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' ' ADDENDUM
<br /> Borrower Greqory and Laura Wagener File No.: 112881J
<br /> Property Address 1120 Cox Farm Road Case No.:
<br /> City Orono State: MN Zip: 55356
<br /> Lender: Bank VI
<br /> Twelve Month Listing History of Subject Property
<br /> Continued from Twelve Month Listing History of Subject Property: 3/5/2011 list price was reduced to $595,000.
<br /> On 7/19/2011 it was pending, and on 8/17/2011 it was sold for$555,000.
<br /> Neighborhood Market Conditions
<br /> Current 30 year fixed conventional mortgage interest rates in the Twin Cities metro area are approximately 4.2%. Sellers of
<br /> sing�e family homes in Orono report receiving approximately 87.2% of final list price over the last 12 months,with average
<br /> marketing time 146 days, and cumulative marketing time, 247 days. MLS reported 125 single family homes sold in Orono
<br /> over the last 12 months, for a monthly 10.4 sales average.There are currently 133 listings in Orono, for a 12.8 month supply.
<br /> Twin Cities MLS states that a balanced market has a five to six month supply, so this market currently has an oversupply.
<br /> MLS gives the single family sales statistics for the last year in Orono, in three month increments, as follows:
<br /> 0-3 months: 40 sales, average sales price $1,097,376
<br /> 4-6 months: 20 sales, average sales price$724,995
<br /> 7-9 months: 24 sales, average sales price$604,610
<br /> 10-12 months: 41 sales, average sales price$732,557
<br /> 12-15 months: 34 sales, average sales price$777,443
<br /> These numbers show a fairly stable market until the most recent quarter, when there was a larger sales volume, and also
<br /> some higher-valued homes sold, resulting in a large average sales price. Three of the quarters are very similar, so no time
<br /> adjustments will be made in the sales comparison analysis.
<br /> Condition of the Property
<br /> Continued from Condition of the Property: Homeowners are currently installing an invisible fence outside. They
<br /> have also extended a privacy fence between the county road and the home. They are painting the interior, and
<br /> have painted the deck and porch.
<br /> Comments on Sales Comparison
<br /> All three sales are located in Orono, and have sold in the last six months.
<br /> Sale 1 was sold as new construction, although it was built n 2007. It was lender-owned. It is in a small, new housing
<br /> subdivision within an older established neighborhood in Long Lake, but with an Orono mailing address. It is on a quiet cul de
<br /> sac, but with a much sma�ler site. It is larger,with an additional bath above grade. Quality is similar to subject. It has a deck
<br /> but no porch, and basement is unfinished.
<br /> Sale 2 is on an acreage site, also in an established neighborhood, but at the end of the road, at a very private entrance. It is
<br /> wooded, and has a creek running through it, and backs of the Luce Line Trail. It is a larger home, but with no basement
<br /> finishing.
<br /> Sale 3 is in a new subdivision of similar high-quality homes, Keller Estates. It has a 2/3 acre site, and faces other similar
<br /> quality homes. It is larger than the subject, and has basement finishing. Custom cabinets are alder. There is a finished
<br /> bonus room.
<br /> Sale 3 has the largest net adjustment, so greater emphasis is placed on sales 1 and 2. Consideration was also given to
<br /> comparables 4. Comparable 4 is an older sale, and comparable 5 is a current listing. Since sale 2 is on a acreage site,
<br /> greatest emphasis is placed on it.
<br /> Final Reconciliation
<br /> The intended user of this appraisal report is the client. The intended use is to evaluate the property that is the subject of this
<br /> appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting
<br /> requirements of this appraisal report form, and Definition of Market Value.
<br /> As of the date of this report, I, Julie E Bjorklund, SRA, have completed the requirements under the continuing education
<br /> program of the Appraisal Institute.
<br /> I have appraised this property previously in the last three years.
<br /> All three approaches to value were considered in this appraisal. Subject is not an income producing property, so income
<br /> approach was not applied. The cost approach was developed as a check on value.The sales comparison approach best
<br /> represents the actions of typical buyers and sellers in this market.
<br /> I viewed this property on 8/30/2011, accompanied by Laura Wagener. I originally wrote this appraisal for the lender as an
<br /> exterior only short form appraisal.They have now requested a regular summary appraisal report. This report was signed on
<br /> September 15, 2011, but the effective date of the appraisal is August 30, 2011.
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