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Adiustment Analysis The Sales Comparison Approach requires adjusting and analyzing comparables to derive a value estimate for the subject. The various sale prices are adjusted after identifying relevant adjustment factors and after quantifying the effect of a difference between the comparable and subject. The difficulty in quantifying adjustments is a result of real estate being unique in nature, with no two properties being identical. Additionally, not all differences require an adjustment. The Appraiser typically will have to rely on reason and experience to decide which differences have significance and should be adjusted, as well as the magnitude of any adjustment. The same set of comparable sales will be utilized in the valuations of both the before and after conditions of the subject property. The following adjustments are applicable in both valuation scenarios; however, specific adjustments may vary between the two valuations due to the differences in the subject property before and after acquisition. Transactional Adjustments Real property rights convect - The real property rights conveyed is the first adjustment because the appraisal of the subject property rights can only be compared to similar property rights. All comparable sales are offee simple interests, so no adjustments were necessary. Financing - A financing adjustment is actually a specific motivation adjustment and often is not capable of being accurately derived from a mathematical discounting process. All comparable sales were reported to have sold with typical financing, so no adjustments were necessary. Conditions of sale (motivation) - Similar to property rights conveyed, a motivation other than that assumed in the value definition may require discarding a sale from consideration. All comparable sales were reported to have typical motivation commensurate with the market value definition; therefore no adjustments were necessary. Adjustments for sale concessions included in the sale price (if any) will be adjusted as necessary. Market conditions (time) - A time adjustment is a market conditions adjustment because it is changes in the marketplace, and not the passage of time, that causes prices to change (the principle of change). Based on pairing the sales used, additional available market data and conversations with the county assessor, an adjustment of 0.55% per month (6.6% per year) was considered appropriate to account for market changes over the period of the sales used. No adjustments were applied after 0912019 due to a lack of supportive data after that date. Physical Characteristic Adjustments Location — Sales of vacant land of similar highest and best use to the subject should be used as the basis of comparison. Location adjustments considered a number of factors that can have an influence on value including; highest and best use, zoning, identity (traffic counts), corner lots, access and external influences such as railroads, etc. All of the comparable sales were considered to have residential purposes as their highest and best use. Based on available county assessor data, there were no location adjustments deemed to be necessary between the sales used. Physical differences - The adjustment process is an attempt to account for significant adjustment factors between comparables and the subject property. The comparables are adjusted to the subject property to make them similar. Therefore, if the comparable has a feature that is better than that found in the subject property, a downward adjustment is applied. If the feature is worse than in the subject property, or nonexistent in the comparable, an upward adjustment is applied. The physical differences that exist between the comparables and the subject are adjusted to indicate a reasonable value conclusion for the property being appraised. S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 38