UNIFORM RESIDENTIAL APPRAISAL REPORT

Transcription

1 UNIFORM RESIDENTIAL APPRAISAL REPORT LOCATED AT: 9.07± ACRES IN LAND LOT 151 LAND DISTRICT 12 Clarkesville, GA FOR: WOLFE FINANCIAL, INC. 191 H NC HWY 42 NORTH ASHEBORO, NC AS OF: 11/30/2011 BY: LAND AND MORE, INC. P.O. BOX 908 CLARKESVILLE, GA JEAN@LANDANDMOREINC.COM MB JEANMARIE HOLMES, CREA Form GA3 - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

2 LAND AND MORE, INC. P.O. BOX 908 CLARKESVILLE, GA MOBILE 12/03/2011 WOLFE FINANCIAL, INC. 191 H NC HWY 42 NORTH ASHEBORO, NC RE: PROP BORRWR FILE # Clarkesville, GA ARENA, THOMAS MICHAEL DEAR WOLFE FINANCIAL, INC. IN ACCORDANCE WITH YOUR REQUEST, I (WE) HAVE PREPARED AN APPRAISAL REPORT OF THE PROPERTY DESCRIBED ABOVE. I (WE) HAVE PERSONALLY MADE AN INSPECTION OF THE PROPERTY. THE INSPECTION AND THE RESULTING ATTACHED REPORT WERE COMPLETED TO ESTIMATE THE MARKET VALUE OF THE FEE SIMPLE INTEREST IN THE SUBJECT PROPERTY. THIS COVER LETTER DOES NOT CONSTITUTE THE APPRAISAL IN ITSELF OR A SUMMARY OF THE APPRAISAL. THE ACCOMPANYING REPORT, INCLUDING EXHIBITS AND ADDENDA, DESCRIBES THE APPROPRIATE APPROACHES TO VALUE AND CONCLUSIONS DERIVED BY APPLICATION OF THE APPROACHES. PLEASE NOTE THE ASSUMPTIONS AND LIMITING CONDITIONS INCLUDED IN THE REPORT AND ATTACHED AS THE LAST PAGE OF THIS REPORT. THIS APPRAISAL IS MADE SUBJECT TO THESE ASSUMPTIONS AND LIMITING CONDITIONS. COMPENSATION, CURRENT OR FUTURE IS NOT CONTINGENT UPON: REPORTING A VALUE OR VALUE RANGE FOR THE BENEFIT OF THE CLIENT (ADVOCACY), FOR THE ATTAINMENT OF A SPECIFICALLY REQUESTED RESULT, OR FOR A FUTURE LOAN CLOSING OR OTHER SUCH EVENT. THE INTENDED USER OF THIS APPRAISAL REPORT IS THE LENDER/CLIENT. THE INTENDED USE IS TO EVALUATE THE PROPERTY THAT IS THE SUBJECT OF THIS APPRAISAL FOR A FHA MORTGAGE FINANCE TRANSACTION, SUBJECT TO THE STATED SCOPE OF WORK, PURPOSE OF THE APPRAISAL, REPORTING REQUIREMENTS OF THIS APPRAISAL REPORT FORM, AND DEFINITION OF MARKET VALUE. NO ADDITIONAL INTENDED USERS ARE IDENTIFIED BY THE APPRAISER. THIS APPRAISAL HAS BEEN CONDUCTED AND THE REPORT PREPARED IN ACCORDANCE WITH MY (OUR) INTERPRETATION OF THE CODE OF PROFESSIONAL ETHICS AND UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP) AND IN CONFORMITY WITH THE THE GEORGIA REAL ESTATE APPRAISERS BOARD. (REAL ESTATE CLASSIFICATION AND REGULATION ACT AS AMENDED AUGUST 1, 2006). NO ONE, OTHER THAN THE SUPERVISING APPRAISER, PROVIDED ASSISTANCE FOR THIS REPORT. (IF APPLICABLE) I CERTIFY, AS THE APPRAISER, THAT I HAVE NOT PERFORMED ANY PRIOR SERVICES REGARDING THE SUBJECT PROPERTY, AS AN APPRAISER, OR IN ANY OTHER CAPACITY, WITHIN THE 3 YEAR PERIOD IMMEDIATELY PRECEDING ACCEPTANCE OF THIS APPRAISAL ASSIGNMENT. BASED ON MY (OUR) INVESTIGATION AND ANALYSIS OF THE DATA GATHERED WITH RESPECT TO THIS ASSIGNMENT, I (WE) HAVE PERFORMED THE OPINION THAT THE MARKET VALUE OF THE FEE SIMPLE INTEREST IN THE SUBJECT PROPERTY IS, AS OF NOVEMBER 30, 2011: TWO HUNDRED AND TWENTY THOUSAND DOLLARS ($220,000) JEANMARIE HOLMES, CREA LAND AND MORE, INC.

3 Land and More, Inc. SUBJECT 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 Clarkesville State GA Zip Code Borrower ARENA, THOMAS MICHAEL Owner of Public Record ARENA, THOMAS MICHAEL & VALERIE B. County HABERSHAM Legal Description Assessor's Parcel # 9.07± ACRES IN LAND LOT 151 LAND DISTRICT Tax Year 2011 R.E. Taxes $ 1,662 Neighborhood Name HABERSHAM COUNTY Map Reference Census Tract Occupant Owner Tenant Vacant Special Assessments $ 0 PUD HOA $ 0 per year per month Property Rights Appraised Fee Simple Leasehold Other (describe) Assignment Type Purchase Transaction Refinance Transaction Other (describe) Lender/Client WOLFE FINANCIAL, INC. Address 191 H NC HWY 42 NORTH, ASHEBORO, NC Is the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal? Yes No Report data source(s) used, offering price(s), and date(s). THE SUBJECT IS NOT CURRENTLY OFFERED FOR SALE & HAS NOT BEEN OFFERED FOR SALE WITHIN THE 12 MONTHS PRIOR TO THE EFFECTIVE DATE OF THIS APPRAISAL (MLS/OWNER). I did did not analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed. CONTRACT 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. NEIGHBORHOOD Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood Characteristics Location Urban Suburban Rural Built-Up Over 75% 25-75% Under 25% Growth Rapid Stable Slow One-Unit Housing Trends Property Values Increasing Stable Declining Demand/Supply Shortage In Balance Over Supply Marketing Time Under 3 mths 3-6 mths Over 6 mths One-Unit Housing One-Unit 60 % 2-4 Unit 0 % Multi-Family 0 % Commercial 0 % Other 40 % Neighborhood Boundaries SUBJECT IS IN NORTH HABERSHAM CO. WEST OF OLD HWY 441 & HWY 365 (MAJOR CORRIDOR), NORTH High OF HWY 115, EAST OF HWY 197 & SOUTH OF TURNERVILLE CORNER. NEIGHBORHOOD IS ALL OF HABERSHAM COUNTY AT LARGE. Pred. Neighborhood Description THE SUBJECT IS LOCATED ON RUSTIC BEAVER DRIVE APPROX 7.0+/- MILES NE OF CLARKESVILLE WHICH IS THE COUNTY SEAT FOR HABERSHAM COUNTY. THE SUBJECT IS IN AVERAGE PROXIMITY TO MAJOR COMMUNITY AMENITIES AND WOULD HAVE AVERAGE APPEAL TO THE MARKET. SEE ADDENDUM FOR ADD'L COMMENTS ON HABERSHAM COUNTY. SUBJECT IS WITHIN 1 MILE OF HWY 365, A MAJOR CORRIDOR CONNECTING ATLANTA TO NORTH GA. Market Conditions (including support for the above conclusions) THE AVAILABILITY OF MORTGAGES HAS DECLINED DUE TO THE RECENT CREDIT CRISIS. AS OF THE EFFECTIVE DATE OF THIS APPRAISAL, THE U.S. FINANCIAL MARKETS ARE IN TURMOIL. THE IMPLICATIONS FOR THE ECONOMY & CONSEQUENTLY PROPERTY VALUES ARE NOT POSITIVE. THE CLIENT IS CAUTIONED THAT THE ESTIMATION OF VALUE IN THIS REPORTS IS AS OF A SPECIFIC DATE & VOLATILE DUE TO THE UNCERTAIN CONDITIONS IN THE MARKET. Dimensions Area Shape View IRREGULAR - SEE ATT PLAT 9.07 ac TYPICAL OF AREA B;Wtr;Lake Specific Zoning Classification LI Zoning Description LOW INTENSITY - SINGLE FAMILY RESIDENTIAL IN COMPLIANCE Zoning Compliance Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe) Is the highest and best use of subject property as improved (or as proposed per plans and specifications) the present use? Yes No If No, describe PRICE $ (000) Low AGE (yrs) Present Land Use % SITE IMPROVEMENTS Utilities Public Other (describe) Public Other (describe) Electricity Gas LP TANK AVAIL Water Sanitary Sewer WELL SEPTIC TANK Street Alley GRAVEL-ALL WEATHER NONE FEMA Special Flood Hazard Area Yes No FEMA Flood Zone X FEMA Map # 13137C0140C FEMA Map Date 06/02/2009 Are the utilities and off-site improvements typical for the market area? Yes No If No, describe THE SUBJECT HAS NO APPARENT ADVERSE EASEMENTS, ENCROACHMENTS OR TOPOGRAPHY OBSERVED. SUBJECT IS NOT LOCATED IN A FEMA DESIGNATED FLOOD ZONE AREA ( ACCESS TO SUBJECT IS FROM A PRIVATE GRAVEL ROAD THROUGH SHARED DRIVE WITH # of Stories 1.5 Type Det. Att. S-Det./End Unit RUSTIC/LOG None Basement Area 0 sq.ft. Roof Surface Basement Finish 0 % Gutters & Downspouts Outside Entry/Exit Sump Pump Window Type CONC BLK / AVE LOG / AVE COMP SHING / AVE NONE WOOD / AVE NO YES / AVE Woodstove(s) # 1 Drop Stair Stairs Other BSBD Fuel ELEC Fireplace(s) # 0 Fence NONE Floor Scuttle Cooling Central Air Conditioning Patio/Deck NONE Porch 1 Finished Heated Individual Other WINDOW Pool NONE Other NONE Appliances Refrigerator Range/Oven Dishwasher Disposal Microwave Washer/Dryer Other (describe) Off-site Improvements - Type Public Private Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes No If Yes, describe ADJOINING PROPERTY. WELL, SEPTIC TANK TYPICAL FOR AREA. SUBJECT HAS FRONTAGE ON PRIVATE LAKE. General Description Foundation Exterior Description materials/condition Interior Units One One with Accessory Unit Existing Proposed Under Const. Design (Style) Year Built Effective Age (Yrs) Attic Concrete Slab Full Basement Evidence of Dampness Infestation Settlement Crawl Space Partial Basement Heating FWA HWBB Radiant Foundation Walls Exterior Walls Storm Sash/Insulated WOOD / AVE WD/DWALL / AVE WD/PAINT /AVE WD/VINYL / AVE F'GLASS / AVE None Driveway Driveway Surface Garage Carport # of Cars # of Cars # of Cars 2 GRAVEL 0 1 Att. Det. Built-in Finished area above grade contains: 6 Rooms 4 Bedrooms 2.0 Bath(s) 2,150 Square Feet of Gross Living Area Above Grade Additional features (special energy efficient items, etc.). FLUE W/WOOD BURNING STOVE ON STACKED STONE HEARTH, TONGUE-AND-GROOVE WOOD WALLS, FLOORS & CEILINGS THROUGHOUT, STONE OVER FOUNDATION. Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.). C4;No updates in the prior 15 years;the SUBJECT IS 30 YEARS OLD AND IN AVERAGE CONDITION. NO MAJOR OR MINOR ITEMS NOTED IN NEED OF REPAIR OR MAINTENANCE. NO EXCESSIVE DETERIORATION NOTED. Screens Amenities Floors Walls Trim/Finish Bath Floor Bath Wainscot Car Storage materials/condition Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? Yes No If Yes, describe NO ITEMS WERE NOTED IN REGARDS TO PHYSICAL DEFICIENCIES OR ADVERSE CONDITIONS THAT AFFECT THE LIVABILITY, SOUNDNESS OR STRUCTURAL INTEGRITY OF THE SUBJECT PROPERTY. IT SHOULD BE NOTED THAT THE APPRAISER(S) IS/ARE ARE NOT AND SHOULD NOT BE CONSIDERED TO BE EXPERTS IN FIELDS SUCH AS ENVIRONMENTAL HAZARDS, CONSTRUCTION AND HOME INSPECTION. SEE ADDENDUM. Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? Yes No If No, describe THE SUBJECT PROPERTY GENERALLY CONFORMS TO THE SUBJECT NEIGHBORHOOD IN REGARDS TO FUNCTIONAL UTILITY, STYLE, CONDITION, USE AND CONSTRUCTION. Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 1 of 6 Fannie Mae Form 1004 March 2005 Form 1004UAD - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

4 SALES COMPARISON APPROACH There are 27 comparable properties currently offered for sale in the subject neighborhood ranging in price from $ 199,000 to $ 249,000. There are 19 comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ 199,000 to $ 249,000. FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Address Clarkesville, GA Racoon Rd Saute-Nacoche, GA New Liberty Rd Clarkesville, GA Camp Yonah Rd Clarkesville, GA Proximity to Subject miles NW 3.94 miles SW 3.67 miles E Sale Price $ $ 185,000 $ 260,000 $ 260,000 Sale Price/Gross Liv. Area $ sq.ft. $ sq.ft. $ sq.ft. $ sq.ft. Data Source(s) GAMLS# ;DOM 158 GAMLS# ;DOM 11 MLS#94878;DOM 12 Verification Source(s) MAP HAB CO. / MAP HAB CO / MAP VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sales or Financing ArmLth ArmLth ArmLth Concessions Cash;0 Cash;0 Conv;0 Date of Sale/Time s07/11;c07/11 s05/11;c04/11 s06/11;c04/11 Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition N;Res; FEE SIMPLE 9.07 ac B;Wtr;Lake RUSTIC/LOG Q4 30 C4 N;Res; FEE SIMPLE ac B;Wtr;Pond RUSTIC/WOOD Q5 36 C5 N;Res; FEE SIMPLE -16, ac 0 B;Woods; 0 RUSTIC/CEDAR +5,000 Q ,000 C2 N;Res; FEE SIMPLE -8, ac 0 B;Woods;USNfs 0 RUSTIC/LOG Q ,000 C , ,000 Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Room Count , Gross Living Area 2,150 sq.ft. 1,284 sq.ft. +17,300 1,736 sq.ft. +8,300 1,952 sq.ft. +4,000 Basement & Finished 0sf 0sf 1736sf0sfwo -6, sf0sfwo -9,300 Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck ADEQUATE BSBD/NONE STANDARD 1 CAR CPT WRAP PCH Data Source(s) MLS/PUBLIC RECORD Effective Date of Data Source(s) 11/30/2011 Analysis of prior sale or transfer history of the subject property and comparable sales ADEQUATE RAD GAS/NO ADEQUATE 0 CHVAC ADEQUATE -3,000 CHVAC -3,000 STANDARD OPEN PARK STANDARD +1,000 OPEN PARK STANDARD +1,000 OPEN PARK +1,000 PORCHES 0 PORCHES 0 PCHS/DECK 0 Net Adjustment (Total) + - $ 10, $ -19, $ -22,300 Adjusted Sale Price of Comparables Net Adj. Gross Adj. 5.7 % 24.9 % $ Net Adj. 195,600 Gross Adj. 7.4 % 14.5 % $ Net Adj. 240,800 Gross Adj. 8.6 % 12.4 % $ 237,700 I did did not research the sale or transfer history of the subject property and comparable sales. If not, explain (WE) DID RESEARCH THE SALE/TRANSFER HISTORY OF THE SUBJECT PROPERTY AND COMPARABLE SALES VIA THE COUNTY TAX ASSESSORS OFFICE (PUBLIC RECORDS) AND THE MULTIPLE LIST SERVICE (MLS). 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) PUBLIC RECORDS/ My research did did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale. Data Source(s) PUBLIC RECORDS/ 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). Date of Prior Sale/Transfer Price of Prior Sale/Transfer MLS/PUBLIC RECORD 11/30/2011 MLS/PUBLIC RECORD 11/30/2011 MLS/PUBLIC RECORD 11/30/2011 I (WE) DID RESEARCH THE SALE/TRANSFER HISTORY OF THE SUBJECT PROPERTY AND COMPARABLE SALES VIA THE COUNTY TAX ASSESSORS OFFICE (PUBLIC RECORDS) AND THE MULTIPLE LIST SERVICE (MLS) WHICH DID NOT REVEAL PRIOR SALES/TRANSFERS TO THE SUBJECT 3 YEARS PRIOR TO THE EFFECTIVE DATE OF APPRAISAL, AND DID REVEAL SALES/TRANSFERS TO THE COMPARABLE SALES WITHIN 1 YEAR PRIOR TO DATE OF COMPARABLE SALE. PREVIOUS TRANSFER OF COMP 5 DUE TO FORECLOSURE. Summary of Sales Comparison Approach NO SALES CONDITION (MOTIVATION) OR MARKET CONDITION (TIME) ADJUSTMENTS CONSIDERED WARRANTED OR NECESSARY. ABOVE SALES CONSIDERED THE BEST ONES AVAILABLE IN THIS AREA AT THIS TIME. SUBJECT IS WITHIN EXPECTED RANGE OF HOMES IN THIS AREA. SELLER PAID CONCESSIONS SEEN AS UNRECOGNIZED BY LOCAL MARKET W/NO ADJUSTMENT WARRANTED. SITE ADJUSTMENTS OF $2,500 PER ACRE WERE DEEMED WARRANTED AND APPROPRIATE. MOST WEIGHT GIVEN TO COMPS 1, 2 & 3. COMP 5 A FORECLOSURE & GIVEN LESS CONSIDERATION, BUT WAS USED TO BRACKET GLA & ROOM COUNT. SOME COMP DISTANCES EXCEED A 10 MILE RADIUS AND IS TYPICAL FOR APPRAISING HOMES IN RURAL AREAS. Uniform Residential Appraisal Report File # ITEM SUBJECT COMPARABLE SALE #1 COMPARABLE SALE #2 COMPARABLE SALE #3 RECONCILIATION Indicated Value by Sales Comparison Approach $ 220,000 Indicated Value by: Sales Comparison Approach $ 220,000 Cost Approach (if developed) $ 240,906 Income Approach (if developed) $ MOST WEIGHT OF CONSIDERATION GIVEN TO THE SALES APPROACH TO VALUE BECAUSE IT IS DIRECTLY INDICATIVE OF MARKET FORCES. DUE TO AGE OF SUBJECT THE COST APPROACH IS NOT AS RELIABLE AN INDICATOR OF VALUE. MOST WEIGHT PLACED W/THE MIDDLE VALUE RANGE OF SALES. THE INCOME APPROACH IS NOT APPLICABLE DUE TO SUBJECT BEING NON-RENTAL. NO PERSONAL PROPERTY INCLUDED IN ESTIMATION OF VALUE. COMP DISTANCES FROM ALAMODE GPS. This appraisal is made "as is", subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: ESTIMATION OF VALUE BASED ON THE "AS IS" CONDITION OF SUBJECT AT TIME OF INSPECTION & ALL DEFINITIONS & ADDENDA REMAINING ATTACHED. 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 $ 220,000, as of 11/30/2011, which is the date of inspection and the effective date of this appraisal. Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 2 of 6 Fannie Mae Form 1004 March 2005 Form 1004UAD - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

5 Uniform Residential Appraisal Report File # WELL / SEPTIC - The property is located within a rural area of Habersham county and therefore public sewer/water is not available to this property. It is considered typical for all properties outside city limits to have a septic tank. The fact that the subject has a septic tank does not have a negative impact on the marketability of the subject's property. The fact that the subject has a well does not have a negative impact on marketability and is sometimes seen as more desirable than public water. SELLER CONCESSIONS-According to appraisal theory, cash equivalency of each sale is to be calculated and its impact is to be estimated. This estimate is to be based on the market's reaction to seller paid concessions. If warranted, an adjustment is to be made to the respective comparable for such items. However, two rules govern such considerations. The first is that adjustments are only warranted if it is perceived that the market takes note of such incentives and if affected by it. In other words, an adjustment should be made only if it is determined that the market sees it as a noteworthy (noticeable) reduction in price by the seller. The second point is that any adjustments are not to be dollar for dollar (called mechanical adjusting). Adjustments should be made in approximation of the market's response to concessions. In the case of typical government financing, it is our opinion that the market does not to respond to such government required seller paid closing costs. Thus, no adjustments were deemed appropriate. Seller concessions of higher amounts, %5± or above are seen as being in the range where estimated adjustments would be warranted. PRICE RANGE - The price range of the adjusted sales prices of the comparable sales is greater than 15% and is typical for appraising homes in rural areas. Appraiser made a thorough search of the market through GA MLS, HWS MLS, public record, and my own experience & knowledge of the subject's market. I have made all appropriate and necessary market adjustments to the provided comparable sales. I extended my data search into similar and competing markets and used appropriate comparables in order to obtain credible results. The comps and listings used are bracketed by square footage, acreage, age, and design (log). ADDITIONAL COMMENTS DISTANCE TO COMPARABLES-As a point of clarification, the subject is in an area of typically distant comparable sales. Sales, at times, come from pockets of market activity. In more rurally located properties, homes sell sporadically and must be considered if potentially competing to the subject. Thus, the marketing area of the subject is not only the whole section of the county in which it is located (county wide, in most situations) but due to local Realtors having MLS it would compete against other listing in a wide several county area. Realtors, for example, would show homes to potential buyers based on the type home desired, despite distances between them. In most instances, distances to comparables are considered further than in more suburban or metropolitan areas. Of course, this is typical of the area and is expected. No known detriment or other adverse market reaction has been observed for home in this setting, other than longer marketing times. SURVEY-ASSUMPTIONS-Certain assumptions must be made in regards to the survey. Any obvious easements or encroachment observed at the time of inspection will have been listed on the report form. Possible easements, encroachments, or county set back violations which are usually found by a surveyor are assumed not to be present. The appraisers and this appraisal firm disclaim any and all responsibility or liability of potential damages that might arise from any subsequent event such as title searches, surveys, etc. The attached limiting conditions and assumptions covers the comments in this regard. THE INTENDED USER OF THIS APPRAISAL REPORT IS THE LENDER/CLIENT. THE INTENDED USE IS TO EVALUATE THE PROPERTY THAT IS THE SUBJECT OF THIS APPRAISAL FOR A MORTGAGE FINANCE TRANSACTION, SUBJECT TO THE STATED SCOPE OF WORK, PURPOSE OF THE APPRAISAL, REPORTING REQUIREMENTS OF THIS APPRAISAL REPORT FORM, AND DEFINITION OF MARKET VALUE. NO ADDITIONAL INTENDED USERS ARE IDENTIFIED BY THE APPRAISER. APPRAISAL FEE PAID BY AIMS DASHBOARD TO APPRAISER FOR THIS ASSIGNMENT IS $ GA AMC REGISTRATION # UNKNOWN. COST APPROACH INCOME 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) THE BASIS FOR THE SUBJECT'S ESTIMATED LAND VALUE WAS DERIVED BY ONE OR MORE OF THE FOLLOWING... EXAMINING PUBLIC SALES RECORD REPORTS, MLS, DISCUSSIONS WITH REALTORS AND THE ALLOCATION PROCESS. ALTHOUGH THE COST APPROACH WAS CONSIDERED IN THE REPORT, FNMA DOES NOT REQUIRE IT AND IT IS NOT DEEMED TO BE NECESSARY TO PRODUCE A CREDIBLE APPRAISAL REPORT. IT IS THE APPRAISER'S OPINION THAT THE SALES COMPARISON APPROACH IS THE MOST SUITABLE APPROACH TO DEFINE THE MARKET'S REACTION OF BUYERS & SELLERS TO DETERMINE MARKET VALUE.. ESTIMATED REPRODUCTION OR REPLACEMENT COST NEW OPINION OF SITE VALUE =$ Source of cost data MARSHALL & SWIFT Quality rating from cost service AVE Effective date of cost data 2011 Comments on Cost Approach (gross living area calculations, depreciation, etc.) COST REPLACEMENT ESTIMATION OF VALUE BASED ON FIGURES OBTAINED FROM LOCAL CONTRACTOR COSTS. (SEE ADDENDUM) LAND TO APPRAISED VALUE RATIO = 40% (SEE ADDENDUM) DEPRECIATION ESTIMATED BY THE (M&S) DEPRECIATION SCHEDULE. TYP LIFE EXP=55 YRS/ACT AGE= 30 YEARS/EFF AGE=15 YRS OR -15% SITE IMPROVEMENTS INCL: WELL, SEPTIC TANK, GRAVEL, DRIVE, LANDSCAPING. (DEPRECIATED VALUES) Estimated Remaining Economic Life (HUD and VA only) COST APPROACH TO VALUE (not required by Fannie Mae) 90,000 DWELLING 2,150 $ =$ 150,500 $ =$ PCH/APP/FLUE =$ 12,500 Garage/Carport Total Estimate of Cost-New 336 $ =$ =$ 3, ,360 Less Physical Functional External Depreciation 24,954 =$( 24,954) Depreciated Cost of Improvements "As-is" Value of Site Improvements =$ =$ 141,406 9, Years INDICATED VALUE BY COST APPROACH =$ INCOME APPROACH TO VALUE (not required by Fannie Mae) 240,906 Estimated Monthly Market Rent $ X Gross Rent Multiplier = $ Indicated Value by Income Approach Summary of Income Approach (including support for market rent and GRM) PUD INFORMATION 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 If Yes, date of conversion. Does the project contain any multi-dwelling units? Yes No Data Source 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. Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 3 of 6 Fannie Mae Form 1004 March 2005 Form 1004UAD - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

6 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 the 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. Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 4 of 6 Fannie Mae Form 1004 March 2005 Form 1004UAD - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

7 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. Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 5 of 6 Fannie Mae Form 1004 March 2005 Form 1004UAD - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

8 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 Name JEANMARIE HOLMES Company Name LAND AND MORE, INC. Company Address P.O. BOX 908 CLARKESVILLE, GA Telephone Number Address jean@landandmoreinc.com Date of Signature and Report 12/03/2011 Effective Date of Appraisal 11/30/2011 State Certification # or State License # or Other (describe) State # State GA Expiration Date of Certification or License ADDRESS OF PROPERTY APPRAISED Clarkesville, GA APPRAISED VALUE OF SUBJECT PROPERTY $ LENDER/CLIENT Name AIMS Company Name Company Address Address 10/31/ ,000 WOLFE FINANCIAL, INC. 191 H NC HWY 42 NORTH, ASHEBORO, NC Signature Name Company Name Company Address Telephone Number Address Date of Signature State Certification # or State License # State Expiration Date of Certification or License SUBJECT PROPERTY Did not inspect subject property Did inspect exterior of subject property from street Date of Inspection Did inspect interior and exterior of subject property Date of Inspection COMPARABLE SALES Did not inspect exterior of comparable sales from street Did inspect exterior of comparable sales from street Date of Inspection Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 6 of 6 Fannie Mae Form 1004 March 2005 Form 1004UAD - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

9 SALES COMPARISON APPROACH Uniform Residential Appraisal Report File # FEATURE SUBJECT COMPARABLE SALE # 4 COMPARABLE SALE # 5 COMPARABLE SALE # 6 Address Clarkesville, GA Smokerise Dr Saute-Nacoche, GA Whisperwood Way Cleveland, GA Lamont Ln Clarkesville, GA Proximity to Subject miles W miles SW 3.38 miles W Sale Price $ $ 220,000 $ 179,900 $ 249,000 Sale Price/Gross Liv. Area $ sq.ft. $ sq.ft. $ sq.ft. $ sq.ft. Data Source(s) GAMLS# ;DOM 145 GAMLS# ;DOM 61 GAMLS# ;DOM 213 Verification Source(s) WHITE CO / MAP 058C 028 DB 1408 PG 230 / MAP MAP VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sales or Financing ArmLth REO Listing Concessions Conv;0 Cash;4575 Date of Sale/Time s04/11;c03/11 s07/11;c07/11 Active -7,500 Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition N;Res; FEE SIMPLE 9.07 ac B;Wtr;Lake RUSTIC/LOG Q4 30 C4 N;Res; FEE SIMPLE 5.05 ac B;Mtn; RUSTIC/LOG Q3 14 C2 N;Res; FEE SIMPLE +10, ac 0 B;Wtr;Creek RUSTIC/LOG -5,000 Q4-2, ,000 C4 N;Res; FEE SIMPLE +15, ac 0 N;Woods; RUSTIC/LOG Q3-2, C4-24, ,000-5,000-2,500 Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Room Count , Gross Living Area 2,150 sq.ft. 1,268 sq.ft. +17,600 2,586 sq.ft. -8,700 2,026 sq.ft. +2,500 Basement & Finished Rooms Below Grade 0sf 960sf480sfwo 1rr1br1.0ba0o -3, sf144sfwo -3,800 0rr0br1.0ba0o -6,800 0sf -1,150 Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck ADEQUATE BSBD/NONE STANDARD 1 CAR CPT WRAP PCH ADEQUATE CHVAC STANDARD OPEN PARK PCHS/DECK ADEQUATE -3,000 CHVAC STANDARD +1,000 2 CAR GAR 0 PORCHES ADEQUATE -3,000 CHVAC STANDARD -3,000 1 CAR GAR 0 STP/PATIO -3,000-1,000 +1,500 SALE HISTORY Net Adjustment (Total) + - $ $ -11, $ -29,300 Adjusted Sale Price of Comparables Net Adj. Gross Adj. 0.2 % 25.8 % $ Net Adj. 220,500 Gross Adj. 6.5 % 23.2 % $ Net Adj. 168,250 Gross Adj % 23.0 % $ 219,700 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). Date of Prior Sale/Transfer Price of Prior Sale/Transfer ITEM SUBJECT COMPARABLE SALE # COMPARABLE SALE # COMPARABLE SALE # Data Source(s) MLS/PUBLIC RECORD Effective Date of Data Source(s) 11/30/2011 Analysis of prior sale or transfer history of the subject property and comparable sales /05/2011 $252,000 PUBLIC RECORD/MLS 11/30/2011 DB 1403 PG 77/Fclosure 11/30/2011 MLS/PUBLIC RECORD 11/30/2011 Analysis/Comments COMPARABLES 6 & 7 ARE ACTIVE LISTINGS IN SUBJECT'S MARKET AREA. ACCORDING TO MLS, HOMES IN SUBJECT'S PRICE RANGE AVERAGED SELLING AT 97% OF LIST PRICE. ANALYSIS / COMMENTS Freddie Mac Form 70 March 2005 UAD Version 9/2011 Fannie Mae Form 1004 March 2005 Form 1004UAD.(AC) - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

10 SALES COMPARISON APPROACH Uniform Residential Appraisal Report File # FEATURE SUBJECT COMPARABLE SALE # 7 COMPARABLE SALE # 8 COMPARABLE SALE # 9 Address Clarkesville, GA Habersham Mill Rd Demorest, GA Proximity to Subject 7.78 miles SW Sale Price $ $ 199,900 $ $ Sale Price/Gross Liv. Area $ sq.ft. $ sq.ft. $ sq.ft. $ sq.ft. Data Source(s) MLS#95250;DOM 208 Verification Source(s) MAP A VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sales or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition N;Res; FEE SIMPLE 9.07 ac B;Wtr;Lake RUSTIC/LOG Q4 30 C4 Room Count Gross Living Area 2,150 sq.ft. 1,761 sq.ft. +7,800 sq.ft. sq.ft. Basement & Finished 0sf 0sf Rooms Below Grade ADEQUATE BSBD/NONE STANDARD 1 CAR CPT WRAP PCH Listing Active -6,000 N;Res; FEE SIMPLE 5.0 ac +10,200 N;Woods; +10,000 COUNTRY 0 Q C4 Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck ADEQUATE RAD GAS/NONE 0 STANDARD OPEN PARK +1,000 PORCHES 0 SALE HISTORY Net Adjustment (Total) + - $ 23, $ + - $ Adjusted Sale Price of Comparables Net Adj. Gross Adj % 17.8 % $ Net Adj. 223,400 Gross Adj. % % $ Net Adj. Gross Adj. % % $ 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 # 7 COMPARABLE SALE # 8 COMPARABLE SALE # 9 Date of Prior Sale/Transfer Price of Prior Sale/Transfer Data Source(s) MLS/PUBLIC RECORD Effective Date of Data Source(s) 11/30/2011 Analysis of prior sale or transfer history of the subject property and comparable sales MLS/PUBLIC RECORD 11/30/2011 Analysis/Comments COMPARABLES 6 & 7 ARE ACTIVE LISTINGS IN SUBJECT'S MARKET AREA. ACCORDING TO MLS, HOMES IN SUBJECT'S PRICE RANGE AVERAGED SELLING AT 97% OF LIST PRICE. ANALYSIS / COMMENTS Freddie Mac Form 70 March 2005 UAD Version 9/2011 Fannie Mae Form 1004 March 2005 Form 1004UAD.(AC) - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

11 Photograph Addendum Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. Exterior Exterior Exterior Exterior Exterior Exterior Form PICSIX2 - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

12 Photograph Addendum Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. Exterior Exterior Interior Interior Interior Interior Form PICSIX2 - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

13 Photograph Addendum Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. Interior Interior Interior Interior Interior Interior Form PICSIX2 - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

14 Photograph Addendum Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. Interior Crawl Access Crawl View Lake Frontage Street Form PICSIX2 - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

15 Comparable Photo Page Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. 40 Racoon Rd Prox. to Subject Sale Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age Comparable miles NW 185,000 1, N;Res; B;Wtr;Pond ac Q5 36 Comparable New Liberty Rd Prox. to Subject 3.94 miles SW Sale Price 260,000 Gross Living Area 1,736 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 2.0 Location N;Res; View B;Woods; Site ac Quality Q4 Age 21 Comparable Camp Yonah Rd Prox. to Subject 3.67 miles E Sale Price 260,000 Gross Living Area 1,952 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 2.0 Location N;Res; View B;Woods;USNfs Site 9.50 ac Quality Q3 Age 28 Form PICPIX.CR - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

16 Comparable Photo Page Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. Comparable Smokerise Dr Prox. to Subject miles W Sale Price 220,000 Gross Living Area 1,268 Total Rooms 5 Total Bedrooms 2 Total Bathrooms 2.0 Location N;Res; View B;Mtn; Site 5.05 ac Quality Q3 Age 14 Comparable 5 76 Whisperwood Way Prox. to Subject miles SW Sale Price 179,900 Gross Living Area 2,586 Total Rooms 7 Total Bedrooms 4 Total Bathrooms 3.0 Location N;Res; View B;Wtr;Creek Site 3.06 ac Quality Q4 Age 14 Comparable Listing Lamont Ln Prox. to Subject Sale Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age 3.38 miles W 249,000 2, N;Res; N;Woods; 18.8 ac Q3 18 Form PICPIX.CR - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

17 Comparable Photo Page Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. Comparable Listing Habersham Mill Rd Prox. to Subject 7.78 miles SW Sale Price 199,900 Gross Living Area 1,761 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 1.1 Location N;Res; View N;Woods; Site 5.0 ac Quality Q4 Age 41 Prox. to Subject Sale Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age Comparable 8 Prox. to Subject Sale Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age Comparable 9 Form PICPIX.CR - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

18 Location Map Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. Form MAP.LOC - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

19 HABERSHAM COUNTY DATA Habersham County lies in the heart of Northeast Georgia, at the southern edge of the Chattahoochee National Forest (a good portion of the county is National Forest), the foothills of the Blue Ridge Mountains and is bordered partly by the Chattahoochee River. It is approximately 80 miles northeast of Atlanta, and falls within the sphere of Atlanta's economic influence. The area of northern Habersham County was rated by Rand-McNally Atlas as the number two retirement location in the country. This type of reputation pervades the real estate and tourism of this area, boosting the economy and housing market. The suburban and more urban areas of North Georgia have characterized themselves with consistent increased property values and development. The economy of Habersham County is linked to Metropolitan Atlanta and surrounding area business markets and economy. Habersham County's population was estimated to be roughly 35,902 in the 2000 census, indicating an annual population growth of about 2.4% (based on the past 10 years). This growth is and development has resulted in producing a favorable environment for the subject property and area, and is expected to continue. Like other Northeast Georgia counties, many residents commute to employment centers in other parts of Habersham County or adjacent and nearby counties. It is not uncommon for residents of the subject county to commute to Atlanta or other counties for employment. In fact, this commuting involves much more than just employment. It seems that things like shopping, recreation, churches, schools and other amenities are the type of things that residents travel to other areas for. Similarly, it should be pointed out that most of the county could be viewed as part of the subject neighborhood rather than just the immediate surroundings. This is because of the commuting factor and a tendency of many purchasers to consider properties in several parts of the county (or even across a county line) rather than narrowing their search to one or two selected parts of the county. Areas that are not direct "suburbs" of Metropolitan Atlanta have more of an "imperfect" real estate market than that found in metropolitan areas. Virtually all homes are individually constructed and somewhat unique. Homes in Habersham County include not only the typical subdivision, rural and small farm residences, but also mountain cottages, river front properties, country club, resort homes and various type is of attached housing. There are very few subdivisions north of Atlanta which have repeating floor plans. For this reason, comparables and adjustment data derived from this market will occasionally appear incongruous. The stability of this market is good, which can result in a slightly longer marketing time than in suburban counties of Atlanta. Overall, the subject area is growing, viable and expected to favorably affect the real estate market. Commercial and/or industrial development, if any, within the subject neighborhood is typically located primarily along major traffic arteries, and does not, in my opinion, adversely affect the subject property's value or marketability. Towns/Cities in Habersham County: Alto Baldwin Clarkesville Cornelia Demorest Mount Airy Toccoa LAND VALUE Land to appraised value ratio exceeds typical 30% guidelines and is typical for homes on acreage in rural areas. This is not seen as detrimental to subject's marketability, as evidenced by the comparables used in this report. USE OF THIS REPORT This appraisal has been prepared for the exclusive benefit of my client and/or its assigns. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report does so at his or her own risk. Any information contained herein will only be released with specific authorization from my client. Additional copies of this report and/or changing the client name in this report can only be executed with authorization from aforementioned client. DIGITAL PHOTOGRAPHY The digital images utilized in this report are true and accurate representations of the subject and comparable properties. These images have not been altered or augmented in any way. DIGITAL SIGNATURES The signatures included with report are digitally generated and should be considered legally binding and have the same force and effect as original ink signatures. All reports from Land & More, Inc. are originals from printers or computer files which are "locked" when signed so they cannot be tampered with. No photocopies of reports are made at Land & More, Inc. Digital signatures are applied to make it possible to transmit an entire report electronically. AIR CONDITIONING The subject does not have central air conditioning. The lack of central air is not seen as a functional utility item for this market warranting a functional obsolescence adjustment. Lack of this feature is fairly common in many homes in this market. No functional utility adjustment, therefore, was deemed appropriate for the absence of this feature. ENVIRONMENTAL DISCLAIMER The value estimated is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions unless otherwise stated in this report. The appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions. The appraiser s routine inspection and inquiries about the subject property did not develop information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the property negatively unless otherwise stated in this report. It is possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous substances or detrimental environmental conditions on or around the property that would negatively affect its value. LEAD PAINT Supplemental Addendum Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. All or part of the improvements were constructed before 1980 when Lead Paint was a common building material. There is no apparent visible or known documented evidence of peeling or flaking Lead Paint on the floors, walls or ceilings. The only way to be certain that the property is free of surface or subsurface Lead Paint is to have the subject inspected by a qualified inspector. The value estimate in this appraisal is based on the assumption that there is not flaking or peeling of Lead Paint on the property. UREA FORMALDEHYDE (UFFI) INSULATION Form TADD - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

20 Supplemental Addendum Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. All or part of the improvements were constructed before 1982 when UREA foam insulation was a common building material. The only way to be certain that the property is free of UREA formaldehyde is to have it inspected by a qualified UREA formaldehyde inspector. The value estimate in this appraisal is based on the assumption that there is no significant UFFI insulation or other UREA formaldehyde material on the property. PRIVATE ROADS & ROAD EASEMENTS The subject is on a privately maintained road. Generally, a private road implies a road easement over adjoining lots or property. This arrangement is not seen as an adverse situation as this is rather common for this area. No adjustments are felt to be warranted to allow for this in the Market Approach. It is assumed that a property road maintenance agreement is in force and that any easements are properly executed. GRAVEL OR DIRT ROADS Gravel roads are common and typical for this area. An adjustment, when believed appropriate, is taken in consideration in the Site/View category of the adjustment grid. In this case, none was made. INSPECTION OF SUBJECT The appraiser is responsible for considering all factors that have an impact on value in the development of the opinion of market value for the subject property. Fannie Mae requires the appraiser to express an opinion about the condition of the property improvements and the appraiser must report the condition of the improvements in factual, specific terms. Fannie Mae's expectation of the appraiser's property inspection for an appraisal based on an interior and exterior inspection is a complete visual inspection of the accessible areas of the property. The appraiser is responsible for noting in his or her report any adverse conditions (such as, but not limited to, needed repairs; deterioration; the presence of hazardous wastes, toxic substances, or adverse environmental conditions; etc.) that were apparent during the inspection of the property or that he or she became aware of during the research involved in performing the appraisal. The appraiser is expected to consider and describe the overall quality and condition of the property and identify items that require immediate repair as well as items where maintenance may have been deferred, which mayor may not require immediate repair. The appraiser is not responsible for hidden or unapparent conditions and should not consider the appraiser to be an expert in all fields, such as environmental hazards. In situations where an adverse property condition may be observed by the appraiser but the appraiser may not be qualified to decide whether that condition requires immediate repair (such as the presence of mold, an active roof leak, settlement in the foundation, etc.). The appraiser(s) ALWAYS recommend the property be inspection by a qualified professional. Fannie Mae permits an appraisal to be based on the "as-is" condition of the property as long as any minor conditions, such as deferred maintenance, do not affect the livability, soundness, or structural integrity of the property, and the appraiser's opinion of value reflects the existence of these conditions. Minor conditions and deferred maintenance include worn floor finishes or carpet, minor plumbing leaks, holes in window screens, or cracked window glass. Minor conditions and deferred maintenance typically are due to normal wear and tear from the aging process and the occupancy of the property. Such conditions generally do not rise to the level of a "required repair." Nevertheless, they must be reported. The appraiser must identify physical deficiencies that could affect the soundness, structural integrity, or livability of the property as part of his or her description of the physical condition of the property. These may include cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, inadequate electrical service or plumbing fixtures, etc. In situations where an adverse property condition may be observed by the appraiser but the appraiser may not be qualified to decide whether that condition requires immediate repair, the property must be appraised subject to an inspection by a qualified professional. In such cases, the lender must have the property inspected and any material conditions repaired before it delivers the mortgage loan to Fannie Mae. The appraiser may be asked to update his or her appraisal based on the results of the inspection, in which case the appraiser would incorporate the results of the inspection and measure the impact, if any, on his or her final opinion of market value. Fannie Mae All Rights Reserved. 11/1/05 In estimating the market value of the subject property every effort has been made to accurately reflect the physical condition of the improvements as of the date of the appraisal inspection. However, the appraiser is not qualified to render opinions as to the integrity or capacity of the structural, mechanical, electrical, or plumbing systems, nor does he/she warrant the conditions of these systems beyond those written observations included in the appraisal. It is recommended that the client obtain qualified opinions as to the condition or capacity of these systems. A formal home inspection report for the subject property was not provided to the appraiser. The appraiser assumes all mechanical, electrical, plumbing systems, and HVAC components are in adequate working order and that no foundation or structural problems exist and the roof system is in adequate condition. The appraiser does not have the skill or expertise needed to make an inspection on these items. If there are any questions concerning their condition or adequacy, they should be answered by a structural engineer or systems specialist. The appraiser could not verify the exact insulation "R" rating. It is assumed insulation of the subject property is adequate unless otherwise stated. An appraisal is not a home inspection and the appraiser is not acting as a home inspector when preparing the report. The borrower has the right and the appraiser recommends having the home inspected by a professional home inspector. While observing the subject property, the appraiser visually inspected areas that were readily accessible. The appraiser is not required to disturb or move anything that obstructs access or visibility. The inspection is not technically exhaustive. The visual inspection does not offer warranties or guarantees of any kind. SOURCE FOR COST FIGURES/ADJUSTMENTS Adjustments to comparables were based on rounded depreciated "cost figures. Land and More, Inc. performs, on average, 2-5 "construction" appraisals per month. The cost figures used in the "Cost Section" of the URAR were based on figures obtained from these "construction" appraisals. It is my/our opinion that the figures from actual construction costs are more accurate and are more responsive to actual changes in the cost of materials in the market than a national cost estimating service. The gross living area (GLA) calculations for the subject property are based on the measurement of the exterior and interior dimensions during the physical inspection of the subject property. When interior/exterior measuring is physically impossible, the dimensions from public records (tax assessor) are used. The gross living area (GLA) includes all areas located on the interior of the subject property which are heated, cooled, finished and above grade with adequate fenestration. All other areas have been excluded and have been considered as additions to the gross living area. "Drive-by" GLA is based on the best available tax records since no interior inspection was made. The additions and extras may include the following: special lighting, terrace, patio, deck, breezeway, kitchen appliances, swimming pool, fireplaces, porch, stoop, surface grill, built-ins, lawn sprinkler system, special floor coverings, special wall/ceiling configuration, ceiling fan, garage, guest quarters, zoned heating/air condition, special fenestration, special doors, special energy efficient items, security system, interior vacuum system and special trim/molding. Consideration was given to the accrued physical depreciation which is usually defined as normal wear and ter to the improvement and is Form TADD - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

21 acceptable to the market. No functional (lay-out) or external (outside) obsolescence was considered to be significant and had no influence on the market value of the subject property, unless otherwise stated. Site improvements "as is" (concrete/brick driveway, landscaping, concrete/brick walkway, parking areas, retaining walls, fences) were taken into consideration and noted in the cost approach to value. The consideration value given may not be the actual cost of these improvements, but rather what the typical buyer would pay for the existing improvements. Replacement cost new estimates used in the cost approach are for valuation purposes only. The lender/client should not rely on these estimates for insurance purposes. The definition of "market value" contained in this appraisal report is not consistent with the definition of "insurable value". Effective Age The depreciated segregated cost adjustment in the Actual Age/Effective Age category of the URAR was determined to be approximately $2,500 per 10 year difference and is considered reasonable. Gross Living Area (GLA) The depreciated segregated cost adjustment in the Gross Living Area (GLA) category of the URAR was determined to be approximately $20.00 per square foot depending upon the depreciation considered. Bedrooms and Bath Fixtures The depreciated segregated cost adjustment in the Bath category of the URAR was determined to be approximately $ per fixture and is considered reasonable. The adjustment for differences in Bedrooms is adjusted for in the GLA category. Basement The depreciated segregated cost adjustment in the Unfinished Basement Area category of the URAR was determined to be approximately $4.00 per square foot and is considered reasonable. The depreciated segregated cost adjustment in the Finished Basement Area category of the URAR was determined to be approximately $8.00 per square foot and is considered reasonable. Garage/Carport The depreciated segregated cost adjustment in the Garage/Carport category of the URAR was determined to be approximately $4,000 for a 2 car attached garage. Porch/Deck/Patio The depreciated segregated cost adjustment in the Porch/Deck/Patio category of the URAR was determined to be approximately $25.00/SF for porches, $12.00/SF for decks, and $10.00/SF for patios and is considered reasonable. Cost adjustments, when used, often exceed gross and net percentages of the 25%/15% levels specified by mortgage guidelines. Gross percentages especially often exceed the 25% level because many more cost adjustments are made using this method. INTENDED USER OF APPRAISAL The Intended User of this appraisal report is the Lender/Client. The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the appraiser. SCOPE OF THE APPRAISAL The property has been identified through an inspection and through such documents as a legal description, address, map reference, survey, property sketch or photographs. The scope of this appraisal includes an analysis of the site and the existing improvements. The surrounding neighborhood and trends are considered in the analysis. Within the valuation section of the report, the sales comparison approach is utilized. Information pertinent to the sales of comparable properties may have been obtained using local multiple listing services, agents/brokers, appraisers, enota report, public records, and personal inspections. The sales information has been verified through recorded deeds, tax records, exterior inspection and with parties of the transaction when possible. The report is intended to conform with: USPAP, FIRREA, Fannie Mae & Freddie Mac, HUD/FHA, Rural Developments guidelines. Any findings contrary to the assumptions or stated observations included in this report could affect the estimated market value. It should be noted that the appraised value stated in this appraisal is the most likely of a broad range of values. Other values have been considered but discarded as not the most likely value due to the current circumstances of the subject property. Should these circumstances be altered in the future (that is a change in the physical attributes of the subject property or a change in economic conditions affecting subject property) then market value of the subject property would also be altered. COMPARABLE SEARCH AND RESULTS Supplemental Addendum Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. My Comparable Search and Results criteria included performing a search-proximity or distance from the subject, lot size, quality, age, room count, gross living area, basement, additional structures, etc. The goal of any appraiser is to locate the most appropriate, similar, recent sales for a report. Our first concern in searching for comps is physical similarity. Similarity is comprised of several categories like heated living area, size, features such as parking facilities, basements, style and quality of the home, and finally land value and its contribution to the value of the subject. Other things also dictate which comparables are used as better than others. For example, overall adjustment ratios, distance to sales, and how recent the transactions occurred play a significant role. In the case of this report, as with all others, we have selected the most suitable sales now known to be available. In areas where there numerous comparable sales are not available our goal is to find the best comparable sales available. The subject is a rustic log home on 9.07 acres with frontage on a small private lake. Its appeal is its private setting and lake frontage. Appraiser used similar log homes and similar rustic homes on acreage in subject's market area. The gross/net/line adjustment ratios for can sometimes exceed the current mortgage guidelines and is typical for homes in rural areas, especially on large acreage. As stated earlier, this market sometimes has a lack of market activity, which reduced the number of comparables available for usage. This factor almost always results in higher numbers of adjustments, higher adjustment amounts, higher distances and older dates on comparables. In this case, the comparables selected are felt to be quite similar and good indicators of the market value range of the subject. As a point of clarification, the subject is in an area of typically distant comparable sales. Sales, at times, come from pockets of market activity. In more rurally located properties, homes sell sporadically and must be considered if potentially competing to the subject. Thus, the marketing area of the subject is not only the whole section of the county in which it is located (county wide, in most situations) but due to local Realtors Form TADD - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

22 having MLS it would compete against other listing in a wide several county area. Realtors, for example, would show homes to potential buyers based on the type home desired, despite distances between them. In most instances, distances to comparables are considered further than in more suburban or metropolitan areas. Of course, this is typical of the area and is expected. No known detriment or other adverse market reaction has been observed for home in this setting, other than longer marketing times. APPRAISAL FEE Per GA LAW: (1) in developing and reporting an appraisal of real property, an appraiser shall not: (r) if paid by a third party, fail to include the fee paid for the appraisal assignment and; if ordered by an appraisal management company, the registration number of that appraisal management company. SOURCE: Taken from the Georgia Standard for Appraisals - Chapter (1)(c) 1. dl, Georgia Real Estate Appraiser Classification and Regulation Act and the Rules and Regulations of the Georgia Real Estate Appraisers Board as amended August 1, Appraisal fee paid by AIMS for this assignment to appraiser is $ GA State Registration # unknown. CERTIFICATION of APPRAISER INDEPENDENCE Supplemental Addendum Borrower/Client Property Address City ARENA, THOMAS MICHAEL Clarkesville County HABERSHAM State GA Zip Code Lender WOLFE FINANCIAL, INC. I certify, as the appraiser, that I have completed all aspects of this valuation, including reconciling my opinion of value, free of influence from the client, client's representatives, borrower, or any other party to the transaction. Form TADD - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

23 SKETCH Form SCNLGL - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

24 SKETCH Form SCNLGL - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

25 PLAT Form SCNLGL - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

26 DEED Form SCNLGL - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE

27 AERIAL TAX MAP Form SCNLGL - "TOTAL 2011" appraisal software by a la mode, inc ALAMODE