C150233 Appraisal

• Contract/PO #: C150233
• Contractor Name: Tom Hill
• Contract Type: Loan
• County: Grand
• Loan Projects - Doc Type: Contract Documents

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DATA ANALYSIS AND CONCLliSIONS

Highest and Best Use:

The following definitions of highest and best use are taken from Tile Dictionary of Real Estate

Appraisal, Fourtll Edition, Page 135:

. Highest and Best Use - the reasonably probable and legal use of vacant land or
improved property. which is physically possible, appropriately supported. financially
feasible and that results in the highest value. The four criteria the highest and best use
must meet are legal permissibility. physical possibility. financial feasibility and
maximum productivity.

. Highest and Best Use of Land or a Site as Though Vacant - Among all reasonable,

alternative uses. the use that yields the highest present land value, after payments are

made lor labor. capital. and coordination. The use of a property based on the assumption

that the parcel of land is vacant or can be made vacant by demolishing any

improvements.

. Highest and Best Use or I'roperty as Improved - The use that should be made of a
property as it exists. An existing improvement should be renovated or retained as is so
long as it continues to contribute to the total market value of the property. or until the
return Irom a new improvement would more than ollset the cost of demolishing the
existing buildings and constructing a new one.

The highest mid best use of a property must be determined as though vacant and as improved.
Each of the f()ur critcria as listed above musts be considered in each delermimltion.

Legallv Permissible: The subject property is located within Orand County in an area that is
zoned Forestry and Open. As stated in the Grand County Zoning Regulations. .. the purpose of
the r'orestry and Open lone District is to protect lands suitable for agricultural and related uses
including uses related to forestry. mining and recreation aller additional permitting Higher
impact uses are allowed when permitted and mitigated properly. Low density single-lamily
residential uses are permitted in this zone district:' The current agricultural use of the subject
property is legally permissible. While the subject property may bc subdivided into 35 acre tracts

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or larger parcels, however, demand. access to utilities and other factors may limit some
development options.

Phvsieally Possible: The property would support almost any legally permitted use. The
agricultural use, as is presently in place. is the most physically possible option with a compatible
recreational use in the form of hunting and fishing.

Financial Feasibility: It is recognized that as an alternative use. the subject property could be
subdivided into home sites. country estates and/or recreational use that may generate more total
dollars in a combination of sales or one sale. These lands. however. must have certain amenities.
services. access and other criteria to be suitable for this type of development. Consideration
must be given to costs associated with gelling the services. access. roads. etc. and weigh this cost
against the present value of the benefits. By creating a subdivision orlands, there is the
possibility of creating in-holdings held by others. which in today's market may have a
detrimental impact on value to the remainder. The agricultural option with the added amenity of
recreational use for the entire property. provided land cost is not prohibitive, appears to be the
most financially feasible option.

Maximallv Productive: Aller considering the above criteria. based on present market conditions
as well as taking into consideration the land. tcrrain. location and physie.li Icutures of the subject
property, the maximum productivity or highest value for the subject property in its as is
condition is the present use consisting of an agricultural use with thc amenity of the recreational
usc of hunting and fishing.

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