ZONAL REVISION SCHEDULE

Okay, so zonal values will be updated. What now? Here’s a to-do list for brokers.

1. Check if the RDO revising ZVs covers any of the properties you're handling. Revisit the selling price to see if the existing selling price will be below or above the new ZVs. If they're below the ZV, recompute the Seller's net proceeds and check if they're still within their target.

The last thing you'd want to happen is for the Seller to accept an offer and later back out from the deal because their target proceeds wouldn't be achieved.

Typically, sellers want to reprice their properties to match new ZVs. They think that selling below the ZV is akin to selling at a loss. However, ZVs have become less representative of market prices after recent revisions, with ZVs now higher than actual DONE prices.

I suggest convincing sellers to recompute the selling price based on the ORIGINAL target net proceeds. Assuming they agree, this will result in minimal increases in the selling price.

2. If you have ongoing sale transactions where the seller's net proceeds will be affected by the revision, here are two options sellers/buyers could take:

a. Agree on who will be shouldering the increase in taxes.

b. Before the ZV revision's effectivity date, execute a Contract to Sell, have the buyer pay some downpayment (e.g., 10%), and pay the capital gains on the downpayment. This way, you'll be able to "save" the old ZV. It's the same concept as when developers sell pre-selling properties. The BIR uses the existing ZVs when the CTS (not the Deed of Absolute Sale) is executed.