VALUATION ANALYSIS PROPERTY. Single Family Residence 12 Palomino Way Anytown, Massachusetts DATE OF VALUATION. January 1, 2008 PREPARED FOR

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1 VALUATION ANALYSIS PROPERTY Single Family Residence 12 Palomino Way Anytown, Massachusetts DATE OF VALUATION January 1, 2008 PREPARED FOR Board of Assessors Town of Anytown One Main Street Anytown, MA PREPARED BY John H. Neas Assessor Town of Anytown

2 October 30, 2010 Board of Assessors Town of Anytown One Main Street Anytown, MA Re: Single Family Residence, 12 Palomino Way, Anytown, Massachusetts Dear Board of Assessors: In accordance with our agreement, I am pleased to transmit this valuation analysis detailing an estimate of the market value of the fee simple interest in the above referenced property. The property that is the subject of this report consists of a 2.05 acre site improved with a single family home at 12 Palomino Way, Anytown, Massachusetts. As a result of this analysis, an opinion has been developed that the market value of the subject property as of January 1, 2008 is $1,525,000. Respectfully submitted, John H. Neas, MAA, RMA Assessor - Town of Anytown

3 TABLE OF CONTENTS Page Summary of Important Facts and Conclusions... 1 Subject Property Photographs. 2 Purpose of the Appraisal... 5 Property Rights Appraised... 5 Date of Valuation... 5 Date of the Report... 5 Intended Use/Users of The Appraisal... 5 Scope of the Appraisal Identification and Description of Subject Property... 5 Subject Property Deed 7 The Stunning Heights Subdivision Plan.. 8 Subject Site Plan. 9 House Plans 10 Subject Property Record Card 16 Taxes and Assessment Fiscal Year 2009 Real Estate Tax Bill. 19 Property Tax Transaction History 20 Zoning Highest and Best Use Sales Comparison Approach 22 Warren Group Statistics 41 Qualifications of Assessor 42

4 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS ADDRESS: 12 Palomino Way Anytown, Massachusetts OWNER OF RECORD: Ann Marie and George Homeowner DATE OF VALUE ESTIMATE: January 1, 2008 INTEREST APPRAISED: Fee Simple LAND AREA: 2.05 acres IMPROVEMENTS: Single family residence ZONING: Residential District HIGHEST AND BEST USE: Continued use as single family ESTIMATE OF VALUE: $1,525,000 APPRAISED BY: John H. Neas, MAA, RMA Assessor Town of Anytown 1

5 SUBJECT PROPERTY PHOTOGRAPHS 12 Palomino Way Anytown, Massachusetts Front View Rear View 2

6 SUBJECT PROPERTY PHOTOGRAPHS 12 Palomino Way Anytown, Massachusetts Sample Interior Photographs Including Kitchen Bedrom 3

7 SUBJECT PROPERTY PHOTOGRAPHS 12 Palomino Way Anytown, Massachusetts Bath Finished Basement Area 4

8 VALUATION ANALYSIS PURPOSE OF THE APPRAISAL: The purpose of this appraisal is to estimate the market value of the fee simple interest in the subject property as of January 1, PROPERTY RIGHTS APPRAISED: Fee Simple DATE OF VALUATION: January 1, 2008 DATE OF REPORT: October 30, 2010 INTENDED USE OF THE APPRAISAL: This appraisal is intended to assist the Board of Assessors of the Town of Anytown in determining the market value of the subject property for proceedings before the Appellate Tax Board. INTENDED USER(S) OF THE APPRAISAL: The Board of Assessors of the Town of Anytown and those authorized by them. SCOPE OF APPRAISAL: In making the estimate of value, the property was inspected on August 15, 2009 with George Homeowner to properly understand its physical characteristics. A review has been made of deeds, plans and other pertinent documents to understand the legal characteristics of the property. Data has then been gathered pertinent to the valuation of the property. The approaches to value employ many sources including municipal and county records, sales recording services, cost services and interviews with professionals active in the real estate field. IDENTIFICATION AND DESCRIPTION OF SUBJECT PROPERTY The real property that is the subject of this report consists of a parcel of residential land improved with a single family house at 12 Palomino Way in Anytown, Anytown County, Massachusetts. Palomino Way is part of the Stunning Heights Subdivision that is under development with 39 lots on Coronation Drive, Hiawatha Pond Road, Palomino Way and Willy Farm Lane. The area is located in the northeast section of town between Sundance Road and the Anytown town line to the north and west, Baron Street to the east and Mount Vernon Street to the south and is a residential neighborhood with singlefamily homes and vacant land. The center of town is approximately two miles to the southwest and the neighborhood is convenient to local services and to Route 000. The Town of Anytown identifies the subject property with Parcel Identification Number Superior Custom Homes Incorporated sold the subject property to Ann Marie and George Homeowner as new construction for $1,705,000 on December 28, 2004 as recorded at the Anytown District Registry of Deeds in Book 19353, Page 3. This was for the land and improvements known and numbered 12 Palomino Way and shown as Lot 3 on a Definitive Plan Submission for The Stunning Heights Subdivision, dated October 23, 2000 and prepared by New Horizon Engineers. The plan is recorded as Plan Number 000 of 2000 in Plan Book

9 Site Description: The site is located on the cul-de-sac of Palomino Way; contains 2.05 acres of land area; is irregular in shape; is attractively landscaped; has a level and sloping topography; and is wooded to the rear. Town water, electricity and telephone are available to the site. There is a private septic system. The land area is located in Zone C or an area of minimal flooding as indicated on Map C, dated August 17, 2000 for the Town of Anytown. Improvements Description: The subject property is a custom cape style home that was constructed in The property is wood frame construction with a poured concrete foundation, wood clapboard and stone exterior, fiberglass shingle roof, aluminum gutters and downspouts and vinyl double-hung windows with insulated glass and screens. The exterior features include covered entry areas; patio; wood deck; stone walls; paved driveway; and exterior spotlights. The interior finish includes plaster walls; crown moldings; recessed lights; flooring that is a combination of ceramic tile, marble tile, hardwood and carpet; two stairways to the second floor; window seats; security alarm; gas-fired, hot water heating system; central air; and central vacuum. The house has 10 rooms, 5 bedrooms and baths. The first floor has a two story entry foyer; living room with brick fireplace with raised brick hearth and wood mantle; kitchen with center island, granite counters, ceramic tile backsplash and built-in desk; breakfast nook with two skylights; butler s pantry; dining room with wainscot and tray ceiling; library; step-down family room with wood ceiling, paddle fan and stone fireplace with stone hearth; two ½ baths with pedestal sinks; and mud room. There is a three car attached garage with three electric door openers. The second floor has five bedrooms; four bathrooms; and the laundry. The master bedroom has a paddle fan, two walk-in closets and a sitting area. The master bath has two vanity sinks, a shower and a Jacuzzi tub. Two of the bathrooms have a single vanity sink and one of the bathrooms has a double vanity sink. The finished living area on the first and second floor is 4,850± square feet. This figure is from a discussion with the builder, a review of the dimensions from the architectural floor plans and a field measurement of the subject property by the Assessor. There is a full basement. A portion of the basement or approximately 1,000 square feet of area is finished with a plaster ceiling, painted and stucco finish walls and wood flooring. 6

10 Deed 7

11 Stunning Heights Subdivision Plan 8

12 Subject Site Plan 9

13 Six Pages of House Plans 10

14 House Plans 11

15 House Plans 12

16 House Plans 13

17 House plans 14

18 House plans 15

19 Two Pages - PRC 16

20 PRC 17

21 TAXES AND ASSESSMENT The property at 12 Palomino Way is listed as Class 101 or a single-family residence and was assessed in the name of Ann Marie and George Homeowner in the following manner: Property Assessors Land Assessed Current Address Reference Area Value Taxes 12 Palomino Way acres Land - 355,000 Building - 1,2093,900 1,558,900 $00, The tax rate for Fiscal Year 2009 was $00.00 per $1,000 of valuation for all classes of property in the Town of Anytown. The tax of $00, does not include the Community Preservation Assessment of $ The Board of Assessors granted an abatement on the subject property on March 23, 2009 that reduced the assessed value from $1,558,900 to $1,505,

22 Tax Bill 19

23 Tax History 20

24 ZONING The purpose of the Zoning Bylaw for the Town of Anytown is to lessen congestion in the streets; to conserve health; to secure safety from fire, flood, panic or other dangers; to provide adequate light and air; to prevent the overcrowding of land; to avoid undue concentration of population; to facilitate the adequate provision of transportation, water, water supply, drainage, sewerage, schools, parks, open space and other public requirements; to conserve the value of land and buildings, including the conservation of natural resources and the prevention of blight and pollution of the environment; to encourage the most appropriate use of land throughout the town, including consideration of the recommendations of the master plan, if any, adopted by the planning board and the comprehensive plan, if any, of the regional planning agency; and to preserve and increase amenities by the promulgation of regulations to fulfill said objectives. ZONING DISTRICT: Residential District PERMITTED USES: Agricultural Uses that include agricultural, greenhouse or nursery; roadside stand selling produce the majority of which is raised on the premises; poultry or stock raising; and noncommercial riding stable Commercial Uses that include child care facility Miscellaneous Uses that include off-street parking of vehicles Public and Semi-Public Uses that include public educational and religious Residential Uses that include single family dwelling; home occupation; the use of a portion of a dwelling or a building accessory thereto by a resident builder, carpenter, painter, plumber or other artisan, or by a resident tree surgeon or landscape gardener; renting of rooms to not more than 4 persons; and family home daycare Some other uses are allowed by Special Permit. DIMENSIONAL REQUIREMENTS: The dimensional regulations are as follows: 21 Residential District Minimum Lot Size 43,560 square feet Minimum Frontage 200 feet Required Circle 200 feet Minimum Yard Setbacks 50 feet to front, side and rear Maximum Lot Coverage 30% Maximum Building Height 2½ stories and 35 feet The subject property conforms to the current zoning requirements. HIGHEST AND BEST USE The highest and best use of the subject property is for the continued use as a single family home.

25 SALES COMPARISON APPROACH The Sales Comparison Approach is a comparative analysis of recently sold properties to the subject property. All comparables are adjusted to the subject property. An indication of value is developed from each comparable and a final estimate of value for the subject is made. This approach starts with research pertaining to relevant property sales and current offerings throughout the competitive area. The data collected has been analyzed to select those properties deemed most similar. Comparison is accomplished by a common unit or the price per square foot of building area. Adjustments are made to the comparable properties to account for differences between them and the subject. As a result of this selection and adjustment process, a range of indicated values of the subject property has been developed from the comparable data. This range of values is considered to set the parameters of value for the subject property. The following sales that are the highest price sales in Anytown from January 1, 2006 to December 31, 2009 were initially considered: Property Address Style Land Area Living Area Sale Price Date of Sale 5 Swift River Road Colonial acres 3,800 square feet $1,255,000 February Willy Farm Lane Colonial 1.35 acres 6,200 square feet $1,905,000 February Jade Street Colonial 43,705 square feet 3,715 square feet $1,050,000 August Palomino Way Colonial 1.65 acres 6,000 square feet $1,650,000 January October Way Colonial 2.34 acres 3,700 square feet $975,000 May Jade Street Colonial 42,029 square feet 3,700 square feet $935,500 July Jade Street Colonial 42,029 square feet 3,700 square feet $928,000 May Willy Farm Lane Colonial 1.54 acres 5,750 square feet $1,590,000 June Joshua Lane Cape 42,795 square feet 3,200 square feet $955,000 November Willy Farm Lane Colonial 1.54 acres 5,750 square feet $1,450,000 October Palomino Way Colonial 1.21 acres 4,800 square feet $1,325,000 October Since the date of value for the subject property is January 1, 2008 the following five sales from 2006, 2007 and 2008 were selected for further analysis and the MLS data sheet, the deed and the property record card for each of these sales follow: 22

26 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 23

27 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 24

28 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 25

29 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 26

30 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 27

31 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 28

32 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 29

33 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 30

34 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 31

35 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 32

36 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 33

37 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 34

38 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 35

39 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 36

40 MLS Data Sheet on Each of Five Sales Deed on Each of Five Sales PRC on Each of Five Sales 37

41 Sales Data Analysis The comparable sales presented are the most relevant recent sales in the market. The sales have been confirmed with a party to the transaction, to insure that the data presented is accurate and to understand their motivation in selling or purchasing a property. Sales were selected on the basis of similarity with the subject. While none of the properties are exactly like the subject, through market analysis and adjustments, each will be considered and adjusted to the subject. The following adjustments have been made to the comparable sales and are based on market observations of the factors that influence value: Interest Appraised: The subject property and all of the house sales represent the fee simple rights of ownership. No adjustment is required. Appreciation: The indicators published in the Federal Reserve Bank Repeat Home Sales Index suggest that most of the appreciation that has taken place in the market occurred from the late 1990 s to Since that time there has been some decline in the market. The attached statistics from the Warren Group show an approximate loss in value in the median sale price of a single family home in Anytown during calendar year 2006 of approximately 8% and during calendar year 2007 of approximately 4% and then an increase in value during calendar year 2008 of approximately 5%. An adjustment has been made to all of the sales for their date of sale as compared to the value of the subject property on January 1, 2008 based on these statistics. Location: The subject property is located on Palomino Way. Three of the sales are located in the same subdivision. Two of the sales are located in other sections of town and were adjusted for the location difference. Lot Size Adjustment: No adjustment has been made to any of the sales for the land area difference. View: A view amenity can increase the value of a house. For example, houses with lake views, or hillside/panoramic views command higher prices than houses without such features. No adjustment has been made in this category. House Design/Quality of Construction/Age: The subject property is a custom cape style home that was built in 2004 of good quality construction. The sales are all colonial style homes of similar age and quality. Adjustment for Condition: No adjustment has been made to any of the sales for a condition difference. Condition reflects both the interior and exterior condition of a property. Rooms/Bedrooms/Baths: Three of the sales were adjusted for the bathroom difference. 38

42 Adjustment for House Size: The size of a house can impact value, as typically smaller houses sell for more per square foot than larger ones and conversely, larger houses sell for less per square foot than smaller ones. An adjustment was made to all of the sales for the size difference at $100 per square foot based on market comparisons. Basement/Heating/Cooling: An adjustment was made to all of the sales for the finished basement area in the subject property. No adjustment was made for the heating or cooling systems. Garage: The subject property and all five of the sales have a three car attached garage. Porch/Patio/Deck: No adjustment was made for these items. Fireplace: The subject property has two fireplaces. An adjustment was made to two of the sales for a fireplace difference. Summary - After adjustments, the comparable sales display a range of value from $1,350,000 (rounded) to $1,600,000 (rounded) from which to provide an indication of value for the subject property. The market data presented is for comparable sales that are considered to be the best examples from the current market that are similar to the subject property. Based on the analysis of these five primary comparable sales, supported by the market evidence and the secondary comparable sales that were analyzed, and with the greater emphasis on the three sales that are located in the Stunning Heights Subdivision along with the subject property and that had an adjusted range of value from $1,500,000 (rounded) to $1,600,000 (rounded), a market value of $1,525,000 as of January 1, 2008 has been selected from within the range generated by the comparables. The following sales grid summarizes the various adjustments applied to the comparable sales: 39

43 Insert DSC Grid - Landscape 40

44 Warren Group Statistics 41

45 Qualifications 42