APPRAISAL OF LOCATED AT:

Transcription

1 - Family File No. Appraisal of four-plex APPRAISAL OF LOCATED AT: Layton, UT CLIENT: UT AS OF: August 6, 01 BY:

2 - Family File No. Appraisal of four-plex UT File Number: Appraisal of four-plex In accordance with your request, I have appraised the real property at: Layton, UT The purpose of this appraisal is to develop an opinion of the defined value of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements. In my opinion, the defined value of the property as of August 6, 01 is: 70,000 Two Hundred Seventy Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, final opinion of value, descriptive photographs, assignment conditions and appropriate certifications.

3 Lifferth Appraisal Company Inc. - Family PURPOSE Small Income Property Appraisal Report The purpose of this appraisal report is to provide the client with a credible opinion of the defined value of the subject property, given the intended use of the appraisal. Client Name/Intended User Client Address Logan City State UT Additional Intended User(s) The intended user is the named client, but it is understood that others may read this report. SUBJECT Intended Use SALES HISTORY File No. Appraisal of four-plex Zip The intended use of this report is for divorce proceedings. Property Address Owner of Public Record Legal Description Assessor's Parcel # Neighborhood Name Lakewood City Layton State UT County Davis Zip Tax Year 013 Map Reference County R.E. Taxes Census Tract Property Rights Appraised X Fee Simple Leasehold Other (describe) My research did X did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. Prior Sale/Transfer: Date Price Source(s) Analysis of prior sale or transfer history of the subject property (and comparable sales, if applicable) None of the properties have sold in the year prior to the date of the reported sale. The subject has not transferred ownership in the previous 3 years. Offerings, options and contracts as of the effective date of the appraisal No offerings, options or contracts are outstanding on the property of which I am aware. Neighborhood Characteristics NEIGHBORHOOD Location Urban Built-Up X Over 75% Growth Rapid X Suburban - Unit Housing Trends Property Values Demand/Supply Marketing Time Shortage Under 3 mths - Unit Housing X Stable X In Balance Over Supply X Over 6 mths PRICE (000) Present Land Use % 60 % 5% 3-6 mths 105 Low 5% Neighborhood Boundaries See Attached Addendum 658 High 7 Commercial 0 % 50 Pred. 3 Other VctLnd 10 % Neighborhood Description Homes in the neighborhood vary in age, style, construction quality, and overall appeal, but are compatible with one another. Schools, houses of worship and city parks are available nearby. Major shopping and employment opportunities are available 1 mile to the southeast in Layton City. There is a good road system in the area and access is convenient. 5-75% X Stable Rural Under 5% Slow AGE (yrs) One-Unit - Unit 16 Multi-Family Market Conditions (including support for the above conclusions) The attached Market Conditions form shows the data from the competitive market and provides the support for the above conclusions. Dimensions Irregular - see attached plat Specific Zoning Classification R-M1 Area 1106 Sq.Ft. Shape Mostly Rectangular Zoning Description MultiFamily, 8,000 sf min Zoning Compliance X Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe) Is the highest and best use of the subject property as improved (or as proposed per plans and specifications) the present use? X View No If No, describe. The current use, SITE which is residential, is considered to be the highest and best use. Utilities Public Other (describe) Public Other (describe) Public Private X Water X Street Asphalt X X Sanitary Sewer X Alley The site is mostly level at grade and is improved with the dwelling, a carport, driveway spaces, sod, curb and gutter and mature trees. A minor settlement crack was observed on the exterior of the dwelling. No additional indication of settlement was observed. No adverse site conditions were observed that may effect living conditions or value. GENERAL DESCRIPTION FOUNDATION EXTERIOR DESCRIPTION Units Two Three X Four Concrete Slab Crawl Space Accessory Unit (describe below) Full Basement Partial Basement # of Stories # of bldgs. 1 Basement Area 0 sq. ft. Type Det. Att. S-Det./End Unit Basement Finish % X Existing Proposed Under Const. Outside Entry/Exit Sump Pump Design (Style) -Plex Evidence of Infestation Year Built 1978 Dampness Settlement Heating/Cooling Effective Age (Yrs) 0 IMPROVEMENTS Off-site Improvements Type Electricity Gas Site Comments Attic Drop Stair Floor X Finished # of Appliances Refrigerator Unit # 1 contains: None Stairs Scuttle Heated materials Concrete / Avg Brick,Siding/Avg Asphalt Shing/Avg Aluminum / Avg Thermopane/Avg None/Assmd/Avg WireMesh/Avg Amenities INTERIOR materials Floors Walls Trim/Finish Bath Floor Bath Wainscot Cpt,CT,Vnl/Avg Drywall / Avg Painted / Avg Tile,Vinyl / Avg CT / Avg Car Storage None X Driveway # of Cars X FWA Range/Oven Rooms Unit # contains: Rooms Unit # 3 contains: Rooms Unit # contains: Rooms Additional features See Attached Addendum Comments on the Improvements Foundation Walls Exterior Walls Roof Surface Gutters & Downspouts Window Type Storm Sash/Insulated Screens HW Radiant Fireplace(s) # 0 WoodStove(s) # 0 Driveway Surface Asphalt Other Fuel Gas Patio/Deck None Fence None Garage # of Cars 0 Central Air Conditioning Pool None X Porch Concrete X Carport # of Cars Individual X Other EvapClr Other None Att. X Det. Dishwasher Disposal Microwave Washer/Dryer Other (describe) Bedroom(s) Bath(s) 911 Square feet of Gross Living Area Bedroom(s) Bedroom(s) Bedroom(s) Bath(s) Bath(s) Bath(s) Built-in 911 Square feet of Gross Living Area 877 Square feet of Gross Living Area 877 Square feet of Gross Living Area See Attached Addendum Produced using ACI software, Page 1 of 3 This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 01/007 GPAR105_

4 Lifferth Appraisal Company Inc. - Family Small Income Property Appraisal Report File No. Appraisal of four-plex The following properties represent the most current, similar, and proximate comparable rental properties to the subject property. This analysis is intended to support the opinion of the market rent for the subject property. FEATURE COMPARABLE RENTAL DATA Address Layton Proximity to Subject Current Monthly Rent Rent/Gross Bldg. Area Rent Control Data Source(s) Date of Lease(s) Location Actual Age Condition Gross Building Area Unit Breakdown Unit # 1 Unit # Unit # 3 Unit # Utilities Included SUBJECT COMPARABLE RENTAL NO. 1 COMPARABLE RENTAL NO N Layton, UT miles NE 7 S 150 W Clearfield, UT miles NW, sq. ft. X No Owner on Record N/A 36 Average 3578 sq.ft. WFRMLS#11578;DOM Unk N/A 37 Average-Good 3,3 WFRMLS#113573;DOM Unk 1 Month Lease 30 Average 3,380 WFRMLS#106386;DOM Unk 9 Month Lease 3 Average 3,616 Rm Count Tot Br Ba Rm Count Tot Br Ba Rm Count Tot Br Ba Rm Count Tot Br Ba Size Sq. Ft water,sewer,trash 0 Fplcs Minimal Fireplaces Extras COMPARABLE RENTAL NO W Layton, UT miles NW 0.00 sq. ft. No Size Sq. Ft water,sewer,trash Fplcs Minimal Monthly Rent sq. ft. No Size Sq. Ft water,sewer,trash 0 Fplcs Minimal Monthly Rent sq. ft. No Size Sq. Ft water,sewer,trash 0 Fplcs Minimal Monthly Rent Analysis of rental data and support for estimated market rents for the individual subject units reported below (including the adequacy of the comparables, rental concessions, etc.) Units of similar location, size and condition are currently rented at a marginally increased rate than the subject. For this reason the market rent is rounded up to 600 per unit with two bedrooms and 575 per lower unit with two bedroom. There is a reduced market rent for the lower units for lack of air conditioning. Rent Schedule: The appraiser must reconcile the applicable indicated monthly market rents to provide an opinion of the market rent for each unit in the subject property. Leases Actual Rents SUBJECT RENT SCHEDULE Lease Date Unit # 1 3 Begin Date Opinion Of Market Rent Per Unit End Date Month to Month Month to Month Month to Month Month to Month Comment on lease data Owner typically has tenants sign a year least but exceptions have been made through renovations. Unfurnished Total Furnished Per Unit Rents Total Actual Monthly Rent Other Monthly Income (itemize) Total Actual Monthly Income Unfurnished Total Furnished Rents ,65 Total Gross Monthly Rent Other Monthly Income (itemize),65 Total Estimated Monthly Income ,30,30 Utilities included in estimated rents Electric X Water X Sewer Gas Oil Cable X Trash collection Other (describe) Comments on actual or estimated rents and other monthly income (including personal property) No units include personal property in the monthly rent schedule. The lower units are rented at a lower rate due to reduced appeal and lack of air conditioning. The location of this duplex is less desirable than other available units in the market area. For this reason the asking rental rate is reduced as compared to areas with increased appeal. Units of similar location, size and condition are currently rented at a marginally increased rate than the subject. For this reason the market rent is rounded up to 600 for the upper units vs 570 for the lower units. COST APPROACH TO VALUE COST APPROACH Site Value Comments 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 3,578 Sq. = Sq. = The cost approach to value is not applicable in this instance because of the age of the improvements and the depreciation factor. Garage/Carport 0 Total Estimate of Cost-New Less Physical Depreciation Sq. Functional = = External = ( Depreciated Cost of Improvements = "As-is" Value of Site Improvements = = 0 ADDITIONAL COMMENTS INDICATED VALUE BY COST APPROACH ) 0 Produced using ACI software, Page of 3 This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 01/007 GPAR105_

5 Lifferth Appraisal Company Inc. - Family Small Income Property Appraisal Report FEATURE SUBJECT 97, sq. ft, N/A 7,50 N/A 18,563 N/A 37,15 X No X No WFRMLS#11578;DOM Unk Doc# /31/01 DESCRIPTION SALES COMPARISON APPROACH Date of Sale/Time Location Leasehold/Fee Simple Site View Fee Simple 1106 Sq.Ft. Design (Style) -Plex Quality of Construction Brick;Siding Actual Age 36 Condition Average Gross Building Area ,578 sq.ft. Total Bdrms. Baths DESCRIPTION Bdrms. 0-5,000-0,000,500 Baths Basement Description 0sf0sf Basement Finished Rooms 0rr0br0.0ba0o 0rr0br0.0ba0o Functional Utility Good Good Heating/Cooling GFWA/EvapClr GFWA/EvapClr Energy Efficient Items Thermopane Thermopane Parking On/Off Site Car Carport Car Carport Porch/Patio/Deck Porch Porch Fireplaces 0 Fplcs Fplcs Extras Storage Storage Landscaping Lndscp Lndscp Net Adjustment (Total) + X Adjusted Sale Price Net Adj. -8. % of Comparables Gross Adj % Adj. Price Per Unit (Adj. SP Comp / # of Comp Units) 68,15 Adj. Price Per Room ((Adj. SP Comp / # of Comp Rooms) 17,031 Adj. Price Per Bdrm. (Adj. SP Comp / # of Comp Bedrooms) 3,063 Summary of Sales Comparison Approach See Attached Addendum 7 S 150 W Clearfield, UT miles NW 65, sq. ft 1, ,50 16,563 33,15 X No WFRMLS#113573;DOM Unk Doc#795 03//01 +(-) Adjustment Conventional Concessions s03/1;unk Fee Simple sf Split-Level Brick 37 Average-Good 3,3 Total COMPARABLE SALE NO N Layton, UT miles NE 0.00 sq. ft,65 Data Source(s) Verification Source(s) VALUE ADJUSTMENTS Sale or Financing Concessions Unit Breakdown Unit # 1 Unit # Unit # 3 Unit # COMPARABLE SALE NO W Layton, UT miles NW Address Layton Proximity to Subject Sale Price Sale Price/Gross Bldg. Area Gross Monthly Rent Gross Rent Multiplier Price Per Unit Price Per Room Price Per Bedroom Rent Control COMPARABLE SALE NO. 1 File No. Appraisal of four-plex DESCRIPTION +(-) Adjustment Cash Concessions s03/1;unk Fee Simple 1136 sf Split-Level Vinyl;Stucco 30 Average 3,360 Total Bdrms. 8, sq. ft, ,000 17,750 35,500 X No WFRMLS#106386;DOM Unk Doc# /5/01 0 5,000-10,000 6,500 Baths DESCRIPTION Total 0sf0sf 0rr0br0.0ba0o Good GFWA/EvapClr Thermopane Car Carport Porch -,000 0 Fplcs Storage Lndscp,500 X + Net Adj. 0.6 % 7,500 Gross Adj. 8.1 % 66,65 16,656 33,313 +(-) Adjustment Cash Concessions s07/1;unk Fee Simple sf Split-Level Brick;Siding 3 Average 3,616 Bdrms. 0-10,000-1,000 Baths 0sf0sf 0rr0br0.0ba0o Good GFWA/EvapClr Thermopane 8 Car Carport Porch 0 Fplcs Storage Lndscp 1,500 + X Net Adj. -.6 % 66,500 Gross Adj..6 % 67,750 16,938 33,875 -,000 13,000 71,000 INCOME APPROACH TO VALUE RECONCILIATION INCOME Estimated Monthly Market Rent,30.00 X Gross Rent Multiplier = 71,0 Indicated Value by Income Approach Summary of Income Approach (including support for market rent and GRM) The market rent was extracted through Comparable Rental data available in the immediate area. In most cases, rented units of similar condition and size were renting at a marginally increased rate than that of the subject. For this reason the market rent applied to the subject was rounded upwards to 600 for upper units and 570 for lower units. The gross rent multiplier was extracted through market data available on the Comparable Rental Properties. Rentals 1, 3 & indicate a tight range from for the GRM. Due to the property condition the lower range was selected to determine the market GRM for Income Approach to value for the subject. Indicated Value by: Sales Comparison Approach 70,000 Cost Approach (if developed) 0 Income Approach (if developed) 71,0 The value is based on the sales approach, but the income approach lends good support. The cost approach was not used due to age of the improvements and the depreciation factor. The scope of the appraisal includes the appraisal process except as noted. The intended client is shown herein. The purpose of the appraisal is to estimate the value for divorce proceedings. This appraisal is made X "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: Based on the scope of work, assumptions, limiting conditions and appraiser's certification, my (our) opinion of the defined value of the real property that is the subject of this report is 70,000 as of, which is the effective date of this appraisal. 08/6/01 Produced using ACI software, Page 3 of 3 Lifferth Appraisal Company This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 01/007 GPAR105_

6 Lifferth Appraisal Company Inc. Small Income Property Appraisal Report FEATURE Address Layton Proximity to Subject Current Monthly Rent Rent/Gross Bldg. Area Rent Control Data Source(s) Date of Lease(s) Location Actual Age Condition Gross Building Area Unit Breakdown Unit # 1 Unit # Unit # 3 Unit # Utilities Included Fireplaces Extras SUBJECT COMPARABLE RENTAL NO. COMPARABLE RENTAL NO. 5 - Family File No. Appraisal of four-plex COMPARABLE RENTAL NO W Clearfield, UT miles NW, sq. ft. X No Owner on Record N/A 36 Average 3578 sq.ft. X No WFRMLS#107067;DOM Unk 9 Month Lease/Month to Month 3 Average 3,65 Rm Count Tot Br Ba Rm Count Tot Br Ba Size Sq. Ft water,sewer,trash 0 Fplcs Minimal 0.00 sq. ft. Size Sq. Ft water,sewer,trash 0 Fplcs Minimal Monthly Rent Rm Count Tot Br Ba No Size Sq. Ft sq. ft. Monthly Rent Rm Count Tot Br Ba sq. ft. No Size Sq. Ft. Monthly Rent COMPARABLE RENTAL DATA Analysis of rental data. FEATURE Address Layton Proximity to Subject Current Monthly Rent Rent/Gross Bldg. Area Rent Control Data Source(s) Date of Lease(s) Location Actual Age Condition Gross Building Area Unit Breakdown Unit # 1 Unit # Unit # 3 Unit # Utilities Included Fireplaces Extras SUBJECT COMPARABLE RENTAL NO. 7, sq. ft. X No Owner on Record N/A 36 Average 3578 sq.ft. Rm Count Tot Br Ba Size Sq. Ft water,sewer,trash 0 Fplcs Minimal Rm Count Tot Br Ba COMPARABLE RENTAL NO. 8 sq. ft. No Size Sq. Ft. Monthly Rent Rm Count Tot Br Ba COMPARABLE RENTAL NO. 9 sq. ft. No Size Sq. Ft. Monthly Rent Rm Count Tot Br Ba sq. ft. No Size Sq. Ft. Monthly Rent Analysis of rental data. Produced using ACI software, Additional Comparables This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 01/007 GPAR105_

7 Lifferth Appraisal Company Inc. - Family Small Income Property Appraisal Report FEATURE SUBJECT Address Layton Proximity to Subject Sale Price Sale Price/Gross Bldg. Area Gross Monthly Rent Gross Rent Multiplier Price Per Unit Price Per Room Price Per Bedroom Rent Control 90, sq. ft, N/A 7,500 N/A 18,15 N/A 36,50 X No X No WFRMLS#107067;DOM Unk Doc# /15/01 DESCRIPTION Date of Sale/Time Location Leasehold/Fee Simple Site View Fee Simple 1106 Sq.Ft. Design (Style) -Plex Quality of Construction Brick;Siding Actual Age 36 Condition Average Gross Building Area ,578 sq.ft. SALES COMPARISON APPROACH Basement Description Basement Finished Rooms Functional Utility Heating/Cooling Energy Efficient Items Parking On/Off Site Porch/Patio/Deck Fireplaces Extras Landscaping Total Bdrms. Baths 0rr0br0.0ba0o Good GFWA/EvapClr Thermopane Car Carport Porch 0 Fplcs Storage Lndscp Net Adjustment (Total) Adjusted Sale Price of Comparables Adj. Price Per Unit (Adj. SP Comp / # of Comp Units) Adj. Price Per Room ((Adj. SP Comp / # of Comp Rooms) Adj. Price Per Bdrm. (Adj. SP Comp / # of Comp Bedrooms) Summary of Sales Comparison Approach. DESCRIPTION Bdrms. 99, sq. ft 1, ,750 18,688 37,375 X No WFRMLS#10310;DOM Unk No Doc Found +(-) Adjustment Conventional Concessions s05/1;unk Fee Simple sf Split-Level Brick;Siding 3 Average 3,65 Total COMPARABLE SALE NO. 5 DESCRIPTION +(-) Adjustment L/S Ratio -5,000 MedianSlrCncs Active Fee Simple 1136 sf Split-Level Brick;Siding 33-10,000 Average -,500 3,63 Baths sf0sf 0rr0br0.0ba0o Good GFWA/EvapClr Thermopane 8 Car Carport Porch 0 Fplcs Storage Lndscp + X Net Adj % Gross Adj. 6.7 % 67,65 16,906 33,813 COMPARABLE SALE NO N Layton, UT miles NE 0.00 sq. ft,65 Data Source(s) Verification Source(s) VALUE ADJUSTMENTS Sale or Financing Concessions Unit Breakdown Unit # 1 Unit # Unit # 3 Unit # COMPARABLE SALE NO. 17 S 150 W Clearfield, UT miles NW File No. Appraisal of four-plex Total Bdrms. Additional Comparables sq. ft No DESCRIPTION +(-) Adjustment -5,000-5,000-10,000-1,500 Baths Total sf0sf 0rr0br0.0ba0o Good GFWA/CAC Thermopane -,000 Car Carport Porch 0 Fplcs Storage Lndscp 19,500 + X Net Adj % 70,500 Gross Adj. 8.5 % 68,375 17,09 3,188 Produced using ACI software, Bdrms. Baths -,000 X + Net Adj. 73,500 Gross Adj. 5, % 0.0 % - 0 This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 01/007 GPAR105_

8 ADDENDUM Case No.: - Family Neighborhood Boundaries The immediate neighborhood can be defined as: 5600 S. on the north; Highway 89 on the east; Shepard Lane in Kaysville on the south; 000 W. on the west. The market area is the same as the neighborhood and is used for the statistics in the neighborhood section and the 100MC form. Additional Features Unit 1 has a ceiling fan in the dining area. The site includes a 36'x19.5' covered parking area. This covered parking area provides one space of parking for each unit. However, there is no assigned parking space. There are four smaller storage spaces attached to the carport that are in fair condition. No other additional features were observed upon inspection. Comments on the Improvements The exterior of the building is in average condition with good utility. The upper floor features evaporative cooling systems while the bottom floor units do not have affixed cooling systems in place. A minor settlement crack was observed on the west side of the dwelling. However, there was no indication on interior wall damage from the settlement. Each unit's condition is considered on a case by case basis below: Unit 1: All flooring and wall coverings are in average condition. Flooring in the bathroom and kitchen feature cracks in multiple tiles. The bedroom door handle is missing along with some door trim near the front door of the unit. All windows are in average condition. The kitchen features a hood, range/oven, disposal and dishwasher. All appliances are in average condition. Unit : There is new paint throughout Unit. Carpet is absent in the living area and both bedrooms. The tile was replaced in the bathroom within the previous three years. The vinyl flooring was recently replaced in the kitchen and dining area. All windows are in average condition. The kitchen features a range/oven and a built-in disposal. The range/oven is not currently installed but is present. There is no dishwasher present at this time. All appliances are in average condition. Unit 3: Water damage is present throughout the majority of the apartment. The bathroom features damage along the ceiling and some of the walls due to a single act of overflooding the bathtub in Unit 1. A pipe in the utility closet recently broke and flooded the living room area. At the time of inspection, Unit 3 had a strong mildew odor due to the water damage. Additionally, the carpet in the living area needs to be replaced due to prolonged water exposure. The kitchen features a range/oven, disposal and dishwasher. All appliances are in average condition with the exception of the range/oven. The owner disclosed that this appliance needs to be replaced. Unit : Unit features newer paint and doors in the bedrooms. New tile was installed in the kitchen and dining area within the previous four years. New vinyl flooring was added to the bathroom within the previous year. A small amount of water leaked into Unit from the broken pipe in Unit 3. No prolonged damage is present. The living room has many stains present on the carpet but is overall in average condition. The kitchen features a built-in microwave, range/oven, disposal and dishwasher. Summary of Sales Comparison Approach The Comparable Properties bracket the subject in Adjusted Sales Price. Comparable Sales 3 & are located over a mile away and have been used due to the lack of data available in the immediate area. A cost estimate to repair all deferred maintenance present throughout the dwelling is estimated at 10,000. None of the Comparable Properties indicate a similar amount of deferred maintenance through the data presented on the multiple listing service. Therefore, a condition adjustment of at least 10,000 has been applied across the grid for a superior condition. A paired sales analysis indicates a contributory value adjustment of 500 for additional carport spaces, 1,000 per gas fireplace insert and 30 per square foot of GLA. Each Comparable has been adjusted, per these findings. Comp 1 is smaller in GLA and has been adjusted upward accordingly. In addition to the value adjustments indicated above, a quality of construction adjustment has been made, by way of paired sales analysis, for the complete brick finish on the exterior. Comp 1 is also in far superior condition because of updating to flooring, paint, kitchens and bathrooms in some units throughout the complex as observed in photos through the multiple listing service. Comp is smaller in GLA and has been adjusted upward accordingly. In addition to the value adjustments indicated above, a quality of construction adjustment has been made, by way of paired sales analysis, for inferior materials used in the exterior finish. Comp 3 is larger in GLA and has been adjusted downward accordingly. All additional adjustments are made according to contributory conditions above. Comp is larger in GLA and has been adjusted downward accordingly. All additional adjustments are made according to contributory conditions above. The final value is based on Comp as it is a recent sale and has the smallest number of net adjustments. However, the final value has been rounded up to 70,000 due to the upward pull of the other comparable sales. Addendum Page 1 of 1

9 - Family File No. Appraisal of four-plex Scope of Work, Assumptions and Limiting Conditions Scope of work is defined in the Uniform Standards of Professional Appraisal Practice as " the type and extent of research and analyses in an assignment." In short, scope of work is simply what the appraiser did and did not do during the course of the assignment. It includes, but is not limited to: the extent to which the property is identified and inspected, the type and extent of data researched, the type and extent of analyses applied to arrive at opinions or conclusions. The scope of this appraisal and ensuing discussion in this report are specific to the needs of the client, other identified intended users and to the intended use of the report. This report was prepared for the sole and exclusive use of the client and other identified intended users for the identified intended use and its use by any other parties is prohibited. The appraiser is not responsible for unauthorized use of the report. The appraiser's certification appearing in this appraisal report is subject to the following conditions and to such other specific conditions as are set forth by the appraiser in the report. All extraordinary assumptions and hypothetical conditions are stated in the report and might have affected the assignment results. 1. The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or title thereto, nor does the appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership.. Any sketch in this report may show approximate dimensions and is included only to assist the reader in visualizing the property. The appraiser has made no survey of the property. 3. The appraiser is not required to give testimony or appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been previously made thereto.. Neither all, nor any part of the content of this report, copy or other media thereof (including conclusions as to the property value, the identity of the appraiser, professional designations, or the firm with which the appraiser is connected), shall be used for any purposes by anyone but the client and other intended users as identified in this report, nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media, without the written consent of the appraiser. 5. The appraiser will not disclose the contents of this appraisal report unless required by applicable law or as specified in the Uniform Standards of Professional Appraisal Practice. 6. Information, estimates, and opinions furnished to the appraiser, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished to the appraiser is assumed by the appraiser. 7. The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The appraiser assumes no responsibility for such conditions, or for engineering or testing, which might be required to discover such factors. This appraisal is not an environmental assessment of the property and should not be considered as such. 8. The appraiser specializes in the valuation of real property and is not a home inspector, building contractor, structural engineer, or similar expert, unless otherwise noted. The appraiser did not conduct the intensive type of field observations of the kind intended to seek and discover property defects. The viewing of the property and any improvements is for purposes of developing an opinion of the defined value of the property, given the intended use of this assignment. Statements regarding condition are based on surface observations only. The appraiser claims no special expertise regarding issues including, but not limited to: foundation settlement, basement moisture problems, wood destroying (or other) insects, pest infestation, radon gas, lead based paint, mold or environmental issues. Unless otherwise indicated, mechanical systems were not activated or tested. This appraisal report should not be used to disclose the condition of the property as it relates to the presence/absence of defects. The client is invited and encouraged to employ qualified experts to inspect and address areas of concern. If negative conditions are discovered, the opinion of value may be affected. Unless otherwise noted, the appraiser assumes the components that constitute the subject property improvement(s) are fundamentally sound and in working order. Any viewing of the property by the appraiser was limited to readily observable areas. Unless otherwise noted, attics and crawl space areas were not accessed. The appraiser did not move furniture, floor coverings or other items that may restrict the viewing of the property. 9. Appraisals involving hypothetical conditions related to completion of new construction, repairs or alteration are based on the assumption that such completion, alteration or repairs will be competently performed. 10. Unless the intended use of this appraisal specifically includes issues of property insurance coverage, this appraisal should not be used for such purposes. Reproduction or Replacement cost figures used in the cost approach are for valuation purposes only, given the intended use of the assignment. The Definition of Value used in this assignment is unlikely to be consistent with the definition of Insurable Value for property insurance coverage/use. 11. The ACI General Purpose Appraisal Report (GPAR ) is not intended for use in transactions that require a Fannie Mae 105/Freddie Mac 7 form, also known as the Small Income Property Appraisal Report (- Family). Additional Comments Related To Scope Of Work, Assumptions and Limiting Conditions The scope of the appraisal included the entire appraisal process, except it was determined that the cost approach was not applicable due to the age age of the home and the depreciation factor. The assistance of Eric Larsen is acknowledged in the preparation of this report. He searched public and other records for information about the home. He measured the home and drew the floor plan included herein. He took photos and assisted in the valuation process. Final comparable selection and adjustments were made by Gentry Lawson. The final value conclusion was derived by Gentry Lawson. Clarification of Intended Use and Intended User: The Intended User of this appraisal report is the Client. The Intended Use is to evaluate the property that is the subject of this appraisal for divorce purposes, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. The intended user is the named client, but it is understood that others may read this report. Produced using ACI software, Page 1 of This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 05/007 GPARLIM105_

10 - Family File No. Appraisal of four-plex Appraiser's Certification The appraiser(s) certifies that, to the best of the appraiser's knowledge and belief: 1. 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 the appraiser's personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. Unless otherwise stated, the appraiser has no present or prospective interest in the property that is the subject of this report and has no personal interest with respect to the parties involved.. The appraiser has no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. The appraiser's engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. The appraiser's 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. 7. The appraiser's analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 8. Unless otherwise noted, the appraiser has made a personal inspection of the property that is the subject of this report. 9. Unless noted below, no one provided significant real property appraisal assistance to the appraiser signing this certification. Significant real property appraisal assistance provided by: Additional Certifications: Definition of Value: X Market Value Other Value: Source of Definition: The Dictionary of Real Estate, pp. 177 The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. ADDRESS OF THE PROPERTY APPRAISED: Layton, UT EFFECTIVE DATE OF THE APPRAISAL: 08/6/01 APPRAISED VALUE OF THE SUBJECT PROPERTY 70,000 APPRAISER SUPERVISORY APPRAISER Signature: Name: State Certification # CR00 or License # or Other (describe): Signature: Name: State Certification # or License # State: State #: Expiration Date of Certification or License: 03/31/015 Date of Signature and Report: 09/1/01 Date of Property Viewing: 08/6/01 Degree of property viewing: X Interior and Exterior Exterior Only Expiration Date of Certification or License: Date of Signature: Date of Property Viewing: Degree of property viewing: Interior and Exterior Exterior Only Did not personally view Did not personally view Produced using ACI software, Page of Lifferth Appraisal Company This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 05/007 GPARLIM105_

11 Lifferth Appraisal Company Inc. Market Conditions Addendum to the Appraisal Report - Family File No. Appraisal of four-plex The purpose of this addendum is to provide the lender/client with a clear and accurate understanding of the market trends and conditions prevalent in the subject neighborhood. This is a required addendum for all appraisal reports with an effective date on or after April 1, 009. Property Address City Layton State UT Zip Code Borrower Instructions: The appraiser must use the information required on this form as the basis for his/her conclusions, and must provide support for those conclusions, regarding housing trends and overall market conditions as reported in the Neighborhood section of the appraisal report form. The appraiser must fill in all the information to the extent it is available and reliable and must provide analysis as indicated below. If any required data is unavailable or is considered unreliable, the appraiser must provide an explanation. It is recognized that not all data sources will be able to MARKET RESEARCH & ANALYSIS provide data for the shaded areas below; if it is available, however, the appraiser must include the data in the analysis. If data sources provide the required information as an average instead of the median, the appraiser should report the available figure and identify it as an average. Sales and listings must be properties that compete with the subject property, determined by applying the criteria that would be used by a prospective buyer of the subject property. The appraiser must explain any anomalies in the data, such as seasonal markets, new construction, foreclosures, etc. Inventory Analysis Prior 7-1 Months Prior -6 Months Current - 3 Months Overall Trend Total # of Comparable Sales (Settled) X Stable Absorption Rate (Total Sales/Months) Stable X Total # of Comparable Active Listings X Stable Months of Housing Supply (Total Listings/Ab.Rate) Median Sale & List Price, DOM, Sale/List % Median Comparable Sale Price Median Comparable Sales Days on Market Median Comparable List Price Prior 7-1 Months Prior -6 Months Current - 3 Months 88, , % 70, , % 9, ,000 Median Comparable Listings Days on Market Median Sale Price as % of List Price 97.1% Seller-(developer, builder, etc.)paid financial assistance prevalent? X No X Stable Overall Trend X Stable X Stable Stable X Stable X Stable X Stable X Explain in detail the seller concessions trends for the past 1 months (e.g., seller contributions increased from 3% to 5%, increasing use of buydowns, closing costs, condo fees, options, etc.). The WFRMLS MLS indicates there were 8 closed sales during the past 1 months and 13 of those sales contained seller concessions which is 6% of the total transactions in this market area. Prior Months 7-1: 11 Sales; 6 with concessions; 55% of sales for this period. -6: 5 Sales; with concessions; 0% of sales for this period. 0-3: 1 Sales; 5 with concessions; % of sales for this period. The concessions ranged between 1,350 and 8,00. The median concession amount is 5,000. Are foreclosure sales (REO sales) a factor in the market? X No If yes, explain (including the trends in listings and sales of foreclosed properties). The WFRMLS MLS indicates there were 8 closed sales during the past 1 months and 1 of those sales were either foreclosures or short sales which is % of the total transactions in this market area. Prior Months 7-1: 11 Sales; 0 foreclosures or short sales; 0% of sales for this period. -6: 5 Sales; 0 foreclosures or short sales; 0% of sales for this period. 0-3: 1 Sales; 1 foreclosures or short sales; 8% of sales for this period. Cite data sources for above information. The WFRMLS MLS was the data source used to complete the Market Conditions Addendum. Summarize the above information as support for your conclusions in the Neighborhood section of the appraisal report form. If you used any additional information, such as an analysis of pending sales and/or expired and withdrawn listings, to formulate your conclusions, provide both an explanation and support for your conclusions. Effective Date: Wednesday, September 03, 01 The inventory analysis predominantly indicates a stable market. The number of sales for the current six month period is similar to the previous six month period. The median comparable sale price and list price also point to a stable market despite the small decrease in the median comparable list price over the previous year. Most other indicators point to a stable or improving market. This information, together with the appraiser's experience and knowledge, indicates a stable market. APPRAISER CONDO / CO-OP PROJECTS If the subject is a unit in a condominium or cooperative project, complete the following: Subject Project Data Total # of Comparable Sales (Settled) Absorption Rate (Total Sales/Months) Total # of Active Comparable Listings Months of Unit Supply (Total Listings/Ab. Rate) Are foreclosure sales (REO sales) a factor in the project? Prior 7-1 Months No Prior -6 Months Project Name: Current - 3 Months Overall Trend Stable Stable Stable Stable If yes, indicate the number of REO listings and explain the trends in listings and sales of foreclosed properties. Summarize the above trends and address the impact on the subject unit and project. APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Name Company Name Company Address Signature Name Company Name Company Address State License/Certification # CR00 Address Freddie Mac Form 71 March 009 State UT State License/Certification # Address Produced using ACI software, Page 1 of 1 State Fannie Mae Form 100MC March MC_

12 SUBJECT PROPERTY PHOTO ADDENDUM Case No.: - Family FRONT VIEW OF SUBJECT PROPERTY Appraised Date: August 6, 01 Appraised Value: 70,000 REAR VIEW OF SUBJECT PROPERTY STREET SCENE

13 Case No.: - Family Carport and Storage Units Settlement Crack in Rear Unit 1 Kitchen Produced using ACI software, PHT

14 Case No.: - Family Unit 1 Cracked Tile in Kitchen Unit 1 Living Area Unit 1 Bathroom Produced using ACI software, PHT

15 Case No.: - Family Unit 1 Missing Door Trim Unit Kitchen Unit Living Area Range/Oven is currently not installed but is present. Produced using ACI software, PHT

16 Case No.: - Family Unit Bathroom Unit 3 Unit 3 Living Area Produced using ACI software, PHT

17 Case No.: - Family Unit 3 Bathroom Unit 3 Water Damage Produced using ACI software, PHT

18 Case No.: - Family Unit Kitchen Unit Bathroom Unit Living Area Produced using ACI software, PHT

19 COMPARABLE PROPERTY PHOTO ADDENDUM Case No.: - Family COMPARABLE SALE # W Layton, UT 801 Sale Date: s03/1;unk Sale Price: 97,000 COMPARABLE SALE # N Layton, UT 801 Sale Date: s03/1;unk Sale Price: 65,000 COMPARABLE SALE #3 7 S 150 W Clearfield, UT 8015 Sale Date: s07/1;unk Sale Price: 8,000

20 COMPARABLE PROPERTY PHOTO ADDENDUM Case No.: - Family COMPARABLE SALE # 17 S 150 W Clearfield, UT 8015 Sale Date: s05/1;unk Sale Price: 90,000 COMPARABLE SALE # N Layton, UT 800 Sale Date: Active Sale Price: 99,000 COMPARABLE SALE #6 Sale Date: Sale Price:

21 COMPARABLE RENTALS PHOTO ADDENDUM Case No.: - Family COMPARABLE RENTAL # W Layton, UT 801 COMPARABLE RENTAL # N Layton, UT 801 COMPARABLE RENTAL #3 7 S 150 W Clearfield, UT 8015

22 COMPARABLE RENTALS PHOTO ADDENDUM Case No.: - Family COMPARABLE RENTAL # W Clearfield, UT 8015 COMPARABLE RENTAL #5 COMPARABLE RENTAL #6

23 FLOORPLAN SKETCH Case No.: - Family 7.5' 7.5' Bath Laundry 3.5' Unit 1 Bath Bedroom Bedroom Laundry Utility Kitchen Utility Unit 3.5' Bedroom 6.' Bedroom Kitchen Living Room Living Room.5' Dining Dining 8.3' 8.3'.5' 3' 3' 7.5' 7.5' Bath Bath Bedroom 33' Unit 3 Kitchen Utility Bedroom Laundry Utility Unit 33' Laundry 6.3' Bedroom 6.3' Bedroom Kitchen Living Room Living Room 6.7'.5' Dining.5' 6.7' Dining Sketch by Apex Medina 3' Comments: 3' AREA CALCULATIONS SUMMARY Code Description GLA1 First Floor First Floor Second Floor Second Floor GLA Net LIVABLE Area Net Size (rounded) LIVING AREA BREAKDOWN Net Totals Breakdown First Floor Second Floor Items Subtotals x x x x x x x x (rounded) 3578

24 FLOOD MAP Case No.: - Family