Appraisal Reports: An Agents Best Tool Presented By: D. Wade Brown, SR/WA American Acquisition Group, LLC

Know the value being qualified:  MARKET VALUE: a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal.  Other values could be Value in Use, Liquidation Value, Investment Value, Interim Value, Insurable Value, etc.  Typical argument in condemnation is market value versus value in use.

The Subject Property: Facts of the Property  acre site  Zoning/Land Use- SPI-AP-4 (Special Public Interest-Airport) / LI (Light Industrial)  Improvements – Asphalt Parking, Drainage in place  Former railroad site used to offload and store vehicles  Buyer proposed use – vehicle storage and parking  Seller believes that the site is worth more because of its value in use to the Buyer

Aerial of Subject: North Subject

Note to Users (Clients / Agencies) “YOU’RE THE BOSS BUT THE APPRAISER SHOULD TELL YOU HOW TO GET WHAT YOU WANT”  SCOPE OF WORK RULE:  For each appraisal, appraisal review, and appraisal consulting assignment, an appraiser must: 1. identify the problem to be solved; 2. determine and perform the scope of work necessary to develop credible assignment results; and 3. disclose the scope of work in the report.  An appraiser must properly identify the problem to be solved in order to determine the appropriate scope of work.  The appraiser must be prepared to demonstrate that the scope of work is sufficient to produce credible assignment results.

Note to Users (Clients / Agencies) (pt. 2)  Comment: Scope of work includes, but is not limited to: the extent to which the property is identified; the extent to which tangible property is inspected; the type and extent of data researched; and the type and extent of analyses applied to arrive at opinions or conclusions.  Appraisers have broad flexibility and significant responsibility in determining the appropriate scope of work for an appraisal, appraisal review, and appraisal consulting assignment. Credible assignment results require support by relevant evidence and logic. The credibility of assignment results is always measured in the context of the intended use.

Reconciliation of Approaches  VALUE INDICATED BY THE COST APPROACH:  th Avenue W (Lot 12):$89,  VALUE INDICATED BY THE SALES COMPARISON APPROACH:  th Avenue W (Lot 12):$87,  VALUE INDICATED FROM THE INCOME CAPITALIZATION APPROACH:  th Avenue W, (Lot 12):$95,  After consideration of all factors entering into this appraisal, the fee simple interest of the subject property, as of the date of value, was estimated as follows: Total:$95,500.00

Highest and Best Use:  APPLICATION TO THE SUBJECT:  The subject is a acre vacant site with asphalt paving  Land As Though Vacant:  Physically Possible: The subject does have a suitable size and shape for development in accordance with the County Ordinances. It contains adequate access, drainage and high land for development. It has typical utilities available to the site and soil appears to be developable.  Legally Permissible: The permissible uses are allowed by zoning which is described in the addenda of this report. The most likely legally permissible user for the site is for Industrial/Commercial development, based upon the LI future land use. Industrial/Commercial uses predominate the immediate area so these permissible uses compliment the neighborhood. The subject zoning does have height restrictions compatible for airport flight patterns but do not limit most light industrial, commercial uses.  Financially Feasible: Industrial/Commercial development is considered to bring the most financial return to the property. The existence of activity throughout this area indicates the viability of such as use. No other use is known to be legally permissible and bring more return than Industrial/Commercial use.  Maximally Productive: No alternate use is considered to return a higher current value to the site than for Industrial/Commercial development. Therefore, the maximally productive use of the site is for Industrial/Commercial development as it is physically possible, legally permissible, financially feasible and maximally productive.  Highest and Best Use Conclusion:  The maximally productive and highest and best use of the subject land, as though vacant, is for Industrial/Commercial development, as is the highest and best use as improved.

Sales Grid 1:

Sales Grid 2:

Cost To Cure Aerial of Subject:

Sketch of the taking:

Subject Photo 1:

Subject Photo 2:

Cost To Cure:  “Know what was cured in the appraisal versus what is being replaced as part of construction,”  i.e. driveways, sod, fencing, etc.

Thank you! As always, we appreciate the opportunity to present our firm and please visit us at American Acquisition Group, LLC