Appraised vs. Market vs. Zonal Value: What everyone should know?

Appraised, Market, and Zonal Values: A guide in Real Estate Decisions

When it comes to real estate, everyone wants to know one thing: How much is it worth? But behind every price tag is a story, and at PRIME Philippines, we’re in the business of telling that story right.

Not all values are created equal. You might hear terms like appraised value, market value, or zonal value tossed around in the real estate sector as if they mean the same thing but here’s the truth. Each one speaks a different language. And understanding them isn’t just helpful, it’s powerful in real estate decisions.

Appraised value refers to the professional estimate of a property’s worth, typically determined by a licensed appraiser. It is often used for lending or investment purposes. Basically, an appraised value is an evaluation of a property's value based on a given point in time. While the appraiser is usually chosen by the lender or property owner, the appraisal is paid for by the borrower.

Market value is the price a property is most likely to fetch in an open and competitive market. This value reflects on the current demand and supply dynamics of the market. Essentially, market value is the price of the asset or property that is based on the agreed price of the seller and buyer that would likely be sold in the market.

Zonal value is set by the Bureau of Internal Revenue (BIR) and primarily serves as the basis for computing property-related taxes. This is the value placed on real estate properties for taxation purposes and it is the basis of our Bureau of Internal Revenue (BIR).

At Prime Philippine, Values mean Vision

For PRIME Philippines, it is essential to distinguish between appraised value, market value, and zonal value when advising clients and conducting property studies.  

This allows the company to provide more accurate investment recommendations, reduce risks, and help clients make informed decisions on acquisition, development, or divestment. Ultimately, the ability to interpret and reconcile these values strengthens PRIME’s role as a trusted real estate advisor.

Aligning appraised values with actual market behavior and ensuring compliance with zonal values for taxation, PRIME equips clients with a well-rounded perspective on their properties.