appraisal - bosgraaf - 149 e 26th st

Appraisal of 149 E 26th St, Holland, MI 49423 Single Family Residential Property

MTT Docket #: 14-005694-TT

Date of Value: 12-31-2013

Date report written: 9-18-2014

Date of Inspection: 3-13-2014

Written By: Devin Goulooze, MCAT

Reviewed By: David VanderHeide, MMAO, Certification #R-4215

September 18, 2014

Michigan Tax Tribunal

Ottawa State Office Building

611 W Ottawa Street

2nd Floor

Lansing, MI 48913

RE: MTT Docket #: 14-005694-TT

Dear Michigan Tax Tribunal:

Attached is the appraisal of 149 E 26th Street, located within the City of Holland. The subject property is

a single family residential property.

The City of Holland Assessor’s Office has conducted an on-site interior and exterior review of the subject

property on March 13, 2014.

The Subject property is located in ECF neighborhood I04. The comparables chosen were done so with a

focus on similarities first, and location second.

This report is presented as a proof of valuation for tax tribunal proceedings. The purpose of the report

is to estimate the market value of fee simple title to the subject property as of:

December 31, 2013

Market value is defined by the International Association of Assessing Officers as “the most probable

price which a property should bring in a competitive and open market under all conditions requisite to a

fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not

affected by undue stimulus” (Property Assessment Valuation, Third Edition, pg. 15).

On the basis of my analysis, I estimate the market value of the subject property, 149 E 26th Street,

Holland, MI 49423, as of the appraisal date of December 31st, 2013, to be:

Three Hundred Twenty Three Thousand Dollars

($323,000)

Sincerely,

Devin Goulooze, MCAT Appraiser │ Assessor’s Office | City of Holland

TABLE OF CONTENTS

SUMMARY OF SALIENT FACTS AND CONCLUSION ......................................................................... 1

DEFINITION AND EXPLANATION OF MARKET VALUE

MARKET VALUE DEFINED .................................................................................................... 2

FORECLOSURE SALES CONSIDERATIONS ............................................................................ 2

SITE DESCRIPTION ............................................................................................................... 3

IMPROVEMENT DESCRIPTION ............................................................................................ 3

IMPROVEMENT CONDITION ............................................................................................... 4

NEIGHBORHOOD ANALYSIS ................................................................................................ 4

LEGAL DESCRIPTION ............................................................................................................ 4

SALES HISTORY .................................................................................................................... 4

ASSESSMENT HISTORY ........................................................................................................ 5

TWO APPROACHES TO VALUE

COST APPROACH INTRODUCTION ...................................................................................... 7

ASSESSOR’S PROPERTY RECORD CARD FOR SUBJECT PROPERTY ........................... 8

COST APPROACH ANALYSIS .............................................................................................. 11

SALES APPROACH INTRODUCTION ................................................................................... 12

SALES APPROACH ANALYSIS ............................................................................................. 15

FINAL CONCLUSION OF VALUE ..................................................................................................... 16

CERTIFICATION .............................................................................................................................. 17

ADDENDA

SUBJECT AND COMPARABLE PHOTOGRAPHS

SUBJECT – 149 E 26TH ST, HOLLAND, MI 49423 .................................................................. 1

SALES – COMP 1: 600 LAWNDALE CT, HOLLAND, MI 49423 .............................................. 2

SALES – COMP 2: 167 W 11TH ST, HOLLAND, MI 49423 ...................................................... 2

SALES – COMP 3: 62 W 11TH ST, HOLLAND, MI 49423 ........................................................ 3

SALES – COMP 4: 1241 HEATHER CT, HOLLAND, MI 49423 ............................................... 3

SALES – COMP 5: 150 FREMONT ST, DOUGLAS CITY, MI 49406 ........................................ 4

SALES – COMP 6: 4592 62ND ST, HOLLAND, MI 49423 ........................................................ 4

SALES – COMP 7: 6285 145TH AVE, HOLLAND, MI 49423…………………………………………….5

SALES – COMP 8: 6395 RESERVE WAY, HOLLAND, MI 49423……………………………………….5

SALES AND OTHER SUPPORTING DOCUMENTS

149 E 26TH ST – WARRANTY DEED ...................................................................................... 7

149 E 26TH ST – REAL PROPERTY STATEMENT .................................................................... 8

149 E 26TH ST – QUITCLAIM DEED ....................................................................................... 9

149 E 26TH ST – QUITCLAIM DEED ..................................................................................... 11

149 E 26TH ST – PTA ........................................................................................................... 12

149 E 26TH ST – ARCITECTURAL PLAN ............................................................................... 13

IMPROVED SALE 1 – 600 LAWNDALE CT – DEED .............................................................. 14

IMPROVED SALE 1 – 600 LAWNDALE CT – PTA ................................................................ 16

IMPROVED SALE 2 – 167 W 11TH ST – DEED ..................................................................... 17

IMPROVED SALE 2 – 167 W 11TH ST – PTA ........................................................................ 18

IMPROVED SALE 2 – 167 W 11TH ST – PTA ........................................................................ 19

IMPROVED SALE 3 – 62 W 11TH ST – DEED ....................................................................... 20

IMPROVED SALE 3 – 62 W 11TH ST – PTA .......................................................................... 22

IMPROVED SALE 4 – 1241 HEATHER CT – DEED ............................................................... 23

IMPROVED SALE 4 – 1241 HEATHER CT – PTA .................................................................. 25

IMPROVED SALE 5 – 150 FREMONT ST – DEED ................................................................ 26

IMPROVED SALE 5 – 150 FREMONT ST – PTA ................................................................... 28

IMPROVED SALE 6 – 4592 62ND ST – DEED ....................................................................... 29

IMPROVED SALE 6 – 4592 62ND ST – PTA .......................................................................... 31

IMPROVED SALE 7 – 6285 145TH AVE – DEED ................................................................... 32

IMPROVED SALE 7 – 6285 145TH AVE – PTA…………………………………………………………….34

IMPROVED SALE 8 – 6395 RESERVE WAY – DEED……………………………………………….…...35

IMPROVED SALE 8 – 6395 RESERVE WAY – PTA……………………………………………….………37

ECF NEIGHBORHOOD ANALYSIS ....................................................................................... 38

CITY OF HOLLAND, MI CODE OF ORDINANCE – R-1.......................................................... 40

QUALIFICATIONS OF APPRAISER ................................................................................................... 45

QUALIFICATIONS OF PRINCIPLE APPRAISER ................................................................................. 46

Appraisal of 149 E 26th Street MTT Docket # 14-005694-TT

1

Summary of Salient Facts and Conclusions

Purpose of Appraisal: Estimate market value for Michigan Tax Tribunal proceedings

Property rights appraised: Unencumbered, Fee Simple Interest

Address of Subject Property: 149 E 26th Street, Holland, MI 49423

School District: Holland Public, Ottawa County Intermediate

County: Ottawa County

Improvement Description: Single family, 2.0 story masonry, built in 1930, remodeled in 2010

Lot Size: 100’ x 132’ – wide, rectangular City lot

Zoning: R-1 - Residential

Assessed Value for 2014: $152,100

Taxable Value for 2014: $152,100

Highest & Best Use: Residential

Actual Age: Built 1930 (84)

Effective Age: 4 Years

Cost Approach Valuation: $304,200

Sales Approach Valuation: $323,000

Final Opinion of Value: $323,000

Date of Appraisal Valuation: 12/31/2013

Date of Inspection: 3/13/2014

Date Report Written: 9/18/2014


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Definition and Explanation of Market Value

Market Value Defined

Market value is defined by the International Association of Assessing Officers as “the most probable

price which a property should bring in a competitive and open market under all conditions requisite to a

fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not

affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specific date

and passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and 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 of cash in U.S. dollars or terms of financial arrangements

comparable thereto; and 5. The price represents the normal consideration for the property sold, unaffected by special

or creative financing or sales concessions granted by anyone associated with the sale.”

(Property Assessment Valuation, Third Edition, pg. 15)

Foreclosure Sales Considerations

Special care should be taken in light of sales where a financial institution has taken a property back

through foreclosure proceedings, facilitated the “short sale” of a property to satisfy a failing mortgage

arrangement, or is selling a property to an end-user after already having taken the property back

through the foreclosure process. These circumstances illustrate abnormal conditions whereby the sale

price of the property may be, and often is, affected by financing considerations that yield a sale price

that is usually substantially less than what the arms-length market normally pays for a similar property.

The standard practice of reviewing foreclosure sales is that the circumstances of the sale must be

reviewed and validated. This process is pursued through requests for submission of a “Real Property

Statement – Financial Institution – Previously Foreclosed Property” (Michigan Department of Treasury

Form 4546) and site visits to properties to review and consider the physical conditions of the property at

the time of the sale. Both of these issues present obstacles to determining the usability of foreclosure

sales. Real Property Statements are difficult to attain due to lack of cooperation of buyers and a

misunderstanding of the requirements of the form. The City of Holland sent 70 Financial Institution

RPS’s out in 2009 and received only one back. The one that was returned had a note that no

information would be shared. This illustrates the difficulties in determining the specifics surrounding a

particular distressed sale and whether or not the sale price is indicative of the property’s market value.


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Site visits on foreclosure or bank-owned properties are sometimes hard to arrange due to vacancy, out

of town banks, or transition periods in ownership. Regardless, the major issue brought to light by this

part of the process is that typical foreclosure sale properties are in poor condition and in need of repairs

and maintenance. In the circumstances of rental properties, they are usually remodeled and repaired in

preparation to list for rent. This remodeling usually immediately returns value to the property for items

of obsolescence and curable deferred maintenance that have been updated and corrected. Therefore,

there is usually money spent on the property after the purchase that substantially affects the value of

the property as of the forthcoming Tax Day, December 31st. This rehabilitative work will enhance the

value of the property and make the sale price less relevant to the market value of the property.

Included in the addenda of this appraisal is a blank Real Property Statement – Financial Institution –

Previously Foreclosed Property form that shows the requirements and questionnaire that illustrate the

possible deficiencies in assuming that the sale price of a foreclosure property is indicative of the

property’s true cash or market value.

Site Description

The subject property is a typical residential lot located in the city. The lot is a wide city lot that has a flat

topography and serves a highest and best use as the location of a residential home in a residential

neighborhood. The lot is rectangular with 100 feet of frontage and 132 feet of depth. The residential

lots in this area, as well as the majority of the city, are valued on a “front foot basis.” This property has a

lot value of $23,788, derived from a front foot rate of $235/FF, which is the standard rate used in this

neighborhood. The comparable sales in the market approach vary in size and have been adjusted

accordingly to compare to the subject property.

Improvement Description

The subject property is a 2 story masonry built single family home with a half basement and half slab

foundation and three quarters of the basement has living area finish. The property record card indicates

that the home was originally built in 1930. The home is 3,035 square feet above grade and features

three bedrooms and four and a half bathrooms. A unique feature includes a large glass enclosed multi-

head shower, roughly 4 feet by 11 feet, which is shared by two otherwise separate bathrooms each

containing their own entrance. Each of these bathrooms are considered to be full bathrooms under the

mass appraisal process. The house has a forced air furnace with ducts system which is connected to air

conditioning. The quality of construction classification on the home is B-5, which is thirty-five percent

above average.


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Improvement Condition

The subject property home was built in 1930 giving it an actual age of 84 years. The entire home

underwent substantial remodeling, including an addition, in 2010. The depreciation for the condition of

the home is currently set at 90% good, i.e. 10% depreciated. This reflects an effective age of 13 years.

Neighborhood Analysis

The subject property’s neighborhood is a well-established, residential neighborhood located on 26th

Street in the city. The property values in the neighborhood steadily decreased from 2008 through 2011

but were level for 2012 and have been increasing in 2013 and 2014. This is generally typical for the

housing market in western Michigan and beyond.

Utilities in the subject property neighborhood are typical for residential properties and include: city

water, sanitary sewer, storm sewer, municipal electric, natural gas, telephone, and cable (including

internet). Max transit authority offers a fixed route bus service in the surrounding areas. There are

several churches in the area as well as shopping and commercial districts. This home is in the Holland

Public School District with a high school within one mile.

All subject and comparable properties listed have similar utilitarian value and desirability.

Legal Description

LOT 15, BLOCK 3 SOUTH PROSPECT PARK PLAT SECTION 32 TOWN 5 NORTH RANGE 15 WEST

Sales History

The subject property was purchased on 10/16/2009 from Glenn A. Risken to Scott T. and Suzanne L.

Bosgraaf. This transfer was the last transfer that constituted a typical, “arm’s length” transaction. The

subject property was quitclaimed on 3/18/2011 from Scott T. and Suzanne L. Bosgraaf to Roxanne LLC.

This transaction did not constitute a typical “arm’s length” transaction. The subject property was

quitclaimed on 12/17/2013 from Roxanne LLC to Suzanne L. Bosgraaf. This transaction did not constitute

a typical “arm’s length” transaction.


5

Assessment History

As of December 31, 2011, the 2012 assessed value was $138,500 with a true cash value of $277,000. As

of December 31, 2012, the 2013 assessed value was $147,000 with a true cash value of $294,000. The

2014 assessed value was increased to $152,100 with a true cash value of $304,200.

Year Assessed Value True Cash Value Act 25

2012 $138,500 $277,000 $0

2013 $147,000 $294,000 $0

2014 $152,100 $304,200 $0


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THREE APPROACHES TO VALUE

COST APPROACH

MARKET (SALES) APPROACH

INCOME APPROACH


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Cost Approach

Cost Approach Introduction

The cost approach for the subject property was developed using BS&A Software’s Assessing program.

We use this software to appraise all properties city-wide. All residential properties are appraised using

the cost approach so that we can maintain consistency based on various units of comparison. Some of

those units of comparison include, but are not limited to, land size (front footage and depth), square

footage of the home, size of the garage, basement finished area, number of bathrooms, porches, decks,

accessory buildings, condition/depreciation, etc. This valuation method is updated annually by local

(County) multipliers for material costs as well as neighborhood market changes through using an

Economic Condition Factor (ECF) in each neighborhood. The ECF is developed by comparing the sales

price of properties that have sold with the appraisal system’s valuation and taking of average of those

ratios to determine the change in the market for the year. This change is applied to all properties in the

neighborhood. Through this method, the appraisal software is a market adjusted cost approach.

The cost approach is illustrated in the property record card and sketch of the subject property home as

shown on the following pages.


8

Assessor’s Property Record Card for Subject Property

Page | 10


9


10

Sketch of Subject Property


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Cost Approach Analysis

Based on the condition of the home, the depreciation of the house as of 12/31/2013 was 90% good.

This valuation yields a total value of $304,263 (land of $23,788, land improvements of 4,832, and

building of $275,643).

The subject property is located in the I04 ECF neighborhood; this ECF neighborhood had an ECF of .895

which is consistent with the surrounding areas. However, due to a lack of sales, four (4), in the ECF

neighborhood the ECF could have been blended with the surrounding ECF’s.

Based on the cost approach as illustrated on the property record card details, the City Assessor’s Office

has determined the market value of 149 E 26th St, Holland, MI 49423, rounded to the nearest $100, as of

13/31/2013 to be:

$304,200


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Sales Approach

Sales Approach Introduction

For determination of the subject property’s market value by means of the market (sales) approach to

value, the appraiser looked for all sales of residential properties with the following criteria:

*Sold at arms-length with no financial hardship involved (short sales and foreclosures removed).

* Sold between 01/01/2013 and 08/01/2014.

*Sale properties located where like amenities, public utilities, and comparable market demand and

desirability exists.

*Comparables were between 2,000 square feet and 3,200 square feet.

*Style was between 1.5 and 2.0 Story.

Based on the above criteria, the sales analysis grid on the following pages was established by the

appraiser using what he felt were the most comparable sales available.

Adjustments were made to the comparable to reflect the characteristics of the subject. In other words a

comparable with a larger lot was adjusted downward with a minus adjustment to better reflect the

smaller lot of the subject.

All comparables were reviewed. Adjustments for date of sale, location, sales or financing concessions,

building condition, layout, and age, were considered, but none were made.

Adjustments were considered and made for each of the following characteristics:

Square foot adjustments were made based on the premise that the marginal square foot cost is

approximately fifty percent or less of the total square foot cost of the building without land. In this case

we are reviewing homes that average 333,300 dollars, less an estimated 24,000 dollars per lot for land

value. $309,300 building value divided by an average square foot of 2,600 equals $118.96 per square

foot for the improvements. To use a marginal square foot of $55.00 for each variance in square foot is

appropriate because at this point the mechanical and plumbing and kitchen cabinets are not being

addressed.

Next, building quality was also considered. This appraiser allowed an adjustment of $8,000.00 for each

increment in quality grading as found in the comparable sales.


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The subject does have air conditioning and comparable #3 does not have air conditioning. Comparable

#3 was adjusted up to reflect the value as if it did not have air conditioning with a plus $2,500.00.

The value of a garage stall is estimated at approximately $4,000.00 per stall.

This appraiser has estimated the adjustment for each additional bedroom to be an extra $4,000.00

dollars. One would have to do a very complex study to prove this estimate right or wrong, and therefore

this appraiser is relying on common sense and thirty-five years of experience to estimate this

adjustment.

All comparables as well as the subject have at least one full bathroom and one half bathroom. The value

difference in this price ranges is believed to be $3,500.00 per full bathroom and $2,000.00 per half

bathroom.

The value adjust per square foot of basement is believed to be $15.00.

The subject property does not have any porches. Porches were considered in summation and the

comparables were adjusted down $5.00/SF as the case may dictate.

Appraisal of 149 E 26th Street MTT Docket # 14-

005694-TT

14


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Sales Approach Analysis

For the market (sales) approach analysis grid that was provided in this review, the average sales

price of the six comparable properties is $330,600. The average adjusted sales price of the six

comparable properties is $333,300.

Based on the sales approach analysis, the appraiser has determined that the most comparable

properties are comparables #2, #3, #4, #5, #6 and #7. With comparables #2 and #4 each

weighted at 30% and comparables #3, #5, #6, and #7 each weighted at 10%. The average

adjusted sales price of the six (6) comparables given the most consideration is $323,000.

Comparables #2 and #4 were given the most consideration due to numerous attributes that

were similar to the subject property, having few adjustments, low net adjustment dollar

amounts, low absolute adjustment amounts, and because they are located within the City of

Holland. The adjusted sales price of comparable #2 is $328,100 and the adjusted sale price of

comparable #4 is $318,900.

The appraiser has determined the market value of the subject property based on the sales

approach, located at 149 E 26th St, Holland, MI, 49423, as of December 31st, 2013, to be:

$323,000


16

Final Conclusion of Value

Based on reviewing the subject property via two approaches to value, the appraiser has

determined the following market values as of December 31st, 2013:

Cost Approach: $304,200

Sales Approach: $323,000

The indication of value as determined by review of the market (sales) approach

indicates that the highest and best use of this single-family home would be for an end user.

The cost approach is deemed the least reliable indicator of value. For this reason, the sales

approach has been used as the final determination of the value of the property.

The market value of the subject property as of December 31st, 2013 is:

Three Hundred Twenty Three Thousand Dollars

($323,000)

_____________________________________ __________

Devin Goulooze, MCAT, T-1115 Date

_____________________________________ __________

David VanderHeide, Principle Appraiser Date

MMAO, R-4215

State Certified General Appraiser, State of Michigan, License #1201002752


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Certification

DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a

competitive and open market under all conditions requisite a fair sale, the buyer and seller each acting

prudently, knowledgeable and assuming the price is not affected by undue stimulus. Implicit in this

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 typically motivated; (2) both parties are well

informed or 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 of financial arrangements

comparable thereto; and (5) the price represents the normal consideration for the property 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 the sellers as a result of tradition

of 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 property

by comparisons to financing terms offered by a third party institutional lender that is not already

involved in the property transaction. Any adjustment should not be calculated on a mechanical dollar

for dollar cost of 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 judgment.

CERTIFICATION AND STATEMENT OF LIMITING CONDITIONS

CERTIFICATION: The appraiser certifies and agrees that:

1. The appraiser has no present or contemplated future interest in the property appraised; and

neither the employment to make the appraisal, nor the compensation for it, is contingent upon

the appraised value of property.

2. The appraiser has no personal interest in or bias with respect to the subject matter of the

appraisal report or the participants to the sale. The “Estimate of Market Value” in the appraisal

report is not based in whole or in part upon the race, color, or national origin of the prospective

owners or occupants of the properties in the vicinity of the property appraised.

3. The appraiser has personally inspected the exterior of the subject property, and has made an exterior inspection of all comparable sales listed in the report. To the best of the appraiser’s knowledge and belief, all statements and information in this report are true and correct, and the appraiser has not knowingly withheld any significant information. 4. All contingent and limiting conditions are contained herein (imposed by the terms of the assignments or by the undersigned affecting analyses, opinions, and conclusions contained in the report).


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5. This appraisal report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the appraisal organizations with which the appraiser is affiliated.

6. All conclusions and opinions concerning the real estate that are set forth in the appraisal report were prepared by the appraiser whose signature appears on the appraisal report, unless indicated as ‘review appraiser.’ No change of any item in the appraisal report shall be made by anyone other than the appraiser, and the appraiser shall have no responsibility for any such unauthorized change.

CONTINGENT AND LIMITING CONDITIONS: The certification of the appraiser appearing in the appraisal

report is subject to the following conditions as are set forth by the appraiser in the report.

1. The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor does the appraiser render any opinion as to the title, which is assumed to be good and marketable.

2. Any sketch in the report may show approximated dimensions and is included to assist the reader in visualizing the property. The appraiser has made no survey of the property.

3. The appraiser is not required to give testimony or appear in court because of having made the appraisal with reference to the property in questions, unless arrangements have been previously made therefore.

4. Any distribution of the valuation in the report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunctions with any other appraisal and are invalid if so used.

5. The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The appraiser assumes no responsibility for such conditions or for engineering which might be required to discover such factors.

6. Information, estimates, and opinions furnished to the appraiser, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished the appraiser can be assumed by the appraiser.

7. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the professional appraisal organizations with which the appraiser is affiliated.

8. Neither all, nor any part of the content of the report, or copy thereof (including conclusions as to the property value, the identity of the appraiser, professional designations, reference to any professional appraisal organizations, or the firm with which the appraiser is connected), shall be used for any purposes by anyone but the client specified in the report, the borrower if appraisal fee paid by same, the mortgagee or its successors and organizations, any state or federally approved financial institution, any department, agency, or instrumentality of the United States, of any state or the District of Columbia, without the previous written consent of the appraiser; nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media, without the written consent and approval of the appraiser.


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9. On all appraisals, subject to satisfactory completion, repairs, or alterations, the appraisal report and value conclusion are contingent upon completion of the improvements in a workmanlike manner.

ADDITIONAL CERTIFICATION: The appraiser further certifies and agrees that:

1. This appraisal conforms to the Uniform Standards of Professional Appraisal Practice

(“USPAP”) adopted by the Appraisal Standards Board of the Appraisal Foundation, as found in

Standard Six governing mass appraisal, except that the Departure Provision of the USPAP does

not apply.

2. Their compensation is not contingent upon the reporting of a predetermined value or

direction in value that favors the cause of the client, the amount of the value estimated, the

attainment of a stipulated result, or the occurrence of a subsequent event.

3. This appraisal assignment was not based on a requested minimum valuation, a specific

valuation, or the approval of a loan.

ENVIRONMENTAL DISCLAIMER: The value estimated in this report is based on the assumption that the

property is not negatively affected by the existence of hazardous substances of detrimental

environmental conditions. The appraiser’s routine inspection of and inquiries about the subject

property did not develop any information that indicated any apparent significant hazardous substances

or detrimental environmental conditions which would affect the property negatively. It is possible that

tests and inspections made by a qualified hazardous substance and environmental expert would reveal

the existence of hazardous materials and environmental conditions on or around the property that

would negatively affect its value.

Appraisers are required to be licensed and regulated by the Michigan Department of Labor and

Economic Growth, Bureau of Commercial Services, P.O. Box 30018, Lansing, Michigan 48909.

However, this appraisal assignment is completed and complies under Standard Six of USPAP, but may

or may not comply with Standard Two of USPAP.

__________________________________ _____________________

David VanderHeide, MMAO, R-4215 Date

State Certified General 1201002752

Assessor, City of Holland


Addenda | 0

Addenda


Addenda | 1

Subject & Comparable Photographs

Subject – 149 E 26th St.


Addenda | 2

Sales - Comp 1: 600 Lawndale Ct. Holland, MI 49423

Sales - Comp 2: 167 W 11th St. Holland, MI 49423


Addenda | 3

Sales - Comp 3: 62 W 11th St. Holland, MI 49423

Sales - Comp 4: 1241 Heather Ct. Holland, MI 49423


Addenda | 4

Sales - Comp 5: 150 Fremont St. Douglas City, MI 49406

Sales - Comp 6: 4592 62nd St. Holland, MI 49423


Addenda | 5

Sales – Comp 7: 6285 145th Ave. Holland, MI 49423

Sales – Comp 8: 6395 Reserve Way, Holland, MI 49423


Addenda | 6

Supporting Documents

Sales & Other Supporting Documents

All deeds, property transfer affidavits, property record data, and sketches were taken from public

records. They can be referenced via the appropriate County Register of Deeds Office or the local

Assessor’s Office.


Addenda | 7

149 E 26th St. – Warranty Deed - 2009


Addenda | 8

149 E 26th St. – Real Property Statement - 2009


Addenda | 9

149 E 26th St. –Quitclaim Deed - 2011


Addenda | 10


Addenda | 11

149 E 26th St. – Quitclaim Deed - 2013


Addenda | 12

149 E 26th St. – PTA

Appraisal of 149 E 26th Street MTT

Docket # 14-005694-TT

Addenda | 13

149 E 26th St. – Architectural Plan


Addenda | 14

Improved Sale 1 – 600 Lawndale Ct. – Deed


Addenda | 15


Addenda | 16

Improved Sale 1 – 600 Lawndale Ct. – PTA


Addenda | 17

Improved Sale 2 – 167 W 11th St. – Deed


Addenda | 18

Improved Sale 2 – 167 W 11th St. – PTA


Addenda | 19

Improved Sale 2 – 167 W 11th St. – Real Property Statement


Addenda | 20

Improved Sale 3 – 62 W 11th St. – Deed


Addenda | 21


Addenda | 22

Improved Sale 3 – 62 W 11th St. – PTA


Addenda | 23

Improved Sale 4 – 1241 Heather Ct. – Deed


Addenda | 24


Addenda | 25

Improved Sale 4 – 1241 Heather Ct. – PTA


Addenda | 26

Improved Sale 5 – 150 Fremont St. – Deed


Addenda | 27


Addenda | 28

Improved Sale 5 – 150 Fremont St. – PTA


Addenda | 29

Improved Sale 6 – 4592 62nd St. – Deed


Addenda | 30


Addenda | 31

Improved Sale 6 – 4592 62nd St. – PTA


Addenda | 32

Improved Sale 7 – 6285 145th Ave. – Deed


Addenda | 33


Addenda | 34

Improved Sale 7 – 6285 145th Ave. – PTA


Addenda | 35

Improved Sale 8 – 6395 Reserve Way – Deed


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Improved Sale 8 – 6395 Reserve Way – PTA


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Neighborhood ECF Analysis

The subject property is located in the ECF Neighborhood I04. The Comparable properties are located in

ECF Neighborhoods:

City of Holland: I03, E02, A03

City of Douglas: Douglas Central East

Laketown Township: Central & East Unplatted, Hidden Hollow, Teravita, The Reserve

Subject Property ECF Neighborhood: I04: State, East 26th, East 28th ECF: .895 Sales: 4

Comparable Properties ECF Neighborhoods: I03: Elmdale, Lawndale, Cherry ECF: .971 Sales: 6 E02: Historical District ECF: 1.192 Sales: 20 A03: Heather Dr. and Ct. ECF: .895 Sales: 5 Douglas Central East ECF: .850 Sales: N/A Central & East Unplatted ECF: 1.101 Sales: N/A Hidden Hollow, Teravita, The Reserve ECF: 1.237 Sales: N/A The subject property ECF Neighborhood I04 only had four (4) sales in 2013. Thus, it was combined with the ECF neighborhoods in which the City of Holland comparable properties are located to create an average ECF for the subject, as shown:


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Neighborhood ECF Analysis


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Holland, MI Code of Ordinance –Traditional Residential Neighborhood District

Holland, Michigan, Code of Ordinances >> Part II - THE CODE >> Chapter 39 - ZONING >>

ARTICLE VII. - RESIDENTIAL DISTRICT REGULATIONS >> DIVISION 2 - R-1 ONE-FAMILY RESIDENTIAL DISTRICT: >>

DIVISION 3. - R-2 ONE AND TWO-FAMILY RESIDENTIAL DISTRICT:

Sec. 39-210 – Permitted Uses

Sec. 39-211 – Child Care, Family Day Care Home, Group Day Care Home

Sec. 39-212 – Prohibited Uses

Sec. 39-213 – Off-Street Parking

Sec. 39-214 – Height and Area Regulations

Sec. 39-215 – (Reserved)

Sec. 39-216 through Sec. 39-219 – (Reserved)

Sec. 39-210 – Permitted Uses

The R-1 One-Family Residential District is intended primarily for single-family residential use, but also allows church, school and public uses. The following uses are permitted therein:

(a) One single-family residence on each lot used as a single dwelling unit. In addition, no more than a total of two roomers and boarders are permitted when approved as a special exception under Section 39-407.

(b) Church uses and other places of worship.

(c) Public and private preschool, K-12, and community education-type school uses.

(d) Municipal administrative and municipal service uses.

(e) Municipal parks, municipal recreation areas, municipal community centers and gardens.

(f) Gardening or other farming, excluding the keeping of animals or fowl contrary to the provisions of Section 4-1.

(g) Public library, public museum, and public art gallery.

(h) Accessory uses that are customarily incidental to any principal use permitted by Subsections (a) through (g) of this section; provided, however, that such uses are in conjunction with an existing permitted principal use on the premises; and provided further, that such accessory uses shall not constitute, create or increase a nuisance in fact which adversely affects a legal use of adjoining or nearby premises. Such accessory uses shall include home occupations

http://library.municode.com/HTML/10959/book.html

http://library.municode.com/HTML/10959/level1/PTIITHCO.html

http://library.municode.com/HTML/10959/level2/PTIITHCO_CH39ZO.html

http://library.municode.com/HTML/10959/level3/PTIITHCO_CH39ZO_ARTVIIREDIRE.html

http://library.municode.com/HTML/10959/level4/PTIITHCO_CH39ZO_ARTVIIREDIRE_DIV7.1NTRRENEDI.html

http://library.municode.com/HTML/10959/level4/PTIITHCO_CH39ZO_ARTVIIREDIRE_DIV7.1NTRRENEDI.html


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and home businesses as defined and limited in Section 39-2 and regulated in Section 39-192,

and signs as specified in Article IX of this Code.

(I) Family day care home. A private family home in which not more than six minor children are received for care and supervision for periods of less than 24 hours a day, unattended by a parent or legal guardian. This home must comply with the provisions of Act No. 116 of the Public Acts of 1973, as amended, and the regulations adopted pursuant to said Act.

Sec. 39-211 – Child Care, Family Day Care Home, Group Day Care Home

(a) Definitions.

(1) FAMILY DAY CARE HOME — A private home in which one but less than seven

minor children are received for care and supervision for periods of less than 24 hours a day,

unattended by a parent or legal guardian, except children related to an adult member of the

family by blood, marriage, or adoption. Family day care home includes a home that gives care

to an unrelated minor child for more than four weeks during a calendar year.

(2) GROUP DAY CARE HOME — A private home in which more than six but not more

than 12 minor children are received for care and supervision for periods of less than 24 hours a

day, unattended by a parent or legal guardian, except children related to an adult member of

the family by blood, marriage, or adoption. Group day care home includes a home that gives

care to an unrelated minor child for more than four weeks during a calendar year.

(b) Family day care home; permitted. A family day care home shall be permitted in all

residential zone districts as long as the applicant shall comply with the provisions of Act No. 116

of the Public Acts of 1973, as amended. (MCLA § 722.11 et seq.)

(c) Family and group day care; registration. In addition to compliance with Act 116, it shall

be the responsibility of any licensed provider of day care, whether as a family or group day care

home, to register the use and location of such home with the "911" central dispatch office

within 30 days after the issuance of a license, provided that this requirement may be satisfied

by the periodic registering of all licensed day care facilities on behalf of the individual licensees

by the State Department of Social Services, Four C's, or other agency that may be qualified to

provide and maintain current such information.

(d) Group day care; allowable as special exception. The use, conversion, or expansion of an

existing residence or a family day care home to a group day care home may be permitted in all

residential zone districts as a special exception use, subject to a public hearing before the

Zoning Board, and findings of compliance with the following standards:


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(1) An applicant seeking permission to operate a group day care home shall file an

application, in a form approved by the Zoning Board, with the City Clerk, and shall pay the fee

as prescribed for a special exception use. A public hearing shall be conducted by the Zoning

Board and notice mailed to interested parties in accordance with Section 39-409 of this chapter

and applicable provisions of state law.

(2) The applicant shall file with the application for a special exception use a sketch

site plan, sufficient in scale and detail to indicate all of the following:

a. The overall shape and size of the parcel;

b. A sketch floor plan of floors and rooms proposed for use in the day care

operations;

c. Location of drives and parking areas serving the premises;

d. Location of all outside play areas to be used in the day care program, and

identification of any portion of the exterior premises which will be specifically excluded

from use or access by day care activities;

e. Location and heights of any walls, fences, or landscape barriers, including

location of gates and types of construction material.

(3) The Zoning Board may grant a special exception permitting the use of the

residence as a group day care home if it finds, based upon the evidence submitted by the

applicant and at the public hearing, that all of the following exist:

a. The applicant and premises comply or will comply with Act 166 of the

Public Acts of 1973, as amended, prior to the commencement of operations.

b. The group day care home shall be located on a site with at least 5,000

square feet of gross lot area and the proposed site must contain not less than 100 feet

per child of usable out-of-doors play area. For purposes of this section, usable out-of-

doors play area shall be defined as the area located on the lot behind the established

front yard setback of the home which is available or devoted to outdoor activities,

exclusive of any area occupied by a swimming pool. The area shall be free from sharp

gravel, glass, or cinder, and shall be well drained.

c. The access drive for the group day care home shall not be a joint or

shared driveway unless the applicant shall file the written consent of the abutting

property owner.


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d. The proposed group day care home shall be inspected for compliance

with the housing property maintenance code of the City. Additional code inspection

may be required as is necessary to determine compliance with regulations that are now

or may be determined to be specifically applicable to group day care, and for which the

City is determined to be the enforcing agency.

e. The proposed use of the residence for group day care shall not change

the essential character of the surrounding residential area, and shall not create a

nuisance in fact or law relating to vehicular parking, noise, additional congestion, or

density in excess of residential uses of the property in the zone district.

f. The grant of the special exception shall not impair the health, safety,

welfare, or reasonable enjoyment of adjacent or nearby residential properties.

Sec. 39-212 – Prohibited Uses

Within any R-1 District, no building, structure or premises shall be used and no building or

structure shall be erected or altered which is intended or designed to be used in whole or in

part for any use not permitted by Section 39-210.

Sec. 39-213 – Off-Street Parking

Off-street parking shall be provided in R-1 Districts in accordance with the requirements of Sections 39-45 to 39-59.

Sec. 39-214 – Height and Area Regulations

The following height and area regulations shall apply within R-1 Districts:

(a) Height. No building shall exceed a maximum of 35 feet in height.

(b) Front yard. There shall be a front yard of not less than 30 feet from the street line.

(c) Side yard. For single-family dwellings there shall be two side yards totaling at least 18 feet,

and no side yard shall be less than seven feet; provided, that where a side lot line adjoins a side

street, a minimum yard of 20 feet is required. For all other buildings, minimum side yards of 20

feet on each side are required.

(d) Rear yard. There shall be a rear yard of at least 25 feet.


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(e) Lot area and width. There shall be a lot area of at least 8,400 square feet, and a minimum lot

width along the front building line of 70 feet.

(f) Exceptions. For height and area exceptions, see also Section 39-185.

Sec. 39-215 – (Reserved)

Sec. 39-216 through Sec. 39-229 – (Reserved)


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Qualifications of Appraiser

Devin Goulooze, MCAT

(616)355-1356

EDUCATION: Western Michigan University – Bachelor’s Degree Major in Finance

Board of Real Estate Appraisers Limited Real Estate Appraiser I.D. # 1201074583 Michigan State Assessor’s Board Michigan Certified Assessing Technician Cert #: T-1115

WORK HISTORY: 2013 – Present Appraiser City of Holland Assessor’s Office 270 River Ave Holland, MI 49423

OTHER PROFESSIONAL DESIGNATIONS:

Michigan Assessor’s Association Member: 2013 – Present.


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Qualifications of Principle Appraiser

David VanderHeide

EDUCATION: Bachelor of Arts; Business Administration; Hope College; Holland, Michigan

(The above includes twenty-one semester hours of accounting.) CONTINUING EDUCATION: University of Michigan Extension Program of Real Estate Course 1 Residential Property Appraisal Course 2 Appraisal of Income Producing Property Grand Rapids Junior College Course Bu 259 Assessment Administration 2 Course Bu 260 Assessment Administration 3 International Association of Assessing Officers Course 001 Fundamental of Real Property Appraisals Course 002 Income Approach to Valuation Course 302 Mass Appraisal of Income Producing Property Course 201 Appraisal of Land Course 202 Advanced Income Approach Course 003 Narrative Report Writing Course 004 Assessment Administrations

Davenport College Course CIS 151 Micro Applied Spreadsheet Course CIS 152 Advanced Spreadsheet Course CIS 153 Micro Applied Database Course CIS 204 Micro Applied Programming Course ADS 141 Micro Word Processing I Course ADS 142 Micro Word Processing II PROFESSIONAL MEMBERSHIPS: International Association of Assessing Officers Michigan Assessors Association


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David VanderHeide

Page 2

PROFESSIONAL DESIGNATIONS:

Michigan State Assessors Board Level IV Certification

Certificate Number R-4215; Received September 2007

State Tax Commission "Personal Property Examiner"

Certification #386; Received February 1984

Board of Real Estate Appraisers; Certified Appraiser

License; #1201002752; Received June 1992

OCCUPATIONAL BACKGROUND:

City Assessor City of Holland, Assessor’s Office

270 River Ave; Holland, Michigan

(2007 to the Present)

Acting City Assessor City of Holland, Assessor's Office

(2003 to 2007)

Appraiser: Smeenge and Associates

Real Estate Appraisal

2165 Woodlark Drive

Holland, Michigan 49424

Contractual Assignments (1992-2003)

Appraiser Analyst: City of Holland, Assessor’s Office

(July 1, 1984 to Sept. 2003)

Appraiser II: City of Holland, Assessor’s Office

(September 29. 1978 to June 30, 1984)

Abstractor: The Title Office

321 Settlers Road; Holland, Michigan

(July 1976 to September 1978)

Bookkeeper: Hamilton Community Schools

136th Avenue; Hamilton, Michigan

(August 1975 to July 1976)


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appraisal - bosgraaf - 149 e 26th st

Documents

subject property

tt date of value

open market

appraisal date

date report

date of inspection

improvement description

tax tribunal proceedings