Methodology
Every step of the arithmetic, stated in full
Calculation version npi-engine-1.2.1. The engine is a set of pure typed functions covered by automated tests. No language model performs arithmetic.
1. Area basis
Vacant land, commercial land and farms are valued per square metre of land area. Condominium units are valued per square metre of floor area. Houses, townhouses and other built properties are valued per square metre of floor area and additionally require a compatible land area, so a comparable cannot treat the floors as free.
2. Screening
Each record must pass all of the following before it can count:
- Same property type as the subject.
- A positive exact total price in PHP. Monthly payments, downpayments and per square metre only figures are refused.
- Positive areas on the required basis, within a size ratio of 0.5 to 2.0 of the subject, and for built property a land ratio of 0.4 to 2.5.
- No transaction or listing date after the valuation date, and no impossible calendar date.
- Location identity: the same city and province, or an explicit labelled inclusion override with a written rationale, which also lowers the weight.
- Not a duplicate by canonical source URL or by a project, area and price fingerprint.
- Not a government reference or research link, which are context rather than comparables.
- Not a research candidate awaiting your confirmation of type, location, price and area.
Every rejection is kept with its reason and printed in the report.
3. Homogeneous pool selection
The estimator uses one kind of evidence at a time. It needs at least 3 reviewer verified completed sales, or at least 3 asking comparables, which include listings and bank asset asking prices. One or two verified sales alongside several listings produce a listing based indication, not a sales based one. Asking and sold statistics are never pooled into a single market figure.
4. Weighting
Each accepted comparable carries a weight built from verification status, evidence kind, geographic closeness, size similarity and recency. Missing dates and missing coordinates reduce the weight rather than being read as zero days or zero distance. Analyst adjustments are applied only when you enter them with a rationale, are bounded, and can never make a price zero or negative. No automatic premium is added for corners, views or floor level.
5. Central value and range
The central value is the weighted median adjusted unit price multiplied by the subject area on the correct basis. The low and high figures come from the observed dispersion of the pool with a minimum spread applied, at least plus or minus 15 percent for asking only evidence. This is an indicative range, not a statistical confidence interval. Rounding is recorded in the audit.
Your own asking price is never an input. It can only be displayed next to a finished range for comparison.
6. Optional income scenario
Annual net operating income equals monthly rent times twelve, reduced by your vacancy percentage, plus other annual income, minus annual operating expenses. Value equals that income divided by the capitalisation rate you supply. This is a perpetuity calculation that assumes income continues at a stabilised level, so it does not model a finite lease, and an expired lease is not treated as secured rent. Missing vacancy or expense figures are reported as assumptions rather than silently treated as zero. The income figure is presented next to the comparable figure, never added to it.
7. Limits
Declared title or legal issues place the report in a professional review state. Taxation references are never multiplied into a market value. No historical trend is produced, because no licensed transaction history is connected to this tool.
Status of this output