Ludwig Appraisal..pdf
Rachel Ludwig Petitioner V Township Of Oronoko Respondent · 26-000619-TT
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File No. APPRAISAL OF LOCATED AT: FOR: BORROWER: AS OF: BY: 18188 REAL ESTATE APPRAISER & CONSULTANT STACEY APPRAISAL SERVICE Certified Residential Appraiser Brandon Stacey May 16, 2018 Mark Ludwig Lansing, MI, 48823 3515 West Road GreenStone Farm Credit Services Buchanan, MI 49107 11305 Burgoyne Rd Appraisal Report of a Single Family Unit 11221 Garr Road, Berrien Springs, MI 49103
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File No. File Number: In accordance with your request, I have appraised the real property at: The purpose of this appraisal is to develop an opinion of the market value of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements. In my opinion, the market value of the property as of is: The attached report contains the description, analysis and supportive data for the conclusions, final opinion of value, descriptive photographs, limiting conditions and appropriate certifications. 18188 REAL ESTATE APPRAISER & CONSULTANT STACEY APPRAISAL SERVICE Certified Residential Appraiser Brandon Stacey Sincerely, Four Hundred Thousand Dollars $400,000 May 16, 2018 Buchanan, MI 49107 11305 Burgoyne Rd 18188 Lansing, MI, 48823 3515 West Road GreenStone Farm Credit Services No AMC 11221 Garr Road, Berrien Springs, MI 49103
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Uniform Residential Appraisal Report File No. The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property. Property Address City State Zip Code Borrower Owner of Public Record County Legal Description Assessor's Parcel # Tax Year R.E. Taxes $ Neighborhood Name Map Reference Census Tract Occupant Owner Tenant Vacant Special Assessments $ PUD HOA $ per year per month Property Rights Appraised Fee Simple Leasehold Other (describe) Assignment Type Purchase Transaction Refinance Transaction Other (describe) Lender/Client Address Is the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal? Yes No Report data source(s) used, offering price(s), and date(s). SUBJECT I did did not analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed. Contract Price $ Date of Contract Is the property seller the owner of public record? Yes No Data Source(s) Is there any financial assistance (loan charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? Yes No If Yes, report the total dollar amount and describe the items to be paid. CONTRACT Neighborhood Characteristics One-Unit Housing Trends One-Unit Housing Present Land Use % Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban Suburban Rural Property Values Increasing Stable Declining PRICE AGE One-Unit % Built-Up Over 75% 25-75% Under 25% Demand/Supply Shortage In Balance Over Supply $(000) (yrs) 2-4 Unit % Growth Rapid Stable Slow Marketing Time Under 3 mths 3-6 mths Over 6 mths Low Multi-Family % Neighborhood Boundaries High Commercial % Pred. Other % Neighborhood Description Market Conditions (including support for the above conclusions) NEIGHBORHOOD Dimensions Area Shape View Specific Zoning Classification Zoning Description Zoning Compliance Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe) Is the highest and best use of the subject property as improved (or as proposed per plans and specifications) the present use? Yes No If No, describe. Utilities Public Other (describe) Public Other (describe) Off-site Improvements—Type Public Private Electricity Water Street Gas Sanitary Sewer Alley FEMA Special Flood Hazard Area Yes No FEMA Flood Zone FEMA Map # FEMA Map Date Are the utilities and off-site improvements typical for the market area? Yes No If No, describe. Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes No If Yes, describe. SITE GENERAL DESCRIPTION FOUNDATION EXTERIOR DESCRIPTION materials/condition INTERIOR materials/condition Units One One with Accessory Unit Concrete Slab Crawl Space Foundation Walls Floors # of Stories Full Basement Partial Basement Exterior Walls Walls Type Det. Att. S-Det./End Unit Basement Area sq. ft. Roof Surface Trim/Finish Existing Proposed Under Const. Basement Finish % Gutters & Downspouts Bath Floor Design (Style) Outside Entry/Exit Sump Pump Window Type Bath Wainscot Year Built Evidence of Infestation Storm Sash/Insulated Car Storage None Effective Age (Yrs) Dampness Settlement Screens Driveway # of Cars Attic None Heating FWA HWBB Radiant Amenities WoodStove(s) # Driveway Surface Drop Stair Stairs Other Fuel Fireplace(s) # Fence Garage # of Cars Floor Scuttle Cooling Central Air Conditioning Patio/Deck Porch Carport # of Cars Finished Heated Individual Other Pool Other Att. Det. Built-in Appliances Refrigerator Range/Oven Dishwasher Disposal Microwave Washer/Dryer Other (describe) Finished area above grade contains: Rooms Bedrooms Bath(s) Square Feet of Gross Living Area Above Grade Additional features (special energy efficient items, etc.). Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.). Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? Yes No If Yes, describe. Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? Yes No If No, describe. IMPROVEMENTS Page 1 of 6 Freddie Mac Form 70 March 2005 Fannie Mae Form 1004 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com 1004_05UAD 12182015 UAD Version 9/2011 18188 STACEY APPRAISAL SERVICE DOM Unk;Non-MLS FSBO; The buyers submitted the purchase agreement on 03/04/2018 with an offer price of $144,300 in as-is condition. X 3515 West Road, Lansing, MI 48823 GreenStone Farm Credit Services X X 0 0 X 0214.00 26 021 Berrien Springs 2,616 2017 11-15-0033-0001-01-3 See Attached Addendum Berrien Randy Carroll Mark Ludwig 49107 MI Buchanan 11305 Burgoyne Rd $0;;No financial assistance provided. X Public records X 03/04/2018 144,300 Arms length sale;No unusual terms or conditions were noted in the five page purchase agreement provided by the Client. The purchase agreement was submitted on 03/04/2018 as part of an arms length transaction according to the < continued in addendum > X See Attached... See Attached Addendum 40 Vacant 60 40 140 1 201 650 60 See Attached... X X X X X X See Attached Addendum X X 04/17/2006 26021C0245C X X None X Paved Private System X Private System X Private System X X See Attached Addendum X X Agricultural / Residential A/R N;Res; Irregular 9.64 ac Irregular X See Attached Addendum X C1;No updates in the prior 15 years;The improvements have been very recently constructed and have not previously been occupied. The entire structure and all components are new and the dwelling features no physical depreciation. See Attached Addendum 3,520 3.1 4 8 X X X P X 0 3 X Gravel 4 X Tile,New Tile,New Wood,New DW,New Wd,Tile,New None None Covered X Patio X None 0 0 Yes/Avg. Yes/Avg. DH/Avg. Metal/New Shingle/Avg. Siding/New Concrete/Avg. X Electric Geo X X X 0 3000 X X X 2 2012 Ranch X X 1 X
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Uniform Residential Appraisal Report File No. There are comparable properties currently offered for sale in the subject neighborhood ranging in price from $ to $ . There are comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ to $ . FEATURE SUBJECT Address Proximity to Subject Sale Price $ Sale Price/Gross Liv. Area $ sq. ft. Data Source(s) Verification Source(s) VALUE ADJUSTMENTS DESCRIPTION Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition Above Grade Total Bdrms. Baths Room Count Gross Living Area sq. ft. Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck Net Adjustment (Total) Adjusted Sale Price of Comparables COMPARABLE SALE NO. 1 $ $ sq. ft. DESCRIPTION +(-) $ Adjustment Total Bdrms. Baths sq. ft. + - $ Net Adj. % Gross Adj. % $ COMPARABLE SALE NO. 2 $ $ sq. ft. DESCRIPTION +(-) $ Adjustment Total Bdrms. Baths sq. ft. + - $ Net Adj. % Gross Adj. % $ COMPARABLE SALE NO. 3 $ $ sq. ft. DESCRIPTION +(-) $ Adjustment Total Bdrms. Baths sq. ft. + - $ Net Adj. % Gross Adj. % $ I did did not research the sale or transfer history of the subject property and comparable sales. If not, explain My research did did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. Data source(s) My research did did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale. Data source(s) Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on page 3). ITEM SUBJECT Date of Prior Sale/Transfer Price of Prior Sale/Transfer Data Source(s) Effective Date of Data Source(s) COMPARABLE SALE NO. 1 COMPARABLE SALE NO. 2 COMPARABLE SALE NO. 3 Analysis of prior sale or transfer history of the subject property and comparable sales Summary of Sales Comparison Approach. Indicated Value by Sales Comparison Approach $ SALES COMPARISON APPROACH Indicated Value by: Sales Comparison Approach $ Cost Approach (if developed) $ Income Approach (if developed) $ This appraisal is made "as is," subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting conditions, and appraiser’s certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $ as of , which is the date of inspection and the effective date of this appraisal. RECONCILIATION Page 2 of 6 Freddie Mac Form 70 March 2005 Fannie Mae Form 1004 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com 1004_05UAD 12182015 UAD Version 9/2011 18188 STACEY APPRAISAL SERVICE 450,000 325,000 2 450,000 325,000 0 None Amenities None F/P,Ect Porch,Patio 3ga4dw None Geothermal C/Air Average 3000sf0sfwo 3,520 30 3.1 4 8 C1 6 Q3 DT1;Ranch N;Res; 9.64 ac Fee Simple N;Res; 40.99 144,300 Buchanan, MI 49107 11305 Burgoyne Rd 395,700 35.4 21.8 70,700 X None -1,600 1 F/P -1,000 Porch,Dck,Patio 3ga4dw None 0 Gas FWA C/Air Average -4,000 1rr2br1.0ba0o -15,500 2220sf1457sfin 39,000 2,220 5,000 2.1 3 7 4,400 C3 4,400 14 Q3 0 DT1;Neo-eclec N;Res; 40,000 2.02 ac Fee Simple N;Res; s05/17;c04/17 Conv;0 ArmLth Realtor, L-T-S 95.87% Michric #17011156;DOM 67 146.40 325,000 6.55 miles NE Berrien Center, MI 49102 6717 Smith Rd 398,400 19.9 2.2 8,400 X -8,000 Det Garage -1,600 1 F/P -1,000 Porch,Dck,Patio 0 3ga6dw None 0 Gas FWA C/Air Average -4,000 1rr0br1.0ba0o -20,000 2600sf1500sfin 27,600 2,600 5,000 2.1 3 9 5,200 C3 5,200 16 Q3 DT1;Ranch N;Res; 0 10.13 ac Fee Simple N;Res; s05/17;c05/17 Conv;0 ArmLth Realtor, L-T-S 97.52% Michric #16048602;DOM 253 150.00 390,000 15.64 miles NE Watervliet, MI 49098 527 S M-140 406,400 20.6 1.6 6,400 X -2,000 Sprinkler,Shed -3,200 2 F/P -1,000 Porch,Decks -5,000 4ga4dw None 0 Geothermal C/A Average -4,000 1rr1br1.0ba1o -20,500 2298sf1723sfin -2,300 3,597 0 3.1 3 8 0 7,200 C3 7,200 19 Q3 0 DT1.5;Neo-eclec N;Res; 30,000 3.35 ac Fee Simple N;Res; s05/18;c04/18 Conv;0 ArmLth Realtor, L-T-S 100% Michric #18013075;DOM 9 111.20 400,000 3.96 miles NE Berrien Springs, MI 49103 11123 Range Line Rd MichRIC, Public records X MichRIC, Public records X X 05/21/2018 michric, Public records 05/21/2018 michric, Public records 05/21/2018 michric, Public records 05/21/2018 michric, Public records 400,000 See Attached Addendum No preliminary title search for the Subject property was provided to the appraiser by the client. No formal title search of the comparable sales was requested by the client. The appraiser utilized due diligence in attempting to determine any prior sales data through the local MLS System and other public records; however, only a professional title search can ascertain with precision all details of prior sales. We believe that the sales data presented in the Sale Comparison Analysis to be reliable indications of market value. 05/16/2018 400,000 Subject to plans and specs provided by the client and discussions/interview with borrower 05/20/2018. X See Attached Addendum 0 398,600 400,000 Stacey Appraisal Service
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Uniform Residential Appraisal Report File No. ADDITIONAL COMMENTS COST APPROACH TO VALUE (not required by Fannie Mae) Provide adequate information for the lender/client to replicate the below cost figures and calculations. Support for the opinion of site value (summary of comparable land sales or other methods for estimating site value) ESTIMATED REPRODUCTION OR REPLACEMENT COST NEW Source of cost data Quality rating from cost service Effective date of cost data Comments on Cost Approach (gross living area calculations, depreciation, etc.) Estimated Remaining Economic Life (HUD and VA only) Years OPINION OF SITE VALUE . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .= $ Dwelling Sq. Ft. @ $ .. .. .. .. .. .. = $ Sq. Ft. @ $ .. .. .. .. .. .. = $ Garage/Carport Sq. Ft. @ $ .. .. .. .. .. .. = $ Total Estimate of Cost-New . .. .. .. .. .. . = $ Less Physical Functional External Depreciation = $ ( ) Depreciated Cost of Improvements .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. = $ "As-is" Value of Site Improvements . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . = $ INDICATED VALUE BY COST APPROACH . .. .. .. .. .. .. .. .. .. .. . = $ COST APPROACH INCOME APPROACH TO VALUE (not required by Fannie Mae) Estimated Monthly Market Rent $ X Gross Rent Multiplier = $ Indicated Value by Income Approach Summary of Income Approach (including support for market rent and GRM) INCOME PROJECT INFORMATION FOR PUDs (if applicable) Is the developer/builder in control of the Homeowners' Association (HOA)? Yes No Unit type(s) Detached Attached Provide the following information for PUDs ONLY if the developer/builder is in control of the HOA and the subject property is an attached dwelling unit. Legal name of project Total number of phases Total number of units Total number of units sold Total number of units rented Total number of units for sale Data source(s) Was the project created by the conversion of an existing building(s) into a PUD? Yes No If Yes, date of conversion. Does the project contain any multi-dwelling units? Yes No Data source(s) Are the units, common elements, and recreation facilities complete? Yes No If No, describe the status of completion. Are the common elements leased to or by the Homeowners' Association? Yes No If Yes, describe the rental terms and options. Describe common elements and recreational facilities. PUD INFORMATION Page 3 of 6 Freddie Mac Form 70 March 2005 Fannie Mae Form 1004 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com 1004_05UAD 12182015 UAD Version 9/2011 18188 STACEY APPRAISAL SERVICE Clarification of Intended Use and Intended User: 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. Scope of Work: At the request of the Client, this appraisal report has ben prepared in compliance with the Uniform Appraisal Dataset (UAD) from Fannie Mae and Freddie Mac. The UAD requires that appraiser to use standardized responses that include specific formats, definitions, abbreviations, and acronyms. The appraiser attempted to obtain an adequate amount of information in the normal course of business regarding the Subject and comparable properties. Some of the standardized responses required by the UAD, especially those in which the appraiser has not had the opportunity to verify personally or measure, could mistakenly imply greater precision and reliability in the data than is factually correct or typically in the normal course of business. Examples include condition and quality ratings as well as comparable sales or listing data. Not every element of the Subject property may have been viewable and comparable property data was generally obtained from third party (MichRIC and or public records). Consequently, this information should be considered an "estimate" unless otherwise noted by the appraiser. 398,600 336,557 14,023 0% 0% 4% 50 350,580 12,308 13.22 931 3,800 Porch,Patio 35,730 11.91 Bsmt: 3000 298,742 84.87 3,520 62,000 48 See Attached Addendum 2018 Average Marshall & Swift Residential Cost Handbook X The Subject features a 9.64 acre site. E Snow Rd, MLS #17048721; 8.21 acres, wooded, $55,000. Closed 05/10/2018 0 0
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Uniform Residential Appraisal Report File No. This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project. This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser’s continuing education or membership in an appraisal organization, are permitted. SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report. INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction. INTENDED USER: The intended user of this appraisal report is the lender/client. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser’s certification in this report is subject to the following assumptions and limiting conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title. 2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements. The sketch is included only to assist the reader in visualizing the property and understanding the appraiser’s determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will 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 exist. Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will be performed in a professional manner. Page 4 of 6 Freddie Mac Form 70 March 2005 Fannie Mae Form 1004 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com 1004_05UAD 12182015 UAD Version 9/2011 18188 STACEY APPRAISAL SERVICE
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Uniform Residential Appraisal Report File No. APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in this appraisal report. 2. I performed a complete visual inspection of the interior and exterior areas of the subject property. I reported the condition of the improvements in factual, specific terms. I identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. 3. I performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 4. I developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report. 5. I researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report. 6. I researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to the date of sale of the comparable sale, unless otherwise indicated in this report. 7. I selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. I have not used comparable sales that were the result of combining a land sale with the contract purchase price of a home that has been built or will be built on the land. 9. I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 10. I verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest in the sale or financing of the subject property. 11. I have knowledge and experience in appraising this type of property in this market area. 12. I am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records and other such data sources for the area in which the property is located. 13. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that I believe to be true and correct. 14. I have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. I have noted in this appraisal report any adverse conditions (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection of the subject property or that I became aware of during the research involved in performing this appraisal. I have considered these adverse conditions in my analysis of the property value, and have reported on the effect of the conditions on the value and marketability of the subject property. 15. I have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, all statements and information in this appraisal report are true and correct. 16. I stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the assumptions and limiting conditions in this appraisal report. 17. I have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or opinion of market value in this appraisal report on the race, color, religion, sex, age, marital status, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property or on any other basis prohibited by law. 18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application). 19. I personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If I relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal or the preparation of this appraisal report, I have named such individual(s) and disclosed the specific tasks performed in this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and I will take no responsibility for it. 20. I identified the lender/client in this appraisal report who is the individual, organization, or agent for the organization that ordered and will receive this appraisal report. 21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; professional appraisal organizations; any department, agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions; without having to obtain the appraiser’s or supervisory appraiser’s (if applicable) consent. Such consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media). Page 5 of 6 Freddie Mac Form 70 March 2005 Fannie Mae Form 1004 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com 1004_05UAD 12182015 UAD Version 9/2011 18188 STACEY APPRAISAL SERVICE
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Uniform Residential Appraisal Report File No. 22. I am aware that any disclosure or distribution of this appraisal report by me or the lender/client may be subject to certain laws and regulations. Further, I am also subject to the provisions of the Uniform Standards of Professional Appraisal Practice that pertain to disclosure or distribution by me. 23. The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance transaction that involves any one or more of these parties. 24. If this appraisal report was transmitted as an “electronic record” containing my “electronic signature,” as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. 25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, et seq., or similar state laws. SUPERVISORY APPRAISER'S CERTIFICATION: The Supervisory Appraiser certifies and agrees that: 1. I directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraiser’s analysis, opinions, statements, conclusions, and the appraiser’s certification. 2. I accept full responsibility for the contents of this appraisal report including, but not limited to, the appraiser’s analysis, opinions, statements, conclusions, and the appraiser’s certification. 3. The appraiser identified in this appraisal report is either a sub-contractor or an employee of the supervisory appraiser (or the appraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisal under the applicable state law. 4. This appraisal report complies with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 5. If this appraisal report was transmitted as an “electronic record” containing my “electronic signature,” as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. APPRAISER Signature Name Company Name Company Address Telephone Number Email Address Date of Signature and Report Effective Date of Appraisal State Certification # or State License # or Other (describe) State # State Expiration Date of Certification or License ADDRESS OF PROPERTY APPRAISED APPRAISED VALUE OF SUBJECT PROPERTY $ LENDER/CLIENT Name Company Name Company Address Email Address SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Name Company Name Company Address Telephone Number Email Address Date of Signature State Certification # or State License # State Expiration Date of Certification or License SUBJECT PROPERTY Did not inspect subject property Did inspect exterior of subject property from street Date of Inspection Did inspect interior and exterior of subject property Date of Inspection COMPARABLE SALES Did not inspect exterior of comparable sales from street Did inspect exterior of comparable sales from street Date of Inspection Page 6 of 6 Freddie Mac Form 70 March 2005 Fannie Mae Form 1004 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com 1004_05UAD 12182015 UAD Version 9/2011 18188 STACEY APPRAISAL SERVICE 26. The appraisal was prepared in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice. The appraisal was prepared in accordance with the requirements of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended (12 U.S.C. et seq.) and any implementing regulations. 27. I have performed no services, as an appraiser or other capacity, regarding the property that is the subject of this report within the last three years. Lansing, MI 48823 3515 West Road GreenStone Farm Credit Services No AMC 400,000 Buchanan, MI 49107 11305 Burgoyne Rd 07/31/2019 MI 1201071384 05/16/2018 05/22/2018 staceyappraisals@staceyappraisals.com 269 471-1919 Berrien Springs, MI 49103 11221 Garr Road Stacey Appraisal Service Brandon Stacey Stacey Appraisal Service
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Uniform Residential Appraisal Report File No. FEATURE SUBJECT Address Proximity to Subject Sale Price $ Sale Price/Gross Liv. Area $ sq. ft. Data Source(s) Verification Source(s) VALUE ADJUSTMENTS DESCRIPTION Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition Above Grade Total Bdrms. Baths Room Count Gross Living Area sq. ft. Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck Net Adjustment (Total) Adjusted Sale Price of Comparables COMPARABLE SALE NO. 4 $ $ sq. ft. DESCRIPTION +(-) $ Adjustment Total Bdrms. Baths sq. ft. + - $ Net Adj. % Gross Adj. % $ COMPARABLE SALE NO. 5 $ $ sq. ft. DESCRIPTION +(-) $ Adjustment Total Bdrms. Baths sq. ft. + - $ Net Adj. % Gross Adj. % $ COMPARABLE SALE NO. 6 $ $ sq. ft. DESCRIPTION +(-) $ Adjustment Total Bdrms. Baths sq. ft. + - $ Net Adj. % Gross Adj. % $ ITEM SUBJECT Date of Prior Sale/Transfer Price of Prior Sale/Transfer Data Source(s) Effective Date of Data Source(s) COMPARABLE SALE NO. 4 COMPARABLE SALE NO. 5 COMPARABLE SALE NO. 6 Summary of Sales Comparison Approach SALES COMPARISON APPROACH Fannie Mae Form 1004 March 2005 Freddie Mac Form 70 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com 1004_05UAD 12182015 UAD Version 9/2011 18188 STACEY APPRAISAL SERVICE None Amenities None F/P,Ect Porch,Patio 3ga4dw None Geothermal C/Air Average 3000sf0sfwo 3,520 30 3.1 4 8 C1 6 Q3 DT1;Ranch N;Res; 9.64 ac Fee Simple N;Res; 40.99 144,300 Buchanan, MI 49107 11305 Burgoyne Rd 429,400 28.3 13.0 49,400 X None -3,200 2 F/P 1,000 Porch 0 3ga3dw None 0 Gas FWA C/Air Average -4,000 1rr1br1.0ba1o -21,800 2620sf1600sfwo 27,000 2,620 5,000 2.1 3 8 0 5,200 C3 5,200 10 Q3 DT1;Ranch N;Res; 35,000 2.72 ac Fee Simple N;Res; s07/17;c06/17 Conv;0 ArmLth Realtor, L-T-S 97.68% Michric #17023306;DOM 40 145.04 380,000 10.08 miles NE Eau Claire, MI 49111 4254 Orchard Hurst Dr 05/21/2018 michric, Public records 05/21/2018 michric, Public records
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Uniform Appraisal Dataset Definitions File No. Condition Ratings and Definitions C1 The improvements have been very recently constructed and have not previously been occupied. The entire structure and all components are new and the dwelling features no physical depreciation.* *Note: Newly constructed improvements that feature recycled materials and/or components can be considered new dwellings provided that the dwelling is placed on a 100% new foundation and the recycled materials and the recycled components have been rehabilitated/re-manufactured into like-new condition. Recently constructed improvements that have not been previously occupied are not considered "new" if they have any significant physical depreciation (i.e., newly constructed dwellings that have been vacant for an extended period of time without adequate maintenance or upkeep). C2 The improvements feature no deferred maintenance, little or no physical depreciation, and require no repairs. Virtually all building components are new or have been recently repaired, refinished, or rehabilitated. All outdated components and finishes have been updated and/or replaced with components that meet current standards. Dwellings in this category either are almost new or have been recently completely renovated and are similar in condition to new construction. *Note: The improvements represent a relatively new property that is well maintained with no deferred maintenance and little or no physical depreciation, or an older property that has been recently completely renovated. C3 The improvements are well maintained and feature limited physical depreciation due to normal wear and tear. Some components, but not every major building component, may be updated or recently rehabilitated. The structure has been well maintained. *Note: The improvement is in its first-cycle of replacing short-lived building components (appliances, floor coverings, HVAC, etc.) and is being well maintained. Its estimated effective age is less than its actual age. It also may reflect a property in which the majority of short-lived building components have been replaced but not to the level of a complete renovation. C4 The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. The dwelling has been adequately maintained and requires only minimal repairs to building components/mechanical systems and cosmetic repairs. All major building components have been adequately maintained and are functionally adequate. *Note: The estimated effective age may be close to or equal to its actual age. It reflects a property in which some of the short-lived building components have been replaced, and some short-lived building components are at or near the end of their physical life expectancy; however, they still function adequately. Most minor repairs have been addressed on an ongoing basis resulting in an adequately maintained property. C5 The improvements feature obvious deferred maintenance and are in need of some significant repairs. Some building components need repairs, rehabilitation, or updating. The functional utility and overall livability is somewhat diminished due to condition, but the dwelling remains useable and functional as a residence. *Note: Some significant repairs are needed to the improvements due to the lack of adequate maintenance. It reflects a property in which many of its short-lived building components are at the end of or have exceeded their physical life expectancy but remain functional. C6 The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity of the improvements. The improvements are in need of substantial repairs and rehabilitation, including many or most major components. *Note: Substantial repairs are needed to the improvements due to the lack of adequate maintenance or property damage. It reflects a property with conditions severe enough to affect the safety, soundness, or structural integrity of the improvements. Quality Ratings and Definitions Q1 Dwellings with this quality rating are usually unique structures that are individually designed by an architect for a specified user. Such residences typically are constructed from detailed architectural plans and specifications and feature an exceptionally high level of workmanship and exceptionally high-grade materials throughout the interior and exterior of the structure. The design features exceptionally high-quality exterior refinements and ornamentation, and exceptionally high-quality interior refinements. The workmanship, materials, and finishes throughout the dwelling are of exceptionally high quality. Q2 Dwellings with this quality rating are often custom designed for construction on an individual property owner's site. However, dwellings in this quality grade are also found in high-quality tract developments featuring residences constructed from individual plans or from highly modified or upgraded plans. The design features detailed, high-quality exterior ornamentation, high-quality interior refinements, and detail. The workmanship, materials, and finishes throughout the dwelling are generally of high or very high quality. Q3 Dwellings with this quality rating are residences of higher quality built from individual or readily available designer plans in above-standard residential tract developments or on an individual property owner's site. The design includes significant exterior ornamentation and interiors that are well finished. The workmanship exceeds acceptable standards and many materials and finishes throughout the dwelling have been upgraded from "stock" standards. Q4 Dwellings with this quality rating meet or exceed the requirements of applicable building codes. Standard or modified standard building plans are utilized and the design includes adequate fenestration and some exterior ornamentation and interior refinements. Materials, workmanship, finish, and equipment are of stock or builder grade and may feature some upgrades. Q5 Dwellings with this quality rating feature economy of construction and basic functionality as main considerations. Such dwellings feature a plain design using readily available or basic floor plans featuring minimal fenestration and basic finishes with minimal exterior ornamentation and limited interior detail. These dwellings meet minimum building codes and are constructed with inexpensive, stock materials with limited refinements and upgrades. Q6 Dwellings with this quality rating are of basic quality and lower cost; some may not be suitable for year-round occupancy. Such dwellings are often built with simple plans or without plans, often utilizing the lowest quality building materials. Such dwellings are often built or expanded by persons who are professionally unskilled or possess only minimal construction skills. Electrical, plumbing, and other mechanical systems and equipment may be minimal or non-existent. Older dwellings may feature one or more substandard or non-conforming additions to the original structure. Definitions of Not Updated, Updated, and Remodeled Not Updated Little or no updating or modernization. This description includes, but is not limited to, new homes. Residential properties of fifteen years of age or less often reflect an original condition with no updating, if no major components have been replaced or updated. Those over fifteen years of age are also considered not updated if the appliances, fixtures, and finishes are predominantly dated. An area that is 'Not Updated' may still be well maintained and fully functional, and this rating does not necessarily imply deferred maintenance or physical /functional deterioration. Updated The area of the home has been modified to meet current market expectations. These modifications are limited in terms of both scope and cost. An updated area of the home should have an improved look and feel, or functional utility. Changes that constitute updates include refurbishment and/or replacing components to meet existing market expectations. Updates do not include significant alterations to the existing structure. Remodeled Significant finish and/or structural changes have been made that increase utility and appeal through complete replacement and/ or expansion. A remodeled area reflects fundamental changes that include multiple alterations. These alterations may include some or all of the following: replacement of a major component (cabinet(s), bathtub, or bathroom tile), relocation of plumbing/gas fixtures/appliances, significant structural alterations (relocating walls, and/or the addition of square footage). This would include a complete gutting and rebuild. Explanation of Bathroom Count The number of full and half baths is reported by separating the two values by a period. The full bath is represented to the left of the period. The half bath count is represented to the right of the period. Three-quarter baths are to be counted as a full bath in all cases. Quarter baths (baths that feature only toilet) are not to be included in the bathroom count. Uniform Appraisal Dataset Definitions Produced using ACI software, 800.234.8727 www.aciweb.com 1004_05UAD 12182015 UAD Version 9/2011 18188 STACEY APPRAISAL SERVICE
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Uniform Appraisal Dataset Definitions File No. Abbreviations Used in Data Standardization Text Abbrev. Full Name Appropriate Fields ac Acres Area, Site AdjPrk Adjacent to Park Location AdjPwr Adjacent to Power Lines Location A Adverse Location & View ArmLth Arms Length Sale Sale or Financing Concessions AT Attached Structure Design(Style) ba Bathroom(s) Basement & Finished Rooms Below Grade br Bedroom Basement & Finished Rooms Below Grade B Beneficial Location & View BsyRd Busy Road Location cp Carport Garage/Carport Cash Cash Sale or Financing Concessions CtySky City View Skyline View View CtyStr City Street View View Comm Commercial Influence Location c Contracted Date Date of Sale/Time Conv Conventional Sale or Financing Concessions cv Covered Garage/Carport CrtOrd Court Ordered Sale Sale or Financing Concessions DOM Days On Market Data Sources DT Detached Structure Design(Style) dw Driveway Garage/Carport Estate Estate Sale Sale or Financing Concessions e Expiration Date Date of Sale/Time FHA Federal Housing Authority Sale or Financing Concessions g Garage Garage/Carport ga Garage - Attached Garage/Carport gbi Garage - Built-in Garage/Carport gd Garage - Detached Garage/Carport GR Garden Structure Design(Style) GlfCse Golf Course Location Glfvw Golf Course View View HR High Rise Structure Design(Style) Ind Industrial Location & View Abbrev. Full Name Appropriate Fields in Interior Only Stairs Basement & Finished Rooms Below Grade Lndfl Landfill Location LtdSght Limited Sight View Listing Listing Sale or Financing Concessions MR Mid-Rise Structure Design(Style) Mtn Mountain View View N Neutral Location & View NonArm Non-Arms Length Sale Sale or Financing Concessions op Open Garage/Carport o Other Basement & Finished Rooms Below Grade O Other Design(Style) Prk Park View View Pstrl Pastoral View View PwrLn Power Lines View PubTrn Public Transportation Location rr Recreational (Rec) Room Basement & Finished Rooms Below Grade Relo Relocation Sale Sale or Financing Concessions REO REO Sale Sale or Financing Concessions Res Residential Location & View RT Row or Townhouse Design(Style) RH Rural Housing - USDA Sale or Financing Concessions SD Semi-detached Structure Design(Style) s Settlement Date Date of Sale/Time Short Short Sale Sale or Financing Concessions sf Square Feet Area, Site, Basement sqm Square Meters Area, Site, Basement Unk Unknown Date of Sale/Time VA Veterans Administration Sale or Financing Concessions wo Walk Out Basement Basement & Finished Rooms Below Grade wu Walk Up Basement Basement & Finished Rooms Below Grade WtrFr Water Frontage Location Wtr Water View View w Withdrawn Date Date of Sale/Time Woods Woods View View Other Appraiser-Defined Abbreviations Abbrev. Full Name Appropriate Fields Abbrev. Full Name Appropriate Fields Uniform Appraisal Dataset Definitions Produced using ACI software, 800.234.8727 www.aciweb.com 1004_05UAD 12182015 UAD Version 9/2011 18188 STACEY APPRAISAL SERVICE
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ADDENDUM Borrower: Mark Ludwig File No.: 18188 Property Address: 11305 Burgoyne Rd Case No.: City: Buchanan State: MI Zip: 49107 Lender: GreenStone Farm Credit Services Addendum Page 1 of 4 PURPOSE OF APPRAISAL: The purpose of this appraisal is to provide the appraiser's best estimate of the market value of the Subject's real property as of the effective date. "Market Value" is defined within the body of this report. INTENDED USE OF REPORT: This appraisal is intended for the sole purpose of assisting the client, GreenStone Farm Credit Services, and the client only as shown in the client section of this report, in underwriting a real estate loan on the Subject's property. SCOPE OF APPRAISAL: The scope of this appraisal encompasses the necessary research and analysis to prepare this report in accordance with its intended use. The Subject data is based on the physical inspection of the home. Additional data was provided by public records. Comparable data was provided by the local MLS System and was relied upon for its accuracy. No search has been made for any criminal record databases. APPRAISAL DEVELOPMENT AND REPORTING PROCESS: This is an Appraisal Report which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for an Appraisal Report. As such, it presents only summary discussions of the data, reasoning and analysis that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation that is not provided with this report concerning the data, reasoning and analysis is retained in the appraiser's file. The depth of the discussion contained in this report is specific to the needs of the client, as noted in the client section of this report, and for the intended use stated in the report. The appraiser is not responsible for unauthorized use of this report. To develop the opinion of value, the appraiser preformed a complete appraisal process, as defined by the Uniform Standards of Professional Appraisal Practice. COMPARABLE PICTURES In some instances, comparable pictures have been downloaded from the multiple listing system or used from previous appraisal files. In those instances where the appraiser did not personally take the comparable picture, an external observation of the comparable was made from the public view (where possible) to verify the accuracy of the data provided by the listing agent(s) and/or assessor records. Digital photography is used by the appraiser and pictures taken by the appraiser are archived for later use. This data sometimes results in seasonal variations in these pictures which should not affect the marketability of the Subject and/or comparables used. In all cases, Lender/Client, as stated as the intended user, is aware that the appraiser has used his/her judgment when visually inspecting Comparable Sales and Comparable Listings when pictures were not attainable or may result in adverse conditions. SUPPLEMENTAL CERTIFICATIONS: I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. In addition, I certify that, to the best of my knowledge and belief, the reported analysis opinions and conclusions were developed, and the report was prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. COMMENTS: The Appraiser and Client agree that the following mutual limitation of liability is agreed to in consideration of the fees to be charged and the nature of the Appraiser's services under this Agreement. Appraiser and Client agree that to the fullest extent permitted by applicable law, each party's and its Personnel's maximum aggregate and joint liability to the other party for claims and causes of action relating to this Agreement or to appraisals or other services under this Agreement shall be limited to the higher of three percent of the estimated market value of the Subject, as defined in this report, or the total fees and costs charged by Appraiser for the services that are the subject of the claim(s) or cause(s) of action. This limitation of liability extends to all types of claims or causes of action, whether in breach of contract or tort, including without limitation claims/causes of action for negligence, professional negligence or negligent misrepresentation on the part of either party or its Personnel, but excluding claims/causes of action for intentionally fraudulent conduct, criminal conduct or intentionally caused injury. The Personnel of each party are intended third-party beneficiaries of this limitation of liability. "Personnel," as used in this paragraph, means the respective party's staff, employees, contractors, members, partners and shareholders. Appraiser and Client agree that they each have been free to negotiate different terms than stated above or contract with other parties. Analysis of the Sales Contract Continued from Analysis of the Sales Contract: buyer/borrower. The contract was signed by the buyer(s) and the seller(s) on 03/04/2018. No concessions were noted in the contract. The net purchase price of the Subject is $144,300, which appears to be adequately depreciated and priced due to the Subject's current as-is condition. No unusual personal property was noted, assumed or valued in the contract. While considered, the contract price was not weighted in developing the indicated value via any applicable approach to value. Neighborhood Boundaries The neighborhood boundaries are defined to be Linco Road to the north, Grange Road to the south, Tudor Road to the east and Hartline Road to the west. Neighborhood Description Properties located within this neighborhood range in value and style of improvements. The neighborhood is encompassed by the same primary school district. The neighborhood provides for rural type living with city amenities close at hand. Some shopping and employment is available in Berrien Springs, with large malls and employment areas located within a thirty minute drive to the north in Benton Harbor and St. Joseph, Niles to the south along with South Bend and Mishawaka to the southeast in Indiana. The overall marketability of the neighborhood is considered to be average. The neighborhood is located in the middle section of Berrien County which is the southwestern part of the state. The neighborhood is heavily influenced by agriculture land. Land use ranges from row crops, open pastures to grape vineyards. There is a mixture of rolling terrain which tends to be heavily wooded. The neighborhood is located approximately 15 miles
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ADDENDUM Borrower: Mark Ludwig File No.: 18188 Property Address: 11305 Burgoyne Rd Case No.: City: Buchanan State: MI Zip: 49107 Lender: GreenStone Farm Credit Services Addendum Page 2 of 4 from the shores of Lake Michigan. Located in this Berrien Springs market is Andrews University. This private university provides a good economic base for this community. The neighborhood is located approximately 2.5 miles northwest of the village limits of Berrien Springs, in Oronoko Township, Berrien County. The neighborhood is located within the Berrien Springs Public School System. U.S. 31 and the U.S. 31 bypass are located within the neighborhood providing easy access to shopping and employment. Present land use marked vacant is currently agriculture or undeveloped land available for development. The neighborhood has a mixture of new to older built homes. This condition is typical in this market. Due to this condition the style and design of the homes are diverse in nature. This condition should not affect the marketability of the Subject. The higher range of value represents some of the newer homes that have been built within the neighborhood and homes with large parcels of land. Neighborhood Market Conditions Over the past twelve months this market has remained relatively stable, however, there has been a slow down. This is based on all homes within the value range of $60,000 to $650,000 that are located in this Berrien Springs market. This search did exclude all water front homes and all homes located within the village of Berrien Springs. Under these parameters there have been 71 sales. Currently there are 28 active listings which represents a balanced market. Of these listings, 2 are pending sales with 5 others being under contract. The median days-on-market have remained relatively stable ranging from 28 days for the 33 homes purchased over seven months ago to 16 days for the 17 homes that have been purchased within the last three months. The active listings are currently at 133 days. Based on this data exposure times, which would include the Subject, should range between one to four months. Shorter or longer market periods may result in a sales price lower or higher respectively. The median list-to-sales ratio have remained stable over the past twelve months from 97% for the homes that were purchased over seven months ago to 99% for the homes that have been purchased within the last three months. The local MLS System contains data on most, but not all sales transactions. Conventional and FHA financing are most prevalent with sellers concessions being within the norm. The Subject's estimated market value may either exceed or be below the predominate values for this neighborhood due to its quality and or condition. However, the estimated market value of the Subject will be within the range of value for this market. This condition should not affect the marketability of the Subject or the other homes located within this neighborhood with similar amenities of those of the Subject. Highest and Best Use The Subject's improvement consist of a single unit dwelling located on a site zoned for single unit use. Sales of comparable properties in the area indicate a demand for properties improved with single unit dwellings. Demolition or modification of the existing use is not economically feasible and the Highest and Best Use as improved is a continuation of its existing use. Adverse Site Conditions Unless otherwise noted, standard utility and right-of-way easement are insignificant to value. However, a current survey was not provided to the appraiser, which may reveal encroachments, easements, zoning violations or other matters of interest that could warrant modification to the appraised value. There did not appear to be any adverse easements or encroachments noted or assumed. Zoning compliances are intended only in the most general sense. The scope of this appraisal does not include a comparison of every potentially significant characteristic of the Subject's site and improvements relative to zoning ordinances. Elevation of the site's above road grade promotes surface drainage, which appeared acceptable at the time of this inspection. However, seasonal variations may occur and subsurface drainage conditions are unknown. Unless stated in this report, the existence of hazardous material, which may or may not be present on the property has not been observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of potentially hazardous material may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property. No responsibility is assumed for any conditions or the expertise and engineering knowledge required to discover hazardous materials. The client is urged to retain an expert in this field, if desired. The Subject features a 9.64 acre site. The location of the dwelling is approximately 300 feet off the road which provides for privacy and seclusion. COMMENTS: The Subject's physical is address of 11305 Burgoyne Rd, Buchanan, MI 49107. However, USPS address is 11305 Burgoyne Rd, Berrien Springs, MI 49103. The physical address is being used for this report at the request of the Client. Additional Features The Subject's construction was started in 2012 with the foundation, exterior framing, windows, exterior doors, three car garage and singled roof all being installed. The rest of the dwelling was never completed. The borrowers are purchasing the Subject in as-is condition along with the 9.64 acre site for $144,300. According to sworn statements provided by the Client, $216,426 will be put into finishing the dwelling by the borrowers are part of this loan for a total investment of $360,726. Blueprints of the floor plan were provided by the borrower on 05/20/2018. These plans show that a covered porch will provide access to the foyer. The living room will be open off the foyer and feature built-in book shelves. To the left of the living room will be three bedrooms and a full hallway bathroom. The master bedroom will feature a large walk-in closet and a master bathroom. The kitchen will be open off the right of the living room and will feature quartz counter tops per the owner. The kitchen will feature a central island while providing ample counter space and cabinetry. Located off the kitchen and living room will be the dining room. Located off the kitchen will be a hallway that will provide access to a guest suite, pantry closet, half bathroom and the mud room. The guest suite will feature a bedroom with a private bathroom. The mud room will feature laundry hook-ups and feature an exterior door that provides access to a patio. The mud room will also provide interior access to the attached three car garage. The Subject will be built over a partial basement and crawl space. A gravel driveway will provide for additional off street parking. Physical Deficiencies or Adverse Conditions An inspection of the Subject property and any improvements is for the purpose of establishing the market value of the
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ADDENDUM Borrower: Mark Ludwig File No.: 18188 Property Address: 11305 Burgoyne Rd Case No.: City: Buchanan State: MI Zip: 49107 Lender: GreenStone Farm Credit Services Addendum Page 3 of 4 property. It is noted that attic space areas are typically not accessed. The property "inspection" is an "observation". It is not to be regarded as a full property inspection of the type intended to reveal defects in mechanical systems, structural integrity, roofing, siding or any other property components. The appraiser claims no special expertise in these areas, nor is the appraiser an expert in regarding basement dampness, foundation issues, mold, infestation, radon gas or lead based paint. Unless otherwise noted, the various elements that constitute the Subject property as being fundamentally sound and in working order. Inspection of the heating or cooling systems are based on superficial observations only. It is to be noted that the appraiser is not a "Home Inspector" and this appraisal report should not be considered to be a "Home Inspection Report". This appraisal should not be relied upon to disclosed the condition of the property or the presence or absence of any defects. The client is encouraged to employ qualified experts to inspect and address any areas of concern. If any negative conditions are discovered, the estimated value of this report may require modification. It is noted that the Subject was built before 1978. There may exist the possibility that lead based paint is present in the dwelling or other improvements. No testing for lead base paint was requested by the client. The appraiser reserves the right to adjust the indicated value in this report if any environmental contamination are discovered on the property. At the time of this observation all utilities were on and an extraordinary assumption was made that they were in working order. Comments on Sales Comparison Quality comparable data was extremely limited due to the rural location of the Subject along with its amenities. Due to the lack of comparable data, bracketing was not attainable for all aspects of the Subject. The estimated market range of value is from $396,700 to $429,400. Equal weight was given to the comparables selected. The comparables selected were considered to best represent the estimated market value of the Subject. The final estimate will be rounded supported by the comparables presented. Over the past twelve months the overall Berrien Springs market has been stable. The search for comparable data was based on the following parameters: Subject-like homes ranging in value between $325,000 to $450,000 and containing at least 2,200 square feet to gross living area and at least a two acre site. Based on these parameters, there have been two sales (comps 1 and 3) and no active listings over the past year. These two sales have been selected for this report. The days on market for these sales ranged from 9 days to 253 days. Based on this data, marketing adjustments were not considered to be warranted. The list to sale price ratio of the sales ranged from 95.26% to 100%. Based on this data, marketing adjustments were not considered to be warranted after taking into consideration seller concessions. Buyers seeking a Subject-like home will typically search from within these neighborhoods that are from a greater distance that exceeds one mile. The location of major roadways do not have any adverse effect on the marketability of these comparables. Therefore, location adjustments were not warranted. The Subject features a 9.64 acre site that was valued at $62,000. Comparables 1, 3 and 4 feature sites inferior in size and value when compared to the Subject. Comparable 2 features a site similar in size and value and did not warrant an adjustment. The adjustments made reflect the value difference between the Subject's site versus the comparables' site value as though vacant. While the actual age of the Subject is 6 years old, the Subject will be of new construction when completed. The comparables selected were considered to be inferior in age and condition due to the Subject being of new construction. There were no other comparables sales of new construction available. Typically, homes of new construction are not exposed to the open market and are custom built which limits the amount of quality comparable data. Therefore, the comparables selected were considered to be the best available sales. The age and condition adjustments made were based on $2 per square foot for each individual comparable sale. Gross living area shown for the comparables are estimates based on information provided by the local MLS System, assessor's records, realtors or actual measurement. Slight variations in size will have no effect on the estimate of value. Slight variations in room counts will have no effect on the estimate of value. The total gross living area adjustment is based upon a typical market value of $38 per square foot difference. Only the difference in bathroom count was adjusted for on the middle line. The bathrooms were adjusted at a rate of $2,500 per half bathroom. The basement adjustments were adjusted at a rate of $10 per difference in total square footage and $16 per difference in total finished square footage. The comparables all feature full bathrooms in their basements which is a superior amenity in these markets and warranted an additional minus $4,000 adjustment. Comparable 2 features a detached storage garage superior to the Subject and warranted an adjustment. Some of the data represented in these comparables may differ from the Local MLS records or from previous reports. This is attributed to either the appraiser's actual measurements or additional information provided by the local assessors. It is common within these markets that some personal property may be included in their sale.It is noted that no personal property was assumed or valued in this report. Some of the gross, net and line item adjustments are higher than preferred. This is typical when appraising a Subject-like dwelling. There were no other comparables available that would better represent the Subject's estimated market value while also meeting the preferred guidelines for the secondary market. Final Reconciliation The Sales Comparison Approach analysis was considered to be the best reflection of buyer-seller expectations for the Subject property; therefore, most consideration was given to this approach. The Cost Approach was considered to provide additional support to the Sales Comparison Approach. There was inadequate, verifiable data available in this price range of properties to properly develop the Income Approach. Buyers seeking a Subject-like single family dwelling would not considered this approach to value. Therefore, the Income Approach was not applicable for this appraisal. The existence of hypothetical conditions and/or extraordinary assumptions in this report could affect assignment results. The scope of this discussion in this report is specific to the needs of the client, GreenStone Farm Credit Services, and the client only as stated in the client section as to the intended user of this report. The use of this report by anyone other than the client is strongly discouraged. If you are not the client, you are considered to be a third party. No third party is entitled to, or permitted to, rely on this report, for any reason, irrespective of whether or not said third party might have paid for the report, directly, or indirectly. The appraiser will have no legal liability to any third party who claims to have relied upon the report, in whole or in part, for any purpose, whatsoever, unless such reliance was agreed to, in advance, by the appraiser, in writing.
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ADDENDUM Borrower: Mark Ludwig File No.: 18188 Property Address: 11305 Burgoyne Rd Case No.: City: Buchanan State: MI Zip: 49107 Lender: GreenStone Farm Credit Services Addendum Page 4 of 4 This report should be read in its entirety, including all attachments and addendums. Special attention should be given to the certification and limited condition section of this report. Do not rely on this report for you may interpret a different opinion than what this report was ordinally intended to be. This appraisal is intended for the sole and exclusive use of the appraiser's client to which this report is addressed. Electronic Signatures on this report has a security feature maintained by an individual password of this appraiser. No other person can alter this appraisal. Appraisers are required to be licensed and are regulated by the Michigan Department of Licensing and Regulatory Affairs, P.O. Box 30018, Lansing, Michigan 48909. Cost Approach Comments At the request of the client, development of the cost approach has been attempted by the appraiser as an analysis to support their opinion of the property`s market value. Because there is insufficient market evidence to credibly support the derivation of total depreciation, the cost approach is not given as much consideration in the appraiser`s final analysis as the Sales Comparison Approach. Use of this data, in whole or in part, for other purposes is not intended by the appraiser. Nothing set forth in the appraisal should be relied upon for the purpose of determining the amount or type of insurance coverage to be placed on the subject property. The appraiser assumes no liability for and does not guarantee that any insurable value estimate inferred from this report will result in the subject property being fully insured for any loss that may be sustained. The appraiser recommends that an insurance professional be consulted. Further, the cost approach may not be a reliable indication of replacement or reproduction cost for any date other than the effective date of this appraisal due to changing costs of labor and materials and due to changing building codes and governmental regulations and requirements.
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SUBJECT PROPERTY PHOTO ADDENDUM Borrower: File No.: Property Address: Case No.: City: State: Zip: Lender: FRONT VIEW OF SUBJECT PROPERTY Appraised Date: Appraised Value: $ REAR VIEW OF SUBJECT PROPERTY STREET SCENE GreenStone Farm Credit Services 49107 MI Buchanan 11305 Burgoyne Rd 18188 Mark Ludwig 400,000 May 16, 2018
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COMPARABLE PROPERTY PHOTO ADDENDUM Borrower: File No.: Property Address: Case No.: City: State: Zip: Lender: COMPARABLE SALE #1 Sale Date: Sale Price: $ COMPARABLE SALE #2 Sale Date: Sale Price: $ COMPARABLE SALE #3 Sale Date: Sale Price: $ GreenStone Farm Credit Services 49107 MI Buchanan 11305 Burgoyne Rd 18188 Mark Ludwig 325,000 s05/17;c04/17 Berrien Center, MI 49102 6717 Smith Rd 390,000 s05/17;c05/17 Watervliet, MI 49098 527 S M-140 400,000 s05/18;c04/18 Berrien Springs, MI 49103 11123 Range Line Rd
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COMPARABLE PROPERTY PHOTO ADDENDUM Borrower: File No.: Property Address: Case No.: City: State: Zip: Lender: COMPARABLE SALE #4 Sale Date: Sale Price: $ COMPARABLE SALE #5 Sale Date: Sale Price: $ COMPARABLE SALE #6 Sale Date: Sale Price: $ GreenStone Farm Credit Services 49107 MI Buchanan 11305 Burgoyne Rd 18188 Mark Ludwig 380,000 s07/17;c06/17 Eau Claire, MI 49111 4254 Orchard Hurst Dr
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Borrower: File No.: Property Address: Case No.: City: State: Zip: Lender: Produced using ACI software, 800.234.8727 www.aciweb.com PHT3 05212013 GreenStone Farm Credit Services 49107 MI Buchanan 11305 Burgoyne Rd 18188 Mark Ludwig STACEY APPRAISAL SERVICE Additional back view View of back acreage
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FLOORPLAN SKETCH Borrower: File No.: Property Address: Case No.: City: State: Zip: Lender: GreenStone Farm Credit Services 49107 MI Buchanan 11305 Burgoyne Rd 18188 Mark Ludwig Sketch by Apex Sketch v5 Standard™ 44.5' 38' 24.5' 7.5' Three Car Garage Kitchen Bedroom Bath Living Room Dining Room Foyer Bedroom Bedroom Bedroom WIC Bath Bath 16' 24.5' 30.5' 11.5' 11.5' 11' 69' 42.5' Mud Rm Laundry .5 Bath Pantry Comments: AREA CALCULATIONS SUMMARY Code Description Net Size Net Totals GLA1 First Floor 3520.00 GAR 3520.00 Garage 931.00 931.00 Net LIVABLE Area (rounded) 3520 Breakdown Subtotals LIVING AREA BREAKDOWN First Floor 69.0 x 14.5 1000.50 16.0 x 24.5 392.00 80.5 x 17.0 1368.50 11.0 x 69.0 759.00 4 Items (rounded) 3520 11221 Garr Road, Berrien Springs, MI 49103
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LOCATION MAP Borrower: File No.: Property Address: Case No.: City: State: Zip: Lender: GreenStone Farm Credit Services 49107 MI Buchanan 11305 Burgoyne Rd 18188 Mark Ludwig 11221 Garr Road, Berrien Springs, MI 49103
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Borrower: File No.: Property Address: Case No.: City: State: Zip: Lender: GreenStone Farm Credit Services 49107 MI Buchanan 11305 Burgoyne Rd 18188 Mark Ludwig STACEY APPRAISAL SERVICE 11221 Garr Road, Berrien Springs, MI 49103
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Borrower: File No.: Property Address: Case No.: City: State: Zip: Lender: GreenStone Farm Credit Services 49107 MI Buchanan 11305 Burgoyne Rd 18188 Mark Ludwig STACEY APPRAISAL SERVICE 11221 Garr Road, Berrien Springs, MI 49103