Agenda - Council - 06/11/1996 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I DEFINITION OF IVLA. RKET VALUE: Thc mos~ probable price which a property should bring in a competitive and open market under all conditions requisite to a fair ~l~ the buyer and seller, each acting prudently, knowledgeably and assuming the price is not afl'ected by undue stimulus, Impiicil in th~s definition is thc consummation of a sale as ora specified date and the passing of title from seller to buyer under conditions whe'_t~by; (I) buyer and seller ~ typically motiv~lt.d; (2) both parries are well informed or w~II advis~l, and each ~cting in wire! he cousJ~et~ his own ~ inler~t; (3) a reasonable Lime is allowed for cxpos~'e in the open markel; (4) paTment is made in terms of cash in U~ S. dollars or in terms of financial ~rrangcments compa~bl¢ thm'eto; and ($) thc price r~pres~nts the nora'ml comidcr'ation for th~ p~perty sold una~ by special or creative financing or sales concessious* g~anted by anyone ~ with the sale, *Adjustments to the comparables must be'mad,, for special or creative financing or sales concessions. No adjustments are necessary for those costs which arc normally paid b)~ .seller~ as a re~lt of tradition or law in a market area; thes~ costs arc readily identifiable since thc sellcr pays these costs in virtually' all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparison to finlmcing terms offered by a third party institutional lcndcr that is not already involved in thc property or transaction. Any adjustment Should not be calculated on a mechanical dollar for doLlm' cost of thc financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concossions based on the apprair~s judgment. STATEMENT OF I~I2~[T/NG CONDITIONS AND APPRAISER'S CERTIFICATION CONTENGENT AND LIMITING CONDITIONS: The appraiser's cortification that appears in thc appraisal report is subjcet to thc following conditions: 1. The Appraiser wLll not be rcsponsible¢for matters ora legal nature that affect either thc property being appraised or the title to iL Thc appraiser assumes that thc title is go~d~ and marketable and, therefore, will not render any opinions about the title. The pro~ is appraised on thc basis of it being unde~respons~lc ownership. 2. The appraiser has provided a skctch i~ thc appraisal repor~ to show approximate dimeusious of the improvements and thc sketch is included only to assist thc reader of tlie report in vis, mild!fig thc property and undc~ding the appraiser's determination of it~ siz& 3. Thc appralsca' has c~amined the avai~f lc flood maps that arc provided by thc Federal Emergency Management'Agency (or other data ~ur~s) and has noted in the appniitad report whcthcc thc subject site is located in an identified Special Floor lq~:,~rd Ama. Because thc appraiser ie not a surveyor, h~ or abc makes no guaxantee~, eocpress or implied, regarding this detcrinination. 4. Tl~c appraiser will not give testimony or appear in court because hc or she ma'dc an appraisal of thc property in question, unless specific arrangea2aent to do so have been made beforehand. 5. The appraiser has ecdmated thc valuO of thc land in thc cost approach at its highest and best use and thc improvements at their contributory value. These separate vah~afious of thc land and improvements must riot be used in conjunction with an y other appraisal and are invalid-if they arc so used. 6. Thc appraiser has noted in tl~c appraisal report any adverse conditions (such as, needed repairs, dcpre~ciation~ thc presence of ha~'ardous wa.glL~, toxic substances, ctc.);obs~rved during thc inspection of thc subject property or that he or she became awaxc of dur;mg thc normal research involved in i~a-forming thc appraisal. Unless otherwise stated in the appraisal report, thc appraiser has no knowledge of any hidden or tmappar¢0l conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) ~at would make thc property moro or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding thc condition of thc property. The appraiser will not be rosponm'blc for any such conditio~ that do exist or for any engineering or testing that might be required to discover whether such condRions exist. Because the appr~j~'ser is not an exper{ in thc field of cnvlroruncntal haTnrd$, thc appraisal report must not be considered as an environmental assessm~nl of the properly. ?. Thc appralsex obtained thc information, estimates, and opinions that were expressed in thc appraisal report from sou.tx:es that he or she considers to ¢ reliable a.nd believe~ them to be true and correct. Thc appraiser does not assume respons~ility for thc accuracy of such items that were ~CurftL~hed by othor pa. riles. 8. Thc appraiser will not disclose th_e contents of thc appraisal report except as provided for in the Uniform Standards of Professional Apprai.~al Practice. 9. Thc appraiser has based hi~ or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory Completion, repairs, or alterations on t.he assumption that completion of Lhc improvements will be performed in a worknmnlikc lO. Thc appraisor must provide h/s ol' her prior written consent before the lender/client specified in the appra/sal report can distribute the appraisal report (inchidingconclusions about the property value, the appraisers identity and professional designations. and references to any professional appraisal organizations or thc firm with which the appraiser is associated) to anyone other than the borrower, thc mortgagee or it~ sucC,~SSOrs and assigns; the mortgage insurer, consultants; professional appraisal organizations; any state or federally approved financialiinstitution; or any deparunenh agency, or instrumentality of the United Slates or any state or thc District of Columbia; except that thc lcadcr/clienl may distribute thc property de..~.-Mption section of thc report on]'y to data collection or reporting scrvlce(s) wlthou{ having to obtain thc appraiser's prior written cons~nL Thc appraiser's written consent and approval must also be obtained before the appraisal can bc conveyed by anyone to the public tkrough advertising, public relations, nc'ws, ~ale:s, or other media. Freddie Mac Form 439 6-93 Page I of 2 Fannie Mac Form lOO4B 6-93