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<br />IFile No, 2006-0131 Paoe #141
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<br />DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a compe@ve and open market under all conditions
<br />requisite to a fair sale, the buyer and seller, each acting pruden1ly, knowiedgeably and assuming the price is not affected by undue stmulus, Implicit in this
<br />definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are
<br />typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable tme is aliowed
<br />for exposure in the open markef; (4) payment is made in terms of cash in U.S, dollars or in terms of financial arrangements comparable therefo; and (5) the price
<br />represents the normal consideraton for the property soid unaffected by special or creative financing or sales concessions' granted by anyone associated with
<br />the sale,
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<br />. Adjustments to the comparables must be made for speciai or creative financing or sales concessions, No adjustments are necessary
<br />for those costs which are normally paid by sellers as a resuli of tradition or law in a market area; these costs are readily identifiable
<br />since the seller pays these costs in virtually all sales transactions, Special or creative financing adjustments can be made to the
<br />comparable property by comparisons to financing terms offered by a third party institutional 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,
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<br />STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION
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<br />CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following
<br />condWons:
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<br />1, The appraiser will not be responsible for matters of a iegal nature that affect either the property being appraised or the title to it. The appraiser assumes that
<br />the tHle is good and marketable and, therefore, will not render any opinions about the mle, The property is appraised on the basis of it being under responsible
<br />ownership.
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<br />2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included oniy to assist
<br />the reader of the report in visualizing the property and understanding the appraiser'S determination onts size,
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<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 iocated in an identified Special Rood Hazard Area, Because the appraiser is not a surveyor, he or she makes
<br />no guarantees, express or implied, regarding this determination,
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<br />4, The appraiser wiii not give testimony or appear in court because he or she made an appraisal of the property in question, uniess specific arrangements to do
<br />so have been made beforehand.
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<br />5, The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory vaiue, These
<br />separate valuatons of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used,
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<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 pertorming
<br />the appraisal, Unless otherwise stated in the appraisai report, the appraiser has no knowledge of any hidden or unapparent conditons of the property or
<br />adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less vaiuable, and
<br />has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the conditon of the property, The
<br />appraiser wiii not be responsible for any such conditons that do exist or for any engineering or testing that might be required to discover whether such
<br />conditons exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an
<br />environmentai assessment of the property,
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<br />7, The appraiser obtained the information, 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 true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other
<br />parties,
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<br />B, The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice,
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<br />9, The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or
<br />alterations on the assumption that completion of the improvements will be pertormed In a workmanlike manner.
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<br />10, The appraiser must provide his or her prior written consent before the lender/Client specified in the appraisal report can distribute the appraisal report
<br />(including conclusions about the property value, the appraiser's identty and professional designations, and references to any professional appraisal
<br />organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage
<br />insurer; consuliants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentaiity
<br />of the UnHed States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data
<br />collecton or reporting service(s) without having to obtain the appraiser's prior written consent, The appraiser's written consent and approval must also
<br />be obtained before the appraisal can be conveyed 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
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<br />Page 1 of 2
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<br />Fannie Mae Form 1004B 6-93
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<br />Cleo Carroll Mezger, Appraiser
<br />Form ACR - "WinTOTAL' appraisal software by a la mode, inc, -1-80D-ALAMODE
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