Hasson Appraisal Service, Inc. APPRAISAL OF. A Single Family Residence LOCATED AT: th Ave E. Seattle, WA CLIENT:

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1 Hasson Appraisal Service, Inc. Rigos - SFR File No B APPRAISAL OF A Single Family Residence LOCATED AT: th Ave E Seattle, WA CLIENT: Jim Rigos th Ave E Seattle, WA AS OF: February 7, 2017 BY: Joseph A. Hasson Certified General Real Estate Appraiser th Avenue S., Seattle, WA / hasson222@yahoo.com

2 Hasson Appraisal Service, Inc. Rigos - SFR File No B 02/13/2017 Jim Rigos th Ave E Seattle, WA File Number: B In accordance with your request, I have appraised the real property at: th Ave E Seattle, WA 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 February 7, 2017 is: 2,900,000 Two Million Nine Hundred 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. Sincerely, Joseph A. Hasson Certified General Real Estate Appraiser Washington , Expires 01/10/ th Avenue S., Seattle, WA / hasson222@yahoo.com

3 Hasson Appraisal Service, Inc Rigos - SFR PURPOSE Residential Appraisal Report File No B 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 Jim Rigos jim@rigos.net Client Address th Ave E City Seattle Additional Intended User(s) The above named client is the indented user only. State WA Zip City Seattle State WA County King Zip Tax Year 2016 Map Reference 565-E2 R.E. Taxes 7, Census Tract SUBJECT Intended Use The intended use of this report is to establish an opinion of value for portfolio valuation. Property Address th Ave E Owner of Public Record James J & Doreen S Rigos Legal Description Long Legal Description - See Addendum Assessor's Parcel # Neighborhood Name Madison Park SALES HISTORY 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 N/A Price N/A Source(s) NWMLS/King County Assessor Analysis of prior sale or transfer history of the subject property (and comparable sales, if applicable) According to the King County Department of Assessments, the subject was transferred by quit-claim deed in the past 36 months. Offerings, options and contracts as of the effective date of the appraisal NEIGHBORHOOD Neighborhood Characteristics Location X Urban Suburban Built-Up X Over 75% 25-75% Growth Rapid X Stable Neighborhood Boundaries The subject One-Unit Housing Trends Rural Under 25% Slow Property Values X Increasing Demand/Supply X Shortage Marketing Time X Under 3 mths Stable In Balance 3-6 mths One-Unit Housing Declining Over Supply Over 6 mths PRICE (000) Present Land Use % AGE (yrs) One-Unit 2-4 Unit 0 Multi-Family 120 Commercial 80 Other Vacant 65 % 5% 425 Low 10 % neighborhood boundaries are north by State Route 520, 4,475 High 10 % east by Lake Washington, south by E Harrison Street and west by 24th Avenue E. 1,180 Pred. 10 % Neighborhood Description The subject is located in the Madison Park neighborhood in the city of Seattle. The subject has convenient access to services, shopping, restaurants and schools, all of which are in a 0-3 mile radius. Employment centers are within a 0-15 mile radius and access is average. Market appeal for the subject neighborhood is good. Market Conditions (including support for the above conclusions) Market inventory is currently under-supplied and property values are increasing. Within IMPROVEMENTS SITE a one mile radius from the subject the NWMLS indicates there are 13 active listings, 16 pending sales and 77 closed sales in the past 6 months. Remaining inventory is 1 month and the median marketing time is 12 days. Long term interest rates, the local economy and employment stability are the predominate factors affecting the real estate market in this region. Dimensions 42' X 120' Area 5000 SF Shape Rectangular View Golf/Partial Lake Specific Zoning Classification SF 5000 Zoning Description Single Family Residence, 1 DU per 5,000 SF lot 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 Yes No If No, describe. Utilities Public Other (describe) Public Other (describe) Off-site Improvements Type Public Private Electricity Gas Site Comments X Water X Street Asphalt X X Sanitary Sewer X Alley The subject site is level and improved with paved roads, sidewalks and street lighting. There are no apparent adverse easements, encroachments or non-conforming use observed. The subject is adjacent to the Broadmoor golf course and has seasonal views of the golf course to the west. Also, the subject site has partial lake/mountain views from the 3rd floor to the east. GENERAL DESCRIPTION Units X One One w/acc. unit # of Stories 3 Type X Det. Att. S-Det./End Unit X Existing Proposed Under Const. Design (Style) Craftsman FOUNDATION Concrete Slab X Crawl Space Full Basement Partial Basement Basement Area N/A sq. ft. Basement Finish N/A % Outside Entry/Exit Sump Pump Year Built 2016 Effective Age (Yrs) 0 Attic Drop Stair Floor Finished Storm Sash/Insulated Screens Heating X FWA HW Radiant Amenities WoodStove(s) # Other Fuel Gas X Fireplace(s) # 1 X Fence Cooling X Central Air Conditioning X Patio/Deck X Porch Individual Other Pool Other X Stairs Scuttle Heated EXTERIOR DESCRIPTION materials Foundation Walls Concrete Exterior Walls Wood/CFB Roof Surface Composition Gutters & Downspouts Metal Window Type Wood/Vinyl INTERIOR Floors Walls Trim/Finish Bath Floor Bath Wainscot materials Wood/Crpt/Tile Drywall/Wood Wood Tile Tile Car Storage Driveway # of Cars Driveway Surface Concrete X Garage # of Cars 2 Carport # of Cars X Att. Det. Built-in Appliances X Refrigerator P Range/Oven X Dishwasher X Disposal X Microwave X Washer/Dryer X Other (describe) hood over oven, wine cooler Finished area above grade contains: 8 Rooms 4 Bedrooms 4.5 Bath(s) 3,725 Square Feet of Gross Living Area Above Grade Additional Features Gas forced air heating, central air conditioning, gas hot water, double pane windows. Comments on the Improvements The proposed home very good build quality and is in new condition. No deferred maintenance or incomplete construction was observed. No physical or functional inadequacies were noted at the time of inspection. The effective age is based on condition, appearance and modernization of the subject property. See text and photo addendum. Page 1 of 4 This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 05/2010 GPAR1004_

4 Hasson Appraisal Service, Inc Rigos - SFR Residential Appraisal Report FEATURE th Ave E Address Seattle Proximity to Subject Sale Price Sale Price/Gross Liv. Area Data Source(s) SALES COMPARISON APPROACH Verification Source(s) VALUE ADJUSTMENTS Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition Above Grade Room Count Gross Living Area Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck SUBJECT COMPARABLE SALE NO. 1 File No B COMPARABLE SALE NO th Ave NE Seattle 1.69 miles NE 401 Lake Washington Blvd Seattle 1.88 miles SE N/A 3,150,000 2,570, sq. ft. 1, sq. ft sq. ft. Inspection/MLS NWMLS/King County Assessor NWMLS/King County Assessor Realist.com MLS# MLS# DESCRIPTION DESCRIPTION N/A Urban Fee Simple 5000 SF Golf/Partial Lake 2.5 Story Very Good 2016/1A New Arms-Length No Concessions 01/03/2017 Urban Fee Simple 5504 SF Lake/Mtn/Good 2 Story Bsmt Very Good 2016/1A New Total Bdrms. Total Bdrms. 8 4 Baths 4.5 3,725 sq. ft. N/A Average FWA Gas/AC 2 Car Garage Patio/Deck 6 3 +(-) Adjustment 2007/10A Very Good Total Bdrms SF Finished 1BR/1BA/3OR Average FWA Gas/AC 2 Car Garage Deck +(-) Adjustment V. Good/Upgrades Baths 2.5 2,540 sq. ft. + X Net Adj. -9.4% Gross Adj. 27.0% Net Adjustment (Total) Adjusted Sale Price of Comparables Summary of Sales Comparison Approach DESCRIPTION Arms-Length No Concessions 10/18/2016 Urban/Arterial Fee Simple -37, SF -300,000 Lake/Mtn/Avg 2 Story DESCRIPTION Total Bdrms. X + Net Adj. 6.5 % 2,853,950 Gross Adj. 33.8% +(-) Adjustment Arms-Length No Concessions 07/08/ ,000 Urban/Arterial Fee Simple 71, SF -100,000 Terr/Partial Lake 2 Story Bsmt -100,000 V. Good/Upgrades 2016/1A 100,000 New Baths 100, ,750 2,750 sq. ft. -186, SF Finished -50,000 1BR/1BA/1OR Average FWA Gas/AC 2 Car Garage Patio/Deck 296,050 COMPARABLE SALE NO McGilvra Blvd E Seattle 0.20 miles NE 3,300, sq. ft. NWMLS/King County Assessor MLS# , , , ,000 Baths 100, ,250 4,070 sq. ft. -101, SF Finished -50,000 1BR/1.5BA/1OR Average FWA Gas/AC 2 Car Garage Patio/Deck -51, ,000-75,000 + X Net Adj. -9.1% 2,736,550 Gross Adj. 27.2% 166, ,950 2,999,050 All comparables are located within the same general neighborhood or in strong competing areas well known to the typical purchaser and were the most recent, similar, and proximate comparables found by the appraiser. All adjustments are based on extensive research into the value placed by typical buyers on individual amenities. See addendum for explanation of all adjustments. COST APPROACH TO VALUE Site Value Comments Site value was based on the assessor allocation method and sales of fully depreciated homes. Land/ Improvement COST APPROACH ratio is typical for the subject's neighborhood. ESTIMATED X REPRODUCTION OR Source of cost data Builder Data REPLACEMENT COST NEW OPINION OF SITE VALUE = Dwelling 3,725 Sq = Quality rating from cost service V. Good Effective date of cost data 01/2017 Comments on Cost Approach (gross living area calculations, depreciation, etc.) Sq. Replacement cost and physical depreciation are estimated using Building-Cost.net and local builder/contractor cost sampling. Physical depreciation is based on the economic age-life method. Remaining economic life is estimated based on typical economic life expectancy for area homes of similar quality and condition to the subject. Deck/Patio/Fencing/Hardscapes Garage/Carport 473 Sq. 850,000 1,396, = 100,000 35,475 1,532, = Total Estimate of Cost-New = Less 65 Physical Functional External Depreciation 0 = Depreciated Cost of Improvements = "As-is" Value of Site Improvements = ( 0) 1,532,350 25, ,000 2,907,400 Entrepreneurial 20% INDICATED VALUE BY COST APPROACH = INCOME INCOME APPROACH TO VALUE Estimated Monthly Market Rent N/A X Gross Rent Multiplier N/A = N/A Indicated Value by Income Approach Summary of Income Approach (including support for market rent and GRM) The income approach was not developed and is not considered a reliable valuation method for this property type. RECONCILIATION Indicated Value by: Sales Comparison Approach 2,900,000 Cost Approach (if developed) 2,907,400 Income Approach (if developed) N/A Most consideration is given to the sales comparison approach which reflects a greater accuracy in analyzing buyers and sellers reactions in the marketplace. Secondary weight was given to the cost approach. The income approach was not developed and is not considered reliable valuation methods for this property type. 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 2,900,000 as of, which is the effective date of this appraisal. 02/07/2017 Page 2 of 4 Hasson Appraisal Service This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 05/2010 GPAR1004_

5 Hasson Appraisal Service, Inc Rigos - SFR Residential Appraisal Report FEATURE SUBJECT th Ave E Address Seattle Proximity to Subject Sale Price Sale Price/Gross Liv. Area Data Source(s) Verification Source(s) VALUE ADJUSTMENTS Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition Above Grade Room Count Gross Living Area Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling SALES COMPARISON APPROACH Energy Efficient Items Garage/Carport Porch/Patio/Deck COMPARABLE SALE NO th Ave E Seattle 1.19 miles SW File No B COMPARABLE SALE NO th Ave E Seattle, WA miles SE COMPARABLE SALE NO nd Ave E Seattle 0.62 miles NE N/A 3,350,000 2,698,000 2,260, sq. ft. 1, sq. ft sq. ft sq. ft. Inspection/MLS NWMLS/King County Assessor NWMLS/King County Assessor NWMLS/King County Assessor Realist.com MLS# MLS# MLS# DESCRIPTION DESCRIPTION N/A Urban Fee Simple 5000 SF Golf/Partial Lake 2.5 Story Very Good 2016/1A New Arms-Length No Concessions 06/22/2016 Urban/Superior Fee Simple 7200 SF Territorial/Street 2 Story Bsmt Very Good 1905/112A Very Good Total Bdrms. Total Bdrms. 8 4 Baths ,725 sq. ft. N/A Average FWA Gas/AC 2 Car Garage Patio/Deck Net Adjustment (Total) Adjusted Sale Price of Comparables Summary of Sales Comparison Approach 4 234, , , , ,000 Baths 3.5 3,070 sq. ft SF Finished 0BR/1BA/2OR Average Radiant Gas 2 Car Garage Porch/Patio + X Net Adj. -3.3% Gross Adj. 38.1% DESCRIPTION +(-) Adjustment Arms-Length No Concessions 03/23/2016 Urban Fee Simple 4758 sf Terr/Partial Lake 2 Story Bsmt Very Good 2009/8A Very Good Total Bdrms. X + Net Adj. 14.1% 3,238,750 Gross Adj. 26.8% DESCRIPTION Arms-Length No Concessions 269,800 03/10/2016 Urban Fee Simple 4397 SF Territorial/Street 2.5 Story Very Good 2014/3A 100,000 Very Good Baths 50, ,250 3,180 sq. ft. -144, SF Finished -50,000 1BR/1BA/1OR Average FWA Gas/AC 2 Car Garage Patio/Deck 111,250 +(-) Adjustment Total Bdrms. 248,600 45, , ,000 Baths 100, ,750 3,190 sq. ft. -122,000-50,000 N/A Average FWA Gas/AC 2 Car Garage Patio/Deck X + Net Adj. 24.3% 3,077,550 Gross Adj. 26.5% 379,550 +(-) Adjustment -25,000 80, ,050 2,809,050 All comparables are located within the same general neighborhood, are in strong competing areas well known to the typical purchaser, and were the most recent, similar, and proximate comparables found by the appraiser. All adjustments are based on extensive research into the value placed by typical buyers on individual amenities. See Addendum for explanation of all adjustments. Additional Comparables This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 05/2010 GPAR1004_

6 Hasson Appraisal Service, Inc Residential Appraisal Report Rigos - SFR File No B 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. 2. 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. 4. 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 1004/Freddie Mac 70 form, also known as the Uniform Residential Appraisal Report (URAR). Additional Comments Related To Scope Of Work, Assumptions and Limiting Conditions Page 3 of 4 This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 05/2010 GPAR1004_

7 Hasson Appraisal Service, Inc Rigos - SFR Residential Appraisal Report File No B 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. 2. 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. 4. 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: National Association of Independent Fee Appraisers Member certification: This appraisal has been prepared in conformity with the Code of Ethics of the National Association of Independent Fee Appraisers, and the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Foundation Definition of Value: Market Value X Other Value: Fair Market Value Source of Definition: The Appraisal of Real Estate, 12th ed. Fair Market Value The Appraisal Foundation defines Fair Market Value as: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: *Buyer and seller are typically motivated; *Both parties are well informed or well advised, and acting in what they consider their best interests; *A reasonable time is allowed for exposure in the open market; *Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and *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." We consider this definition equivalent to that employed by the Appraisal Standards Board and the Office of the Comptroller of the Currency (12 CFR, Part 34, Subpart C-Appraisals, Definitions [f]). ADDRESS OF THE PROPERTY APPRAISED: th Ave E Seattle, WA EFFECTIVE DATE OF THE APPRAISAL: 02/07/2017 APPRAISED VALUE OF THE SUBJECT PROPERTY 2,900,000 APPRAISER SUPERVISORY APPRAISER Signature: Name: Joseph A. Hasson State Certification # or License # or Other (describe): Signature: Name: State Certification # or License # State: State #: Expiration Date of Certification or License: 01/10/2019 Date of Signature and Report: 02/13/2017 Date of Property Viewing: 02/07/2017 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 Page 4 of 4 Hasson Appraisal Service This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 05/2010 GPAR1004_

8 ADDENDUM Intended User(s) of the Report The above named client is the indented user only. Intended Use of the Report The intended use of this report is to establish an opinion of value for portfolio valuation. Assumptions The following assumptions were made concerning the subject property: current use of the subject property as a single family residence will continue unchanged; current zoning will not change and the subject property will continue as a legal (or legal non-conforming) use; and the general economic climate of the region will remain relatively stable. If any hypothetical conditions or limiting conditions for the subject property were considered, they are reported elsewhere within this report. Highest and Best Use The current use of the subject property is single family residential. Based on the current zoning, existing comprehensive plan and surrounding land uses, the highest and best use, both "as vacant" and "as improved" is residential. Additional Comments The appraiser assumes the client or owner is aware that this appraisal does not serve as a warranty on the condition of the subject property. This appraisal should not be considered an inspection of the property. The appraisal process and appraisers inspection of the property do not include testing of appliances, plumbing, heating or electrical systems, fireplaces, spas or pools or other mechanical/structural components. Unless otherwise specifically stated in this report, all such items are assumed to be in average working condition. The client is encouraged to obtain their own independently prepared inspection of the physical structure and systems, performed in accordance with the standards of the American Society of Home Inspectors, or other equivalent standards. Signature and Photographs The signature(s) affixed to this report were applied electronically by the respective appraiser(s) using a password encrypted method and have the same validity as the individual's hand written signature. The photographs of the subject were taken by the appraiser using a digital camera and may be edited by lightening or cropping. The comparable photos are from the MLS or King County Assessor website. Legal Description MCGILVRAS JJ 3RD ADD REPLAT S FT OF LOT 12 TGW N FT OF VAC E GALER ST ADJ AKA PCL B SEA LLA # REC # PLAT BLOCK: 6 PLAT LOT: 12 Neighborhood The subject neighborhood is comprised of a mix of detached single-family homes, zero-lot-line townhomes and small income properties. Larger multi-family and commercial use properties are located along the arterial roads. The subject value is greater than the predominant neighborhood value due to its larger size, very good build quality and new condition. Market inventory is under-supplied and property values are increasing. Market appreciation was calculated at 12% over the past 12 months. Reasonable exposure time for the subject property, at the opinion of value indicated is 0-90 days and was derived using data supplied by the NWMLS and is specific to current market conditions and the immediate market area. Site The subject site is level and the lot is improved with paved road, paved alley, sidewalk and street lighting. There are no apparent adverse easements, encroachments or non-conforming uses observed. The subject is adjacent to the Broadmoor golf course and has seasonal views of the golf course to the west. Also, the subject site has partial lake/mountain views from the 3rd floor to the east. Condition of Improvements The subject is a new construction detached single family residence of very good build quality and is new condition. The subject is commensurate with competing newer built homes of similar size and quality in the immediate marketing area. The subject interior is functional and 100% complete. No deferred maintenance or unfinished construction was observed. The subjects estimated effective age is 0 years and the remaining economic life is 65 years. At the time of the inspection the utilities were turned on and functional. Comments on Sales Comparison The bedroom and bathroom count, gross living area and remaining physical characteristic adjustments indicated are considered to reflect their contributory value and are supported by the subject's market place. Market appreciation was calculated at 12% over the past 12 months. Due to a seasonally influenced sales market during the winter months, a market condition adjustment of 1.00% per month (12%/12) was made only to Addendum Page 1 of 2

9 ADDENDUM closed sales comparables over 6 months. Site size was adjusted at 75 per square foot. No adjustment was necessary for differences in site size less than 500 square feet. Living area adjustments were made at 150 per square foot above grade living area, 100 per square foot finished basement area, 25 per square foot unfinished basement area, 50,000 per full bath, 25,000 per half bath and 20,000 per garage parking space. Bedroom count is typically adjusted under gross living area in this market area. No adjustment was made for the difference between a full and 3/4 bath as there is no measurable buyer's preference in this market place. Basement rooms are annotated as BR-bedroom, BA-bath and OR-other rooms. The comparables used appeared to be competitively priced, typical of the market and are considered to be the best available. Equitable consideration was given to all sales and appropriate adjustments were made for all known differences. The main salient feature of the subject and the comparables chosen are their effective age, overall finished gross living area and very good build quality. Comp#1 is located in a competing neighborhood with similar housing stock and proximity to shopping, services and transportation linkages and was additionally adjusted for its superior view. Comp#2 is located in a competing neighborhood with similar housing stock and proximity to shopping, services and transportation linkages and was additionally adjusted for its inferior location on a busy street, superior view, superior build quality with upgraded interior materials/fixtures/finishes and inferior condition with prior occupancy. Comp#3 was additionally adjusted for its older sales date, inferior location on a busy street and superior build quality with upgraded interior materials/fixtures/finishes. Comp#4 was additionally adjusted for its older sales date, superior location in the Capitol Hill neighborhood closer to the downtown core and transportation linkages, inferior view and inferior condition with prior occupancy. Comp#5 was additionally adjusted for its older sales date and inferior condition with prior occupancy. Comp#6 was additionally adjusted for its older sales date, inferior view and inferior condition with prior occupancy. Sketch The sketch included in this report is provided to assist the reader to visualize the subject improvements and estimate the subject's gross living area. The dimensions are approximate. The total square footage listed may differ from county records and/or builder specifications due to methods applied in measuring the structures. Final Reconciliation The sales comparison approach is considered to be the best indicator of market value for the subject property because it more accurately correlates the buyer-seller relationship for similar type housing in the subject's marketing area. The cost approach was developed as an estimate to value and was given secondary weight. The income approach was not developed and is not considered an applicable valuation method for this property type. The range of value for homes of similar location, size and build quality to the subject is between 2,250,000 and 3,350,000. The subject's average size, very good build quality, new condition and view amenity place the subject in the upper-middle range of similar homes in this price range. It is estimated that the most probable price the subject would bring in a competitive and open market under all conditions requisite for an arms length transaction is 2,900,000. "Probable Price" is defined as cash value or in terms of financial arrangements equivalent to cash. NOTHING FOLLOWS Addendum Page 2 of 2

10 PLAT MAP th Avenue S., Seattle, WA / hasson222@yahoo.com

11 Aerial Photo with 5' Elevation Overlay th Avenue S., Seattle, WA / hasson222@yahoo.com

12 FLOORPLAN SKETCH 22' 22' 21.5' Garage 21.5' 9' 15.5' 9' Bedroom 15' 15' 4.5' Bedroom Bath Rec Room 34' Master Bath Bonus 2' 11.5' 1.5' 15.5' 1.5' Master Bedroom Entrance 15' 15.5' 6.5' 15' 11.5' 15' 11.5' Bedroom 34' WIC WIC Dining Room Mech. 13' Bath 1/2 Bath Foyer 17.5' WIC 54.5' 54.5' Kitchen 34' Living Room Bath 32' Mud Room Informal Dining 15.5' 2' Sketch by Apex Medina Comments: AREA CALCULATIONS SUMMARY Code Description Net Size GLA1 First Floor Second Floor Third Floor Garage GAR Net LIVABLE Area (rounded) LIVING AREA BREAKDOWN Net Totals Breakdown First Floor Second Floor Third Floor Items Subtotals x x x x x x x x x x (rounded) th Avenue S., Seattle, WA / hasson222@yahoo.com 3725

13 SUBJECT PROPERTY PHOTO ADDENDUM FRONT VIEW OF SUBJECT PROPERTY Appraised Date: February 7, 2017 Appraised Value: 2,900,000 REAR VIEW OF SUBJECT PROPERTY STREET SCENE

14 COMPARABLE PROPERTY PHOTO ADDENDUM COMPARABLE SALE # th Ave NE Seattle Sale Date: 01/03/2017 Sale Price: 3,150,000 COMPARABLE SALE #2 401 Lake Washington Blvd Seattle Sale Date: 10/18/2016 Sale Price: 2,570,000 COMPARABLE SALE # McGilvra Blvd E Seattle Sale Date: 07/08/2016 Sale Price: 3,300,000

15 COMPARABLE PROPERTY PHOTO ADDENDUM COMPARABLE SALE # th Ave E Seattle Sale Date: 06/22/2016 Sale Price: 3,350,000 COMPARABLE SALE # th Ave E Seattle, WA Sale Date: 03/23/2016 Sale Price: 2,698,000 COMPARABLE SALE # nd Ave E Seattle Sale Date: 03/10/2016 Sale Price: 2,260,000

16 LOCATION MAP th Avenue S., Seattle, WA / hasson222@yahoo.com

17 SUBJECT PHOTOS Living Room Kitchen Dining Room PHT

18 SUBJECT PHOTOS Master Bedroom Master Bath Bedroom PHT

19 SUBJECT PHOTOS Bath Bedroom Bath PHT

20 SUBJECT PHOTOS Rec Room Bedroom Bath PHT

21 SUBJECT PHOTOS Porch Deck Patio PHT

22 SUBJECT PHOTOS View from second floor facing NE View from second floor facing SE View from third floor facing W PHT

23 SUBJECT PHOTOS Garage Additional Rear View Additional Side View PHT

24 SUBJECT PHOTOS Additional Side View Additional Front View Additional Front View PHT

25 APPRAISER LICENSE th Avenue S., Seattle, WA / hasson222@yahoo.com