5.3. ERMUSR 12-12-2012 - Laserfiche WebLink

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ADDENDUM Client: Troy Adams File No m727 Property Address: 1627 Main Street NW Case No City: Elk River State. MN Zip: 55330 Intended Use . The Intended User of this appraisal report is the Lender/Client.The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction,subject to the stated Scope of Work,purpose of the appraisal, reporting requirements of this appraisal report form,and Definition of Market Value.No additional Intended Users are identified by the appraiser. Neighborhood Description The subject neighborhood is mostly comprised of single family dwellings. Typical views for homes in the area include residential and some water views.Main Street NW can be a busy road at times compared to other residential streets within the neighborhood.The subject does have easy access to Hwy 10 that connects to Hwy 169.The city of Elk River is about 40 minutes NW of Minneapolis.Elk River is the main area for shopping,recreation,schools,and places of employment.There is also a light rail stop in Elk River that provides daily access to Minneapolis.The overall appeal of the neighborhood is good and consistent with the other neighborhoods in the market area. Neighborhood Market Conditions Marketing time is currently under three months for competitively price properties,although some higher priced properties may stay on the market longer.Financing concessions from the sellers are more common due to competition in the market place and stricter lending guidelines.Sales to asking price ratio is typically 95%percent or better for competitively priced properties.A moderate amount of the active listings within the subject's market area are REO properties;which are lowering sales and listing prices for the non-distressed properties on the market.The subject is located within Elk River an outer Twin Cities job market area,which has remained stable.Based on information from the Minneapolis Association of Realtors through October 2012 the average marketing time for single family homes in the subject's market area was 110 days.YTD closed sales there were 33 sales with an average sale price$163,140 as compared to the previous year in which there were 327 sales,and an average sale price of$147,350 indicating a stable to improving market. As improved:Other(explain) Given present zoning and demand,highest and best use is limited to single unit and the present use is the most practical use. Comments on Sales Comparison I have not performed any services,as an appraiser or in any other capacity,on the subject property within the three-year period immediately preceding acceptance of this assignment. All comparable sales are similar in style,area,appeal,and marketability. A thorough search was made to locate comparable sales in the market area. Resources for this information includes but is not limited to the RMLS of Minnesota, . realtors familiar with the market area,and builders. Information from the RMLS is labeled"Deemed Reliable But Not Guaranteed". Information is sometimes confirmed by realtors or physically measuring the comparable in question. The comparable sales used are considered to be the most similar,recent,and proximate. The sold comps range is sale from$134,900 to$188,900.These were deemed the best sold comparables and adjustments were made accordingly.All comparables chosen have meaningful attributes and a blended value conclusion was utilized.The comparables used in this report were the best available to demonstrate current market value and would be considered direct competition to the subject. All comparables are considered to be in average to good condition per MLS interior listing photos. Adjustments: No adjustments made under$1000. Adjustments were made for amenities. AGF was adjusted at$35 per square foot. BGF was adjusted at$10 per square foot.Walkout adjusted at$2500.Room count adjusted at$3000 per bedroom and bathroom. Site adjusted at$.25 per SF.Active listing adjusted at 6%per the Minneapolis Association of Realtors.Condition adjusted at$5000.Main Street location adjusted at$5000.Concessions adjusted at 25%. Five sold and one active(6)comparables were used. Date of sale used for the sold comparables.After extending the search the appraiser was not able to find a comparables that bracket the GLA of the subject.This resulted is across the board positive adjustment. Individual adjustments were made to reflect the above grade finished SF.Similar functional utility,location,and GLA were the major criteria for finding comparables. All comps have been given equal consideration in the final valuation opinion as all comps have meaningful and similar attributes,with the most weight given to comparable 1 and 3 due to location an lowest net adjustment.List to sale adjustment is only an averaged adjustment with little weight as active sales are unpredictable and may sell higher or lower than asking or may be removed from the market. RMLS does not provide offering history/prices and it is common in this market for the sale price to be below the last published asking price,therefore it is necessary to apply the same adjustment. The comparables displayed are all 2-3 bedroom above grade with GLA that brackets subject's GLA. All comps are arm length transactions. Finance Concessions The financial concession adjustments to the comparable sales reflect the difference between their actual sales prices with the concessions and what their sales prices would have been without theconcessions.The financial concession adjustments do not reflect a dollar for dollar adjustment(unless the impact to the sales price reflects a dollar for dollar adjustment),nor are the financial concession based on the typical concessions for the market area.Rather,each financial concession adjustment was individually derived from the impact the financial concession had to the sale price of the comparable.The financial concession adjustments to the comparables were based off either the comparable paired sales analysis(primary), the difference between the financial concession and the negotiated sale price to listing price ratio(due to limited paired sales),and/or phone interview with seller's agent(if possible and time permitted).One or all of these methods were used to determine the impact of the financial concession to the comparables sale prices. 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