Agenda - 06-07-2011 - 5p - Laserfiche WebLink

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9 DEFINITION OF MARKET VALUE: The most probable price which a property shwid bdng in a competltive and open marlret under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knawledgeabty and assuming the pdce is not affected by undue stimulus. ]mplictt in this definition is the crosumnrafion of a sale as of a. specified date and the passing of title from sects to buyer under cond'Nars whereby: (1) buys and seder are typically motivated; (2) both parties are wed informed a w~ advised, and each acting in what he considers his own best irderest; (3) a reasonable time is allowed for exposure in tl>e opar market; (4) payment is rtw~ in terms of cash in U.S. dollars a in terms of financial artangemerds canparable thereto; and (5) ttre price represerds the normal consideratiar !a the property sold uroffanted by specal s creative fmanciaj or sales concessions' grarded by arryrone assocaated with the sale. ' Adjrrstrnerds to the comparables must be made fs special a creative finanang or sales concessions. No arfjustmerrts are necessary for those costs wldch are normally paid by sellers as a result of tradition s law in a market area; these costs are readity idenfiflabie since the seller pays these costs in virtually ad sales transactlons. Special or creatlve financing adjustments ran ~ made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the finanang a concession but the dollar arrwunt of arty arrjusbrread should approximate the markets reaction to the financing a concessions based on the appraiser's judgement STATEMENT OF LIMITING CONDiTfONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal naWre that affect edher the property being appraised or the title to d. The appraiser assumes that the title is good and marketable and, therefore, mTl not render any opinions about the title. The property is appraised on the basis ~ tt being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimerrsiorrs of the improvemerts arM the sketch is incWded onty to assist the reader fi the report in vrsualzing the {xoperly arrd understanding the appraiser's determination of its sits. 3. The appraiser has examined the available tbod maps that are provided by the Federal Emergency Managemem Agency (or other data sources) acrd has noted in the appraisal report KrtieBre the sub~ct site is located in an identified Special Rood Hazard Area Because the- appraiser is not a surveys, he or she makes na guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony a appear in court because he or she made an appraisal rk the property in quesbon, unless specific aramlrmeNs to do' so have been made befanehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use arM the improvemeits at thek contributory value. These s~arate valuations of the land and knpmvemeds must n~ be used in conjunction wdh any athe appraisal and are invalid 'd they are so used. 6. The appraiser has noted in the appraisal repel any adverse conditions (such as, needed repairs, depreciation, the presence d hazardous wastes, toxic substances, etc.) observed dudng the inspection of the subject property or that he a she became aware of dudng the normal reseamh involved in perfomdng the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any tiniden s unapparerrt conditons of the property a adverse ernkonmental conditions Including the presence of hazardous wastes, toxic substances, etc.) that would make the property more s less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express s impied, regarding the condition of the property. The appraiser wit rrot be responsible fa any such conditions that do exist ar for any engineedng or testing that might be required Zo discover whether such conditions exist Because the appraiser is not an expert in the field of environmerdal hazards, the appraisal report must not be considered as an erwironmerital assessment of the property. 7. The appraiser obtained the firformation, estimates, and opinions that were expressed in the appraisal report from sources that he a she considers ro be reliable and believes them to be we and correct The appraiser does not assume responsibility fs the accuracy of such items that were famished by other parties. 6. The appraise will not d'~srAose ttie contents at the appraisal report except as provided for in the Uniform StandaNs of Professional Appraisal Practice. 9. The appraiser has based his a her appraisal report and valuation conclusion fs an appraisal that is subject to satisfactory completion, repairs, or atteratlons on the assum~on that completion of the irtiprovemems will be performed in a wodmianlike manner. 10. The appraiser must provide his or her prior wdtten consent before the lendeldient specified in the appraisal report corr. distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations a the firm w8h which the appraiser is associated) to anyone other than the borrovrer, the mortgagee s its successors and assigns; the mortgage insurer, consuttaids; professional appraisal onganirations; arty state a tederady approved flnancial instindion; a arty department, agency, s insWmemafdy of the United States or any state a the District of Columbia; except that the IenderJcilem may distribute the properly descrfption section of the report only m data codedion a reporting service(s) without fiaving to obtain the appraiser's prior written conserd. The appraiser's wr8fen consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, pubic relations, news, sales, or other media. Freddie Mac Fann 439 6-93 Page 1 of 2 Fannie Mae Forth tD048 6-93 Dorsett Appraisals & Consuttinig Farm ACR -'TOTAL for Windows" ~pralsal software by a la made, inc. - i-800-ALAMODE