2024 Appraisal & Independent Assessment.pdf
David Jonathan Siik Petitioner V Township Of Negaunee Respondent · 26-002352-TT
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File No. Joy A. Holman Trust 24175 SUMMARY APPRAISAL REPORT OF THE REAL PROPERTY LOCATED AT 101 Nardi Dr Negaunee, MI 49866 for Credit Union Trust 2712 Niles Avenue St. Joseph, MI 49085 as of 06/20/2024 by Steven M. Wilson VA #5000960 PO Box 215 Michigamme, MI 49861 Clearwater Appraisal Service, LLC Page 1 of 46
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Clearwater Appraisal Service, LLC PO Box 215 Michigamme, MI 49861 9063710446 06/24/2024 Credit Union Trust 2712 Niles Avenue St. Joseph, MI 49085 Property 101 Nardi Dr Negaunee, MI 49866 Borrower/Owner N/A File No. 24175 Case No. Joy A. Holman Trust Dear Credit Union Trust: In accordance with your request, I have prepared an appraisal of the real property located at 101 Nardi Dr, Negaunee, MI 49866. The purpose of the appraisal is to provide an opinion of the market value of the property described in the body of this report. Enclosed, please find the report which describes certain data gathered during our investigation of the property. The methods of approach and reasoning in the valuation of the various physical and economic factors of the subject property are contained in this report. An inspection of the property and a study of pertinent factors, including valuation trends and an analysis of neighborhood data, led the appraiser to the conclusion that the market value, as of 06/20/2024 is : 349,000 The opinion of value expressed in this report is contingent upon the Limiting Conditions attached to this report. It has been a pleasure to assist you. If I may be of further service to you in the future, please let me know. Respectfully submitted, Clearwater Appraisal Service, LLC MI Certification #1204078447 Clearwater Appraisal Service, LLC Steven M. Wilson VA #5000960 24175 Joy A. Holman Trust Page 2 of 46
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S U B J E C T C O N T R A C T N E I G H B O R H O O D S I T E I M P R O V E M E N T S Uniform Residential Appraisal Report File # 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 PUD HOA $ per year per month Special Assessments $ 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 the appraisal? Yes No Report data source(s) used, offering price(s), and date(s). 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 I did 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: Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood Characteristics One-Unit Housing Trends One-Unit Housing 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) 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 Utilities Public Off-site Improvements--Type Private Electricity Water Street Gas Sanitary Sewer Alley FEMA Special Flood Hazard Area FEMA Flood Zone Yes No FEMA Map No. FEMA Map Date Are the utilities and off-site improvements typical for the market area? Yes No. Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes No materials/condition materials/condition General Description Foundation Exterior Description Interior One with Accessory Unit Units One Concrete Slab Crawl Space Foundation Walls Floors # of Stories Full Basement Partial Basement Walls Type Det. Att. S-Det/End Unit sq. ft. Trim/Finish Existing Proposed Under Const. % 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 Attic None Heating FWA HWBB Radiant 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 grade contains: Square Feet of Gross Living Area Above Grade above Rooms Bedrooms Bath(s) 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 Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? Yes Page 1 of 6 Fannie Mae Form 1004 March 2005 Freddie Mac Form 70 March 2005 UAD Version 9/2011 Roof Surface Percent Land Use If No, describe Exterior Walls # of Cars Basement Area Basement Finish Amenities If Yes, describe If No, describe % Public Other (describe) Other (describe) Public If Yes, describe No If No, describe Summary Appraisal Report Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC 101 Nardi Dr Negaunee MI 49866 N/A Joy A. Holman Revocable Living Trust Marquette See included copy of Warranty Deed 2018R01334 for a full legal description 521046003100 2023 4,600 Dead River Basin and Surrounding Interior Lakes T48N 26W Sec07 15 0 0 Estate Valuation Purposes Credit Union Trust 2712 Niles Avenue, St. Joseph, MI 49085 DOM 0;Per the Upper Peninsula MLS, there has been no listing activity during the prior twelve (12) month period. 50 2 180 1 1 Beginning at Big Bay, MI, travel east to Sand River, MI, travel south to Gwinn, MI, travel west to Three Lakes, MI, and return north to point of beginning. *See Included Map* 500 100 7 330 50 40 The subject property is located in rural Marquette County. The subject property is served by the Negaunee Post Office. MI (pop 4,659). Negaunee is located approximately nine (9) miles west from the region's main economic center of Marquette, MI (pop. 20,394). Marquette is the largest city in Michigan's Upper Peninsula. *** See Additional Comments *** The current sales data, collected by the Upper Peninsula MLS, indicates an stable market. Based on a scatter plot graph of this sales data, the trend indicates a modest 3.87% annual increase in values for comparable lakefront properties which sold in the prior twelve (12) month period. ***See included copy of the scatter plot graph and trend line*** See included county plat map 10.86 ac Irregular B;Lakefront;Woods R3 Lakeshore / River Residential *** See Additional Comments *** Private Well Gravel Propane Private Septic None Zone X 26103C0455E 06/06/2024 No apparent adverse easements, encroachments, or adverse conditions were observed at the subject site at the time of property inspection by the appraiser. Concrete Block/Good Carpet/Vinyl/Good 2.00 Raw Cedar Plank/Fair Drywall/Good 1,098 Enameled Metal/Good Knotty Pine/Good 0 Metal/Good Tile/Good Traditional LowE Vinyl/Good Fiberglass/Good 1951 Insulated/Good 30 Present/Good 4 0 Sand Propane 1 None 3 Deck Covered 0 None Sauna Fan/Hood 7 5 2.1 2,495 Weather stripping and insulated windows are present. ****See Additional Comments**** C4;Kitchenupdatedtimeframe unknown;Bathrooms updatedtimeframe unknown;The subject dwelling is an average (Q4) quality, five bedroom, cedar planksided traditional style home. The subject property has been minimally maintained in recent years, and appeared in average (C4) overall condition. There were no (0) significant required repair issues observed. *** See Additional Comments*** There are no physical deficiencies, or adverse conditions observed that would affect the livability, soundness, or structural integrity of the subject property. ***See Additional Comments**** The subject property conforms well with the surrounding rural properties in the neighborhood. Page 3 of 46
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S A L E S C O M P A R I S O N A P P R O A C H R E C O N C I L I A T I O N Uniform Residential Appraisal Report File # comparable properties currently offered for sale in the subject neighborhood ranging in price from $ There are to $ . comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ There are to $ . FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Address Proximity to Subject Sale Price $ $ $ $ Sale Price/Gross Liv. Area $ $ $ sq. ft. sq. ft. sq. ft. sq. ft. Data Source(s) Verification Source(s) DESCRIPTION DESCRIPTION +(-)$ Adjustment DESCRIPTION +(-)$ Adjustment DESCRIPTION +(-)$ Adjustment VALUE ADJUSTMENTS 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 Room Count Gross Living Area sq. ft. sq. ft. sq. ft. 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 Net Adj. Net Adj. Net Adj. % % % of Comparables Gross Adj. Gross Adj. Gross Adj. % % % $ $ $ did not research the sale or transfer history of the subject property and comparable sales. If not, explain I 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. My research did Data Source(s) did not reveal any prior sales or transfers of the comparable sales for the prior year to the date of sale of the comparable sale. My research did 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 COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Date of Prior Sale/Transfer Price of Prior Sale/Transfer Data Source(s) Effective Date of Data Source(s) 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 $ Indicated Value by: Sales Comparison Approach Cost Approach (if developed) Income Approach (if developed) $ $ $ This appraisal is made subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been "as is," 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 completed, 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 , which is the date of inspection and the effective date of this appraisal. $ , as of Page 2 of 6 Fannie Mae Form 1004 March 2005 Freddie Mac Form 70 March 2005 UAD Version 9/2011 $ Baths Bdrms. Total Baths Bdrms. Total Baths Bdrms. Total Baths Bdrms. Summary Appraisal Report Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC 4 199,900 299,900 22 180,000 499,000 101 Nardi Dr 3119 Co Rd GGT 112 Brown Rd 188 Road 10 Negaunee, MI 49866 Ishpeming, MI 49849 Michigamme, MI 49861 Ishpeming, MI 49849 7.09 miles W 21.65 miles W 2.42 miles W 379,000 324,900 400,000 338.39 207.74 217.86 UPMLS#50109631;DOM 65 UPMLS#50110590;DOM 11 County Records;FSBO;DOM Unk Marquette County Records/Realtor Marquette County Records/Realtor Prior Appraisal;Warranty Deed ArmLth ArmLth ArmLth Conv;0 Conv;0 Conv;0 s08/23;c07/23 +14,262 s08/23;c06/23 +13,259 s09/23;c09/23 +12,423 B;Lakefront;Rural B;Lakefront;Rural B;Lakefront;Rural B;Lakefront;Rural Fee Simple Fee Simple Fee Simple Fee Simple 10.86 ac 5.53 ac 0 13.00 ac 20,000 4.76 ac 0 B;Lakefront;Woods B;Lakefront;Woods B;Lakefront;Woods B;Lakefront;Woods DT2;Traditional DT1;Raised Ranch 0 DT1;Ranch 0 DT1.5;LogSided Ranch 0 Q4 Q3 44,800 Q4 Q3 45,900 73 20 0 73 95 0 C4 C3 35,840 C4 C3 36,720 0 0 0 7 5 2.1 5 2 1.0 +12,000 7 3 2.0 +4,000 5 2 1.1 +8,000 2,495 1,120 +60,500 1,564 +40,964 1,836 +28,996 1098sf0sfin 1120sf672sfwo 440 208sf0sfin +17,800 488sf0sfin +12,200 1rr1br1.0ba0o 24,128 0 5 Bdrm/Good 3 Bdrm/Good 0 3 Bdrm/Good 0 2 Bdrm/Good 0 F/A Gas / Central HWBB / None +1,000 F/A Gas / Central Radiant Elec / None +1,000 Avg. Insulation Avg. Insulation Avg. Insulation Avg. Insulation 3gd4dw 4gd4dw 7,000 2gd4dw +7,000 2gd4dw +7,000 Porch / Open Deck Porch / Open Deck Porch / Open Deck Porch / Open Deck Road Access AllSeason Road AllSeason Road AllSeason Road AllSeason Road Other Amenities Sauna Shed Sauna Shed Guest House 18,000 Storage Shed 0 Body of Water Frontage Dead River Basin Dead River Basin Lake Michigamme 0 Dead River Basin 24,446 45,023 13,001 6.45 13.86 3.25 52.76 354,554 37.25 369,923 38.06 386,999 Upper Peninsula Multiple Listing Service & Marquette County Equalization Department Upper Peninsula Multiple Listing Service & Marquette County Equalization Department UPMLS/County Records UPMLS/County Records UPMLS/County Records UPMLS/County Records 06/20/2024 06/20/2024 Per a search of the Upper Peninsula MLS service, and Marquette County tax records, it was confirmed that there were no prior sales of the subject property within the past three (3) years. Regarding the sales comparables, there were no prior sales of the comparable sales utilized in this appraisal within one (1) year prior to the effective date of this appraisal. The comparable sales are similar interior lakefront properties also located within the rural Marquette County and surrounding market area. These sales are comparable homes on rural lots, that are similar to the subject dwelling with regard to size, lakefront setting, effective age of construction and amenities offered. The sales selected are considered the most comparable based on recent sales data available as a result of a twelve (12) month search. Due to the small population size, and rural nature of the Marquette County market area, there is a typical limited number of interior lakefront properties sold and offered for sale over any given year. This is not uncommon for a lightly populated rural market area. **See Additional Comments** 349,000 383,000 352,000 Due to the age of the subject the Cost Approach was used as limited supportive data only. The Income Approach was considered an inappropriate method of valuation for the subject property type (personal residence and not income generating). *** See Additional Comments *** 349,000 06/20/2024 06/20/2024 Subject to the extraordinary assumption that the nonwinterized plumbing and electricity are in good working order. ***See Additional Comments*** 349,000 06/20/2024 Page 4 of 46
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ADDITIONAL COMPARABLES File No. Property Address City County State Zip Code FEATURE SUBJECT Address Proximity to Subject Sale Price $ $ $ $ Sale Price/Gross Liv. Area $ $ $ sq. ft. sq. ft. sq. ft. sq. ft. Data Source(s) Verification Source(s) DESCRIPTION DESCRIPTION +(-)$ Adjustment DESCRIPTION +(-)$ Adjustment DESCRIPTION +(-)$ Adjustment VALUE ADJUSTMENTS 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 Room Count Gross Living Area sq. ft. sq. ft. sq. ft. 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 Net Adj. Net Adj. Net Adj. % % % of Comparables Gross Adj. Gross Adj. Gross Adj. % % % $ $ $ ITEM SUBJECT COMPARABLE SALE # COMPARABLE SALE # COMPARABLE SALE # Date of Prior Sale/Transfer Price of Prior Sale/Transfer Data Source(s) Effective Date of Data Source(s) Comment on Sales Comparison COMPARABLE SALE NO. COMPARABLE SALE NO. COMPARABLE SALE NO. $ Baths Bdrms. Total Baths Bdrms. Total Baths Bdrms. Total Baths Bdrms. Freddie Mac Form 70 March 2005 UAD Version 9/2011 Fannie Mae Form 1004 March 2005 Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Lender/Client Credit Union Trust 101 Nardi Dr 213 E Johnson Lake Rd 337 S Mesnard St TBD Ramsay Island Negaunee, MI 49866 Gwinn, MI 49841 Michigamme, MI 49861 Michigamme, MI 49861 22.97 miles SE 21.82 miles W 310,000 271,000 290,000 103.20 143.54 76.80 UPMLS#50108640;DOM 61 UPMLS#50132078;DOM 15 UPMLS#50114770;DOM 0 Marquette County Records/Realtor Marquette County Records/Realtor ArmLth ArmLth ArmLth B;Lakefront;Rural B;Lakefront;Rural B;Lakefront;Rural B;Lakefront;Rural Fee Simple Fee Simple Fee Simple Fee Simple 10.86 ac 37026 sf +10,000 2.41 ac 0 14.90 ac 20,000 B;Lakefront;Woods B;Lakefront;Woods B;Lakefront;Woods B;Lakefront;Woods DT2;Traditional DT2;Ranch 0 DT2;Ranch 0 DT1.5;Chalet 0 Q4 Q4 Q4 Q4 73 83 0 64 0 31 0 C4 C4 C3 37,760 C4 0 0 0 7 5 2.1 10 4 2.1 0 6 2 1.0 +12,000 7 3 2.0 +4,000 2,495 3,004 22,396 1,888 +26,708 3,776 56,364 1098sf0sfin 400sf0sfin +13,960 0sf +21,960 576sf0sfwo +10,440 F/A Gas / Central HWBB / None +1,000 Radiant Gas / None +1,000 Radiant Elec / None +1,000 Avg. Insulation Avg. Insulation Avg. Insulation Avg. Insulation 3gd4dw 3ga1gd4dw 7,000 4dw +21,000 1dw +21,000 Porch / Open Deck Porch / Open Deck Porch / Open Deck Porch / Open Deck Road Access AllSeason Road AllSeason Road AllSeason Road BoatIn Only +58,000 Other Amenities Sauna Shed Gazebo 0 Storage Shed 0 None +5,000 Body of Water Frontage Dead River Basin Johnson Lake 0 Lake Michigamme 0 Lake Michigamme 0 7,229 43,119 34,911 2.33 15.91 12.04 21.30 47.94 64.70 UPMLS/County Records UPMLS/County Records UPMLS/County Records UPMLS/County Records 06/20/2024 06/20/2024 06/20/2024 06/20/2024 Please refer to the additional comments section under Sales Comparison Analysis for comments concerning comparable sales #4 through #6. 4 5 6 24.46 miles W 4 5 6 317,229 314,119 324,911 5 Bdrm/Good 4 Bdrm/Good Conv;0 s09/23;c07/23 +11,665 0 2 Bdrm/Good 0 3 Bdrm/Good 0 Conv;11285 5,643 Conv;0 s03/24;c02/24 +3,854 s07/23;c06/23 +11,835 Page 5 of 46
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A D D I T I O N A L C O M M E N T S C O S T A P P R O A C H I N C O M E P U D I N F O R M A T I O N Uniform Residential Appraisal Report File # 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) OPINION OF SITE VALUE........................................................................... =$ ESTIMATED REPRODUCTION OR REPLACEMENT COST NEW Source of cost data Dwelling Sq. Ft. @ $ .......................=$ Quality rating from cost service Effective date of cost data Sq. Ft. @ $ .......................=$ Comments on Cost Approach (gross living area calculations, depreciation, etc.) Garage/Carport Sq. Ft. @ $ .......................=$ ....................... Total Estimate of Cost-New =$ Less Physical Depreciation =$( ) Depreciated Cost of Improvements.............................................................. =$ 'As-is' Value of Site Improvements.............................................................. =$ Estimated Remaining Economic Life (HUD and VA only) Years Indicated Value By 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) 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 existing building(s) into a PUD? Yes No 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 Page 3 of 6 Fannie Mae Form 1004 March 2005 Freddie Mac Form 70 March 2005 UAD Version 9/2011 Functional External If Yes, date of conversion Summary Appraisal Report Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC All components of the subject dwelling are included in the square feet reproduction cost factor. Site improvements include landscaping, driveway and utility hookups. Land value estimates are based on comparable land sales in the subject area and within the subject development when possible. The physical depreciation estimates are based on the Modified AgeLife Method which is a method of deducting all curable items first then applying the agelife ratio. Due to the new condition of the subject improvements, the Cost Approach was utilized with good support for value in the Final Reconciliation. COMPARABLE LAND SALES Interior Lakefront Lots in Marquette & Baraga County: TBD Sporley Lake B&C West Branch Twp 8.00 acres $ 65,000 06/01/2021 TBD Brown Rd Michigamme Twp 1.33 acres $ 80,000 06/04/2021 TBD Green Rd Michigamme Twp 8.89 acres $ 85,000 10/21/2021 229 Shoreline Dr Negaunee Twp 1.40 acres $ 89,900 09/21/2021 TBD Silver Rd Republic Twp 1.83 acres $115,000 06/21/2021 TBD Partridge Lane Spurr Twp 2.36 acres $ 88,000 05/24/2023 Lot B Pelissier Lake Rd Sands Twp 5.61 acres $ 89,900 07/26/2022 Lot 31 Secluded Point Rd Spurr Twp 6.39 acres $ 85,000 10/05/2021 Comparable land sales utilized are lots located within the subject property's market area, and provide a good indication of market value for the subject property. Vacant lakefront building sites within the subject market area are in limited supply at this time. Please refer to above section for comparable interior lakefront land sales. 85,000 CostToBuild.net and Local Contractors 2,495 190.00 474,050 Average 06/20/2024 BSMT 1,098 20.00 21,960 The cost factors utilized in the Cost Approach were derived from local building contractor specifications and the CostToBuild.net online building cost estimating service. The site value estimate is based on comparable property sales to the subject site. 1,945 38.00 73,910 569,920 284,960 284,960 284,960 13,040 30 383,000 2,200 160 352,000 The Income Approach to value is considered an inappropriate method of valuation for the subject property type (personal residence). *** See Additional Comments *** Page 6 of 46
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Uniform Residential Appraisal Report File # 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 Fannie Mae Form 1004 March 2005 Freddie Mac Form 70 March 2005 UAD Version 9/2011 Summary Appraisal Report Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Page 7 of 46
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Uniform Residential Appraisal Report File # 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. Page 5 of 6 Fannie Mae Form 1004 March 2005 Freddie Mac Form 70 March 2005 UAD Version 9/2011 Summary Appraisal Report Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Page 8 of 46
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Uniform Residential Appraisal Report File # 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). 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 SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Signature Name Name Company Name Company Name Company Address Company Address Telephone Number Telephone Number Email Address Email Address Date of Signature and Report Date of Signature Effective Date of Appraisal State Certification # or State License # State Certification # State or State License # Expiration Date of Certification or License or Other State # State Expiration Date of Certification or License SUBJECT PROPERTY Did not inspect subject property ADDRESS OF PROPERTY APPRAISED Did inspect exterior of subject property from street Date of Inspection Did inspect interior and exterior of subject property APPRAISED VALUE OF SUBJECT PROPERTY $ Date of Inspection LENDER/CLIENT Name Company Name COMPARABLE SALES Company Address Did not inspect exterior of comparable sales from street Did inspect exterior of comparable sales from street Email Address Date of Inspection Page 6 of 6 Fannie Mae Form 1004 March 2005 Freddie Mac Form 70 March 2005 UAD Version 9/2011 Summary Appraisal Report Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Steven M. Wilson VA #5000960 Clearwater Appraisal Service, LLC PO Box 215 Michigamme, MI 49861 9063710446 clearwaterappraisalservice@gmail.com 06/24/2024 06/20/2024 1204078447 MI 07/31/2025 101 Nardi Dr Negaunee, MI 49866 349,000 No AMC Credit Union Trust 2712 Niles Avenue St. Joseph, MI 49085 Page 9 of 46
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ADDITIONAL COMMENTS File No. Property Address City County State Zip Code Page 1 Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Lender/Client Credit Union Trust SCOPE OF APPRAISAL In the process of preparing this appraisal, the subject property has been personally inspected. A detailed description of the property, along with observations and findings as to the condition and special features have been included. In addition, an ownership history of the subject property has been provided. The economic and physical features of the subject neighborhood and community have been analyzed. In this process, we have researched pertinent zoning and land use policies information within the governing jurisdiction of the subject property. Population, housing and other demographic figures have been cited from news releases, county data sources and estimates from the Bureau Of The U.S. Census. Employment and other statistical data has been researched through a variety of sources including Northern Michigan University. The local supply and demand is estimated by observations of available listings, exposure time of sales in the area, availability of mortgage funding, interviewing realtors knowledgeable of the local market conditions, and by analyzing published statistical information recited above. In the valuation process of the subject property, three applications are available to the appraiser which include the Cost Approach, Income Approach and the Sales Comparison Analysis. All three (3) approaches to value include collecting data from various sources including Upper Peninsula MLS Service and county records. All of the data is researched, inspected and analyzed and applied to the subject. The data which is found to be most similar for comparison to the subject property is verified with a party familiar with the transaction. Verification sources generally include the property owner, Listing or Selling Realtor agent, Title Companies and county deed records. The data is then analyzed and compared with the subject property. The value conclusion is based on the inspections of the property, study of the neighborhood and community, and the analysis of the comparable sales data which is most appropriate to the subject property. The appraiser is not a home inspector. This report should not be relied upon to disclose any conditions present within the subject property. The appraisal report does not guarantee that the property is free of defects. A professional home inspection is recommended. Intended Use Of Appraisal: This appraisal report is prepared for the sole and exclusive use of the client, Credit Union Trust. The Intended Use of this appraisal is for estate valuation purposes. Subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No third parties are identified by the appraiser. LEGAL DESCRIPTION Lot 31 of Assessor's Plat No. 1 of Dead River Basin. See included copy of Warranty Deed 2018R01334 for a full legal description. NEIGHBORHOOD BOUNDARIES The neighborhood boundaries for the subject property include the area within twentyfive (25) mile radius of the subject property (see the location map provided below). Beginning at Big Bay, MI, travel east to Sand River, MI, travel south to Gwinn, MI, travel west to Three Lakes, MI, and return north to point of beginning. Page 10 of 46
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ADDITIONAL COMMENTS File No. Property Address City County State Zip Code Page 2 Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Lender/Client Credit Union Trust NEIGHBORHOOD DESCRIPTION Dead River Basin: The subject property is a lakefront property located on the Dead River Storage Basin. The Dead River Basin is a manmade water reservoir of 2,724 acres in size. The subject property is approximately four (4) miles north of the city boundaries of Negaunee, MI (pop. 6,167), and approximately eight (8) miles from the city boundaries of Marquette (pop. 20,394), both situated along Highway 41. The subject's market area includes rural areas situated within a twentyfive (25) mile radius of the subject property. Marquette, Michigan, with its regional hospital and Northern Michigan University, is the main employment and service center for the area. All of these properties are within a one hour drive to downtown Marquette, which is the major economic hub of the Central Upper Peninsula region. A large percentage of people owning property within the subject market commute daily along Highway 41 to the employment centers of Ishpeming, Negaunee, and Marquette. As such, the residents of the subject's rural area share the same services and shopping amenities. The subject's market area includes interior lakefront homes from an entry level value range from $180,000 to higher quality properties in the range of $500,000 and above. Market appeal in the area is considered good with most properties in the area being well maintained. Recent marketing periods and exposure time in the area is from 36 months with well maintained properties, adequately priced, experiencing lower marketing periods. MARKET CONDITIONS According to sales data collected by the Upper Peninsula MLS, there has been a moderate increase of 3.87% in the median value for interior lakefront residential properties within a 25.0 mile radius of the subject property, and within the subject's value range ($180,000 to $500,000) during the past twelve (12) month period (06/20/2023 to 06/20/2024). The overall trend for the subject's market area is considered stable: The comparable sales in the scatter plot above was generated in Excel using the 22 sales in the 1004 MC Addendum included in this report. According to the sales data, there was modest increase of 3.8690% in the prior year, which the appraiser considers a stable market. HIGHEST AND BEST USE The subject property is a single family home located on rural residential interior lakefront lot of 10.86 acres. The subject conforms well with surrounding properties. The subject property also conforms to Negaunee Township's R3 (Lakeshore / River Residential) zoning classification and can be rebuilt if destroyed by fire or other causes. The current use is considered the Highest & Best Use for the subject property. Page 11 of 46
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ADDITIONAL COMMENTS File No. Property Address City County State Zip Code Page 3 Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Lender/Client Credit Union Trust ADDITIONAL FEATURES The subject dwelling is an average quality (Q4), two story traditional style home built in 1951. The home has a functional floor plan that includes five (5) bedrooms, with two (2) full bathrooms and one (1) half bathroom. The subject property has been minimally maintained in recent years, and displays exterior wear. As a result, the subject is judged to be in average (C4) condition. The subject dwelling offers the following features: Interior Features of Note: Functional five (5) bedroom floor plan, two on the main level and three on the second level Two (2) full bathrooms one on main level and one on second level One (1) half guest bathroom main level Carpeted flooring throughout Vinyl flooring in the kitchen and bathrooms Standard kitchen appliances Laminate counter tops Oak kitchen cabinetry Knotty pine interior walls and trim throughout Vaulted ceilings in living room and bedrooms #3 and #4 River rock stone fireplace in living room Screen porch off kitchen Partially finished basement Exterior Features of Note: Unfinished cedar plank siding Enameled metal roofing LowE vinyl insulated windows Covered front entry and open rear deck Stairs down to lakefront Detached triple car garage Sauna shed Older economy grade single car garage (fully depreciated/no contributory value assigned) View of Dead River Basin, with full lakefront access PROPERTY CONDITION The subject improvements appeared minimally maintained, and in average (C4) condition overall. As part of the appraisal inspection process, the following components were inspected: 1) Water flow: The subject is connected to a onsite private well system. The subject property was not winterized this past winter, so the condition of the plumbing and all water related components could not be ascertained. It is possible that significant damage occurred to these components during the frozen winter months. The power was turned off at the time of inspection. 2) Heating: The heating system is comprised of a propane gas forced air furnace heating system. The power and gas were turned off at the time of inspection (see photos). 3) Safety: There were no (0) safety issues observed. 4) Paint: Since the home was constructed before the 1978 deadline for lead paint use, the subject dwelling would be subject to a lead paint disclosure. There were no areas of peeling or defective paint observed on either the interior or exterior surfaces. 5) Basement: The dwelling was constructed on a concrete block basement foundation. No dampness or settlement issues were observed. 6) Roof: The subject has a enameled metal covered roof. No evidence of water penetration was observed on the interior ceilings or scuttle attic space(see photos). 7) Sewer/septic: The subject is connected to a private onsite septic system. There were no signs of issues observed. 8) Attic: The subject has a scuttle attic space. This space was inspected from a "head and shoulders" perspective (see photo). There was no evidence of water penetration. Page 12 of 46
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ADDITIONAL COMMENTS File No. Property Address City County State Zip Code Page 4 Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Lender/Client Credit Union Trust 9) Electrical: The electric power was turned off at the time of inspection. The lights and switches could not be operated. 10) Other: The unfinished cedar board exterior siding is reaching the end of its useful life. In the near future new siding will be required to protect the structure from the elements. Summary: There were no (0) significant repair issues observed. As mentioned above, the subject's plumbing was not winterized. It is possible that significant damage occurred during the freezing months. Also, food was left in the refrigerator, and the smell of decomposition is strong throughout the home. This situation may require remediation by a professional cleaning service. Note: The borrower and/or client has the right to have the home inspected by a professional home inspector and is recommended by the appraiser. The appraiser does not guarantee the condition of the improvements, its equipment or appliances or that the property is free from defects. Rather, the appraiser is simply asked to make reasonable observations about the property and site and provide that information to the lender/client. PHYSICAL DEFICIENCIES AND / OR ADVERSE CONDITIONS The appraiser's routine inspection of and inquiries about the subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would adversely affect the subject property. The value estimated in this report is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions. CONFORMANCE OF PROPERTY TO NEIGHBORHOOD The subject property conforms well to the surrounding rural Marquette County market area. SALES COMPARISON APPROACH Search #1) Initial search parameters were for comparable sales of properties that met the following criteria: 1) Closed sales between 12/20/2023 and 06/20/2024 (client preferred six month time period) 2) Interior lakefront homes with, or without, a basement 3) Quality rating of Q4 or better, and Condition rating of C4 or better 4) Situated on rural residential lots in the .5 to 20.0 acre size range 5) Effective age 30 years or less (older dwellings if significantly updated) 6) Total above grade gross living area of 1,000 sqft. to 3,000 sqft. 7) Properties with, or without, outbuildings 8) Located within twentyfive (25) miles of the subject's location on the Dead River Storage Basin The results of this initial search produced one (1) comparable sale within the subject's market area. Search #2) To increase the number of comparable sales, the search parameters were expanded to include the following criteria: 1) Closed sales between 06/20/2023 and 06/20/2024 (12 month time period) 2) Interior lakefront homes with, or without, a basement 3) Quality rating of Q4 or better, and Condition rating of C4 or better 4) Situated on rural residential lots in the .5 to 20.0 acre size range 5) Effective age 30 years or less (older dwellings if significantly updated) 6) Total above grade gross living area of 1,000 sqft. to 3,000 sqft. 7) Properties with, or without, outbuildings 8) Located within twentyfive (25) miles of the subject's location on the Dead River Storage Basin The results of this expanded search yielded six (6) closed sales that were judged comparable to the subject property. Explanation of Adjustments: Sales Comparison adjustments are based on a combination of paired sales analysis and depreciated cost new analysis. These adjustment factors are determined by area buyers on what each feature or amenity contributes to the overall sales price. This is done by comparing two or more virtually identical properties with the exception of one specific difference such as a double garage to a single garage and measuring the value difference of the sales prices of the properties. Paired sales analysis can be problematic in a small rural areas with limited sales data and a lack of homogeneous construction. In this case, the depreciated cost new method can provide a more reliable adjustment. Adjustments are seldom, if ever, based on direct cost new. For this specific report, the following adjustments were required to bring the comparables into parity with the subject property: Page 13 of 46
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ADDITIONAL COMMENTS File No. Property Address City County State Zip Code Page 5 Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Lender/Client Credit Union Trust 1) Seller Concessions: The sellers of comparable sale #5 provided funds towards the buyer's closing costs. Studies reviewed, and conducted, by the appraiser have found that this type of sales concessions are rarely a dollarfordollar adjustment to the final sales price. Rather, these concessions appear to contribute a fractional amount to the final sales price. Based on market data obtained in the subject market, these concessions received a 50% adjustment of the total dollar amount of the sales concession. 2) Date of Sale (Market Condition): The current sales data, collected by the Upper Peninsula MLS, indicates a stable market. Based on a scatter plot graph of this sales data, the trend indicates a modest 3.87% annual increase in values. See included copy of the scatter plot graph and market trend line. Each comparable sale was adjusted upwards 0.322% per month (0.03869 / 12 = 0.003224) from its contract date to the effective date of this appraisal. 3) Location: All of the sales comparable selected share the subject's "beneficial lakefront / rural" rating. 4) Site Size (Acreage): After a review of sales data for rural small acreage parcels in the subject's market area, the following conclusions can be made: price per acre is significantly affected by the utility of the subject lot, and access to services. For comparison purposes, each comparable sale was analyzed to determine the amount of utility for their lot, and was then adjusted accordingly. 5) View: Each of the comparable sales, utilized in this appraisal report, share the subject's beneficial lakefront and wooded view. Therefore, no adjustment for differences in view were required. 6) Above Grade Square Footage: In the subject's rural market area, comparable dwellings, of this type of property, are adjusted $44.00 per square foot of gross living area above grade. A full description of the methodology used to derive the gross living area adjustment is provided in the additional comments section at the end of this appraisal report. 7) Below Grade Square Footage (Finished Basements): Differences in finished basement living area for homes of this value range where adjusted based on a market derived $24.00 per square foot. A full description of the methodology used to derive the basement area adjustment is provided in the additional comments section at the end of this appraisal report. 8) Below Grade Square Footage (Unfinished Basements): Differences in unfinished basement living area for homes of this value range where adjusted based on a market derived $20.00 per square foot. 9) Age Adjustment: Any adjustment necessary is addressed in the under condition. Sales of older homes are considered if they have been extensively updated to reflect the subject's effective age. 10) Quality: The subject property is judged to be an average (Q4) quality home. All efforts were made to find comparable sales that share the subject's quality. However, due to the normal limited volume of the sales activity of lakefront properties in the subject market, it was necessary to consider comparable sales of both higher and lesser quality than the subject and adjust for the impact on market value. Comparable sales #1 and #3 were judged to be of one full level (Q3) higher quality than the subject property. They both have additional features and finishes that the subject property does not. Therefore, these comparable sales were adjusted downward a marketderived $25.00 per foot of total finished living area to bring it down to parity with the subject's quality. 11) Condition: The subject property is judged to be in average (C4) overall condition. All efforts were made to find comparable sales that share the subject's condition. However, due to the normal limited volume of the sales activity of interior lakefront properties in the subject market area, it was necessary to consider comparable sales in both better and lesser condition than the subject property, and adjust for the impact on market value. Sales comparables #1, #3 and #5 were judged to be in one full level (C3) better condition than the subject property. As a result, they were adjusted downward a market derived $20.00 per foot of total finished living area to bring them down to parity with the subject's condition. 12) Garages and carports: Based on an analysis of area market data, and the depreciated cost new method, the contributory value of enclosed garage spaces is $7,000 per space. Opensided carports were determined to have a contributory value of $4,000 per space. 13) Outbuildings: Outbuildings in the subject market are varied in size, condition and function. The appraiser uses either the sales comparison approach, or the depreciated cost new method, to determine if there is an impact to each of the comparable sales value. In many cases the contributory value is limited, in other cases the appeal across a large base of potential users leads the appraiser to derive a significant adjustment amount. With limited sales data in the subject market, the depreciated cost new methodology provided the most reliable approach to determine the contributory value of these outbuildings. Each comparable was then adjusted based Page 14 of 46
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ADDITIONAL COMMENTS File No. Property Address City County State Zip Code Page 6 Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Lender/Client Credit Union Trust on the net contributory difference of their outbuildings to the subject's outbuildings, if any are present. 14) Lake Frontage: All six (6) of the comparable sales utilized in this report are located on bodies of water within twentyfive (25) miles of the subject property. The appraiser has determined that each lake provides a similar use and utility, and therefore the principle of substitution is present. A typical motivated buyer seeking a lakefront property would consider each of these bodies of water for their lakefront access, so no adjustment was deemed necessary by the appraiser. RECONCILIATION The Sales Comparison Analysis is considered to provide the most accurate indication of value and was utilized with the greatest weight in the Final Reconciliation. The comparable sales utilized have been analyzed and the comparable sales with the greatest similarities have been identified and were used with the most weight in the final value conclusion. In addition, the Cost Approach was considered in the Final Reconciliation. The sales utilized are considered the most comparable, and recent sales data available, as a result of a 12 month search. The adjustments were derived from paired sales analysis and factors on file with the appraiser. The range of final adjusted sales prices fell within $314,119 to $386,999. This represents a reasonable adjusted spread of 18.83%. This adjustment spread is typical for limited sales of lakefront properties in the subject market. Industry Guidelines: It should be noted that one (1) of the six (6) adjusted comparable sales utilized in this appraisal exceeded the industry residential guideline of 15% net adjustment, and five (5) of the six (6) adjusted comparable sales utilized in this appraisal exceeded the industry residential guideline of 25% gross adjustment. These guidelines are for typical residential properties, in typical markets. The lightly populated Marquette County market is unlike more urban markets, especially when utilizing lakefront properties. The appraiser must use all available comparable sales. The appraiser believes that the comparable sales utilized in this appraisal contribute credible support in the final value conclusion. FNMA recognizes the challenge appraisers face when appraising in a lightly traded rural market when they issued the following announcement: Sales Comparables That Exceed Industry Guidelines: Fannie Mae Announcement 0830 States: "that when a property is located in an area in which there is a shortage of truly comparable sales either because of the nature of the property improvements or the relatively low number of sales transactions in the neighborhood the appraiser may need to use as comparable sales properties that are not truly comparable to the subject property or properties that are located in competing neighborhoods" Selling Guide, Part XI, Section 406.02: Selection of Comparable Sales Weighted Average Methodology: The adjusted closed sales comparables were analyzed, and greater weight was given to the sales comparables that the appraiser deemed represented the subject more closely. Conclusion: As a result of the analysis of the comparable sales utilized the indicated value of $349,000 is considered market value for the subject property. CONDITIONS OF APPRAISAL This appraisal is prepared in a "subjectto" the extraordinary assumption that the condition of plumbing and heating systems are functioning properly. The appraisal is subject to the Attached Assumptions & Limiting Conditions. The market value of the subject property has been estimated based on cash terms. All comparable Page 15 of 46
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ADDITIONAL COMMENTS File No. Property Address City County State Zip Code Page 7 Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Lender/Client Credit Union Trust sales used in this report, which were transacted on advantageous seller carried financing, or reflected seller paid concessions, have been analyzed, and adjusted where appropriate, to reflect cash terms. This appraisal report does not reflect value of any personal property. This appraisal report involves the value of real property only. Unless noted, all comparable sales are closed transactions with the closing date noted as the sales date in the analysis section of the report. Appraiser Independence: "No employee, director, officer, or agent of the lender, or any other third party acting as a joint venture partner, independent contractor, appraisal management company, or partner on behalf of the lender has influenced or attempted to influence the development, reporting, result, or review of this assignment through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery or in any other manner. I have not been contacted by anyone other than the intended user (lender/client as identified on the first page of the report), borrower, or designated contact to make an appointment to enter the property. I agree to immediately report any unauthorized contacts either personally by phone or electronically to the lender/client and the National Real Estate Board." Appraisal Assistance: A significant professional contribution was made by Andrew S. Wilson, a Certified Residential Appraiser licensed in the State of Michigan (#1204078501) in the completion of this report. Assistance was in the following areas of the appraisal process including; (A) Defining the appraisal problem; (B) Preliminary analysis, selection and collection of applicable data; (C) Analysis of subject property; (D) Highest and Best use analysis; (E) Estimate land/site value; (F) Estimate value of the property including Cost, Sales Comparison; Income Capitalization (G) Reconcile value indicators and reconcile final value estimate; (H) Report estimate(s) of value(s) as defined. The assistance was performed in compliance with the Uniform Standards of Professional Practice. Legal Responsibility: The appraiser will not be responsible for matters of a legal nature that affect 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. In addition, the appraiser performs due diligence regarding code violations and/or permitted use within the scope of work when applicable or obvious when performing a casual inspection, however the appraiser is not responsible for verifying that the property being appraised complies with county codes and/or permits or the additions or other improvements are permitted. The appraiser assumes the property being appraised is legal and marketable. ADDITIONAL COMMENTS Subject Property Ownership and History: Ownership of the subject property is vested in the Joy A. Holman Revocable Living Trust, dated January 1st, 2018. This ownership was recorded on February 16th, 2018, according to a Warranty Deed recorded in document #2018R01334 in Marquette County records. Subject Sketch: Regarding the enclosed sketch of the subject floor plan, "any interior walls are for illustrative purposes only," and the actual placement may vary from the sketch provided. ANSI Standards: The ANSI Z765 (American National Standards Institute®) Square FootageMethod has been utilized for measuring, calculating, and reporting the gross living area (GLA) and nonGLA areas of subject property for appraisals of single family dwellings requiring interior and exterior inspections. 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. However, it should be noted that the appraiser did not personally measure the comparable sales utilized in this report unless noted in this statement. Comparable gross living area for the comparables is based on tax record data, public data, peer data (when possible), and realtor data. Entities other than appraisers are not necessarily bound to the ANSI method for calculating abovegrade finished living areas. Consequently, twostory family rooms, open foyers, and ceiling areas under five feet could be included in the comparable gross living areas. The appraiser makes every reasonable attempt to determine if the comparable sales have areas that would not be considered abovegrade finished living areas per ANSI® Z765. *NOTE: The GLA calculated for the subject property and utilized in this report varies from the GLA reported by the tax assessor, which was not calculated using ANSI® Z765. The GLA of the subject property as measured by the appraiser using ANSI® Z765 standards is 2,495 sq. ft. Page 16 of 46
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ADDITIONAL COMMENTS File No. Property Address City County State Zip Code Page 8 Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Lender/Client Credit Union Trust Sales Comparable Photos: The photos of the closed sales comparables are actual photos taken by the appraiser at the time the comparable sale was inspected to verify multiple listing and county information. The exception is comparable sale #6, which is located on an island in the middle of Michigamme Lake. In this case, the MLS photo was utilized. Certification of Prior Services: Per USPAP requirements, the appraiser notified the client at the time of acceptance that the appraiser has not provided any appraisal, or other services, on the subject property within the past 36 months. Verification of Comparables: Per FNMA requirements, the details of each comparable sale used was verified by contacting the parties to the transaction. Michigan is a full disclosure state, and sales prices are public record. Functional Utility/ Bedroom Count: The functional utility, based on bedroom count, includes both above ground and basement bedrooms. Bedrooms located in finished basements are very common in the subject's market, and do not negatively affect functionality. No impact on market value can be derived from sales data on differences in functionality for above ground verses basement bedrooms. In addition, bedroom count differences between two and five bedrooms does not significantly impact value. Any impact appears to be factored into GLA adjustments. Methodology Used to Establish Square Foot Adjustments: In lightly populated areas, the pairedsales method has limited utility to the appraiser in determining the GLA adjustment. There are few truly comparable homes that allow for the extraction of one adjustment (garage spaces, GLA, outbuildings). As a result, the Gross Living Area adjustment must be derived as a percentage of the Gross Sales Price of the comparable sales. This methodology was presented by nationally recognized Certified Residential Appraiser Dave Towne, in an online article published August 4, 2016, and updated on September, 9th 2021. Using this method, the appraiser determines the percent of the total sales price that finished living area contributes to value. The remainder of a property's value is spread over the remaining 23 possible adjustments in the sales grid (quality, condition, site size, amenities, financing, etc).The percentage that total finished living area (GLA and finished basement area) contributes to total value typically falls within 25% to 50%. Lakefront properties have more amenities (land, view, outbuildings), so the percentage that total finished living area contributes is less than smaller intown residential lots. The appraiser selects a percentage, and then uses sensitivity analysis to determine if the percentage is too high or too low. In this appraisal, the total finished living area adjustment of $44.00 per square foot was established using the calculation below: Conclusion: Using this methodology, total finished living area contributes $44 per sq ft to the subject's value. Unfinished Basements: In the subject market, the unfinished portion of basements contribute $20 per foot. Homes with Finished Basements: In the subject's market area, homes with finished basements are marketed in the MLS as having combined living space with the main level(s) of the dwelling. There does not seem to be any adverse buyer reaction to finished basement style homes, especially when the finish in the basement is similar in quality to the main level. Therefore, for the purposes of this appraisal report, the main and the finished basement living spaces are combined to report the Total finished Living Area (TLA). This is an acceptable appraisal method in the subject's market area, and does not adversely affect the overall market value (OMV) as reported. In the subject market, the finished portion of basements contributes an additional $24 per foot. Page 17 of 46
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ADDITIONAL COMMENTS File No. Property Address City County State Zip Code Page 9 Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Lender/Client Credit Union Trust Landscaping: The quality assessment of the landscaping includes all fencing, water features and plantings. No separate adjustment for these amenities can be extracted from sales data from within the subject's market area. Fireplaces, Wood Stoves & Gas Stoves: The overall quality assessment of the subject includes all fireplaces, wood stoves and gas stoves. No separate adjustment for these amenities can be extracted from sales data from within the subject's market area. Exposure Time: Per USPAP definition: Exposure Time is the estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Comment: Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market. By analyzing past medium exposure time sales data for similar homes in the subject's market area the appraiser found the most probable exposure time for the subject to be 3060 days (see included 1004MC). Percent Land Use: The 40% Other land use in the neighborhood description, represents the undeveloped forest lands. The Central Upper Peninsula is lightly populated. These undeveloped forest lands comprise a significant portion of the land use in the subject's market area. Differing Markets: A number of the sales comparables used in this report are located in different townships within Marquette County. However, analysis of market data of all of the townships located within a twentyfive (25) mile radius of the subject property (Ishpeming, Negaunee, Powell, Republic and Forsyth) indicates that there are no substantive statistical difference between each township. This was accomplished by using paired sales analysis between communities to establish whether there was a need for location adjustments. This is most likely due to the fact that these communities are all within a one hour drive to Marquette, MI. Marquette is the economic hub for the region. The residents of these communities all drive to Marquette for big box store shopping, advanced medical care, auto sales and community services. Comparable Listings & Distances: The appraiser has considered relevant competitive listings/contract offerings in performing this appraisal, and any trend indicated by that data is supported by the listings/offering information included in this report. Due to the very light population of the subject's market area, the distances between comparable sales were increased significantly above more suburban markets in order to acquire the necessary comparable sales (25 mile radius to the subject property). Predominate Value: The median value in the subject's market area is $330,000. The appraiser's opinion of value for the subject property is $349,000. Considering the lot size and associated amenities, the appraiser does not believe it is an over improvement for the subject market. Two (2) of the comparable sales utilized in this appraisal sold above this median/predominate market value, and eleven (11) of the interior lakefront sales in the market area (see included 1004MC) sold above this median/predominate market value. Public Water and Sewer Utilities: Due to the rural location of the subject property, and distance to the nearest municipality, it is not feasible to connect the subject property to municipal water or sewer. A large percentage of the homes in the subject market are served by private water and septic. There is no impact on marketability. COMMENTS ON INCOME APPROACH The Income Approach to value is considered an inappropriate method of valuation for the subject property type. The subject property is a single family home and is not specifically purchased in the local market for income generating potential. Page 18 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 PHOTOGRAPH ADDENDUM FRONT VIEW OF SUBJECT PROPERTY REAR VIEW OF SUBJECT PROPERTY STREET SCENE OF SUBJECT PROPERTY Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 19 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 PHOTOGRAPH ADDENDUM Additional Front View of Subject Additional Rear View of Subject View of Covered Front Entry View of Rear Entry View of East Side of Subject View of West Side of Subject Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 20 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 PHOTOGRAPH ADDENDUM View of Front Entry Main Level View of Living Room Main Level Additional View of Living Room Main Level View of Living Room Ceiling Main Level View of Fireplace in Living Room Main Level View of Dining Area Main Level Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 21 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 PHOTOGRAPH ADDENDUM View of Kitchen Main Level Additional View of Kitchen Main Level Additional View of Kitchen Main Level View of Half Guest Bath Main Level View of Bedroom #1 Main Level View of Bedroom #2 Main Level (currently used as home office) Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 22 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 PHOTOGRAPH ADDENDUM View of Full Bathroom / Utility Combo Main Level Additional View of Full Bathroom / Utility Combo Main Level View of Stairs to Second Level View of Stair Landing Second Level View of Bedroom #3 Second Level Additional View of Bedroom #4 Second Level Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 23 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 PHOTOGRAPH ADDENDUM View of Bedroom #5 Second Level View of Full Bathroom Second Level Additional View of Full Bathroom Second Level View of Stairs to Basement Level View of Partially Finished Basement Level View of Basement Storage Area Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 24 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 PHOTOGRAPH ADDENDUM View of Basement Level Walkout Entrance Additional View of Basement Level Walkout Entrance View of Kitchen Slider Onto Screen Porch Main Level View of Screen Porch Main Level View of Rear Deck Additional View of Rear Deck Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 25 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 PHOTOGRAPH ADDENDUM View of Dead River Basin From Rear Deck View of Subject Property's Lakefront Additional View of Subject Property's Lakefront View of Sauna Shed View of Interior of Sauna Additional View of Interior of Sauna Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 26 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 PHOTOGRAPH ADDENDUM View of Detached Three Car Garage View of Interior of Detached Three Car Garage Additional View of Interior of Detached Three Car Garage View of Older Detached Single Car Garage (fully depreciated) View of Interior of Older Detached Single Car Garage View of Nardi Drive That Bisects Subject Property Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 27 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 PHOTOGRAPH ADDENDUM View of Remaining Forested Portion of Subject Parcel Thick Foliage and Immature Timber Additional View of Remaining Forested Portion of Subject Parcel Thick Foliage and Immature Timber Smoke Detectors Installed View of Forced Air Heating System View of Hot Water Tank status unknown due to lack of winterization and shut off electricity at time of inspection View of Water Purification System status unknown due to lack of winterization and shut off electricity at time of inspection Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 28 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 PHOTOGRAPH ADDENDUM View of OnSite Private Well View of Propane Gas Storage Tank View of Central Air Conditioning Units View of Backup Electrical Power Generator Subject not winterized. Plumbing and electricity not operational at time of inspection View of Scuttle Attic Space Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 29 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 AERIAL VIEW Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 30 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 SKETCH ADDENDUM Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 31 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 SITE PLAN Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 32 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 ZONING MAP Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 33 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 FLOOD MAP Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 34 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 COMPARABLE SALES PHOTOGRAPH ADDENDUM COMPARABLE #1 3119 Co Rd GGT Ishpeming, MI 49849 Price 379,000 Price/SF 338.39 Date s08/23;c07/23 Age 20 Room Count 521.0 Living Area 1,120 Value Indication 354,554 COMPARABLE #2 112 Brown Rd Michigamme, MI 49861 Price 324,900 Price/SF 207.74 Date s08/23;c06/23 Age 73 Room Count 732.0 Living Area 1,564 Value Indication 369,923 COMPARABLE #3 188 Road 10 Ishpeming, MI 49849 Price 400,000 Price/SF 217.86 Date s09/23;c09/23 Age 95 Room Count 521.1 Living Area 1,836 Value Indication 386,999 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 35 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 COMPARABLE SALES PHOTOGRAPH ADDENDUM COMPARABLE #4 213 E Johnson Lake Rd Gwinn, MI 49841 Price 310,000 Price/SF 103.20 Date s09/23;c07/23 Age 83 Room Count 1042.1 Living Area 3,004 Value Indication 317,229 COMPARABLE #5 337 S Mesnard St Michigamme, MI 49861 Price 271,000 Price/SF 143.54 Date s03/24;c02/24 Age 64 Room Count 621.0 Living Area 1,888 Value Indication 314,119 COMPARABLE #6 TBD Ramsay Island Michigamme, MI 49861 Price 290,000 Price/SF 76.80 Date s07/23;c06/23 Age 31 Room Count 732.0 Living Area 3,776 Value Indication 324,911 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 36 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 COMPARABLE SALES LOCATION MAP Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 37 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 DEED - PAGE 1 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 38 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 DEED - PAGE 2 Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 39 of 46
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File No. Property Address City County State Zip Code Client Joy A. Holman Trust 24175 12 MONTH MARKET CONDITIONS TREND LINE Clearwater Appraisal Service, LLC Borrower/Owner N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust Page 40 of 46
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M A R K E T R E S E A R C H & A N A L Y S I S C O N D O / C O - O P P R O J E C T S A P P R A I S E R Market Conditions Addendum to the Appraisal Report File No. The purpose of this addendum is to provide the lender/client with a clear and accurate understanding of the market trends and conditions prevalent in the subject neighborhood. This is a required addendum for all appraisal reports with an effective date on or after April 1, 2009. Property Address City ZIP Code State Instructions: The appraiser must use the information required on this form as the basis for his/her conclusions, and must provide support for those conclusions, regarding housing trends and overall market conditions as reported in the Neighborhood section of the appraisal report form. The appraiser must fill in all the information to the extent it is available and reliable and must provide analysis as indicated below. If any required data is unavailable or is considered unreliable, the appraiser must provide an explanation. It is recognized that not all data sources will be able to provide data for the shaded areas below; if it is available, however, the appraiser must include the data in the analysis. If data sources provide the required information as an average instead of the median, the appraiser should report the available figure and identify it as an average. Sales and listings must be properties that compete with the subject property, determined by applying the criteria that would be used by a prospective buyer of the subject property. The appraiser must explain any anomalies in the data, such as seasonal markets, new construction, foreclosures, etc. Inventory Analysis Current 3- Months Prior 4-6 Months Prior 7-12 Months Overall Trend Total # of Comparable Sales (Settled) Increasing Stable Declining Absorption Rate (Total Sales/Months) Increasing Stable Declining Total # of Comparable Active Listings Declining Stable Increasing Months of Housing Supply (Total Listings/Ab.Rate) Declining Stable Increasing Current - 3 Months Prior 4-6 Months Prior 7-12 Months Overall Trend Median Sale & List Price, DOM, Sale/List % Median Comparable Sale Price Increasing Stable Declining Median Comparable Sales Days on Market Declining Stable Increasing Median Comparable List Price Increasing Stable Declining Median Comparable Listings Days on Market Declining Stable Increasing Median Sale Price as % of List Price Declining Stable Increasing Seller-(developer, builder, etc.) paid financial assistance prevalent? Declining Stable Increasing Yes No Explain in detail the seller concessions trends for the past 12 months (e.g., seller contributions increased from 3% to 5%, increasing use of buydowns, closing costs, condo fees, options, etc.). Are foreclosure sales (REO sales) a factor in the market? Yes No If yes, explain (including the trends in listings and sales of foreclosed properties). Cite data sources for above information. Summarize the above information as support for your conclusions in the Neighborhood section of the appraisal report form. If you used any additional information, such as an analysis of pending sales and/or expired and withdrawn listings, to formulate your conclusions, provide both an explanation and support for your conclusions. If the subject is a unit in a condominium or cooperative project, complete the following: Project Name: Subject Project Data Current - 3 Months Prior 4-6 Months Prior 7-12 Months Overall Trend Total # of Comparable Sales (Settled) Increasing Stable Declining Absorption Rate (Total Sales/Months) Increasing Stable Declining Total # of Active Comparable Listings Declining Stable Increasing Months of Unit Supply (Total Listings/Ab. Rate) Declining Stable Increasing Are foreclosure sales (REO sales) a factor in the project? Yes No If yes, indicate the number of REO listings and explain the trends in listings and sales of foreclosed properties. Summarize the above trends and address the impact on the subject unit and project. Signature Signature Appraiser Name Appraiser Name Company Name Company Name Company Address Company Address State License/Certification # State State License/Certification # State Email Address Email Address Fannie Mae Form 1004MC March 2009 Page 1 of 1 Freddie Mac Form 71 March 2009 Joy A. Holman Trust 24175 1204078447 clearwaterappraisalservice@gmail.com Clearwater Appraisal Service, LLC 101 Nardi Dr Negaunee MI 49866 N/A 14 2 6 2.33 0.67 2.00 3 3 4 1.29 4.48 2.00 325,000 271,500 355,000 33 65 13 365,000 299,900 269,900 82 57 39 100% 99% 99% Seller concessions were offered for only one (1) of the closed sales utilized in this appraisal. This percentage is typical for the value range of the subject property in the rural Marquette County market, and has not changed over the past 24 month time period. When offered, the median percentage offered remains stable at 1.0% of the final sales price. REO sales do not make up a significant percentage of the properties offered in the subject value range. Less than 2% of all sales activity in the subject's value range are REO transactions. This percentage has remained constant for the prior twelve month time period. MLS ID = 404, State = Michigan, MLS Board = UPMLS Upper Peninsula MLS, Paragon There were a total of 22 Comparable Settled Sales in the past 12 months. The Median Sales Price for the prior 712 months was $325,000 and for the current to prior 3 months is $355,000. The Months Supply for the prior 712 months was 1.29 and 2 for the current to prior 3 month period. The Median Days on Market for the prior 712 months was 32.5 and 13 for the current to prior 3 month period. The statistics above were generated from an exported MLS market search. Details regarding the calculations and process can be found online at https://support.sfrep.com/knowledgebase/?id=1056 Steven M. Wilson VA #5000960 Clearwater Appraisal Service, LLC PO Box 215, Michigamme, MI 49861 MI Borrower/Owner Page 41 of 46
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APPRAISAL AND REPORT IDENTIFICATION ADDITIONAL CERTIFICATIONS PRIOR SERVICES PROPERTY INSPECTION APPRAISAL ASSISTANCE ADDITIONAL COMMENTS MARKETING TIME AND EXPOSURE TIME FOR THE SUBJECT PROPERTY APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED) File No. USPAP Compliance Addendum Borrower/Client Property Address City County State Zip Code Lender/Client This Appraisal Report is one of the following types: Appraisal Report This report was prepared in accordance with the requirements of the Appraisal Report option of USPAP Standards Rule 2-2(a). Restricted Appraisal Report This report was prepared in accordance with the requirements of the Restricted Appraisal Report option of USPAP Standards Rule 2-2(b). The intended user of this report is limited to the identified client. This is a Restricted Appraisal Report and the rationale for how the appraiser arrived at the opinions and conclusions set forth in the report may not be understood properly without the additional information in the appraiser's workfile. I certify that, to the best of my knowledge and belief: · The statements of fact contained in this report are true and correct. The report analyses, opinions, and conclusions are limited only by the reported assumptions and are my personal, impartial, and unbiased professional analyses, · opinions, and conclusions. · I have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or specified) personal interest with respect to the parties involved. · I have no bias with respect to the property that is the subject of this report or the parties involved with this assignment. My engagement in this assignment was not contingent upon developing or reporting predetermined results. · · My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. · My analyses, opinions, and conclusions were developed and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. · This appraisal report was prepared in accordance with the requirements of Title XI of FIRREA and any implementing regulations. I have NOT performed services, as an appraiser or in any other capacity, regarding the property that is the subject of the report within the three-year period immediately preceding acceptance of this assignment. I HAVE performed services, as an appraiser or in another capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Those services are described in the comments below. I have NOT made a personal inspection of the property that is the subject of this report. I HAVE made a personal inspection of the property that is the subject of this report. Unless otherwise noted, no one provided significant real property appraisal assistance to the person signing this certification. If anyone did provide significant assistance, they are hereby identified along with a summary of the extent of the assistance provided in the report. Additional USPAP related issues requiring disclosure and/or any state mandated requirements: A reasonable marketing time for the subject property is day(s) utilizing market conditions pertinent to the appraisal assignment. A reasonable exposure time for the subject property is day(s). Signature Signature Name Name Date of Signature Date of Signature State Certification # State Certification # or State License # or State License # State State Expiration Date of Certification or License Expiration Date of Certification or License Supervisory Appraiser Inspection of Subject Property: Effective Date of Appraisal Did Not Exterior-only from Street Interior and Exterior USPAP Compliance Addendum 2014 Page 1 of 1 Joy A. Holman Trust 24175 06/20/2024 Clearwater Appraisal Service, LLC N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust 60 60 Steven M. Wilson VA #5000960 06/24/2024 1204078447 MI 07/31/2025 Page 42 of 46
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Fannie Mae - Definition of Terms File No. Case No. Borrower Property Address City County State Zip Code Lender/Client Address Requirements - Condition and Quality Ratings Usage Appraisers must utilize the following standardized conditions and quality ratings within the appraisal report. Condition Ratings and Definitions - 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 C1 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 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 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 finished 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 use. 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 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 of exceptionally 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 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 Three-quarter baths are counted as a full bath in all cases. Quarter baths (baths that feature only a toilet) are not included in the bathroom count. The number of full and half baths is reported by separating the two values using a period, where the full bath count is represented to the left of the period and the half bath count is represented to the right of the period. Example: 3.2 indicates three full baths and two half baths. UAD Definitions 9/2011 (Updated 1/2014) Page 1 of 3 24175 Joy A. Holman Trust Clearwater Appraisal Service, LLC N/A 101 Nardi Dr Negaunee Marquette MI 49866 Credit Union Trust 2712 Niles Avenue, St. Joseph, MI 49085 Page 43 of 46
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File No. Requirements - Abbreviations Used in Data Standardization Text Case No. Abbreviation Full Name Appropriate Fields A Adverse Location & View ac Acres Area, Site AdjPrk Adjacent to Park Location AdjPwr Adjacent to Power Lines Location ArmLth Arms Length Sale Sale or Financing Concessions AT Attached Structure Design (Style) B Beneficial Location & View ba Bathroom(s) Basement & Finished Rooms Below Grade br Bedroom Basement & Finished Rooms Below Grade BsyRd Busy Road Location c Contracted Date Date of Sale/Time Cash Cash Sale or Financing Concessions Comm Commercial Influence Location Conv Conventional Sale or Financing Concessions cp Carport Garage/Carport CrtOrd Court Ordered Sale Sale or Financing Concession CtySky City View Skyline View View CtyStr City Street View View cv Covered Garage/Carport DOM Days On Market Data Sources DT Detached Structure Design (style) dw Driveway Garage/Carport e Expiration Date Date of Sale/Time Estate Estate Sale Sale or Financing Concessions FHA Federal Housing Administration Sale or Financing Concessions G Garage Garage/Carport ga Attached Garage Garage/Carport gbi Built-in Garage Garage/Carport gd Detached Garage Garage/Carport GlfCse Golf Course Location Glfvw Golf Course View View GR Garden Design (Style) HR High Rise Design (Style) in Interior Only Stairs Basement & Finished Rooms Below Grade Ind Industrial Location & View Listing Listing Sale or Financing Concessions Lndfl Landfill Location LtdSght Limited Sight View MR Mid Rise Design (Style) Mtn Mountain View View N Neutral Location & View NonArm Non-Arms Length Sale Sale or Financing Concessions o Other Basement & Finished Rooms Below Grade O Other Design (Style) op Open Garage/Carport Prk Park View View Pstrl Pastoral View View PubTm Public Transportation Location PwrLn Power Lines View Relo Relocation Sale Sale or Financing Concessions REO REO Sale Sale or Financing Concessions Res Residential Location & View RH USDA - Rural Housing Sale or Financing Concessions rr Recreational (Rec) Room Basement & Finished Rooms Below Grade s Settlement Date Date of Sale/Time sf Square Feet Area, Site, Basement Short Short Sale Sale or Financing Concessions Unk Unknown Date of Sale/Time VA Veterans Administration Sale or Financing Concessions w Withdraw Date Date of Sale/Time wo Walk Out Basement Basement & Finished Rooms Below Grade Woods Woods View View Wtr Water View View WtrFr Water Frontage Location wu Walk Up Basement Basement & Finished Rooms Below Grade UAD Definitions 9/2011 (Updated 1/2014) Page 2 of 3 24175 Joy A. Holman Trust Clearwater Appraisal Service, LLC Page 44 of 46
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File No. Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Page 45 of 46
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File No. Joy A. Holman Trust 24175 Clearwater Appraisal Service, LLC Page 46 of 46