04-22-1998 Board of Review Packet

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DEFINITION OF MARKET VALUE: The most probable price which a properly should bring in a competitive and open market under all conditions requisite to a tair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not allected by undue stimulus Implicit in this delinition is the consummation ot a sale as of a specilied date and the passing ol title Irom seller to buyer under conditions whereby (1) buyer and seller are typically motivated; (2) both parties are well inlormed or well advised, and each acting in what he considers his own best interest, (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms ol cash in U S. dollars or in terms ol fimincial arrangements comparable thereto, and (5) the pnce represents the normal consideration for the properly sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale •Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result ol tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions Special or creative financing adjustments can be made to the comparable properly 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 ol the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgement. STATEMENT OF LIMITING CONDITIONS AND APPRAISER ’S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: conditions: The appraiser's cerlilication that appears in the appraisal report is subiect to the lollowing 1. The appraiser will not be responsible lor matters oi a legal nature that atlect either the properly being appraised or the tide to it. The appraiser assumes that the title IS good and marketable and. therefore, will rn.. render any opinions about the title. The p:opetly is appraised on the basis ol It being under responsible ownership. 2. The appraiser tias piovided a skefcti in the appraisal report to show approximate dimensions ol the improvements and the sketch is included only to assist the reader ol the report in visualizing the property and understanding the appraiser's determination ol its size. 3 The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (ot other data sources) and has noted in the appraisal report whether the subiect site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, expiess or implied, regiyding this deteiminatiun 4. The appraiser will not give testimony or appear in court because he or she made an appraisal ot the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value ol the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations ol the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6 The appraiser has noted in the appiaisal report any adverse conditions (such as. needed repairs, depiecialion. the presence ot hazardous wastes, toxic substances etc ) observed during the inspection ol the subject property or that he or she became aware ol dunng the normal research involved in perfommg the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge ol any hidden or unapparent conditions ol the property a adverse enviionmental conditions (including the presence ol hazardous wastes, toxic substances, etc ) that would make the prop ;rty i^e or less valuatte. arri has assumed that Iheie are no such condibons and makes no guarantees or warranties, express or implied, regarding the condition ol the property. The aoptaisei will not be lespor.sible lot any such cunditions that do exist or lot any engineenng ot testing that might be required to dscovcr whether such conditions exist Because the appraisei is not an expert in the field ol envitonmenlal h.izaids. liie appraisal report must not be considered as an environmental assessment ot the property. 7 The appraiser obtained the infotmalion. estimates, and opinions that were expressed in the apprasi report from sources that he or she considers to be reliable and believes them to be true and cortecL The appraser does not assume lesponsibility lor the accuracy ol such Hems that weie furnished by other pailies 8 The appraisei will not ifisclose the contents ol the apprasal report except as provided lor in the Ikiiform Slandads ol Professional Apprasal Practice. 9, The appiasei has based las or her apptas^ report and valuation cuiiclusion lor ai appiasal that is subiect to satisfactory completion, repais. or alterations on the assumption that completion ol the improvements wll be peiloimed in a workmanlike mannei 10. The appiaser must provide his or her prior wntten consent before the lender/client specified in the appraisal report can distnbute the appraisal report fincluding conclusions about the property value, the appraiser's identity and prolessioni designations, and references to any prolessioni ap^arsal otgamzalions or the iitm with wtkch the appraiser is associated) to anyone other than the boiiower; the mortgagee or ^ assigns, the i W in^ consultants, professional iwraisal organizations, any stale or ledetally approved tinancial institution, or any department, ag^. or ol the United States ot any stale or the Distnct ol Columbia, except that the lender/client may distribute the property description section repon only to d^ collection or reporting seivice(s) without having to obtain the appraiser's prior written consent. The appraisers wntten consent and be obtained before the appraisal can be conveyed by anyone to the public titfougfi advertising, public relations, news, sales, or ot.»er Freddw Mac Form 439 6-93 Page 1 ol 2 Bit) Warner m • ’ i* • ♦ ■