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DEFINITION OF MARKET VALUE: <br />Market value as defined in The Appraisal of Real Estate, Appraisal Institute, <br />12t Edition, is "the most probable price which a property should bring in a <br />competitive and open market under all conditions requisite to a fair sale, the buyer <br />and seller, each acting prudently, knowledgeably and assuming the price is not <br />affected by undue stimulus. Implicit in this definition is the consummation of sale <br />as of a specific date and the passing of title from seller to buyer under conditions <br />whereby: <br />1. buyer and seller are typically motivated; <br />2. both parties are well informed or well advised and acting in what they <br />consider their best interests; <br />3. a reasonable time is allowed for exposure in the open market; <br />4. payment is made in terms of cash in United States dollars or in terms of <br />financial arrangements comparable thereto; and <br />5. the price represents the normal consideration for the property sold <br />unaffected by special or creative financing or sale concessions granted by <br />anyone associated with the sale." <br />This federal definition is compatible with the definition of market value <br />cited in the current edition of The Dictionary of Real Estate Appraisal. The <br />federal definition requires that the effect on property value of any special or <br />creative financing or sales concessions be determined and that the opinion of value <br />reflect cash equivalent terms. Special financing or sales concessions often <br />characterize transactions in depressed markets. This definition was developed to <br />address categories of appraisal assignments in a real estate market characterized <br />by unique circumstances. <br />EXTENT OF THE PROCESS OF COLLECTING, CONFIRMING AND REPORTING DATA: includes (1) an <br />inspection of the subject site, (2) consideration of neighborhood <br />characteristics, (3) use of sales data from the county assessor and private <br />data collection services, (4) use of the closed appraisal files, and (5) <br />personal inspection of all comparable sales. <br />CONTINGENT AND LIMITING CONDITIONS AND ASSUMPTIONS: <br />1. The certification of the appraisers appearing in the appraisal report is <br />subject to the following conditions and assumptions and to such other <br />specific and limiting conditions and assumptions as are set forth by the <br />appraisers in the report. <br />2. The appraisers assume no responsibility for matters of a legal nature <br />affecting the property appraised or the title thereto, nor do the appraisers <br />render any opinion as to the title, which is assumed to be good and <br />marketable. The property is appraised as though under responsible ownership. <br />3. Any sketch in the report shows approximate dimensions and is included to <br />assist the reader in visualizing the property. The appraisers have made no <br />survey of the property. <br />4. The appraisers have examined the available flood maps that are provided by <br />the Federal Emergency Management Agency and have noted in the appraisal <br />report whether the subject site is located in an identified Special Flood <br />Hazard Area. Because the appraisers are not surveyors, no guarantee, express <br />or implied, is made regarding this determination. <br />3 <br />