Appraisal vs assessment in the Philippines: what is the difference?
Market value vs assessed value, who determines each, and why the number on your tax declaration is not what your property is worth.
By Jose Dante Almeda Jr., PRC Licensed Real Estate Appraiser No. 11261 & Broker No. 33179 · Last updated June 2026
In the Philippines, an appraisal is an independent estimate of a property’s market value prepared by a licensed appraiser, while an assessment is the value the local government assigns your property for real property tax. They serve different purposes and are set by different parties — and the assessed value is almost always far lower than the market value.
What is a property appraisal?
An appraisal is a professional opinion of what a property would sell for in the open market, based on inspection, comparable sales, and recognized standards. It is prepared by a PRC-licensed appraiser and used for loans, sales, estate settlement, and court matters — situations where you need a defensible market value.
What is an assessment?
An assessment is done by the local government’s assessor to compute your real property tax (amilyar). The taxable value is the assessed value, which is the fair market value on the tax rolls multiplied by an assessment level set by the LGU. Because it exists for taxation, not for the market, it usually lags well behind actual prices.
Where zonal value fits in
There is a third number: the BIR zonal value, used mainly to compute transfer-related taxes. It is another administrative figure, not a market appraisal. Our guide on zonal value vs fair market value explains how these relate.
Why the numbers differ so much
Assessed and zonal values are updated infrequently and are set conservatively for tax administration. Market value reflects what buyers are actually paying now. In a rising market, the gap between the two can be very large — which is exactly why a tax declaration is not proof of what your property is worth.
Which one do you need?
- Bank or Pag-IBIG loan: a market appraisal.
- Real property tax (amilyar): the LGU assessment.
- Estate, donor’s, or capital gains tax: generally the higher of zonal or assessor’s FMV, often supported by an appraisal.
- Selling or buying: a market appraisal, so you price on evidence.
Who can give you a market appraisal?
Only a PRC-licensed Real Estate Appraiser can produce a market valuation that banks and courts accept. Almeda Realty and Appraisal Services is a licensed real estate appraiser in the Philippines (PRC No. 11261). Not sure which number your situation calls for? See when you need a property appraisal.
Need a true market value, not just a tax figure? Talk to our team or explore our appraisal service.
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