appraisal of real property located at:...
TRANSCRIPT
APPRAISAL OF REAL PROPERTY
LOCATED AT: 20688 Roman Rd
Mineral Survey 1743-1763, MS 1746 Garrison #1 & #2 Lead, SD 57754
FOR: Best Rate Funding .COM
2 MacArthur Place Santa Ma, CA 92707
AS OF: 10/25/05
BY: Corey Wattenhofer
for Haeder Appraisal Services
John L Haeder, MAI
Form GA1 —'TOTAL for Windows" appraisal software by a la mode, inc. —1-800-ALAMODE
10/27/05
Best Rate Funding .COM
2 MacArthur Place
Santa Ana, CA 92707
Re: Property: 20688 Roman Rd
Lead, SD 57754
Borrower: Scott & Jeanne Prentice
File No.:
In accordance with your request, we have appraised the above referenced property. The summary report of that
appraisal is attached.
The purpose of this appraisal is to estimate the market value of the property described in this appraisal report, as
improved, in unencumbered fee simple title of ownership.
This report is based on a physical analysis of the site and improvements, a locational analysis of the neighborhood and
city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the
report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice.
The value conclusions reported are as of the effective date stated in the body of the report and contingent upon the
certification and limiting conditions attached.
It has been a pleasure to assist you. Please do not hesitate to contact me or any of my staff if we can be of additional
service to you.
Sincerely,
4(4 Corey Wattenhofer
SUMMARY OF SALIENT FEATURES
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■,_,
Subject Address
Legal Description
City
County
State
Zip Code
Census Tract
Map Reference
20688 Roman Rd
Mineral Survey 1743-1763, MS 1746 Garrison #1 & #2
Lead
Lawrence
SD
57754
46.081.9964
County Records
LJ
=T2
v>
Sale Price
Date of Sale
$ Refinance
N/A
Borrower , Client
Lender
Scott & Jeanne Prentice
Best Rate Funding .COM
, o cc ,L--
O o
E .., i.,., ci
g Location
Size (Square Feet)
Price per Square Foot
Age
Condition
Total Rooms
Bedrooms
Baths
1,800
$
Lead area
5 years
Good
5
2
2
7
1-
Appraiser
Date of Appraised Value
Corey Wattenhofer
10/25/05
Final Estimate of Value $ 360,000
Form SSD — "TOTAL for Windows" appraisal software by a la mode, inc. —1-800-ALAMODE
Corey Wattenhoter
Summary Appraisal Report UNIFORM RESIDENTIAL APPRAISAL REPORT
Property Address 20688 Roman Rd City Lead State SD bp Code 57754
Legal Description Mineral Survey 1743-1763, MS 1746 Garrison #1 & #2 County Lawrence
Assessor's Parcel No. 26720-01746-000-00 Tax Year 2005 R.E. Taxes $ 1,352.86 Soecial Assessments $ 0.00 Borrower Scott & Jeanne Prentice Current Owner Scott & Jeanne Prentice Occupant XI Owner ❑ Tenant ❑ Vacant Property rights appraised N Fee Simple I I Leasehold Project Type I i PUD I I Condominium (HUDNA only) HOA $ N/A 'Mo .
Neighborhood or Project Name Lead Area Map Reference County Records Census Tract 46.081.9964
Sale Price $ Refinance Date of Sale N/A Description and $ amount of loan charoes/concessions to be paid by seller
Lender/Client Best Rate Funding .COM Address 2 MacArthur Place Santa Ma, CA 92707
sera Corey Wattenhofer Address Haeder Appraisals Services 411 S Berry Pine Rd, Rapid City, SD 57702 Location ❑ Urban X Suburban ❑ Rural Built up ❑ Over 75% N 25-75% ❑ Under 25% Growth rate ❑ Rapid El Stable ❑ Slow Property values Z Increasing ❑ Stable ❑ Decking
Demand/supply ❑ Shortage ,.. In balance ❑ Over supply Marketing time ❑ Under 3 mos. NI 3-6 mos. ❑ Over 6 mos.
Predominant
°CcuPancY ''' Owner 96 El Tenant 4
Vacant (0-5%)
❑ Vac. (over 5%l
AV falnir housille AG
5(000) (yrs)
8 Low New
Present land use %
One family 75
Land use change
N Not likely ❑ Likely ❑ In process
To:
2-4 family 3
875 High 113 Multi-family 2 '71Predominantr, Commercial 20
40-70 80-100 Note: Race and the racial composition of the neighborhood are not appraisal factors.
Neighborhood boundaries and characteristics: Neighborhood boundaries include the entire town of Lead and it surrounding subdivisions. The area is
o made up of older single family homes with pockets of new construction and multifamily apartments. Commercial (see addendum) o . Factors that affect the marketability of the properties in the neighborhood (prodmity to employment and amenities, employment stability, appeal to market, etc.): cc Advantages of neighborhood: Home and land use in balance; nearby are: service sector, recreation, and governmental employment; police o =
ct
w-r- and fire services are readily available; K-12 schools in boundaries; some convenience shopping evadable; many outdoor activities; and mature m :c3 landscape. =
Disadvantages of neighborhood: Steep and narrow streets(typical to the area), small lots, major shopping approximately 30-60 minutes
away, and possible forest fire danger exists as Lead is surrounded by forest.
Market conditions in the subject neighborhood (including support for the above conclusions related to the trend of property values, demand/supply, and marketing time
-- such as data on competitive properties for sale in the neighborhood, description of the prevalence of sales and financing concessions, etc.): The economy of Lead is fueled primarily by the service sector, tourism dollars, and spillover from gambling revenues in near-by Deadwood.
Recently, Lead's major employer (Homestake Mine) closed down. However, per real estate agents the closing has riot negatively impacted the
housing market. There is hope that a government science lab will locate in the vacant mine and replace many of the lost employment
opportunities with professional higher paying jobs. The housing market has been good with 62 home sales over the course of last year. To date there have been 69 home sales in the Lead area which is up 17% for the same time period the pervious year. (see addendum)
Project Information for PUDs (It applicable) - - Is the developer/builder in control of the Home Owners' Association (HOA)? ❑ Yes ❑ No N/A Approximate total number of units in the subject project Approximate total number of units for sale in the subject project Describe common elements and recreational facilities: Dimensions 37.83 acres Topography Vaned
Site area 37.83 acres Corner Lot • Yes [3] No Size Larger than average
Specific zoning classification and description Park Forest Shape Undefined
Zoning compliance N Legal LI Legal nonconforming (Grandfathered use) ❑ Illegal III No zoning Hinhest & best use as buoyed - N Present use 1-1 Other use (explain)
Drainage Appears adequate
Mew Panoramic, forest
Utilities Pubic Other
Electricity N 200 amp (breaker)
Off-site Improvements Type Public Private
Street Gravel • Landscaping Natural
Driveway Surface Gravel
Gas ❑ Propane (common) Curb/gutter None (common) ■ ■ Apparent easements:typical utilities Water II Private well (commo Sidewalk None (common) • • FEMA Special Flood Hazard Area ❑ Yes El No
FEMA Zone X Map Date N/A Sanitary sewer • Septic (common) Street lights None (common) • NI Storm sewer ❑ None (common) Alley None (common) ❑ ❑ FEMA Map No. 460190 (unmapped) Comments (apparent adverse easements, encroachments, special assessments, slide areas, illegal or legal nonconforming zoning use, etc.): Typical utility
easements exist. No harmful encroachments or easements were visibly noted, however the property corners were not clearly marked at the
time of appraisal. According to the owner they have obtained a permanent access easement to the subject property. GENERAL DESCRIPTION
No. of Units 1
EXTERIOR DESCRIPTION
Foundation Concrete
FOUNDATION
Slab Yes
BASEMENT
Area Sq. Ft. None
INSULATION
Roof II No. of Stories 1 Exterior Walls Metal Crawl Space No % Hnished N/A Ceiling *14" [Xi
Type (Dot./Aft) Detached Ceiling N/A Roof Surface Metal Basement No Walls *Concea ❑ Design (Style) Ranch Gutters & Dwnspts. None Sump Pump None Walls N/A Floor ❑
Floor N/A basting/Proposed Existing Window Type Dbl Hung Dampness None visibly noted None ■ Settlement Normal Outside Entry N/A Urdinown ❑ ,,2 Age (Yrs.) 5 years Storm/Screens Present
Manufactured House No *Per owner/Concealed i Effective Age (Yrs.) 1 year Infestation None visibly noted
ROOMS Foyer Living Dining Kitchen Den Family Ran. Rec. firn Bedrooms # Baths Laundry Other Area Sq. Ft.
‘E-i Basement n_ None
Level 1 1 Combo 1 1 2 2 1 1,800
'--' Level 2 z c r.: !Ei finished area above grade contains: 5 Rooms; 2 Bedroom(s); 2 Baths) 1,800 Square Feet of Gross Living Area
INTERIOR Matenals/Condilion ci Floors Italian tile/Good
HEATING Present
Type H2O
KITCHEN EQUIP.
Reltigerator ❑ Range/Oven ❑
Disposal ❑
Dishwasher el Fan/Hood El
Microwave ❑ Washer/Dryer 11 _
ATTIC
None ill
Stairs
Drop Stair
Scuttle Floor
Heated
Finished
■ • .I. ❑
■ ❑
AMENTIES
Fireplace(s) # None ❑
N • • 0 ❑
❑
CAR STORAGE: Adequate
None ❑ Garage # Mears
Attached 2 car Patio Front Fuel Gas,woo Walls DrywalVAverage Deck None Condition Working Trirn/Rnish Wood stain/Average
Detached Porch None Bath Floor Italian tile/Good COOLING None
Central Built-In Fence Yes Bath Wainscot Slate/Good Pool None Carport Other Doors 6 panel wood/Good
Driveway Many None Condition
Additional features (special energy efficient i ems, etc.): Homes has energy efficient items such as ceiling fans. The subject home has a radiant floor
heating system that can be powered by either propane or an out door wood furnace. The subject home also has a back up (see addendum)
Condition of the improvements, depreciation (physical, functional, and external), repairs needed, quality of construction, remodeling/addibons, etc.: The subject r., z ' was constructed approximately five years ago and has been well maintained. The only deferred maintenance issue visibly noted was the
'-'-' exterior the paint/stain on the facia board (south facing) is beginning to chip and will need to be repainted in the near future. The exterior of the .m 0 subject has average appeal and was finished with average quality materials. The interior has good appeal as it was finished (see addendum)
Adverse environmental conditions (such as, but not limited to, hazardous wastes, toxic substances, etc.) present in the improvements, on the site, or in the
immediate vicinity of the subject property.: No hazardous wastes or toxic substances were visibly noted on the site or in the home. Radon gas and
termites are occasionally found in the Black Hills. The appraiser performed no tests nor were any tests presented (see addendum)
Freddie Mac Form 70 6/93
PAGE 1 OF 2
Fannie Mae Fomi 1004 6/93 Form UA2 — "TOTAL for Windows' appraisal software by a la mode, inc. —1-800-ALAMODE
UNIFORM RESIDENTIAL APPRAISAL REPORT MARKET DATA ANALYSIS
These recent sales of properties are most similar and proximate to subject and have been considered in the market analysis. The description includes a dollar adjustment, reflecting market reaction to those gems of significant variation between the subject and comparable p operties. If a significant item in the comparable property is superior to, or more favorable than, the subject property, a Minus (-) adjustment is made, thus reducing the Indic ted value of the subject. If a significant item in the comparable is interior or less favorable than, the subject property, a plus (+) adjustment is made, thus increasing the indicated value of the subject.
REM 1 SUBJECT COMPARABLE NO. 4 COMPARABLE NO. 5 COMPARABLE NO. 6 20688 Roman Rd
Address Lead 20953 Maitland Rd Deadwood
21635 Gold Dust Tri Deadwood
20884 Maitland Rd Deadwood
Prodmity to Subject 3.45 miles 4.94 miles 3.34 miles
Sales Price J Refinance
$ rt, i $ 239,300
-
239,400
,+:, - 279,000 $ 166.07 Lit
10/25/05 DOM=17 MLS=19579 & Ext inspect
Price/Grass Living Area $ 156.82 t j $ 170.51 5 I Data and/or Verification Sources
10/25/05 Visit
10/25/05 DOM=145 MLS=18167 & Ext inspect
10/25/05 DOM=107 MLS=18215 & Ext inspect
VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-)$ Adjust DESCRIPTION +(-)$ Adjust. DESCRIPTION + ( -)$ Adjust
Sales or Rnancing Concessions
Conventional None noted
Conventional None noted
N/A N/A
Date of Sale/Time ..-- - 08/23/05 7/28/05 Active listing Location Lead area Lead area Lead area Lead area
Leasehold/Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Site 37.83 acres 17.00 acres +65,000 4.82 acres +110,000 9.13 acres +75,000
Mew Panoramic, forest Forest, meadow +20,000 Forest, homes Homes, hills
Design and Appeal .it Ranch (avg) Ranch (avg) Ranch (avg) 1.5 story (sup) -15,000
Qua! of Construction Avera .e to .00d Avera.e to ! ... A - . .e to ood Avera e to ood
,i Age 5 years 42 years +30,000 8 years 23 years +14,500
Condition Good Good Good Good ii:. Above Grade . Room Count P Gross Livi ± Area
Total Bdrms Baths Total Brims Baths -1,000 +7,398
Total Bdrms Baths
+10 692
Total Bdnns Baths
+3,240 5 2 2 5 3 2 5 2 2 5 3
1 800 i R. 1,526 . R. 1,404 .. R. 1 680 Ft.
Basement & Rnished
Rooms Below Grade
Functional Utility
None N/A
Average
None N/A
Average
120 sq.ft.
0% finished Average
-1,200 1,120 sqA 70% finished
Average
-11,200
-11,000
Heating/Cooing Radiant/None F/A gas/Wall +3,000 F/A gas/None +3,000 F/A gas/None +3,000 Energy Efficient gems Garage/Carport
Typical/Solar 1+ car attached
Typical/None 3 car detached
+2,000 -5,500
Typical/None 2 car att/2+ car dt
+2,000 -7,500
TypicaVNone 3 car detached
+2,000 -5,500
Porch, Patio, Deck, Rreplace(s), etc.
Patio/None/ Look out bldg
Deck,porch/1fp None
+3,000 Porch, deck/Non None
+4,500 Deck/1wd sty/ None
+4,500
Fence, Pool, etc. Yes None +500 None +500 None +500
Personal Propetty/BuiMos None/Dw Ref,Rng/None -500 Ref,Rng,w,dlDw -1,000 Ref,Rng,w,d/Dw -1,000
Net Ad" total Adjusted Sales Rice of Comparable
.
. - 274%1*givtacmk 571 I1 - $ 123,898 71+ ri - ' $ 120,992 NI + ri - $ 59,040
Net 511 iil Gross 57.6 % $ 363,198
Net S0.5 %- ' Gross 58.6 % $ 360,392
Net 212 % Gross 52.5 % $ 338,040
Date, Price and Data Source for prior sales within year of appraisal
MLS & Pub Rec Last sale: 05/04
$78,000
MLS Service & Public Records
No sales in last 12 months
MLS Service & Public Records
No sales in last 12 months
MLS Service & Public Records
No sales in last 12 months
Comments:
E--1
Market Data Analysis 6-93
Form UA2.(AC) - "TOTAL for Windows" appraisal software by a la mode, inc. - 1 -800 -ALAMODE
UNIFORM RESIDENTIAL APPRAISAL REPORT
=
ESTIMATED SITE VALUE 160,000 Comments on Cost Approach (such as, source of cost estimate, site value,
square foot calculation and for HUD, VA and Fo1HA, the estimated remaining
economic life of the property): As stated previously the subject site is
ESTIMATED REPRODUCTION COST-NEW-OF IMPROVEMENTS:
Dwelling 1,800 Sq. Ft. @$ 81.42 = $ 146,556
Sq. Ft @$ = secluded, forested, and has panoramic views to the surrounding area
,V- Sul'tins, patio, look out building, solar = 25,000 making it more desirable that the typical site. EE ,41r-
2
Garage/Carport 720 Sq. Ft @$ 20.48 = 14,746 MLS# 18412 40.73 acres, sold on 09/05 for $162,920 (Maitland area,
Total Estimated Cost New = $ 186,302 land offers views), MLS# 19374, 4427 acres, sold on 09/05 for
Less Physical Functional External Depreciation 3,1111 1 =$ 3,111
$154,000 (Lead area), MLS# 18653, 49.00 acres, sold on 10/04 for
$115,000 (Lead area, limited views). Depreciated Value of Improvements =$ 183,191 Based on the data above and the appraiser's knowledge of the area the "As-is" Value of Site Improvements Welt.segfic,drive„powr=$ 25,000 estimated value of the subject site 's $160,000 or $4230 per acre.
INDICATED VALUE BY COST APPROACH =$ 368,191 See addendum for remaining cost approach comments
ITEM I SUBJECT COMPARABLE NO .1 COMPARABLE NO. 2 COMPARABLE NO. 3
20688 Roman Rd
Address Lead 11192 Overlook Place Lead
34 Hardscrabble Lead
Tract 33 Aster Rd
Lead
Prodmity to Subject 1.94 miles 6.04 miles 9.37 miles Sales Price $ Refinance 1$ 205,000 1$ 375,000 la 410 000
Price/Gross Living Area $ cb $ 133.46 Cb1 $ 181.16 ITtlj $ 173.95 it Data and/or
Verification Source
10/25/05
Visit 10/25/05 DOM=125 MLS=18349 & EM inspect
10/25/05 DOM=554 MLS=17010 & Ext inspect
10/25/05 DOM=331 MLS=16503 & Ext inspect
VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-)$ Adjust DESCRIPTION +(-)$ Adjust DESCRIPTION +1-Is Adjust. Sales or Financing Concessions
Cash None noted
Conventional None noted
Conventional None noted
Date of Sale/Tune 09/01/05 03/10/05 +2,800 05/20/05 Location Lead area Lead area Lead area Spearfish area (=)
Leasehold/Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Site 37.83 acres 4.44 acres +110,000 2.11 acres +115,000 8.17 acres +75,000 Mew Panoramic, forest Partial view,foret Forest, homes Partial view,forest Design and Appeal Ranch (avg) 1.5 story (avg) 1.5 story (avg) 1.5 story (avg) -20 , 000
Quality of Construction Average to good Average to good Superior -30,000 Average to good Age 5 years 1 year 5 years 1 year
Condition Good Good Good Good Above Grade
, Room Count
."7,.. Gross Living Area
Total :BMus: Baths Total ;Bdrms Baths -1,000
+7,128
Total Bdrms Baths
-7,290
Total Bdrms Baths
-15,039
5 2 ; 2 5 1 3 2 6 6 3 1 1,800 Sq. Ft 1,536 Sq. Ft_ 2,070 Sq. Ft 2,357 Sq. Ft
.1. Basement & Finished 6 Rooms Below Grade
None
N/A
None N/A
None N/A
1868 sg.ft. -19,000 85% finished -24,000
Functional Utility Average Average Average Average g Healing/Cooling Radiant/None Ebd/None +3,000 Heat pump/None +3,000 F/A gas/Central +1,000
Energy Efficient Items Typical/Solar TypicaVNone +2,000 Typical/None +2,000 Typical/None +2,000 ti-; Garage/Carport 1+ car attached None +3,500 4+ car att/DU -9,000 3 car attached -5,500
Porch, Patio, Deck,
Rreplace(s), etc.
Patio/None/
Look out bldg Deck/1 fp/None +3,500
None Deck/None +5,000
None
Deck (sup)/lfp +2,500 None
Fence, Pool, etc. Yes None +500 None +500 None +500 Personal Property/Builtins None/Dw Ref Rng w d/Dw -1,000 Ref Rng w,d,/Dw -1,000 Ref Rng w d/Dw -800 Net Adj. (total) + - $ 127,628 + - $ 81,010 + - 3,339 Adjusted Sales Price
of Comparable
Net 62.3 % Gross 64.2 % $ 332,628
Net 21.6 % Gross 46.8 % $ 456,010
Net 0.8 %
Gross 40.3 % $ 406,661
Comments on Sales Comparison (including the subject property's compatibility to the neighborhood, etc.): All adjustments were made based on paired sales analysis, market end action, and the appraiser's knowledge of the area. Time adjustments were made at 0.250% monthly to any sale four months or older and are based on market analysis (see addendum). As stated earlier the subject has a panoramic view of the surrounding
area. The view adjustment is accounted for in the site adjustment unless otherwise stated. Site adjustments were made based on recent vacant land sales in the sales respective areas. The subject has average exterior appeal where as some of the comparable sale are 1.5 story
log home, etc with superior exterior appeal to the market. Age/depreciation adjustments were made $800 per year, (see addendum) ITEM SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO.3
Date, Price and Data
Source, for prior sales
within year of appraisal
MLS & Pub Rec
Last sale: 05/04
$78,000
MLS Service & Public Records
No sales in last 12 months
MLS Service & Public Records
No sales in last 12 months
MLS Service & Public Records
No sales in last 12 months
Analysis of any current agreement of sale, option, or listing of subject property and analysis of any prior sales of subject and comparables within one year of the date of appraisal: Upon research of public records and the MLS the subject has not been sold or listed within the last three years other than what is reported
above.
INDICATED VALUE BY SALES COMPARISON APPROACH $ 360,000
INDICATED VALUE BY INCOME APPROACH (if Applicable) Estimated Market Rent $ /Mo. x Gross Rent Multiplier ____ = $
This appraisal is made L_J "as is" subject to the repairs, alterations, inspections or conditions listed below ❑ subject to completion per plans & specifications.
Conditions of Appraisal: This appraisal report is prepared for the sole and exclusive use of Bestrate Funding.Com to assist with a mortgage lending
decision. It is not to be relied upon by any third parties for any purpose whatsoever. This appraisal is prepared (see addendum)
Final Reconciliation: The sales comparison approach is the most valid approach for estimating market value in this instance because there are
sufficient comparisons and the market is active. Lending support to the sales comparison is the cost approach. it is valid because the market
is stable, the home is in balance with the neighborhood, highest and best use is "as is," and the land value is supported by (see addendum)
.._, c̀71,' El,'
The purpose of this appraisal is to estimate the market value of the real property that is the subject of Ills report, based on the above conditions and the certification, contingent
and limiting conditions, and market value definition that are stated in the attached Freddie Mac Form 439/FNMA form 10048 (Revised )-
I (WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT, AS OF 10/25/05
(WHICH IS THE DATE OF INSPECTION AND THE EFFECTIVE DATE OF THIS REPORT) TO BE $ 360,000
APPRAISER: Corey Wattenhofer SUPERVISORY APPRAISER (ONLY IF REQUIRED):
Signature .7,,ttatitY Signature ❑ Did IIT Did Net
Name Corey Wattenhofer Name Inspect Property
Date Report Signed 10/27/05 Date Report Signed
State Certification # State State Certification # State
Or State License # 1000802SL-2006 State SD Or State License # State
Freddie Mac Form 70 6/93
PAGE 2 OF 2
Fannie Mae Form 1004 6-93 Form UA2 - 'TOTAL for Windows" appraisal software by a la mode, inc. - 1-800-ALAMODE
Supplemental Addendum File No
Borrower/Client Scott & Jeanne Prentice
Property Address 20688 Roman Rd City Lead County Lawrence State SD Le Code 57754 Lender Best Rate Funding .COM
Sales Comparison Explanation of Comparable Selection The subject is somewhat unique to the market in that it is a metal sided ranch stile with good quality interior finish with a unique three story observation building situate on a secluded 37.83 site that offers panoramic views of the surrounding area. Extensive research of the Lead real estate market from 10/01/04-10/25/05 revealed a sufficient number of comparable properties for analysis, but obviously none that were highly comparable to the subject. The appraiser attempted to select properties of various sales prices, with similar appeal, amenities, quality of construction, and views to that of the subject. An attempt was also made to select properties to bracket the subject in age and gross living area. The comparable properties selected are the best available for review and they would have been competing properties had the subject been on the market at the time of their sales. The following table is an analysis to show the comparable sales similarities to the subject is several key categories. Note: Due to the rural/secluded nature of the subject many of the comparable properties are a greater distance away from the subject is typical.
Comparable to Subject Similarity Analysis
Location 4 3 2 3 3 3
Date of Sale 5 3 4 4 4 1
Site 3 2 4 5 3 4
Appeal 4 4 3 5 5 4
View 4 3 4 4 3 4
Quality 4 3 5 3 5 5
Age 4 5 4 2 4 3
Condition 5 5 5 4 5 4
Bed/Bath count 4 4 4 4 5 4
Size 4 4 2 4 3 4.5
Basement 5 5 1 5 4 1
Functional Utility 5 5 5 5 5 5
Garage 1 2 4 4 3 4
Amenities 3 2 3 4 3 3
Similarity Score 55 50 50 56 55 49.5
Rating Scoring Scale: 1 -5 scale, 1 is least like the subject and 5 are most like the subject.
Sales Comparison Explanation of Weighting to Form an Opinion of Value
As can be seen above sale's #1 and #4 and #5 are overall most similar to the subject, however none of them are highly comparable to the subject. Therefore, to estimate the subject's current market value the appraiser applied weight to each of those sales. Some weight was applied to the remaining comparable sales. No weight was given to the active listing, but was included to give an indication of the current market.
URAR: Conditions of Appraisal
with subject in as is condition. The appraiser is not a home inspector and this report does not guarantee that the property is free of defects. For the purpose of this appraisal it is assumed (as per the owner) there is a recorded permanent access easement to the subject property. If further information becomes available with regards to the access to the subject property the appraiser reserves the right to amend this report.
• URAR: Final Reconciliation
market data. The income approach was not developed because homes in this area and price range are not typical investment properties and therefore rental data is not consistent or reliable.
Note: Due to the lack of highly comparable properties to that of the subject this report is out of the normal 0-5% range or reliability. The reliability of this report is between 0-10% in reliability.
Form TADD —"TOTAL for Windows' appraisal software by a la mode, inc. — 1-800-ALAMODE
Supplemental Addendum Borrower/Client Scott & Jeanne Prentice
Property Address 20688 Roman Rd City Lead County Lawrence State SD p Code 57754 Lender Best Rate Funding .COM
.S01% Note: This appraisal was originally preformed on 10/27/05 with the client requesting 15.00 acres of the total 37.83 arces be appraised. on 11/15/05 the client contacted the appraiser and requested the entire 37.83 acres be included in the value estimate. At the clients requst this appraisal has been updated to reflect the stated request with no other changes being made.
The purpose of this appraisal is to report in summary format, a supported opinion of value, of the defined property rights, as of the date of appraisal, based on data extracted from the current real estate market.
Function: To be used by the client to assist with the mortgage lending decision.
Information to complete this report was collected from public records, the multiple listing service, speaking with real estate agents involved in the transactions, and personal on site review. Information collected was applied to two of the three common approaches used in estimating value. The income approach (which converts anticipated cash flows into a gross rent multiplier derived from the rental market and establishes a monthly rental rate for the property) was not developed because rental data is not dependable or consistent for homes in this area. The cost approach (which is used to estimate market value by calculating current cost to construct/reproduce the home and adding in site value while subtracting estimated depreciation) was developed. It is a secondary technique that lends support to the sales comparison approach. The sales comparison approach (which is developed by researching the market to find properties similar to the subject that have recently sold, and making adjustments to the sales prices based on market tendencies) was employed. Because the data for this technique is based on current home sales in the market, it is the primary and most reliable method to conclude current buyer/seller motivations and estimate the subject's value,
• URAR: Neighborhood - Boundaries establishments line the main linkages. The subjects sub-neighborhood is sparsely populated with mid to upper end homes situated on forest tracts located about 10 minutes to the Lead city center. Overall the subjects sub-neighborhood has good appeal to the market.
• URAR: Neighborhood Market Conditions Average marketing times are between 30-200 days and concessions are not common. Per conversation with several real estate agents approximately 60-70% of home buyers are from out of state purchasing properties for vacation homes. Values appear to be increasing (See below).
Monthly Increase/Decrease in Value Analysis 718 W Summit Dec-98 $ 46,000.00 Aug-02 $ 66,000.00 0.776%
205 Anderson May-96 $ 60,000.00 Aug-02 $ 85,500.00 0.559%
614 W Main Sep-95 $ 85,000.00 Aug-02 $ 99,500.00 0.201%
711 W Summit Oct-94 $ 30,000.00 Aug-02 $ 40,000.00 0.358%
108 Spark Sep-01 $ 55,000.00 May-03 $ 57,000.00 0.182%
406 Sawyer Oct-00 $ 57,000.00 May-03 $ 67,000.00 0.566% 11032 Buffalo Tri Dec-01 $ 185,000.00 Jun-03 $ 199,000.00 0.199%
1012 Washington Aug-00 $ 20,00000 Nov-03 $ 21,500.00 0.192%
407 McQuillan Feb-02 $ 39,900.00 Apr-04 $ 44,900.00 0.482%
504 W Summit Apr-02 $ 55,000.00 Jun-04 $ 59,000.00 0.280%
415 W Summit Mar-04 $ 68,900_00 Sep-05 $ 72,000.00 0.250%
Conclusion: Analysis of the above limited data indicates a .368% + or - .199% monthly increase in value. The appraiser will use a conservative .250% monthly increase in value for any time adjustments throughout the remainder of the report.
• URAR: Improvements - Additional Features solar power system that can run the basic systems in the home.
• URAR: Improvements - Condition of the Property with good quality materials such as: Italian tile through out the entire home, 6 panel solid wood doors, radiant floor heating system, good quality cabinets in the bathrooms, and good quality windows were noted. Overall the subject has average to good appeal to the market. Also on the property is a three story viewing structure with the two upper levels being finished and the lower level being used as storage for the solar system. The middle level is currently being used as a bedroom. Access to the two upper levels is via ladders through holes in the floor. The two upper levels of the structure have average finish.
• URAR: Adverse Environmental Conditions at the time of appraisal. The appraiser is not a hazardous wastes, pests, or toxic substances expert.
• URAR: Cost Approach Comments Cost and depreciation estimates are from Marshall and Swift Cost service. Estimates were derived from average to good quality tables adding in investor incentive. Depreciation is based on an economic life expectancy of 65 year and an effective age of 1 year or 0% depreciation.
• URAR: Sales Comparison Comments (personal property is not included in the value estimate) less 5 years. Room adjustments are accounted for in the gross living area adjustment unless otherwise noted. Gross living area adjustments were made at $28.00 per sq.ft. Unfinished basement living area adjustments were made at $10.00 per sq.ft. Basement finish adjustments were made at $14.00 per sq.ft. Amenity adjustments (garage, porch, etc) were made based on market tendencies and previous paired sales analysis. Personal property and built in appliance adjustments were made at: range=$200, refrigerator=$300, washer=$300, dryer=$200, and dishwasher=$200.
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Form TADD — "TOTAL for Windows" appraisal software by a la mode, inc. —1-800-ALAMODE