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 I DEYIMITION OF MARKET VALUE: Thc most probable price which a property should bring in a competitive and open market under all conditious requisite to a fair sa!c, thc buyer and seller, each acting prudently, knowledgeably and assuming thc price is affected by undue stimulus. Implicit in this definition is the consuramation of a sale as ora specified date and the passing of title from seller to buyer under conditions wh~ereby; (I) buyer and ~ller lu*c typically motivated; (2) both parties axe well informed or well advised, and each acting in what he coMiflers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of eash in D. $. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents thc normal consideration for thc property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with thc sale. *Adjustments to thc comparables must ~ made for special or creative financing or sales concessions. No adjustments are necessary for those costs which arc normally paid by sellers as a resuh of tradition or law in a market sma; these costs arc readily identifiable since the seller pays these costs in vinu,~l~ ly all .sales transactions. Special or creative financing adjustments can be made to thc comparable property by comparison to qnancing terms offered by a third party institutional lender that is not already involved in thc property or transaction. Any adjustmen, t should not bc calculated on a mechanical dollar for dollar cost of thc financing or concession but thc dollar amount of any -djustrncnt should approximate the raarkex's reaction to the financing or concessions based on .the appraisef~ judgment_ STATEMENT OF ~G CONDITIONS AND APPRAISER'S CER-rI~'ICATION CONTINGENT AND LI2vlITING CONDITIONS: The appraiser's certification that appeam in thc appraisal report is subjccl to the following conditions: 1, The Appraiser will not be responsible for matters ora leg, al nature that affect either thc property being apprals~fl or thc tire to it. The appraisex assumes that thc title is/~d and nmrketable and, therefore, will not render any opinions about thc title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the apprai~l report to show approximate dimensions of the improvements and the sketch is included only to assist the re~fler of thc report in vis~mli:dng the property and understanding the appraisers fletemtination of its size. 3, Thc appraiser has examined thc available flood maps that m-e provided by the Federal Emergency Management Agency (or other data ~ources) and has noted in the apl~ndsal rcpen whether thc subject site is located in an identified Special Floor H~rd Area. Because thc appraisex is not a n2rveyo~, he or r~he makes no guarantees, expn~s or implied, regm'ding th~ determination 4. Thc appraiser will not give lestimony or appear in court beeause he or she made an appraisal of thc property in question, unless specific arrangement to do so have beeh made beforehand. 5. The appraiser ha~ estimated thc value of the land in thc mst approach at its highest and best use and thc improvemcnt~'at their contributory value, These separate ,,~uations of the land and improvements must not be used in conjunction with an y other appraisal and are invalid if they are so-used. 6. The appraiser has noted in the ap~pralsal report any adverse conditions (such as, needed repa/rs, depreciation, the presence of ha:,a,'dous waxtes, toxic substances, eR:.) observed during the inspection of the subject property or that he or she became aware of during thc normal research involved {n performing thc appraisal. Unless otherwise stated in the appraisal report, thc appraiser has no knowledge of any hidden or unapp~ent conditions of the property or adverse environmental conditions (including thc presence of hazardous waste% toxic substances, erg.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees fir warranties, express or implied, regarding the condition of the property. The appraiser MI/ not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exisL Because the appraiser is not ma expert in the field of env'ixorunental ba:.arda, the appraisal rcpert must not be considered as an cnv~ronmcntal assesament of the property. 7. Thc appraiser obtained the inform*don, estimates, and opinions that wore express~ in the appraisal 'report from sources that he or she cormiflcrs to c reliable a_nd beli6ve~ them to be tree and con'ecL The appraiser does not assume rexponsibLLity .for thc accuracy of ~ch itr-.m~ that were furnished by other parties. 8. Thc appraiser will not disclose the contents of the appraisal report except as provided for in thc Uniform Standards of Professional AppFaixal Practice. 9. Thc appraiser has based his or her appraisal report and valuation conclusion for ma appraisal that is subject to saris:factory completion, repairs, or alterations o~ the assumption that completion of the improvements will be performed in a workmanlike manner. 10. Thc appraiser must provide his or her prior written consent before the lender/client specified in thc appraisal report can dis'tribute thc appraL.ml report (including conclusions about thc property value, thc appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than thc borrower, the mortgagee or its sacce, ssors and assigns; thc mortgage in.rorer;, consultants; professional appraisal organizations; any state or fedcraUy approved financial institution; or any dcparancnt, agency,' or instrumentality of thc U~fited States or any state or thc District of Columbia; except tlrmt the lender/client may distribute thc property description section of the report only to data collection or reporting service(s) without having to obtain the apprai~r's prior written consent. Thc appraiser's written consent and approval must also Ix: obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 6-93 Page I of 2 Fannie Mae Form 1004B 6-93