is approximately 500 meters away from the national highway. The GPS
Coordinates are Latitude N 13 50.20614 and E121 15.43887 for the Longitude.
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Google Map
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Tax Map

It is approximately 7.5 kilometers from Rosario Town proper .

NEIGHBORHOOD DATA

The property is located in an area where land development is mainly agricultural.

Generally, the streets in the neighborhood are designed to carry light vehicles
and pedestrian traffic loads.

Considered as some of the important improvements within 8 kilometers are:

 Municipal Hall and other government institution

 Municipal Church and Public Market

 Bank of the Philippine Islands, Land Bank, Banco de Oro,

Metrobank and other commercial banks.

 Rosario Police and Fire Station

 SM Hypermart

 Jollibee, Mc Donalds, Mang Inasal

 High School and College

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COMMUNITY FACILITIES AND UTILITIES

Electric power is available at the site. It has its own water supply. There’s a
mobile internet access. Other community facilities like public market, commercial
centers, churches, and private and public schools are likewise accessible within
8 kilometers from the property.
Public transportation is available if you go out on the highway. Jeepney going to
San Juan and tricycle is the means of transportation to the property.
LAND DATA

The land contains an area of 5,311 square meters more or less, technically
identified as follows:

Lot / Survey No. OCT No. Area (sq.m.)

Lot 6426 OCT No. P-39790 5,311

The above Transfer Certificate of Title was issued in favor of Nestor H. Teñoso
by the Registry of Deeds for Batangas.

Physical Characteristics of the Land

Classification Agricultural
Road Frontage Approximately 26.73 meters
Terrain Approximately 50% Flat, 35% Rolling,15%Sloping
Altitude Approximately 140 meters above sea level
Elevation Street level
Shape L- Shape
Actual Use Agricultural
Best Use Agricultural

HIGHEST AND BEST USE

Considering current development trends in the neighborhood and the character

of the property itself, we are of the opinion that “agricultural “ would represent
the highest and best use of the property.
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“Highest and Best Use” is defined as the most probable use of a property
which is physically possible, appropriately justified, legally permissible, financially
feasible, and which results in the highest value of the property being valued.

VALUATION

In arriving at the value of the property, data are sought in the local market
consisting of sales and offerings of similar properties particularly the land and
current prices for construction materials and labor for the improvements. From
these data, value may be developed for the land as a whole. The method that
maybe used is the Sales Comparison Approach.

The value of the land was arrived at using the Sales Comparison Approach. This
comparative approach considers the sales of similar or substitute properties and
related market data, and establishes a value estimate by processes involving
comparison. In general, a property being valued (a subject property) is compared
with sales of similar properties that have been transacted in the market. Listings
and offerings may also be considered.

ON LAND

In valuing the land, records of recent sales and offerings of similar lands are
analyzed and comparison is made for such factors as size, characteristics of the
lot, location, quality and prospective use. We have searched the market for
comparable properties and gathered the following.

LISTINGS:

1. Currently, a property having an area of 25,000 sq.m., more or

less, located at Brgy. Natu,Rosario, Batangas is being offered
for sale through a broker, Erwin Makalintal ( Cel. No 0915-883-
5588 ), at an asking price of Php 6,250,000.00 or an average of
P250 per sq.m.This is approximately 100 meters away from the
high way

2. A property having an area of 40,000 sq.m., more or less, located

in Brgy Tiquiwan, Rosario ,Batangas,was sold thru an agent,
Ryan Sandoval (Cel. No.0928-967-0840 ), at a price of
P12,000,000 or an average of P300 per sq.m. This is along
barangay road.
88

3. Still, a property having an area of approximately 5,000 sq.m.,

more or less, located along the national high way in Baybayin,
Barangay Baybayin, Rosario, Batangas was sold for thru an
agent, Ryan Sandoval (Cel. No.0928-967-0840 ) at an asking
price of Php 3,500,000 or an average price of Php 700 per
sq.m.

Computation of value was arrived at using the grid method as shown below:

GRID ANALYSIS

Total Land Area (sq.m.) 5,331.00

Listing 1 Listing 2 Listing 3

Area (sq.m.) 25,000.00 40,000.00 5,000.00

Asking Price ( per sq.m.) 250.00 300 700.00

Allowance for Discount 5.00% 5.00% 5.00%

Net Price 237.50 285.00 665.00

Adjustment Factors

Location 5.00% -5.00% -5.00%

Size 5.00% 5.00% -5.00%

Productivity 5.00% 5.00% 5.00%

Total Adjustment 15.00% 5.00% -5.00%

Adjusted Value 273.13 299.25 631.75

Weighted Average (%) 35.00% 45.00% 20.00%

Indicated Value 96.00 135.00 126.00 357.00

400.00

Note: Deduct (-) if comparable is superior to the subject property.

Add (+) if comparable is inferior to the subject property.

BIR Zonal value for orchard properties along the barangay road is pegged at Php
130.00 per square meter( Latest Revision Date Oct 26 ,2014 ). See bir.gov.ph,
RDO No. 59, Lipa City
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The appraiser who happens to be a broker as well has a direct listing of raw
lands in Tanauan City (approximately 1 hectare, interior lot, priced at P 400 per
square meter ) and another in Lipa City ( an orchard, approximately 1 hectare,
along barangay road, priced at P500 per sq meter) It is a fact that zonal and
market values in a city is always higher compared to a municipality. This is not
part of the grid analysis since it is not within the vicinity of the subject property
but can be used as a price reference.

CITY/MUNICIPALITY: ROSARIO
D.O. No. 060-2014
BARANGAY: BAYBAYIN Effectivity Date 26-Oct-14
- - -
CLASSI- 3RD REV
STREET/SUBDIVISION V I C I N I T Y FICATION ZV/SQ.M.
- - -
ALL LOTS ALONG NATIONAL
ROAD/ALONG PROVINCIAL CR 700.00
ROAD (NEW)
ALONG NATIONAL RR 650.00
ROAD/ALONG PROVINCIAL
ROAD
ALONG BARABGAY ROAD RR 300.00
(NEW)
A1 75.00
A12 130.00
INTERIOR RR 160.00
A1 40.00
A12 65.00

ON IMPROVEMENTS

There is a shanty where the caretaker lives. It is not subject for valuation since it is only
for temporary use.

There is a water tank and pump. Estimated value of both is approximately P50,000.
With due consideration to the foregoing analysis, our findings are summarized as
follows:
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Fruit Bearing Trees

The farm is planted with the following fruit bearing trees 15 durian,50 lanzones,
60 pomelo, 70 rambutan, 2 avocado, 2 santol, 50 coconut,10 mango,2 star apple
3 chico,dalandan and banana. It has around 300 mahogany trees ( size of a leg
of a man ) as its perimeter fence. There are also 3 acacia trees and 25 narra
trees as claimed by the owner. Owner claims that the fruit trees has an income of
P100,000 per year.

Note: The acceptable standard is to use the sales comparison approach

compared to income approach.

Land ( 5,311 square meters x P 400) P 2,124,400

Improvements 50,000
Total P 2,174,400

It is our opinion that TWO MILLION ONE HUNDRED SEVENTY FOUR THOUSAND
FOUR HUNDRED PESOS ( Php 2,174,400.00 ) represents the Market Value of the
property as of October 27, 2018.
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Pictures of the Property

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Documents Presented

Original Certificate of Title

Page 1
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Page 2
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Tax Declaration
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Sketch Plan
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Tax Map