APPRAISAL OF REAL PROPERTY

Transcription

1 APPRAISAL OF REAL PROPERTY LOCATED AT Lakeview, AR FOR 281 River Road Lakeview, AR AS OF 09/13/2018 BY Brook Mahan Mahan Real Estate Appraisal, Inc. 320 South College Street Mountain Home, AR (870) Form GA1NV - "TOTAL" appraisal software by a la mode, inc ALAMODE

2 Client Property Address City Appraiser Lakeview Brook Mahan File No. County Baxter Zip Code TABLE OF CONTENTS Cover Page... 1 GP Residential... 2 General Text Addendum... 5 Statement of Limiting Conditions... 6 Certifications & Limiting Conditions - Residential... 8 USPAP Identification Addendum Subject Photos Comparable Photos Building Sketch Location Map Flood Map Qualifications of the Appraiser QUALIFICATIONS OF THE APPRAISER Form TOCNP - "TOTAL" appraisal software by a la mode, inc ALAMODE

3 Mahan Real Estate Appraisal (870) MARKET AREA DESCRIPTION ASSIGNMENT SUBJECT RESIDENTIAL APPRAISAL REPORT Property Address: County: Baxter SITE DESCRIPTION Zip Code: Legal Description: Assessor's Parcel #: Tax Year: 2017 R.E. Taxes: 828 Special Assessments: 0 Borrower (if applicable): Manufactured Housing Current Owner of Record: Occupant: Owner Tenant Vacant Newland Trust Project Type: PUD Condominium Cooperative Other (describe) HOA: 0 per year per month Market Area Name: River Road Map Reference: Census Tract: The purpose of this appraisal is to develop an opinion of: Market Value (as defined), or other type of value (describe) This report reflects the following value (if not Current, see comments): Current (the Inspection Date is the Effective Date) Retrospective Prospective Approaches developed for this appraisal: Sales Comparison Approach Cost Approach Income Approach (See Reconciliation Comments and Scope of Work) Property Rights Appraised: Fee Simple Leasehold Leased Fee Other (describe) Intended Use: The intended use of this appraisal is for estate planning and possible marketing purposes for. Intended User(s) (by name or type): The intended user of this report is. Client: Address: 281 River Road, Lakeview, AR Appraiser: Brook Mahan Address: 320 South College Street, Mountain Home, AR Location: Urban Suburban Rural Predominant One-Unit Housing Change in Land Use Present Land Use Occupancy Built up: Over 75% 25-75% Under 25% PRICE AGE Not Likely One-Unit 89 % (000) (yrs) 2-4 Unit Growth rate: Rapid Stable Slow Owner 98 Likely * In Process * 1% Property values: Increasing Stable Declining Tenant 2 Low Multi-Unit % * To: Demand/supply: Shortage In Balance Over Supply Vacant (0-5%) Comm'l 500 High % Marketing time: Under 3 Mos. 3-6 Mos. Over 6 Mos. Vacant (>5%) % 150 Pred 35 See attached addenda. Market Area Boundaries, Description, and Market Conditions (including support for the above characteristics and trends): Dimensions: Irregular Shaped Zoning Classification: No Zoning be rebuilt if destroyed. Are CC&Rs applicable? Yes No Unknown Highest & Best Use as improved: Present use, or DESCRIPTION OF THE IMPROVEMENTS File No.: State: AR City: Lakeview Zoning Compliance: Legal Have the documents been reviewed? Other use (explain) Site Area: 41,818 sf Description: No Zoning; therefore the improvements could Legal nonconforming (grandfathered) Illegal No zoning / Yes No Ground Rent (if applicable) Use as appraised in this report: Single Family Residence Actual Use as of Effective Date: Single Family Residence Summary of Highest & Best Use: The subject is located in a platted subdivision and surrounded by other single family residences. Public Private Topography Basically Level Public Other Provider/Description Off-site Improvements Type Size Electricity NAEC Blacktop County Road Typical for Area Street Shape Gas Irregular Shape Curb/Gutter Drainage Water Midway-Lakeview Appears Adequate Sidewalk Sanitary Sewer View Septic System Residential Street Lights Storm Sewer Open Ditches Alley Other site elements: Inside Lot Corner Lot Cul de Sac Underground Utilities Other (describe) FEMA Spec'l Flood Hazard Area Yes No FEMA Flood Zone X500 FEMA Map # 05005C0125E FEMA Map Date 12/03/2010 Site Comments: The subject site is an irregular-shaped tract of land located fronting along River Road. The tract does not have frontage along White River but is close to the river. The tract is basically level and considered 100% useable. There are no noted adverse conditions noted or anticipated. Utilities General Description # of Units 1 Acc.Unit # of Stories 1 Type Det. Att. Design (Style) Ranch Existing Proposed Und.Cons. Actual Age (Yrs.) 7 Effective Age (Yrs.) Eff 7 years Interior Description Floors Ceramic Tile Walls Drywall Trim/Finish Wood Bath Floor Ceramic Tile Bath Wainscot Ceramic Tile Doors Wood Exterior Description Foundation PouredConcrete Exterior Walls Brick Roof Surface Asphalt Shingles Gutters & Dwnspts. Yes Window Type Vinyl Storm/Screens Screen Appliances Refrigerator Range/Oven Disposal Dishwasher Fan/Hood Microwave Washer/Dryer Finished area above grade contains: 6 Rooms Additional features: See attached addenda. Foundation Slab Crawl Space Basement Sump Pump Dampness Settlement Infestation Attic Amenities Stairs Fireplace(s) # 0 Drop Stair Patio 180sf Scuttle Deck Doorway Porch 210sf Floor Fence Heated Pool Finished 2 Bedrooms Yes No Apparen Apparen Basement Area Sq. Ft. % Finished Ceiling Walls Floor Outside Entry Heating Type Fuel Other Cooling Central Other Yes Mini Splits Electric Radiant Yes Yes Car Storage Woodstove(s) # 1 Garage # of cars ( 2 Tot.) Attach. 2 Car Garage Detach. Blt.-In Carport Driveway Surface Gravel 2 Bath(s) 1,279 Square Feet of Gross Living Area Above Grade Describe the condition of the property (including physical, functional and external obsolescence): The actual age of the house is seven years. The house appears to have had above average care. An effective age of seven years should be considered accurate. Copyright 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited. Form GPRES2 - "TOTAL" appraisal software by a la mode, inc ALAMODE 3/2007

4 SALES COMPARISON APPROACH TRANSFER HISTORY RESIDENTIAL APPRAISAL REPORT File No.: My research did did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. Data Source(s): County Records 1st Prior Subject Sale/Transfer Analysis of sale/transfer history and/or any current agreement of sale/listing: The present owners of the subject Date: property have owned the subject for more than 40 years. The exact date of acquiring the property was Price: not readily accessible. Source(s): 2nd Prior Subject Sale/Transfer Date: Price: Source(s): The Sales Comparison Approach was not developed for this appraisal. SALES COMPARISON APPROACH TO VALUE (if developed) FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Address 230 County Road Cane Island Rd 750 Cane Island Rd Lakeview, AR Lakeview, AR Flippin, AR Flippin, AR Proximity to Subject 0.25 miles NE 1.63 miles E 2.05 miles E Sale Price 165, , ,900 Sale Price/GLA /sq.ft /sq.ft /sq.ft /sq.ft. Data Source(s) Appraiser MLS # MLS # MLS # Verification Source(s) Inspection County Records County Records County Records VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) Adjust. DESCRIPTION +(-) Adjust. DESCRIPTION +(-) Adjust. Sales or Financing Cash to Seller VA Conventional Conventional Concessions Date of Sale/Time 09/13/ /21/ /12/ /6/2017 Rights Appraised Fee Simple Fee Simple Fee Simple Fee Simple Location River Road River Road Cane Island Cane Island Site 41,818 sf 19,602 sf 22,216 sf 66,211 sf View Residential Residential Residential Residential Design (Style) Ranch Ranch Cabin Cabin Quality of Construction Average/Brick Average/Wood Avg/StoneCedar Avg/ConcreteFiber Age 7 years Eff 15 years +11,500 2 years -7,000 2 years -6,500 Condition Good Average Average Average Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count Gross Living Area 1,279 sq.ft. 1,644 sq.ft. -9,000 1,565 sq.ft. -7,000 1,553 sq.ft. -7,000 Basement & Finished Rooms Below Grade Functional Utility Typical Typical Typical Typical Heating/Cooling C-Ht&Ac Elec C-Ht&Ac Elec C-Ht&Ac Elec C-Ht&Ac Elec Energy Efficient Items PaddleFan/Radiant Paddle Fans Paddle Fans Paddle Fans Garage/Carport 2-Car Garage 3-Car Garage +20, ,000 Porch/Patio/Deck CovPrch/Patio CovPrch/WdDk CovPrch/Patio CovPrch/Patio Appliances Rt/Do/Fh Ro/Fh/Mwave Ro/Fh Ro/Fh Appliances Dishwasher -300 Dishwasher -300 Dishwasher -300 Fireplace Stove One +2,000 One Net Adjustment (Total) ,700 7,200 6,200 Adjusted Sale Price of Comparables 166, , ,100 Summary of Sales Comparison Approach In searching for comparables it was considered most important to find and use sales of houses located just off the White River with some influence from the river. An extensive market search was conducted with the three sales located above closely matching these criteria. All three sales are very similar to the subject with Sale 1 located in the subject neighborhood and Sales 2 and 3 located across the river. Sale 1 has more bathroom fixtures than the subject and the subject structure is smaller than all three comparables. The square footage adjustment is 25 per square foot. Additionally, the subject is effectively newer than Sale 1 and older than Sales 2 and 3. This adjustment was developed by removing the vacant land value from each comparable and then adjusting by 1% per year of age difference. Sale 1 has a three-car detached garage that is superior to the subject two-car garage. The subject garage is superior to most garages with ceramic tile floors being heated and cooled. Another special feature in the garage is the underground storm shelter that is accessible from the garage. Due to the superior features of the garage, a larger adjustment was made when comparing to a typical garage. Some consideration will be given to all three comparables. Indicated Value by Sales Comparison Approach 170,000 Copyright 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited. Form GPRES2 - "TOTAL" appraisal software by a la mode, inc ALAMODE 3/2007

5 RESIDENTIAL APPRAISAL REPORT File No.: The Cost Approach was not developed for this appraisal. Provide adequate information for replication of the following cost figures and calculations. Support for the opinion of site value (summary of comparable land sales or other methods for estimating site value): COST APPROACH COST APPROACH TO VALUE (if developed) ESTIMATED REPRODUCTION OR REPLACEMENT COST NEW Source of cost data: Quality rating from cost service: Effective date of cost data: Comments on Cost Approach (gross living area calculations, depreciation, etc.): OPINION OF SITE VALUE DWELLING Garage/Carport Total Estimate of Cost-New Less Physical Functional External Depreciation Depreciated Cost of Improvements ''As-is'' Value of Site Improvements INCOME APPROACH Estimated Remaining Economic Life (if required): Years INDICATED VALUE BY COST APPROACH The Income Approach was not developed for this appraisal. Estimated Monthly Market Rent X Gross Rent Multiplier = Summary of Income Approach (including support for market rent and GRM): PUD =( = = = = = ) INCOME APPROACH TO VALUE (if developed) PROJECT INFORMATION FOR PUDs (if applicable) Indicated Value by Income Approach The Subject is part of a Planned Unit Development. Legal Name of Project: Describe common elements and recreational facilities: Indicated Value by: Sales Comparison Approach 170,000 RECONCILIATION = = = = = = = = = Cost Approach (if developed) Income Approach (if developed) Final Reconciliation The Cost Approach was not developed for this appraisal since the subject is not a new house. Additionally, the Income Approach was not developed because houses of this type and location are not typically bought and sold based on their ability to generate rental income. Therefore, the only applicable approach to value was the Sales Comparison Approach. In conclusion the estimated market value of the subject as of September 13, 2018 was 170,000. This appraisal is made ''as is'', subject to completion per plans and specifications on the basis of a Hypothetical Condition that the improvements have been completed, subject to the following repairs or alterations on the basis of a Hypothetical Condition that the repairs or alterations have been completed, subject to the following required inspection based on the Extraordinary Assumption that the condition or deficiency does not require alteration or repair: This report is also subject to other Hypothetical Conditions and/or Extraordinary Assumptions as specified in the attached addenda. ATTACHMENTS Based on the degree of inspection of the subject property, as indicated below, defined Scope of Work, Statement of Assumptions and Limiting Conditions, and Appraiser s Certifications, my (our) Opinion of the Market Value (or other specified value type), as defined herein, of the real property that is the subject of this report is:, as of:, which is the effective date of this appraisal. 170,000 09/13/2018 If indicated above, this Opinion of Value is subject to Hypothetical Conditions and/or Extraordinary Assumptions included in this report. See attached addenda. A true and complete copy of this report contains 17 pages, including exhibits which are considered an integral part of the report. This appraisal report may not be properly understood without reference to the information contained in the complete report. Attached Exhibits: Scope of Work Limiting Cond./Certifications Narrative Addendum Photograph Addenda Sketch Addendum Map Addenda Additional Sales Cost Addendum Flood Addendum Manuf. House Addendum Hypothetical Conditions Extraordinary Assumptions Client Contact: Client Name: Address: 281 River Road, Lakeview, AR SIGNATURES APPRAISER SUPERVISORY APPRAISER (if required) or CO-APPRAISER (if applicable) Appraiser Name: Brook Mahan Company: Mahan Real Estate Appraisal, Inc. Phone: (870) Fax: brook.mahan@suddenlink.net Date of Report (Signature): 09/27/2018 License or Certification #: CR2643 State: AR Designation: SRA Expiration Date of License or Certification: 06/30/2019 Inspection of Subject: Interior & Exterior Exterior Only Date of Inspection: 09/13/2018 Supervisory or Co-Appraiser Name: Rick Mahan Company: Mahan Real Estate Appraisal, Inc. Phone: (870) Fax: Date of Report (Signature): 09/27/2018 License or Certification #: CG 0307 State: AR Designation: Expiration Date of License or Certification: 06/30/2019 Inspection of Subject: Interior & Exterior Exterior Only Date of Inspection: 09/13/2018 Copyright 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited. Form GPRES2 - "TOTAL" appraisal software by a la mode, inc ALAMODE 3/2007

6 Supplemental Addendum Client Property Address City Appraiser Lakeview Brook Mahan County Baxter File No. Zip Code GP Residential: Market Area Description - Boundaries, Description, Conditions The subject neighborhood is considered to be along River Road from its intersection with State Highway 178 to its end at Gaston's Resort. The land in the subject neighborhood is desirable for both single family residences as well as for commercial purposes. The neighborhood lays along the banks of White River. Many of the single family residences have frontage on both River Road and the river. River frontage property is very desirable in this area because the location is a short distance downstream from Bull Shoals Dam which greatly lessens the possibility of flooding. In addition, public water is accessible running along the blacktop county road. For those who enjoy lake activities, access to Bull Shoals Lake is only a couple of miles from the neighborhood. Electricity is served to the neighborhood from North Arkansas Electric Cooperative; telephone is served from CenturyTel; water is provided from Midway - Lakeview Water Association. The single family residences with river frontage are very desirable properties. The residences which are a short distance off the river are also desirable, though not as desirable as those with river frontage. Overall, the conditions are considered good with typical marketing time being six months or less. GP Residential: Description of the Improvements - Additional Features The subject is considered to be maintenance free with brick veneer and aluminum soffit, fascia and gutters. Along one side of the house is a covered concrete porch and the back of the house has an open concrete patio. The interior flooring is ceramic tile with drywall walls and ceilings. However, in the living room the ceiling is vaulted with wood covering. There are several paddle fans for added energy efficiency. Additionally, there is radiant floor heating throughout the house as well as the garage. According to the owners this is a liquid system that is heated by electricity and can be zoned off by closing valves at the main junction for the piping. The garage of the house is heated and cooled as well. There are built-in shelves as well as a cellar located under the garage that is accessible via a trap door. This cellar is used as a storm shelter. Form TADD - "TOTAL" appraisal software by a la mode, inc ALAMODE

7 The most probable price which a property should bring in a competitive and open market under all conditions DEFINITION OF MARKET VALUE: 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 considers his 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 judgement. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: conditions: The appraiser's certification that appears in the appraisal report is subject to the following 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. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report 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 the appraisal report whether 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. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, 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 normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. 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, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. 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 completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form Page 1 of 2 Mahan Real Estate Appraisal (870) Fannie Mae Form 1004B 6-93

8 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to 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 the estimate of market value in the appraisal report on the race, color, religion, sex, 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. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. 7. I performed this appraisal in conformity 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 as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of 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 the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: SUPERVISORY APPRAISER'S CERTIFICATION: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED:, Lakeview, AR APPRAISER: SUPERVISORY APPRAISER (only if required): Signature: Name: Brook Mahan Date Signed: 09/27/2018 State Certification #: CR2643 or State License #: State: AR Expiration Date of Certification or License: 06/30/2019 Signature: Name: Rick Mahan Date Signed: 09/27/2018 State Certification #: or State License #: CG 0307 State: AR Expiration Date of Certification or License: 06/30/2019 Did Freddie Mac Form Did Not Inspect Property Page 2 of 2 Form ACR - "TOTAL" appraisal software by a la mode, inc ALAMODE Fannie Mae Form 1004B 6-93

9 Client: Client File #: Subject Property:, Lakeview, AR Appraisal File #: STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is subject to the following assumptions and limiting conditions: This report is prepared using forms developed and copyrighted by the Appraisal Institute. However, the content, analyses, and opinions set forth in this report are the sole product of the appraiser. The Appraisal Institute is not liable for any of the content, analyses, or opinions set forth herein. No responsibility is assumed for matters legal in character or nature. No opinion is rendered as to title, which is assumed to be good and marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, having responsible ownership and competent management. I have examined the property described herein exclusively for the purposes of identification and description of the real property. The objective of our data collection is to develop an opinion of the highest and best use of the subject property and make meaningful comparisons in the valuation of the property. The appraiser's observations and reporting of the subject improvements are for the appraisal process and valuation purposes only and should not be considered as a warranty of any component of the property. This appraisal assumes (unless otherwise specifically stated) that the subject is structurally sound and all components are in working condition. I will not be required to give testimony or appear in court because of having made an appraisal of the property in question, unless specific arrangements to do so have been made in advance, or as otherwise required by law. I have noted in this appraisal report any significant adverse conditions (such as needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) discovered during the data collection process in performing the appraisal. Unless otherwise stated in this appraisal report, I have 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 have assumed that there are no such conditions and make no guarantees or warranties, express or implied. I 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 I am not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable public and/or private sources that I believe to be true and correct. I will not disclose the contents of this appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and/or applicable federal, state or local laws. The Client is the party or parties who engage an appraiser (by employment contract) in a specific assignment. A party receiving a copy of this report from the client does not, as a consequence, become a party to the appraiser-client relationship. Any person who receives a copy of this appraisal report as a consequence of disclosure requirements that apply to an appraiser's client, does not become an intended user of this report unless the client specifically identified them at the time of the assignment. The appraiser's written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. If this valuation conclusion is subject to satisfactory completion, repairs, or alterations, it is assumed that the improvements will be completed competently and without significant deviation. VALUE DEFINITION Market Value Definition (below) Alternate Value Definition (attached) MARKET VALUE is defined as 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 and 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 acting in what they consider their own best interests; 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. Source: The Dictionary of Real Estate Appraisal, 5th ed., Appraisal Institute * NOTICE: The Appraisal Institute publishes this form for use by appraisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work product not called for in this form. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provided by the individual appraiser(s). AI Reports AI Certification, Assumptions and Limiting Conditions Appraisal Institute 2013, All Rights Reserved January 2013 Form AI "TOTAL" appraisal software by a la mode, inc ALAMODE

10 Client: Client File #: Subject Property:, Lakeview, AR Appraisal File #: APPRAISER CERTIFICATION I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analysis, opinions, and conclusions are limited only by the report assumptions and limiting conditions, and are my personal, unbiased professional analysis, opinions, and conclusions. I have no present (unless specified below) or prospective interest in the property that is the subject of this report, and I have no (unless specified below) personal interest with respect to the parties involved. I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment was not contingent upon the 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 analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. Individuals who have provided significant real property appraisal assistance are named below. The specific tasks performed by those named are outlined in the Scope of Work section of this report. Name(s) As previously identified in the Scope of Work section of this report, the signer(s) of this report certify to the inspection of the property that is the subject of this report as follows: Property inspected by Appraiser Yes No Property inspected by Co-Appraiser Yes No Services provided, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment: Specify services provided: ADDITIONAL CERTIFICATION FOR APPRAISAL INSTITUTE MEMBERS, CANDIDATES AND PRACTICING AFFILIATES Appraisal Institute Designated Member, Candidate for Designation, or Practicing Affiliate Certify: The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. I am a Candidate for Designation in the Appraisal Institute. As of the date of this report, I have completed the Standard and Ethics Education Requirements for Candidates of the Appraisal Institute. I am not a Member, Candidate or Practicing Affiliate of the Appraisal Institute. APPRAISERS SIGNATURES APPRAISER: CO-APPRAISER: Signature Signature Name Name Brook Mahan Report Date Trainee Licensed License # CR2643 Expiration Date Rick Mahan Report Date 09/27/2018 Certified Residential 06/30/2019 Certified General 09/27/2018 Trainee Licensed License # CG 0307 Expiration Date Certified Residential Certified General 06/30/2019 * NOTICE: The Appraisal Institute publishes this form for use by appraisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work product not called for in this form. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provided by the individual appraiser(s). AI Reports AI Certification, Assumptions and Limiting Conditions Appraisal Institute 2013, All Rights Reserved January 2013 Form AI "TOTAL" appraisal software by a la mode, inc ALAMODE

11 USPAP ADDENDUM Borrower Property Address City Lender Lakeview County Baxter File No. Zip Code This report was prepared under the following USPAP reporting option: Appraisal Report This report was prepared in accordance with USPAP Standards Rule 2-2(a). Restricted Appraisal Report This report was prepared in accordance with USPAP Standards Rule 2-2(b). Reasonable Exposure Time My opinion of a reasonable exposure time for the subject property at the market value stated in this report is: six months. Additional Certifications I certify that, to the best of my knowledge and belief: I have NOT performed services, as an appraiser or in any other capacity, regarding the property that is the subject of this 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. - The statements of fact contained in this report are true and correct. - The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. - Unless otherwise indicated, I have no present or prospective interest in the property that is the subject of this report and no 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 that were in effect at the time this report was prepared. - Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report. - Unless otherwise indicated, no one provided significant real property appraisal assistance to the person(s) signing this certification (if there are exceptions, the name of each individual providing significant real property appraisal assistance is stated elsewhere in this report). Additional Comments APPRAISER: SUPERVISORY APPRAISER: (only if required) Signature: Name: Brook Mahan Date Signed: 09/27/2018 State Certification #: CR2643 or State License #: State: AR Expiration Date of Certification or License: 06/30/2019 Effective Date of Appraisal: 09/13/2018 Signature: Name: Rick Mahan Date Signed: 09/27/2018 State Certification #: or State License #: CG 0307 State: AR Expiration Date of Certification or License: 06/30/2019 Supervisory Appraiser Inspection of Subject Property: Did Not Exterior-only from Street Interior and Exterior Form ID14AP - "TOTAL" appraisal software by a la mode, inc ALAMODE

12 Subject Photo Page Client Property Address City Appraiser Lakeview Brook Mahan County Baxter Zip Code Subject Front Sales Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age 1, River Road Residential 41,818 sf Average/Brick 7 years Subject Rear Subject Garage Form PICPIX.SR - "TOTAL" appraisal software by a la mode, inc ALAMODE

13 Comparable Photo Page Client Property Address City Appraiser Lakeview Brook Mahan County Baxter Zip Code Comparable County Road 276 Prox. to Subject 0.25 miles NE Sale Price 165,000 Gross Living Area 1,644 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 2.5 Location River Road View Residential Site 19,602 sf Quality Average/Wood Age Eff 15 years Comparable Cane Island Rd Prox. to Subject 1.63 miles E Sale Price 164,900 Gross Living Area 1,565 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 2.5 Location Cane Island View Residential Site 22,216 sf Quality Avg/StoneCedar Age 2 years Comparable Cane Island Rd Prox. to Subject 2.05 miles E Sale Price 159,900 Gross Living Area 1,553 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 2 Location Cane Island View Residential Site 66,211 sf Quality Avg/ConcreteFiber Age 2 years Form PICPIX.CR - "TOTAL" appraisal software by a la mode, inc ALAMODE

14 Building Sketch Client Property Address City Appraiser Lakeview Brook Mahan County Baxter Zip Code ' 10' 18' Concrete Patio [180 Sq ft] 13' Office Bath Closet 33' Bedroom 2' 14' Living [1279 Sq ft] Kitchen 39' First Floor 14' Closet Office 24' 22' 6' Bedroom 2 Car Attached [624 Sq ft] 26' TOTAL Sketch by a la mode, inc. Form SKT.BLDSKI - "TOTAL" appraisal software by a la mode, inc ALAMODE 24' [210 Sq ft] Covered Porch 3' Bath

15 Location Map Client Property Address City Appraiser Lakeview Brook Mahan County Baxter Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc ALAMODE Zip Code 72642

16 Flood Map Form SCNLGL - "TOTAL" appraisal software by a la mode, inc ALAMODE

17 File No. Client Property Address City Appraiser Lakeview Brook Mahan County Baxter Zip Code QUALIFICATIONS OF THE APPRAISER PROFESSIONAL EXPERIENCE State Certified Residential Appraisal, December, 2006 Self-employed, full-time Real Estate Appraiser since April, 2004 Designated Member, SRA, Appraisal Institute, October 2017 EDUCATION B.S.B.A Finance/Real Estate/University of Arkansas/December, 1998 National Uniform Standards of Professional Appraisal Practice/Appraisal Institute/May, 2004 Reappraising, Readdressing, and Reassigning/Appraisal Institute/November, 2004 Business Practices and Ethics/Appraisal Institute/November, 2004 Evaluating Residential Construction/Appraisal Institute/May, 2005 The Professional's Guide to the URAR/Appraisal Institute/June 2005 Forecasting Revenue on Income Producing Properties/Appraisal Institute/May 2007 Subdivision Valuation Methodology/Appraisal Institute/May 2007 National Uniform Standards of Professional Appraisal Practice, Appraisal Institute, April 28, 2008 AI Reports AI-100 Summary Appraisal Report Residential, Appraisal Institute March 31, 2009 The New Residential Market Conditions Report, Appraisal Institute March 31, 2009 General Appraiser Income Approach Part 1, Appraisal Institute, June 2010 Uniform Appraisal Dataset from Fannie Mae and Freddie Mac, Appraisal Institute, August 2011 National Uniform Standards of Professional Appraisal Practice, 7-hour Update, Appraisal Institute, February 7, 2012 Private Appraisal Assignments, McKissock, July 2012 National Uniform Standards of Professional Appraisal Practice, 7-hour Update, Appraisal Institute, March 7, 2014 Basic Appraisal Principles, Appraisal Institute, May 2014 Basic Appraisal Procedures, Appraisal Institute, April 2015 Business Practices and Ethics, Appraisal Institute, September 2015 National Uniform Standards of Professional Appraisal Practice/Appraisal Institute/November 2015 National Uniform Standards of Professional Appraisal Practice, 7-hour Update, Appraisal Institute, February 8, 2016 Real Estate Finance Statistics and Valuation Modeling/Appraisal Institute/March 2016 Residential Market Analysis and Highest & Best Use/Appraisal Institute/July 2017 Advanced Residential Applications & Case Studies/Appraisal Institute/August 2017 Advanced Residential Report Writing/Appraisal Institute/August 2017 General Appraiser Site Valuation and Cost Approach/Appraisal Institute/December 2017 National Uniform Standards of Professional Appraisal Practice, 7-hour Update, Appraisal Institute, February 2018 Quantitative Analysis, Appraisal Institute, May 2018 Form SUP - "TOTAL" appraisal software by a la mode, inc ALAMODE

18 QUALIFICATIONS OF THE APPRAISER PROFESSIONAL EXPERIENCE Arkansas State Certified General Appraiser, CG0307 Missouri State Certified General Appraiser, RA Self-employed, full-time Real Estate Appraiser since March, 1985 Licensed Real Estate Broker with the State of Arkansas Real Estate Salesman, April, 1978 through March, 1985 EDUCATION Residential Appraisal Seminar, National Association of Realtors, March, 1979 Realtors National Marketing Institute Advanced Listing Practices, Course 101/1981 Advanced Selling Practices, Course 102/1981 Successful Career Planning Through Organization and Time Management Practices, Course 103/1981 Graduate Realtors Institute, Course I, Hot Springs, Arkansas Real Estate Appraisal Principles/American Institute of Real Estate Appraisers/Dallas, TX/March, 1985 Residential Valuation/American Institute of Real Estate Appraisers/St. Louis, MO/March, 1986 Cash Equivalency/American Institute of Real Estate Appraisers/St. Louis, MO/August, 1986 Appraisal Report as a Communication Tool/American Institute of Real Estate Appraisers/December, 1986 R-41C and the Appraiser/Society of Real Estate Appraisers and the AIREA/March, 1987 Standards of Professional Practice/AIREA/September, 1987 Writing a Single Family Residential Demonstration Report/AIREA/ September, 1987 Easement Valuation/International Right-of-Way Association/April, 1989 Legal Aspects of Easements/International Right-of-Way Association/April, 1989 Graduate Realtors Institute, 301/Springdale, Arkansas/April, 1990 Graduate Realtors Institute, 302/Springdale, Arkansas/April, 1990 Rate Extraction Application/American Institute of Real Estate Appraisers/September, 1990 Marshall and Swift Cost Manual Seminar/Independent Fee Appraisers/September, 1990 Capitalization Theory and Techniques Part A/Appraisal Institute/May, 1991 Feasibility Analysis of Highest & Best Use, Residential/App Institute/April, 1992 Capitalization Overview, Part A/Appraisal Institute/April, 1992 Institutional Regulation of Real Estate Appraisal/National AIFA/October, 1992 FIRREA: Overview and Practical Application/FIRREA Seminars/February, 1994 New Uniform Residential Appraisal Report (URAR)/NAIFA/December, 1994 Understanding Limited Appraisal, Residential/Appraisal Institute/April, 1995 Understanding Limited Appraisal, General/Appraisal Institute/April, 1995 Preparing Rural Appraisal Reports//March, 1995 Fundamental Rural Appraisals/March, 1995 Appraiser Accountability & Legal Liabilities Seminar/May, 1995 Standards of Professional Practice, Part A(USPAP)/September, 1995 Standards of Professional Practice, Part A(USPAP)/September, 1995 Arkansas Appraisal Licensing Board Continuing Ed Seminar/April, 1996 Fannie Mae Appraisal Seminar/October, 1996 Diligence In Disclosure/U of A Cooperative Extension Service/March, 1997 Advanced Writing Skills for the Residential Appraiser/April, 1998 Residential Property Construction and Inspection/August 1-2, 1998 Are Your Ethics Showing/April 6, 1999 Supporting Sales Comparison Grid Adjustment for Residential Properties/April 29, 1999 The Appraisal of Local Retail Properties/April 30, 1999 Eminent Domain and Condemnation Appraising/February 10, 2000 Appraisal of Nonconforming Uses/June 2, 2000 Timber and Timberland Fundamentals/September 18-19, 2000 A New Beginning "2001" Arkansas Appraiser Licensing & Certification Board/April 17, 2001 Uniform Standards of Professional Appraisal Practice/June 6, 2001 Getting It Right The First Time "2002" Arkansas Appraiser Licensing & Certification Board/April 16, 2002 Earning Public Trust Arkansas Appraiser Licensing & Certification Board/April 22, 2003 Condemnation Appraising: Basic Principles, Advanced Topics, Applications/Appraisal Institute/Sept.-Oct Scope of Work/Appraisal Institute/April 5, 2004 National USPAP Update Course/Appraisal Institute/June 2, 2004 Reappraising, Readdressing, Reassigning/Appraisal Institute/November, 2004 Business Practices and Ethics/Appraisal Institute/November, 2004 Apartment Appraisal: Concepts and Applications/Appraisal Institute/April 2005 Evaluating Residential Construction/Appraisal Institute/May 16, 2005 The Professional's Guide to the Uniform Residential Appraisal Report/Appraisal Institute/June 1, 2005 Real Estate Finance, Value, and Investment Performance/Appraisal Institute/September 16, 2005 National Uniform Standards of Professional Appraisal Practice/Appraisal Institute/April, 2006 Uniform Appraisal Standards for Federal Land Acquisitions/Appraisal Institute/May 25, 2006 Analyzing Operating Expenses/Appraisal Institute/March 6, 2008 Forecasting Revenue/Appraisal Institute/March 7, 2008 National Uniform Standards of Professional Appraisal Practice/Appraisal Institute/April 28, 2008 Office Building Valuation: A Contemporary Perspective/Appraisal Institute/May 28, 2008 Supporting Capitalization Rates/Appraisal Institute/May 29, 2008 National Uniform Standards of Professional Appraisal Practice, 7-hour Update, Appraisal Institute, August 27, 2009 Appraising Distressed Commercial Real Estate: Here We Go Again, Appraisal Institute, October 7, 2009 Uniform Appraisal Standards for Federal Land Acquisitions, Appraisal Institute, November 18 & 19, 2009 Hotel Appraising: New Techniques for Today's Uncertain Times, Appraisal Institute, March 23, 2010 Valuation by comparison - Residential Analysis & Logic, Appraisal Institute, March 31, 2010 General Appraiser Income Approach, Part 1, Appraisal Institute, June, 2010 Analyzing Tenant Credit Risk & Commercial Lease Analysis, Appraisal Institute, June 3, 2011 The Uniform Appraisal Dataset From Fannie Mae & Freddie Mac, Appraisal Institute, August 29, 2011 Business Practices and Ethics, Appraisal Institute, September 20, 2011 National Uniform Standards of Professional Appraisal Practice, 7-Hour Update, Appraisal Institute, February 7, 2012 Fundamentals of Separating Real Property, Personal Property and Intangible Business Assets, Appraisal Institute, April 5, 2012