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DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a compotltlve and open market under all conditions
<br /> requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implied in this
<br /> definAion is the consummation of a sale as of a specified date and the passing of tAle from seller to buyer ender conditions whereby: (1) biryer and seller are
<br /> typically motivated; (2) both parties are well Informed or well advised, and each acting in what he considers his own bast interest (3) a reasonable time is allowed
<br /> for exposure in the open market; (4) payment is made In terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the pricy,
<br /> represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions` granted by anyone associated with
<br /> the sale.
<br /> `Adjustmerrts fo the comparables must be made for special or creative financing or sales concessions, No adjustments are necessary
<br /> for those costs which are normally paid by sellers as a resub of tradition or law in a market area; these costs are readily identifiable
<br /> since the seller pays these costs in vldually all sales transactions. Special or creative financing adjustments can be made to the
<br /> comparable, property by comparisons to financing terms offend by a third pally institidlonal lender that is not already involved in the
<br /> property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession
<br /> but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the
<br /> appraiser's judgement.
<br /> STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION
<br /> CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification chef appears In the appraisal report is subject to the following
<br /> conditions:
<br /> 1. The appraiser will not be respon_clhle for matters of a legal nature that affect Dither thy, property being appraised or the title to R. The appraises assumes that
<br /> the Ellie is good and marketable and, therefore, will not render any opinions aboirt the title. The properly Is appraised on the basis of R being under responsible
<br /> ownership.
<br /> 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist
<br /> the reader of the report in visualizing the property and understanding the appraiser's determination of its size.
<br /> 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted
<br /> in the appraisal report whether the subject site is located In an Iderrt'died Special Flood Hazard Area. Because the appraises Is not a surveyor, ha or she makes
<br /> no guarantees, express or implied, regarding this determination.
<br /> 4. The appraiser will not glue testimony or appear in court because, hr, or she made an appraisal of thy, property in yuostion, unless specific arrangements to do
<br /> so have been made beforehand.
<br /> 5. The appraiser has estimated the value of the land in the cost approach at ds highest and best use and the improvements at their contributory value. These
<br /> separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are Invalid if they are so used.
<br /> 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic
<br /> substances, etc.) observed during the Inspection of the subject property or that he or she became aware of during the normal research involved in performing
<br /> the appraisal. Unless othenvlsn stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparerA conditions of the property or
<br /> adverse environmental conditions (including the presence of h2caidous wastes, toxic substances, etc 1 that would make the properly more or less valuable, and
<br /> has assumed that there are no such conditions and makes no guararAeas ur wananlies, express or implied, regarding the cond'dlon of the property. The
<br /> appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that mlgM be required to discover whether such
<br /> conddions exist. Because the appraiser is not an expod In the field of environmental hazards, the appraisal report must not be considered as an
<br /> environmental assessment of }he property.
<br /> 7. The appraiser obtained the irrforma}ion, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be
<br /> reliable and believes them to be tme and correct. The appraiser does not assume responsibility tot the accuracy of such Aems that were furnished by other
<br /> parties.
<br /> 8. The appraiser will not disclose, the conlonts of thy, appraisal report except as provided for 'm the Uniform Standards of Prolesslanal Appraisal Practice.
<br /> 9. The appraiser has based his or her appraisal report and valuation conchrslon for an appraisal that is subject to satisfactory completion, repairs, of
<br /> alterations on the assumption tha9 completion of the improvements will he performed In a workmanlike manner.
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<br /> 16. The appraiser must provide his or her prior written consent before the londedclient specified in the appraisal repod can tlisMbute the appraisal report
<br /> (including conclusions about the property value, the appraiser's identity and processional deslgna}ions, and references }o any professional appraisal
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<br /> organizations or the firm wRh which the appraiser is associated) to anyone other than the borrower, thy, mortgagee or its successors and assigns; the mortgage
<br /> insurer, consuRants; professional appraisal organizations; any state or federally approved financial Institution; or any department, agency, or instrumentality
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<br /> of the United States or any state or the pis4lct of Columbia; except that the lender/client may dishibute thy, property description section of the report only to data
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<br /> collection or reporting service(s) without having to obtain the appraisers prior written cunserA. The appraiser's written consent and approval must also
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<br /> be obtained before the appraisal can be convoyed by anyone to the public through advertising, public relations, news, sales, or other media,
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<br /> Freddie Mac Form 439 6-93 Page 1 of 2 Fannie Mae Form 1064B 6-93
<br /> BAIRN APPRAISALS
<br /> Form AGR"TOTAL for W'mdows" appraisal software by a la mode, inc-- 1-BOO-ALAMODE
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