APPRAISAL REPORT OF NNA Canal St Coeur d' Alene ID 83814 PREPARED FOR Prestige Realty of North Idaho 805 E Sherman Ave CDA, ID 83814 AS OF July 21, 2008 PREPARED BY 12536 Kensington Ave Hayden Lake, ID 83835
P34308C Table of Contents Title # Land Appraisal 1 Extra Comps 4-5-6 2 Land Certification 1 3 Land Certification 2 4 Land Certification 3 5 Zoning Description 6 Comments 7 Photo Subject 8 Photo Subject Extra 9 Plat Map 10 Location Map 11 MLS Sales Data 12 MLS Market Data Solds vs. DOM 13
P34308C Summary Appraisal Report LAND APPRAISAL REPORT Borrower Dawn Forest Census Tract 0004.00 Map Reference M.L.S. area 1 City Coeur d' Alene County Kootenai State ID Zip Code 83814 Legal Description Subject to Lot Line Adjustment to Rivercal, Tax #7575, Tax#7358, Tax#7576 Tract C and divided into 3 equal parcels Sale Price $ Market Value Date of Sale N/A Loan Term N/A yrs. Property Rights Appraised Fee Leasehold De Minimis PUD Actual Real Estate Taxes $ $1921Estimated (yr) Loan Charges to be paid by seller $ N/A Other Sales Concessions N/A Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 Occupant Vacant Appraiser Yvonne TItus Instructions to Appraiser appraisal on 1/3 of legal Location Urban Suburban Rural Good Avg. Fair Poor Built Up Over 75% 25% to 75% Under 25% Employment Stability Growth Rate Fully Dev. Rapid Steady Slow Convenience to Employment Property Values Increasing Stable Declining Convenience to Shopping Demand/Supply Shortage In Balance Oversupply Convenience to Schools Marketing Time Under 3 Mos, 4-6 Mos. Over 6 Mos. Adequacy of Public Transportation Present Land Use 65 %1 Family %2-4 Family % Apts % Condo % Commercial Recreational Facilities %Industrial 35 % Vacant % Adequacy of Utilities Change In Present Land Use Not Likely Likely(*) Taking Place (*) Property of Compatibility (*) From Large sites To Smaller sites Protection from Detrimental Conditions Predominate Occupancy Owner Tenant % Vacant Police and Fire Protection Single Family Price Range $ 225,000 to $ 2,500,000 Predominant Value $ 450,000 General Appearance of Properties Single Family Age New yrs to 35 yrs. Predominant Age 10 yrs Appeal to Market Comments including those factors, favorable or unfavorable, affecting marketability (e.g. public parks, schools, view, noise): The Subject neighborhood is composed of average to good quality homes which exhibit average to good maintenance levels. The sites are on the river, views of the river and/or neighborhood views. This neighborhood provides a typical environment for the area. The Subject neighborhood has average access to the typical amenities and services. Dimensions **See Plat Map for Calculation** = 9900 +/- Acres 107FF+/- Corner Lot Zoning Classification Restricted Residential *SEE COMMENTS FOR DESCRIPTION* Present Improvements do do not conform to zoning regulations Highest and best use Present use Other (specify) Public Other (Describe) OFF SITE IMPROVEMENTS Topo Level to slope down to River Elec. Street Access Public Private Size.228 +/- Acres/107FF+/- Gas Surface Asphalt Shape Rectangular Water Maintenance Public Private View Spokane River San. Sewer Septic System Storm Sewer Curb/Gutter Drainage Adequate Underground Elect. & Tel. Sidewalk Street Lights Is the property located in a HUD identified Special Flood Hazard Area? No Yes Comments (favorable or unfavorable including any apparent adverse easements, encroachments or other adverse conditions): No adverse easements or encroachments were noted. Normal utility type, pedestrian and access easements only. The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to or more favorable than the subject property, a minus (-) adjustment is made thus reducing the indicated value of subject; if a significant item in the comparable is inferior to or less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. SUBJECT PROPERTY COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Address NNA Canal St Lees Point Rd Lt1129 4723 W Mill River Ct 5367 E Shoreline Dr Coeur d' Alene ID 83814 Hayden 83835 Coeur d'alene Post Falls 83854 Proximity to Subject 8.35 miles NE 1.01 miles NW 3.83 miles W Sales Price $ Market Value $ 670,000 $ 825,000 $ 755,000 Price / $ $ $ $ Data Source MLS# 07-4879 MLS# 06-2204 MLS# 06-8947 Date of Sale and DESCRIPTION DESCRIPTION +(-)$ Adjustment DESCRIPTION +(-)$ Adjustment DESCRIPTION +(-)$ Adjustment Time Adjustment Location Site/View N/A Spokane River.228 +/-Ac/107FF Water/Sewer Electricity/Phone Dock City/Septic Yes Dock/Elect/Plumb 06/05/2007 61DOM Hayden Lake.25 +/-Acres 104FF +24,000 Private Available None +25,000 10/16/2006 229DOM Spokane River.49 +/-Acres 89.5FF +140,000 City/City Available None +25,000 2/21/2007 220DOM Spokane River.44 +/-Acres 90FF +136,000 City/City Available None +25,000 Sales or Financing Cash Out Conventional Conventional Concessions None Known None Known None Known Net Adj.(Total) Plus Minus $ 49,000 Plus Minus $ 165,000 Plus Minus $ 161,000 Indicated Value of Subject Net=7% Gross=7% $ 719,000 Net=20% Gross=20% $ 990,000 Net=21% Gross=21% $ 916,000 Comments on Market Data The Subject site and the improvements are well accepted in this neighborhood and would market well. The Comparables displayed were carefully selected and are considered to be the best indicators of the Subjects Market Value. Sources of data included the Coeur d'alene Multiple Listing Service, the Kootenai County Assessors Office, Appraiser Files, Realtor Interviews and the Appraisers daily exposure to the market. Comments and Conditions of Appraisal: This property has been appraised subject-to the lot line adjustment showing the site size and new legal description, and a covered dock with electricity and plumbing. This report is based on the land with no other improvements. Final Reconciliation: The Comparables displayed were carefully selected and are considered to be the best indicators of the Subjects Market Value. Sources of data included the Coeur d'alene Multiple Listing Service, the Kootenai County Assessors Office Appraiser Files, Realtor Interviews and the Appraisers daily exposure to the market. All Comparables were given equal weight. I ESTIMATE THE MARKET VALUE, AS DEFINED, OF SUBJECT PROPERTY AS OF July 21, 2008 to be $ 881,000 Review Appraiser (if applicable) Appraiser(s) Did Did Not Physically Yvonne TItus Inspect Property Date Report Signed July 24, 2008 Date Report Signed State Certification # CRA-1186 State ID State Certification # State Or State License # State Or State License # State Expiration Date of License or Certification 09/09/2008 Expiration Date of License or Certification 1 of 13
ETRA COMPARABLES 4-5-6 P34308C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to or more favorable than the subject property, a minus (-) adjustment is made thus reducing the indicated value of subject; if a significant item in the comparable is inferior to or less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. SUBJECT PROPERTY COMPARABLE NO. 4 COMPARABLE NO. 5 COMPARABLE NO. 6 Address NNA Canal St NNA Newtons Way Coeur d' Alene ID 83814 Coeur d'alene Proximity to Subject 3.17 miles S Sales Price $ Market Value $ 1,220,000 $ $ Price $ $ $ $ Data Source MLS# 07-5241 +(-)$ +(-)$ +(-)$ Date of Sale and DESCRIPTION DESCRIPTION Adjustment DESCRIPTION Adjustment DESCRIPTION Adjustment Time Adjustment Location Site/View Water/Sewer Electricity/Phone Dock N/A Spokane River.228 +/-Ac/107FF City/Septic Yes Dock/Elect/Plumb 12/17/2007 245DOM Lake CDA.71 +/-Acres 146FF -312,000 Lake-Private/Septic Yes Sales or Financing Cash Out Concessions None Known Net Adj.(Total) Plus Minus $ -312,000 Plus Minus $ 0 Plus Minus $ 0 Indicated Value of Subject Net=-26% Gross=26% $ 908,000 Net=0% Gross=0% $ 0 Net=0% Gross=0% $ 0 Comments on Market Data 2 of 13
P34308C This appraisal report is subject to the scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. 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, 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 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 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. 3. 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. 4. The appraiser has noted in this appraisal report any adverse conditions (such as 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 this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent deficiencies or adverse conditions of the property (such as, but not limited to, 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. 5. If the appraiser has based his or her appraisal report and valuation conclusion for an appraisal subject to certain conditions, it is assumed that the conditions will be met in a satisfactory manner. RURAL ZONE DEFINED: The "Rural zone" is a classification for a district suitable for rural uses, such as rural residential uses and agricultural pursuits, including farming and forestry 3 of 13
APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: P34308C 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 subject property. I reported the site characteristics in factual, specific terms. 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. 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 reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 9. 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. 10. I have knowledge and experience in appraising this type of property in this market area. 11. 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. 12. 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. 13. 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, 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. 14. 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. 15. 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. 16. 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. 17. 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). 18. 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. 19. 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. 20. 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). 4 of 13
P34308C 21. 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. 22. 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. 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 Signature Name Yvonne TItus Name Company Name Company Name Company Address 12536 Kensington Ave Company Address Hayden Lake, ID 83835 Telephone Number 208/762-0999 Telephone Number Email Address Yetitus@adelphia.net Email Address Date of Signature and Report July 24, 2008 Date of Signature Effective Date of Appraisal July 21, 2008 State Certification # State Certification # CRA-1186 or State License # or State License # State or Other (describe) State # Expiration Date of Certification or License State ID Expiration Date of Certification or License 09/09/2008 SUBJECT PROPERTY ADDRESS OF PROPERTY APPRAISED NNA Canal St Coeur d' Alene ID 83814 APPRAISED VALUE OF SUBJECT PROPERTY $ LENDER/CLIENT Name Company Name Prestige Realty of North Idaho Company Address 805 E Sherman Ave CDA, ID 83814 Email Address 881,000 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 5 of 13
6 of 13 Zoning Description P34308C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814
COMMENT ADDENDUM P34308C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 SITE: The site does not have access to public sewer. There is a septic system for the sewage. In this neighborhood septic systems are typical and does not have a negative affect on property values site adjustments of $8,000 per difference in site sizes was used to make adjustments. I averaged comparables 1, 2 and 3 site values per front feet to determine the front foot values. SCOPE OF WORK: A thorough search was made of the Appraiser's Files, Multiple Listing Service data and the Assessors Records. Although comparables are selling within 6 months, due to different styles, age, market, condition and sites, this still causes the use of comparables over 6 months old. A thorough search for comparable sales was made in an attempt to find ones with gross and net adjustments at or below the recommended guidelines. Lack of Comparable Sales data is common in North Idaho. This condition is created by a small population base made up of numerous small towns surrounded by near rural areas. This situation has become even more prevalent since the late 1980's when North Idaho's economy started to improve and the local housing industry began its recovery. These conditions create no apparent adverse influence on Market Values, but when combined do typically cause some individual, net or gross adjustments to exceed nationally established appraisal guidelines. This is unavoidable due to the makeup of the North Idaho Market. SALES ANALYSIS: The purpose of this appraisal is to estimate the market value of the subject property. This appraisal report is prepared for the sole and exclusive use of the Client, Prestige Realty of North Idaho, to assist with the market opinion. This appraisal is a summary report, which complies with the report requirements set forth under Standards Rule 2-2 (b) of the Uniform Standards of Professional Appraisal Practices. The market value in this report is my opinion. The appraisal report does not guarantee that the property is free of defects. SALES COMPARISON-RECONCILIATION: Many Comparable Sales were considered for this Appraisal Assignment. The Comparables displayed were carefully selected and are considered to be the best indicators of the Subject's Market Value. Sources of data included the Coeur d'alene Multiple Listing Service, the Kootenai County Assessors Office, Appraiser Files, Realtor Interviews and the Appraisers daily exposure to the market. 7 of 13
SUBJECT PHOTO ADDENDUM P34308C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 FRONT OF SUBJECT PROPERTY NNA Canal St Coeur d' Alene ID 83814 REAR OF SUBJECT PROPERTY STREET SCENE 8 of 13
SUBJECT PHOTO ADDENDUM P34308C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 Canal 9 of 13
PLAT MAP P34308C Dawn Forest NNA Canal St Coeur d' Alene Kootenai ID 83814 Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 Borrower Property Address City County State Zip Code Lender/Client SUBJECT 10 of 13
LOCATION MAP ADDENDUM P34308C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 SALE 1 SUBJECT COMP 4 11 of 13
12 of 13 MLS Sales Data P34308C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814
13 of 13 MLS Market Data Solds vs. DOM P34308C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814
APPRAISAL REPORT OF NNA Canal St Coeur d' Alene ID 83814 PREPARED FOR Prestige Realty of North Idaho 805 E Sherman Ave CDA, ID 83814 AS OF July 21, 2008 PREPARED BY 12536 Kensington Ave Hayden Lake, id 83835
P35508C Table of Contents Title # Extra Comps 4-5-6 1 Land Appraisal 2 Land Certification 1 3 Land Certification 2 4 Land Certification 3 5 Zoning Description 6 Comments 7 Photo Subject 8 Photo Subject Extra 9 Plat Map 10 Location Map 11 MLS Sales Data 12 MLS Market Data Solds vs. DOM 13
ETRA COMPARABLES 4-5-6 P35508C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to or more favorable than the subject property, a minus (-) adjustment is made thus reducing the indicated value of subject; if a significant item in the comparable is inferior to or less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. SUBJECT PROPERTY COMPARABLE NO. 4 COMPARABLE NO. 5 COMPARABLE NO. 6 Address NNA Canal St NNA Newtons Way Coeur d' Alene ID 83814 Coeur d'alene Proximity to Subject 3.17 miles S Sales Price $ Market Value $ 1,220,000 $ $ Price $ $ $ $ Data Source MLS# 07-5241 +(-)$ +(-)$ +(-)$ Date of Sale and DESCRIPTION DESCRIPTION Adjustment DESCRIPTION Adjustment DESCRIPTION Adjustment Time Adjustment Location Site/View Water/Sewer Electricity/Phone Dock N/A Spokane River.228 +/-Ac/107FF City/Septic Yes Dock/Plumb/Elect 12/17/2007 245DOM Lake CDA.71 +/-Acres 146FF -312,000 Lake-Private/Septic Yes None +25,000 Sales or Financing Cash Out Concessions None Known Net Adj.(Total) Plus Minus $ -287,000 Plus Minus $ 0 Plus Minus $ 0 Indicated Value of Subject Net=-24% Gross=28% $ 933,000 Net=0% Gross=0% $ 0 Net=0% Gross=0% $ 0 Comments on Market Data 1 of 13
P35508C Summary Appraisal Report LAND APPRAISAL REPORT Borrower Dawn Forest Census Tract 0004.00 Map Reference M.L.S. area 1 City Coeur d' Alene County Kootenai State ID Zip Code 83814 Legal Description Subject to Lot Line Adjustment to Rivercal, Tax #7575, Tax#7358, Tax#7576 Tract C and divided into 3 equal parcels Sale Price $ Market Value Date of Sale N/A Loan Term N/A yrs. Property Rights Appraised Fee Leasehold De Minimis PUD Actual Real Estate Taxes $ $1921Estimated (yr) Loan Charges to be paid by seller $ N/A Other Sales Concessions N/A Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 Occupant Vacant Appraiser Yvonne TItus Instructions to Appraiser appraisal on 1/3 of legal Location Urban Suburban Rural Good Avg. Fair Poor Built Up Over 75% 25% to 75% Under 25% Employment Stability Growth Rate Fully Dev. Rapid Steady Slow Convenience to Employment Property Values Increasing Stable Declining Convenience to Shopping Demand/Supply Shortage In Balance Oversupply Convenience to Schools Marketing Time Under 3 Mos, 4-6 Mos. Over 6 Mos. Adequacy of Public Transportation Present Land Use 65 %1 Family %2-4 Family % Apts % Condo % Commercial Recreational Facilities %Industrial 35 % Vacant % Adequacy of Utilities Change In Present Land Use Not Likely Likely(*) Taking Place (*) Property of Compatibility (*) From Large sites To Smaller sites Protection from Detrimental Conditions Predominate Occupancy Owner Tenant % Vacant Police and Fire Protection Single Family Price Range $ 225,000 to $ 2,500,000 Predominant Value $ 450,000 General Appearance of Properties Single Family Age New yrs to 35 yrs. Predominant Age 10 yrs Appeal to Market Comments including those factors, favorable or unfavorable, affecting marketability (e.g. public parks, schools, view, noise): The Subject neighborhood is composed of average to good quality homes which exhibit average to good maintenance levels. The sites are on the river, views of the river and/or neighborhood views. This neighborhood provides a typical environment for the area. The Subject neighborhood has average access to the typical amenities and services. Dimensions **See Plat Map for Calculation** = 9900 +/- Acres 107FF+/- Corner Lot Zoning Classification Restricted Residential *SEE COMMENTS FOR DESCRIPTION* Present Improvements do do not conform to zoning regulations Highest and best use Present use Other (specify) Public Other (Describe) OFF SITE IMPROVEMENTS Topo Level to slope down to River Elec. Street Access Public Private Size.228 +/- Acres/107FF+/- Gas Surface Asphalt Shape Rectangular Water Maintenance Public Private View Spokane River San. Sewer Septic System Storm Sewer Curb/Gutter Drainage Adequate Underground Elect. & Tel. Sidewalk Street Lights Is the property located in a HUD identified Special Flood Hazard Area? No Yes Comments (favorable or unfavorable including any apparent adverse easements, encroachments or other adverse conditions): No adverse easements or encroachments were noted. Normal utility type, pedestrian and access easements only. The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to or more favorable than the subject property, a minus (-) adjustment is made thus reducing the indicated value of subject; if a significant item in the comparable is inferior to or less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. SUBJECT PROPERTY COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Address NNA Canal St Lees Point Rd Lt1129 4723 W Mill River Ct 5367 E Shoreline Dr Coeur d' Alene ID 83814 Hayden 83835 Coeur d'alene Post Falls 83854 Proximity to Subject 8.35 miles NE 1.01 miles NW 3.83 miles W Sales Price $ Market Value $ 670,000 $ 825,000 $ 755,000 Price / $ $ $ $ Data Source MLS# 07-4879 MLS# 06-2204 MLS# 06-8947 Date of Sale and DESCRIPTION DESCRIPTION +(-)$ Adjustment DESCRIPTION +(-)$ Adjustment DESCRIPTION +(-)$ Adjustment Time Adjustment Location Site/View N/A Spokane River.228 +/-Ac/107FF Water/Sewer Electricity/Phone Dock City/Septic Yes Dock/Plumb/Elect 06/05/2007 61DOM Hayden Lake.25 +/-Acres 104FF +24,000 Private Available None +25,000 10/16/2006 229DOM Spokane River.49 +/-Acres 89.5FF +140,000 City/City Available None 2/21/2007 220DOM Spokane River.44 +/-Acres 90FF +136,000 City/City Available None Sales or Financing Cash Out Conventional Conventional Concessions None Known None Known None Known Net Adj.(Total) Plus Minus $ 49,000 Plus Minus $ 140,000 Plus Minus $ 136,000 Indicated Value of Subject Net=7% Gross=7% $ 719,000 Net=17% Gross=17% $ 965,000 Net=18% Gross=18% $ 891,000 Comments on Market Data The Subject site and the improvements are well accepted in this neighborhood and would market well. The Comparables displayed were carefully selected and are considered to be the best indicators of the Subjects Market Value. Sources of data included the Coeur d'alene Multiple Listing Service, the Kootenai County Assessors Office, Appraiser Files, Realtor Interviews and the Appraisers daily exposure to the market. Comments and Conditions of Appraisal: This property has been appraised subject-to the lot line adjustment showing the site size and new legal description, and a covered dock with power/plumbing. This report is based on the land with no other improvements. Final Reconciliation: The Comparables displayed were carefully selected and are considered to be the best indicators of the Subjects Market Value. Sources of data included the Coeur d'alene Multiple Listing Service, the Kootenai County Assessors Office Appraiser Files, Realtor Interviews and the Appraisers daily exposure to the market. All Comparables were given equal weight. I ESTIMATE THE MARKET VALUE, AS DEFINED, OF SUBJECT PROPERTY AS OF July 21, 2008 to be $ 881,000 Review Appraiser (if applicable) Appraiser(s) Did Did Not Physically Yvonne TItus Inspect Property Date Report Signed July 24, 2008 Date Report Signed State Certification # CRA-1186 State ID State Certification # State Or State License # State Or State License # State Expiration Date of License or Certification 09/09/2008 Expiration Date of License or Certification 2 of 13
P35508C This appraisal report is subject to the scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. 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, 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 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 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. 3. 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. 4. The appraiser has noted in this appraisal report any adverse conditions (such as 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 this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent deficiencies or adverse conditions of the property (such as, but not limited to, 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. 5. If the appraiser has based his or her appraisal report and valuation conclusion for an appraisal subject to certain conditions, it is assumed that the conditions will be met in a satisfactory manner. RURAL ZONE DEFINED: The "Rural zone" is a classification for a district suitable for rural uses, such as rural residential uses and agricultural pursuits, including farming and forestry 3 of 13
APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: P35508C 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 subject property. I reported the site characteristics in factual, specific terms. 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. 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 reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 9. 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. 10. I have knowledge and experience in appraising this type of property in this market area. 11. 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. 12. 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. 13. 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, 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. 14. 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. 15. 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. 16. 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. 17. 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). 18. 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. 19. 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. 20. 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). 4 of 13
P35508C 21. 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. 22. 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. 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 Signature Name Yvonne TItus Name Company Name Company Name Company Address 12536 Kensington Ave Company Address Hayden Lake, id 83835 Telephone Number 208/762-0999 Telephone Number Email Address Yetitus@adelphia.net Email Address Date of Signature and Report July 24, 2008 Date of Signature Effective Date of Appraisal July 21, 2008 State Certification # State Certification # CRA-1186 or State License # or State License # State or Other (describe) State # Expiration Date of Certification or License State ID Expiration Date of Certification or License 09/09/2008 SUBJECT PROPERTY ADDRESS OF PROPERTY APPRAISED NNA Canal St Coeur d' Alene ID 83814 APPRAISED VALUE OF SUBJECT PROPERTY $ LENDER/CLIENT Name Company Name Prestige Realty of North Idaho Company Address 805 E Sherman Ave CDA, ID 83814 Email Address 881,000 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 5 of 13
6 of 13 Zoning Description P35508C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814
COMMENT ADDENDUM P35508C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 SITE: The site does not have access to public sewer. There is a septic system for the sewage. In this neighborhood septic systems are typical and does not have a negative affect on property values site adjustments of $8,000 per difference in site sizes was used to make adjustments. I averaged comparables 1, 2 and 3 site values per front feet to determine the front foot values. SCOPE OF WORK: A thorough search was made of the Appraiser's Files, Multiple Listing Service data and the Assessors Records. Although comparables are selling within 6 months, due to different styles, age, market, condition and sites, this still causes the use of comparables over 6 months old. A thorough search for comparable sales was made in an attempt to find ones with gross and net adjustments at or below the recommended guidelines. Lack of Comparable Sales data is common in North Idaho. This condition is created by a small population base made up of numerous small towns surrounded by near rural areas. This situation has become even more prevalent since the late 1980's when North Idaho's economy started to improve and the local housing industry began its recovery. These conditions create no apparent adverse influence on Market Values, but when combined do typically cause some individual, net or gross adjustments to exceed nationally established appraisal guidelines. This is unavoidable due to the makeup of the North Idaho Market. SALES ANALYSIS: The purpose of this appraisal is to estimate the market value of the subject property. This appraisal report is prepared for the sole and exclusive use of the Client, Prestige Realty of North Idaho, to assist with the market opinion. This appraisal is a summary report, which complies with the report requirements set forth under Standards Rule 2-2 (b) of the Uniform Standards of Professional Appraisal Practices. The market value in this report is my opinion. The appraisal report does not guarantee that the property is free of defects. SALES COMPARISON-RECONCILIATION: Many Comparable Sales were considered for this Appraisal Assignment. The Comparables displayed were carefully selected and are considered to be the best indicators of the Subject's Market Value. Sources of data included the Coeur d'alene Multiple Listing Service, the Kootenai County Assessors Office, Appraiser Files, Realtor Interviews and the Appraisers daily exposure to the market. 7 of 13
SUBJECT PHOTO ADDENDUM P35508C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 FRONT OF SUBJECT PROPERTY NNA Canal St Coeur d' Alene ID 83814 REAR OF SUBJECT PROPERTY STREET SCENE 8 of 13
SUBJECT PHOTO ADDENDUM P35508C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 Canal 9 of 13
PLAT MAP P35508C Dawn Forest NNA Canal St Coeur d' Alene Kootenai ID 83814 Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 Borrower Property Address City County State Zip Code Lender/Client SUBJECT 10 of 13
LOCATION MAP ADDENDUM P35508C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 SALE 1 SUBJECT COMP 4 11 of 13
12 of 13 MLS Sales Data P35508C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814
13 of 13 MLS Market Data Solds vs. DOM P35508C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814
APPRAISAL REPORT OF NNA Canal St Coeur d' Alene ID 83814 PREPARED FOR Prestige Realty of North Idaho 805 E Sherman Ave CDA, ID 83814 AS OF July 21, 2008 PREPARED BY 12536 Kensington Ave Hayden Lake, id 83835
P35608C Table of Contents Title # Land Appraisal 1 Extra Comps 4-5-6 2 Land Certification 1 3 Land Certification 2 4 Land Certification 3 5 Zoning Description 6 Comments 7 Photo Subject 8 Plat Map 9 Location Map 10 MLS Sales Data 11 MLS Market Data Solds vs. DOM 12
P35608C Summary Appraisal Report LAND APPRAISAL REPORT Borrower Dawn Forest Census Tract Map Reference Property Coeur Address d' Alene Kootenai ID 83814 City Subject to Lot Line Adjustment to Rivercal, CountyTax #7575, Tax#7358, Tax#7576 State Tract C and divided into Zip Code 3 equal parcels Legal Description Market Value N/A N/A Sale Price $ $1921Estimated Date of Sale Loan Term yrs. N/AProperty Rights Appraised N/A Fee Leasehold De Minimis PUD Actual Real Estate Prestige Taxes $ Realty of North Idaho (yr) Loan Charges to be paid by seller $ 805 E Other Sherman Sales Ave;CDA, ConcessionsID 83814 Lender/Client Vacant Yvonne TItus Address appraisal on 1/3 of legal Occupant Appraiser Instructions to Appraiser Location Urban Suburban Rural Good Avg. Fair Poor Built Up Over 75% 25% to 75% Under 25% Employment Stability Growth Rate Fully Dev. Rapid Steady Slow Convenience to Employment Property Values Increasing Stable Declining Convenience to Shopping Demand/Supply Shortage In Balance Oversupply Convenience to Schools Marketing Time 65 Under 3 Mos, 4-6 Mos. Over 6 Mos. Adequacy of Public Transportation Present Land Use %1 Family 35 %2-4 Family % Apts % Condo % Commercial Recreational Facilities %Industrial % Vacant % Adequacy of Utilities Change In Present Land Use Not Likely Large sites Likely(*) Smaller Taking sites Place (*) Property of Compatibility (*) From To Protection from Detrimental Conditions Predominate Occupancy 225,000 Owner 2,500,000 Tenant % Vacant 450,000 Police and Fire Protection Single Family Price Range $ New to $ 35 Predominant Value $ 10 General Appearance of Properties Single Family Age yrs to yrs. Predominant Age yrs Appeal to Market The Subject neighborhood is composed Comments including of average those factors, good favorable quality or homes unfavorable, which affecting exhibit marketability average to (e.g. good public maintenance parks, schools, levels. view, noise): The sites are on the river, views of the river and/or neighborhood views. This neighborhood provides a typical environment for the area. The Subject neighborhood has average access to the typical amenities and services. **See Plat Map for Calculation** 9900 +/- Acres 107FF+/- Dimensions Restricted Residential *SEE COMMENTS FOR DESCRIPTION* = Corner Lot Zoning Classification Present Improvements do do not conform to zoning regulations Highest and best use Present use Other (specify) Level to slope down to River Public Other (Describe) OFF SITE IMPROVEMENTS Topo.228 +/- Acres/107FF+/- Elec. Street Access Asphalt Public Private Size Rectangular Gas Surface Shape Spokane River Water Septic System Maintenance Public Private View Adequate San. Sewer Storm Sewer Curb/Gutter Drainage Underground Elect. & Tel. Sidewalk Street Lights Is the property located in a HUD identified No Special adverse Flood easements Hazard Area? or No Yes Comments encroachments (favorable were or unfavorable noted. Normal including utility any apparent type, pedestrian adverse easements, and access encroachments easements or other only. adverse conditions): The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to or more favorable than the subject property, a minus (-) adjustment is made thus reducing the indicated value of subject; if a significant item in the comparable is inferior to or less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. NNA SUBJECT Canal St PROPERTY Lees COMPARABLE Point Rd Lt1129 NO.1 4723 COMPARABLE W Mill River NO.2 Ct 5367 COMPARABLE E Shoreline NO.3 Dr Address Coeur d' Alene ID 83814 Hayden 83835 Coeur d'alene Post Falls 83854 8.35 miles NE 0.79 miles NW 3.63 miles W Proximity to Subject Market Value 670,000 825,000 755,000 Sales Price $ $ $ $ Price / $ MLS# 07-4879 $ MLS# 06-2204 $ MLS# 06-8947 $ Data Source Date of Sale and DESCRIPTION N/A 06/05/2007 DESCRIPTION 61DOM +(-)$ Adjustment 10/16/2006 DESCRIPTION 229DOM +(-)$ Adjustment 2/21/2007 DESCRIPTION 220DOM +(-)$ Adjustment Time Adjustment Location Site/View Water/Sewer Spokane River.228 +/-Ac/107FF City/Septic Hayden Lake.25 +/-Acres 104FF Private +24,000 Spokane River.49 +/-Acres 89.5FF City/City +140,000 Spokane River.44 +/-Acres 90FF City/City +136,000 Electricity/Phone Yes Available Available Available Dock Dock/elec/plum None +25,000 None +25,000 None +25,000 Cash Out None Known Conventional None Known Conventional None Known Sales or Financing Concessions 49,000 165,000 161,000 Net Adj.(Total) Plus Minus $ Plus Minus $ Plus Minus $ Indicated Value Net=7% 719,000 Net=20% 990,000 Net=21% 916,000 of Subject The Subject site and Gross=7% the improvements are $ well accepted in Gross=20% this neighborhood and $ would market well. Gross=21% The Comparables $ displayed were Comments carefully selected on Market and Data are considered to be the best indicators of the Subjects Market Value. Sources of data included the Coeur d'alene Multiple Listing Service, the Kootenai County Assessors Office, Appraiser Files, Realtor Interviews and the Appraisers daily exposure to the market. This property has been appraised subject-to the lot line adjustment showing the site size and new Comments legal description, and Conditions and a of covered Appraisal: dock with electrical and plumbing. This report is based on the land with no other improvements. The Comparables displayed were carefully selected and are considered to be the best indicators of the Subjects Final Market Reconciliation: Value. Sources of data included the Coeur d'alene Multiple Listing Service, the Kootenai County Assessors Office Appraiser Files, Realtor Interviews and the Appraisers daily exposure to the market. All Comparables were given equal weight. July 21, 2008 881,000 I ESTIMATE THE MARKET VALUE, AS DEFINED, OF SUBJECT PROPERTY AS OF to be $ Review Appraiser (if applicable) Appraiser(s) Yvonne TItus Did Did Not Physically July 24, 2008 Inspect Property Date Report Signed CRA-1186 ID Date Report Signed State Certification # State State Certification # State Or State License # 09/09/2008 State Or State License # State Expiration Date of License or Certification Expiration Date of License or Certification 1 of 12
ETRA COMPARABLES 4-5-6 P35608C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to or more favorable than the subject property, a minus (-) adjustment is made thus reducing the indicated value of subject; if a significant item in the comparable is inferior to or less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. SUBJECT PROPERTY COMPARABLE NO. 4 COMPARABLE NO. 5 COMPARABLE NO. 6 Address NNA Canal St NNA Newtons Way Coeur d' Alene ID 83814 Coeur d'alene Proximity to Subject 3.36 miles S Sales Price $ Market Value $ 1,220,000 $ $ Price $ $ $ $ Data Source MLS# 07-5241 +(-)$ +(-)$ +(-)$ Date of Sale and DESCRIPTION DESCRIPTION Adjustment DESCRIPTION Adjustment DESCRIPTION Adjustment Time Adjustment Location Site/View Water/Sewer Electricity/Phone Dock N/A Spokane River.228 +/-Ac/107FF City/Septic Yes Dock/elec/plum 12/17/2007 245DOM Lake CDA.71 +/-Acres 146FF -312,000 Lake-Private/Septic Yes None +25,000 Sales or Financing Cash Out Concessions None Known Net Adj.(Total) Plus Minus $ -287,000 Plus Minus $ 0 Plus Minus $ 0 Indicated Value of Subject Net=-24% Gross=28% $ 933,000 Net=0% Gross=0% $ 0 Net=0% Gross=0% $ 0 Comments on Market Data 2 of 12
P35608C This appraisal report is subject to the scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. 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, 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 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 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. 3. 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. 4. The appraiser has noted in this appraisal report any adverse conditions (such as 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 this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent deficiencies or adverse conditions of the property (such as, but not limited to, 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. 5. If the appraiser has based his or her appraisal report and valuation conclusion for an appraisal subject to certain conditions, it is assumed that the conditions will be met in a satisfactory manner. RURAL ZONE DEFINED: The "Rural zone" is a classification for a district suitable for rural uses, such as rural residential uses and agricultural pursuits, including farming and forestry 3 of 12
APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: P35608C 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 subject property. I reported the site characteristics in factual, specific terms. 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. 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 reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 9. 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. 10. I have knowledge and experience in appraising this type of property in this market area. 11. 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. 12. 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. 13. 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, 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. 14. 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. 15. 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. 16. 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. 17. 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). 18. 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. 19. 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. 20. 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). 4 of 12
P35608C 21. 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. 22. 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. 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 Signature Name Yvonne TItus Name Company Name Company Name Company Address 12536 Kensington Ave Company Address Hayden Lake, id 83835 Telephone Number 208/762-0999 Telephone Number Email Address Yetitus@adelphia.net Email Address Date of Signature and Report July 24, 2008 Date of Signature Effective Date of Appraisal July 21, 2008 State Certification # State Certification # CRA-1186 or State License # or State License # State or Other (describe) State # Expiration Date of Certification or License State ID Expiration Date of Certification or License 09/09/2008 SUBJECT PROPERTY ADDRESS OF PROPERTY APPRAISED NNA Canal St Coeur d' Alene ID 83814 APPRAISED VALUE OF SUBJECT PROPERTY $ LENDER/CLIENT Name Company Name Prestige Realty of North Idaho Company Address 805 E Sherman Ave CDA, ID 83814 Email Address 881,000 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 5 of 12
6 of 12 Zoning Description P35608C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814
COMMENT ADDENDUM P35608C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 SITE: The site does not have access to public sewer. There is a septic system for the sewage. In this neighborhood septic systems are typical and does not have a negative affect on property values site adjustments of $8,000 per difference in site sizes was used to make adjustments. I averaged comparables 1, 2 and 3 site values per front feet to determine the front foot values. SCOPE OF WORK: A thorough search was made of the Appraiser's Files, Multiple Listing Service data and the Assessors Records. Although comparables are selling within 6 months, due to different styles, age, market, condition and sites, this still causes the use of comparables over 6 months old. A thorough search for comparable sales was made in an attempt to find ones with gross and net adjustments at or below the recommended guidelines. Lack of Comparable Sales data is common in North Idaho. This condition is created by a small population base made up of numerous small towns surrounded by near rural areas. This situation has become even more prevalent since the late 1980's when North Idaho's economy started to improve and the local housing industry began its recovery. These conditions create no apparent adverse influence on Market Values, but when combined do typically cause some individual, net or gross adjustments to exceed nationally established appraisal guidelines. This is unavoidable due to the makeup of the North Idaho Market. SALES ANALYSIS: The purpose of this appraisal is to estimate the market value of the subject property. This appraisal report is prepared for the sole and exclusive use of the Client, Prestige Realty of North Idaho, to assist with the market opinion. This appraisal is a summary report, which complies with the report requirements set forth under Standards Rule 2-2 (b) of the Uniform Standards of Professional Appraisal Practices. The market value in this report is my opinion. The appraisal report does not guarantee that the property is free of defects. SALES COMPARISON-RECONCILIATION: Many Comparable Sales were considered for this Appraisal Assignment. The Comparables displayed were carefully selected and are considered to be the best indicators of the Subject's Market Value. Sources of data included the Coeur d'alene Multiple Listing Service, the Kootenai County Assessors Office, Appraiser Files, Realtor Interviews and the Appraisers daily exposure to the market. 7 of 12
SUBJECT PHOTO ADDENDUM P35608C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 FRONT OF SUBJECT PROPERTY NNA Canal St Coeur d' Alene ID 83814 REAR OF SUBJECT PROPERTY STREET SCENE 8 of 12
PLAT MAP P35608C Dawn Forest NNA Canal St Coeur d' Alene Kootenai ID 83814 Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 Borrower Property Address City County State Zip Code Lender/Client SUBJECT 9 of 12
LOCATION MAP ADDENDUM P35608C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814 SALE 1 SUBJECT COMP 4 10 of 12
11 of 12 MLS Sales Data P35608C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814
12 of 12 MLS Market Data Solds vs. DOM P35608C Borrower Dawn Forest City Coeur d' Alene County Kootenai State ID Zip Code 83814 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave;CDA, ID 83814
INVOICE Date: September 8, 2008 P41808C Prepared for: Prestige Realty of North Idaho 805 E Sherman Ave Coeur d' Alene, ID 83816 Property Appraised: Dawn Forest & Travis Sneed NNA Canal St Coeur d'alene, ID 83814-8944 Work Performed: 1073 Condo/Waterfront $ $ $ $ $ $ 200.00 Total Amount Due: $ 200.00 Please make checks payable to: 12536 Kensington Street Hayden Lake, ID 83835 (208)762-0999PH (208)762-0998 FA YETITUS@ADELPHIA.NET Please include file number with payment
APPRAISAL REPORT OF NNA Canal St Coeur d'alene, ID 83814-8944 PREPARED FOR Prestige Realty of North Idaho 805 E Sherman Ave Coeur d' Alene, ID 83816 AS OF September 5, 2008 PREPARED BY Yvonne E. Titus Hayden Lake, ID 83835
P41808C Table of Contents Title # FNMA 1073 1 1 FNMA 1073 2 2 FNMA 1073 3 3 Extra Comps 4-5-6 4 FNMA 1073 4 5 FNMA 1073 5 6 FNMA 1073 6 7 Zoning Description 8 Comments 9 Sketch 10 Sketch 11 Sketch 12 Sketch 13 Photo Subject 14 Photo Comparables 1-2-3 15 Photo Comparables 4-5-6 16 Location Map 17 Plat Map 18 Flood Map 19 MLS Market Data Solds vs. DOM 20 MLS Sales Data 21
Summary Appraisal Report P41808C Individual Condominium Unit Appraisal Report 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. Unit # A City Coeur d'alene State ID Zip Code 83814-8944 Borrower Dawn Forest & Travis Sneed Owner of Public Record Forest, Dawn County Kootenai Legal Description Subject to a lot adjustment of tax #7358 Assessor's Parcel No. 50N04W11- New Parcel Numbers to be Issued Tax Year 2007 R.E. Taxes $ 2,561.95 Project Name Spokane River Phase # One Map Reference M.L.S. area 1 Census Tract 0020.00 Occupant Owner Tenant Vacant Special Assessments $ None HOA $ To Be Determined per year per month Property Rights Appraised Fee Simple Leasehold Other (describe) Assignment Type Purchase Transaction Refinance Transaction Other (describe) Construction Loan Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 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? Y e s No Report data source(s) used, offerings price(s), and date(s). Per the Coeur d' Alene Multiple listing service. I d i d 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. N/A Contract Price $ Market Value Date of Contract N/A Is the property seller the owner of public record? Yes No Data Source(s) N/A Is there any financial assistance (loan charges, sale concessions, gift or down payment 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. N/A Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood Characteristics Condominium Unit Housing Trends Condominium Housing Present Land Use % Location Urban Suburban Rural Property Values Increasing Stable Declining PRICE AGE One-Unit 70 % Built-Up Over 75% 25-75% Under 25% Demand/Supply Shortage I n B a l a n c e Over Supply $ (000) (yrs) 2-4 Unit 0 % Growth Rapid Stable Slow Marketing Time Under 3 mths 3-6 mths Over 6 mths 300 Low New Multi-Family 0 % Neighborhood Boundaries The boundaries of the Subjects neighborhood area are Lincoln Way to 5,900 High 20 Commercial 5 % the North, Highway 95 to the East, Post Falls to the West, and Fairmont Loop to the South 900 Pred. 2 Other 20 % Neighborhood Description The Subject neighborhood is composed of average to good quality homes which exhibit average to good maintenance levels. The sites are a mixture of waterfront, views of the River and/or neighborhood views. This neighborhood provides a typical environment for the area. The Subject neighborhood has average access to the typical amenities and services. Market Conditions (including support for the above conclusions) Attached is stats provided by the Cd'A MLS showing market analysis to support the findings above. Financing available is typically Conventional, although FHA and VA financing are also available. Special financing, loan discounts, interest buydowns and concessions were determined to be atypical for the subject neighborhood. Topography Slight Slope Size.22+/ A107FF+/- Density Low View Spokane River Specific Zoning Classification Restricted Residential Zoning Description **SEE EHIBIT FOR ZONING DESCRIPTION** Zoning Compliance Legal Legal Nonconforming - Do the zoning regulations permit rebuilding to current density? Yes No 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. Utilities Public Other (describe) Public Other (describe) Off-site Improvements--Type Public Private Electricity Water Street Asphalt Gas Sanitary Sewer Septic Tank Alley None FEMA Special Flood Hazard Area Yes No FEMA Flood Zone A5 FEMA Map # 16055C 0170D FEMA Map Date 09/28/1984 Are the utilities and/or off-site improvements typical for the market area? Yes No If No, describe. Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes No If Yes, describe. No adverse easements or encroachments were noted. Normal utility type, pedestrian and access easements only. Data source(s) for project information Realtor/Developer Project Description Detached Row or Townhouse Garden Mid-Rise High-Rise Other (describe) General Description General Description Subject Phase If Project Completed If Project Incomplete # of Stories 7 Story Exterior Walls Stucco # of Units 6 # of Phases 0 # of Planned Phases 1 # of Elevators 1 per unit Roof Surface Comp.Shng # of Units Completed 0 # of Units 0 # o f Planned Units 6 Existing Proposed Total # Parking 2 # of Units For Sale 6 # of Units for Sale 0 # of Units for Sale 6 Under Construction Ratio (spaces/units) 1-2 # of Units Sold 0 # of Units Sold 0 # of Units Sold 0 Year Built 2008 Type Garage # of Units Rented 0 # of Units Rented 0 # of Units Rented 0 Effective Age New Guest Parking Yes # of Owner Occupied Units 0 # of Owner Occupied Units 0 # of Owner Occupied Units 0 Project Primary Occupancy Principal Residence Second Home or Recreational Tenant Is the developer/builder in control of the Homeowners' Association (HOA)? Yes No Management Group - Homeowners' Association Developer Management Agent - Provide name of management company. The developer will be in charge until the units are sold. Does any single entity (the same individual, investor group, corporation, etc.) own more than 10% of the total units in the project? Yes No If Yes, describe Until all units have sold. Was the project created by the conversion of an existing building(s) into a condominium? Yes No If Yes, describe the original use and the date of conversion. Are the units, common elements, and recreation facilities complete (including any planned rehabilitation for a condominium conversion)? Yes No If No, describe Is there any commercial space in the project? Yes No If Yes, describe and indicate the overall percentage of the commercial space. Freddie Mac Form 465 March 2005 Fannie Mae Form 1073 March 2005 1 of 21
Individual Condominium Unit Appraisal Report P41808C Describe the condition of the project and quality of construction. The overall condition of the improvements are good and the quality of construction of the improvements are excellent. According to the developer, the finish work will be considered luxury, all of the materials being of the highest quality and ultimate convenience. Describe the common elements and recreational facilities. lawn with sprinkler system, dock with each unit having 2 boat slips, elevator Are any common elements leased to or by the Homeowners' Association? Yes No If Yes, describe the rental terms and options. Is the project subject to ground rent? Yes No If Yes, $ N/A per year (describe terms and conditions) Are the parking facilities adequate for the project size and type? Yes No If No, describe and comment on the effect on value and marketability. I did did not analyze the condominium project budget for the current year. Explain the results of the analysis of the budget (adequacy of fees, reserves, etc.), or why the analysis was not performed. Are there any other fees (other than regular HOA charges) for the use of the project facilities? Yes No If Yes, report the charges and describe. Compared to other competitive projects of similar quality and design, the subject unit charge appears High Average Low If High or Low, describe Are there any special or unusual characteristics of the project (based on the condominium documents, HOA meetings, or other information) known to the appraiser? Yes No If Yes, describe and explain the effect on value and marketability. Unit Charge $ Unknown per month 12 = $ 0 per year. Annual assessment charge per year per square feet of gross living area = $ 0 Utilities included in the unit monthly assessment None Heat Air Conditioning Electricity Gas Water Sewer Cable Other (describe) General Description Interior materials/condition Amenities Appliances Car Storage Floor # Main Floors Marb/Hardwood/Good Fireplace(s) # 2 Refrigerator None # of Levels 3 Walls Plaster-Drywall/Good Woodstove(s) # Range/Oven Garage Covered Open Heating Type FAU Fuel Gas Trim/Finish Wood Stained/Gd Deck/Patio 9Dcks Disp Microwave # of Cars 2 Central AC Individual AC Bath Wainscot Trav-Marb/Good Porch/Balcony Entry Dishwasher Assigned Owned Other (describe) Doors Solid Wood/Good Other Washer/Dryer Parking Space # Finished area above grade contains: 10 Rooms 3 Bedrooms 5.00 Bath(s) 8,115 Square Feet of Gross Living Area Above Grade Are the heating and cooling for the individual units separately metered? Yes No If No, describe and comment on compatibility to other projects in the market area. Additional features (special energy efficient items, etc.) **SEE COMMENTS FOR IMPROVEMENTS & FEATURES** Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.). The Subject is a Multi-Level style condominium unit on the Spokane River. The condition of the Subject's improvements are very good and the overall quality of the construction is Excellent. Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? Yes No If Yes, describe There are no factors noted that would negatively affect the marketability of the subject. Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? Yes No If No, describe The Subject and the improvements are well accepted in this neighborhood and will market well. I did did not research the sale or transfer history of the subject property and comparable sales. If not, explain 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) Per the Coeur d' Alene Multiple Listing Service. My research d i d 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) Per the Coeur d' Alene Multiple Listing Service 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 # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Date of Prior Sale/Transfer Price of Prior Sale/Transfer Data Source(s) Effective Date of Data Source(s) Not sold in Last 36 months Warranty Deed & MLS 9/8/2008 Per MLS, no prior sales have occurred in the past 12 months 9/8/2008 Per MLS, no prior sales have occurred in the past 12 months 9/8/2008 Per MLS, no prior sales have occurred in the past 12 months 9/8/2008 Analysis of prior sale or transfer history of the subject property and comparable sales The subject has not been sold within the last 36 months per public records or the CDA MLS. The subject has not been listed within the last 12 months per the CDA MLS. The Comparables used have not sold in the last 12 months, other than listed above, per the CDA MLS. The state of Idaho is a non-disclosure state, property for sale by owner is common in this area, the sale is not posted to the MLS, and the sales price is unknown. Freddie Mac Form 465 March 2005 Fannie Mae Form 1073 March 2005 2 of 21
Individual Condominium Unit Appraisal Report There are 9 comparable properties currently offered for sale in the subject neighborhood ranging in price from $ 4,000,000 t o $ 6,000,000. There are 3 comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ 4,500,000 t o $ 6,000,000. FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Address NNA Canal St, #A 2042 S Island Green Dr 2032 S Island Green 2052 S Island Green and Unit # Coeur d'alene, ID 83814-8944 Coeur d'alene Coeur d'alene Coeur d'alene Project Name and Phase Proximity to Subject Spokane River One The Terraces on Lake CDA One 3.07 miles SE The Terraces on Lake CDA One 3.00 miles SE The Terraces on Lake CDA One 2.72 miles SE Sale Price $ Market Value $ 5,100,000 $ 5,100,000 $ 5,100,000 Sale Price /Gross Liv. Area $ 0.00 sq. ft. $ 972.73 sq. ft. $ 972.73 sq. ft. $ 972.73 sq. ft. Data Source(s) Verification Source(s) MLS# 07-13368 Mike Delong-Sales Manager MLS# 07-12435 Mike Delong- Sales Manager Realtor Mike Delong- Sales Manager VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple HOA Mo. Assessment Common Elements and Rec. Facilities Floor Location View Design (Style) Quality of Construction Actual Age River Fee Simple Unknown Dock & 2BoatSlips - Main Spokane River Multi-Level Excellent 2008yrs Cash Out None Known 10/1/2007 153DOM Lake Fee Simple 7,000 Dock & Boat Slip - 5th Floor GC & Cd'A Lake Ranch Excellent 1a/New -50,000-500,000 Cash Out None Known 09/14/2007 13DOM Lake Fee Simple 7,000 Dock & Boat slip - 4th Floor GC & Cd'A Lake One Level Excellent 1a/New -50,000-500,000 Condition Above Grade Total Good Bdrms. Baths Total Good Bdrms. Baths Total Good Bdrms. Baths Total Good Bdrms. Baths P41808C Room Count Gross Living Area 10 3 8,115 5.00 sq. ft. 7 3 5,243 3.50 sq. ft. +15,000 +172,300 7 3 5,243 3.50 sq. ft. +15,000 +172,300 7 3 5,243 3.50 sq. ft. +15,000 +172,300 Basement & Finished Rooms Below Grade None None None None None None None None Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck Good GASFAU/CAC Included 2 Car Garage Ent/Dk/Gym/Pool Average Gas FA/CAC Similar 2 Car Garage Average Gas FA/CAC Similar 2 Car Garage Average Gas FA/CAC Similar 2 Car Garage Fireplaces Golf 2 Fireplaces Cda publicgolfgc En/CDck/LS/FN/HT 2 Gas Fireplace 2 Cd'A Resort -1,000,000 Entry/Dk/LS/FN/HT 2 Gas Fireplace 2 Cd'a Resort -1,000,000 Unknown None Known 1/2008 Lake -50,000 Fee Simple 7,000 Dock & Boat Slip - 6th Floor GC & Cd'A Lake -500,000 One Level Excellent 1a/New Entry/Dck/LS/FN/HT 2 Gas Fireplace 2 Cd'a Resort -1,000,000 Net Adjustment (Total) + - $ -1,362,700 + - $ -1,362,700 + - $ -1,362,700 Adjusted Sale Price of Comparables Net Adj: -27% Gross Adj : 34% $ 3,737,300 Net Adj: -27% Gross Adj: 34% $ 3,737,300 Net Adj: -27% Gross Adj: 34% $ 3,737,300 Summary of Sales Comparison Analysis. There is an extreme lack of data for Condos. Condos range from $150,000 to $6,000,000. Views of the lake or neighborhood views. The comparables displayed were carefully selected and are considered to be the best indicators of the Subjects Market Value. Sources of data included the Coeur d'alene Multiple Listing Service, the Kootenai County Assessors Office, Appraisers Files, Realtor interviews and the Appraisers daily exposure to the market. Items of personal property were not included in the appraised value. Comparables 1, 2, and 3 were given equal weight, Comparables 4, 5, and 6 gave good support. Indicated Value by Sales Comparison Approach $ 3,780,000 INCOME APPROACH TO VALUE (not required by Fannie Mae) Estimated monthly Market Rent $ N/A Gross Rent Multiplier N/A =$ N/A Indicated Value by Income Approach (optional) Summary of Income Approach (including support for market rent and GRM). Most weight is given to the value estimate derived from the Sales Comparison Approach as it best reflects market activity. The Cost Approach was not considered nor was the income approach. Indicated Value by: Sales Comparison Approach $ 3,780,000 Income Approach (if developed) $ N/A Most weight is given to the value estimate derived from the Sales Comparison Approach as it best reflects market activity and is well supported by the Cost Approach. The Income Approach is not considered. The rental data for single family rentals in the Subject neighborhood was insufficient to formulate a reliable G.R.M 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. The subject is appraised "Subject To" Completion with the information obtained by the developer. 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 $ 3,780,000 as of September 5, 2008, which is the date of inspection and the effective date of this appraisal. Freddie Mac Form 465 March 2005 Fannie Mae Form 1073 March 2005 3 of 21
ETRA COMPARABLES 4-5-6 P41808C Borrower Dawn Forest & Travis Sneed C i t y Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 Address and Unit # FEATURE SUBJECT COMPARABLE SALE # 4 COMPARABLE SALE # 5 COMPARABLE SALE # NNA Canal St, #A 1031 S Island Green 1051 S Island Green Coeur d'alene, ID 83814-8944 Coeur d'alene Coeur d'alene The Terraces on Lake CDA The Terraces on Lake CDA One One Project Name and Phase Spokane River One Proximity to Subject 2.97 miles SE 2.97 miles E Sale Price $ Market Value $ 4,600,000 $ 5,900,000 $ 3.02 miles SE 5,400,000 Sale Price /Gross Liv. Area $ 0.00 sq. ft. $ 877.36 sq. ft. $ 1,125.31 sq. ft. $ 1,029.94 sq. ft. Data Source(s) Verification Source(s) Realtor Mike Delong-Manager Realtor Mike Delong- Manager Realtor Mike Delong-Manger VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple HOA Mo. Assessment Common Elements and Rec. Facilities Floor Location View Design (Style) Quality of Construction Actual Age Condition River Fee Simple Unknown Dock & 2BoatSlips - Main Spokane River Multi-Level Excellent 2008yrs Good Unknown None Known 7/2007 Lake Fee Simple 7,000 Dock/Boat Slip - 4th Floor GC & Cd'A Lake One Level Average 1a/New Good -50,000-500,000 +650,000 Pending None Known Pending Lake Fee Simple 7,000 Dock/Boat Slip - 6th Floor GC & Cd'A Lake One Level Excellent 1a/New Good -50,000-500,000 Listing None Known Listing Lake Fee Simple 7,000 Dock/Boat Slip - 5th Floor Cda Lake/Marina One Level Excellent 1a/New Good -216,000-50,000 Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Room Count Gross Living Area 10 3 8,115 5.00 sq. ft. 7 3 5,243 3.50 sq. ft. +15,000 +172,300 7 3 5,243 3.50 sq. ft. +15,000 +172,300 7 3 5,243 3.50 sq. ft. +15,000 +172,300 Basement & Finished Rooms Below Grade Functional Utility None None Good None None Good None None Good Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck GASFAU/CAC Included 2 Car Garage Ent/Dk/Gym/Pool Gas FA/CAC Similar 2 Car Garage Gas FA/CAC Similar 2 Car Garage Fireplaces Golf 2 Fireplaces Cda publicgolfgc Entry/Dck/LS/FN/HT 2 Gas Fireplace 2 Cda Resort -1,000,000 None None Good Gas FA/CAC Similar 2 Car Garage Entry/Dck/LS/FN/HT 2 Gas Fireplace 2 Cda Resort -1,000,000 6 3042 S Island Green Coeur d'alene The Terraces on Lake CDA One Entry/Dck/LS/FN/HT 2 Gas Fireplace 2 Cda Resort -1,000,000 Net Adjustment (Total) + - $ -712,700 + - $ -1,362,700 + - $ -1,078,700 Adjusted Sale Price of Comparables Net Adj: -15% Gross Adj : 52% $ 3,887,300 Net Adj: -23% Gross Adj: 29% $ 4,537,300 Net Adj: -20% Gross Adj: 27% $ 4,321,300 Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales ITEM SUBJECT COMPARABLE SALE # 4 COMPARABLE SALE # 5 COMPARABLE SALE # 6 Date of Prior Sale/Transfer Price of Prior Sale/Transfer Data Source(s) Effective Date of Data Source(s) Not sold in Last 36 months Warranty Deed & MLS 9/8/2008 Per MLS, no prior sales have occurred in the past 12 months 9/8/2008 Per MLS, no prior sales have occurred in the past 12 months 9/8/2008 Per MLS, no prior sales have occurred in the past 12 months 9/8/2008 Summary of Sales Comparison Analysis. 4 of 21
Individual Condominium Unit Appraisal Report P41808C This report form is designed to report an appraisal of a unit in a condominium project or a condominium 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 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 unit, (2) inspect and analyze the condominium project, (3) inspect the neighborhood, (4) inspect each of the comparable sales from at least the street, (5) research, verify, and analyze data from reliable public and/or private sources, and (6) 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 this 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 465 March 2005 Fannie Mae Form 1073 March 2005 5 of 21
Individual Condominium Unit Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: P41808C 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 465 March 2005 Fannie Mae Form 1073 March 2005 6 of 21
Individual Condominium Unit Appraisal Report P41808C 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 Signature Name Yvonne E. Titus Name Company Name Company Name Company Address 12536 Kensington Street Company Address Hayden Lake, ID 83835 Telephone Number (208)762-0999 Telephone Number Email Address YETITUS@ADELPHIA.NET Email Address Date of Signature and Report September 8, 2008 Date of Signature Effective Date of Appraisal September 5, 2008 State Certification # State Certification # CRA-1186 or State License # or State License # State or Other (describe) State # Expiration Date of Certification or License State ID Expiration Date of Certification or License 09/9/2009 ADDRESS OF PROPERTY APPRAISED NNA Canal St Coeur d'alene, ID 83814-8944 APPRAISED VALUE OF SUBJECT PROPERTY $ LENDER/CLIENT Name Company Name Prestige Realty of North Idaho Company Address 805 E Sherman Ave Coeur d' Alene, ID 83816 Email Address 3,780,000 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 465 March 2005 Fannie Mae Form 1073 March 2005 7 of 21
8 of 21 Zoning Description P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816
COMMENT ADDENDUM P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 SCOPE OF WORK: A thorough search was made of the Appraiser's Files, Multiple Listing Service data and the Assessors Records. A thorough search for comparable sales was made in an attempt to find ones with gross and net adjustments at or below the recommended guidelines. Lack of Comparable Sales data is common in North Idaho. This condition is created by a small population base made up of numerous small towns surrounded by near rural areas. Homes in the area typically are custom built or speculative homes constructed one at a time by small local builders. This created neighborhoods composed of many different homes styles with a wide variety of sizes, features, floor plans and amenities. Homes that exceed or are lower than Predominant Neighborhood Values are not uncommon in the North Idaho Market. Housing styles, condition, age, site size and values of homes within North Idaho neighborhoods tend to vary more than is typical in many other markets. Newer and larger homes have been constructed in neighborhoods with older, more modest homes for many years. This situation has become even more prevalent since the late 1980's when North Idaho's economy started to improve and the local housing industry began its recovery. These conditions create no apparent adverse influence on Market Values, but when combined do typically cause some individual, net or gross adjustments to exceed nationally established appraisal guidelines. This is unavoidable due to the makeup of the North Idaho Market. This is a limited appraisal report. The purpose of the appraisal for the Subject property is to aid in an estimated market value for, Prestige Realty of North Idaho. This appraisal may not be used or relied upon by anyone other than the client. Idaho is a non-disclosure state, therefore the actual sales amounts for any past sales have been provided from the Coeur d'alene Multiple Listing Service records. No warranties are made to the accuracy of these dollar amounts. With the information known, this is my opinion of the market value. SALES COMPARISON-RECONCILIATION: Many Comparable Sales were considered for this Appraisal Assignment. The Comparables displayed were carefully selected and are considered to be the best indicators of the Subject's Market Value. Some of the comparables are older than desired, but was unavoidable to find comparables similar to the Subject. The sources of data included the Coeur d'alene Multiple Listing Service, the Kootenai County Assessors Office, Appraiser Files, Realtor Interviews and the Appraisers daily exposure to the market. Most of the information about the comparables was obtained by Mike Delong the sales manager for the Island Green Condos, Gene, the home owner association manager for CDA North Condos, exterior inspection and the Multiple Listing Service. IMPROVEMENTS: The subject will have many amenities, including but not limited to:a locker room, private hot tub room, an endless pool, a patio with kitchenette, barbecue walk out lawn terrace from the main level. In unit A on the second floor there is a deck, a screened deck off living room, a screened porch off bedroom, a fireplace in the great room. The third floor also has a covered deck, 2 other decks, a screened porch off the bedroom. There is a fireplace in the view room. The fourth level has a sitting room and private deck off master bedroom, a fitness room a large walk in his & her closet,an office and a screened porch. Each of these levels will also have a laundry room. The water system will feature a water softener and instant hot water. The subject has a private gated entry having full video surveillance with communication direct to each residence from the gate. The built in oversized garages will be completely finished with a special designer epoxy sealer and built in storage cabinets. The elevators are also private high speed finished on the inside with slab granite. Each unit will have a grand foyer having the finest stonework and mill work detailing. There will be Valli & Vali Italian Hardware, Venetian style plastered walls, solid wood baseboards and crown molding, a private security system for individual monitoring, a central vacuum system, radiant floor heating and cooling, central air conditioning. The private media room will feature an 84 inch projection display, custom seating and a Bose Lifestyle V30 surround sound Home theater system. There will also be pre-wiring for smart panel technology, blue ray, HDTV cable and high speed communications throughout the unit. The kitchen will have custom European cabinetry with a wide selection of custom cabinet finishes. The granite counter tops will have full backsplash and double edge bull nose edge. There will be Kitchen Aid brand Architect Series appliances multiple dishwashers, range, microwave and dual ovens, Miele Espresso machines, sub-zero wine cooler and refrigeration, a wall gas pizza oven, solid wood or marble flooring, custom hand blown leaded crystal light fixtures, built in china hutch with exotic wood inlays. The laundry rooms will feature Bosh Next 800 series front loading washers and dryers, granite counter tops and the same quality European cabinetry as the kitchen cabinets. The guest bedroom suites will have all Brazilian solid wood flooring, custom blown glass light fixtures, walk out decks will custom iron railing, and floor to ceiling glass, retractable Nana Wall for a full view of the Spokane River. The guest bathrooms will also feature the European cabinetry, full travertine slab shower wainscotting, jetted Kohler bathtubs, steam and massage shower fixtures, Italian stone slab counter tops, Italian stone flooring, Kohler sinks, toilets and custom faucets. The master bathroom will feature the European cabinetry, Italian marble slab counter tops, Italian marble flooring, frame less glass enclosed shower, stem and massage shower features, jetted tubs, custom faucets, Villeroy and Bosch sinks, toilets and bidet's. 9 of 21
SKETCH ADDENDUM P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 10 of 21
SKETCH ADDENDUM P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 11 of 21
SKETCH ADDENDUM P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 12 of 21
SKETCH ADDENDUM P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 13 of 21
SUBJECT PHOTO ADDENDUM P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 FRONT OF SUBJECT PROPERTY NNA Canal St, #A Coeur d'alene, ID 83814-8944 REAR OF SUBJECT PROPERTY STREET SCENE 14 of 21
COMPARABLES 1-2-3 P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 COMPARABLE SALE # 2042 S Island Green Dr Coeur d'alene 1 COMPARABLE SALE # 2032 S Island Green Coeur d'alene 2 COMPARABLE SALE # 2052 S Island Green Coeur d'alene 3 15 of 21
COMPARABLES 4-5-6 P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 COMPARABLE SALE # 1031 S Island Green Coeur d'alene 4 COMPARABLE SALE # 1051 S Island Green Coeur d'alene 5 COMPARABLE SALE # 3042 S Island Green Coeur d'alene 6 16 of 21
LOCATION MAP ADDENDUM P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 SUBJECT SALE 1 LISTING 17 of 21
PLAT MAP P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 18 of 21
FLOOD MAP ADDENDUM P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816 SUBJECT 19 of 21
20 of 21 MLS Market Data Solds vs. DOM P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816
21 of 21 MLS Sales Data P41808C Borrower Dawn Forest & Travis Sneed City Coeur d'alene County Kootenai State ID Zip Code 83814-8944 Lender/Client Prestige Realty of North Idaho Address 805 E Sherman Ave, Coeur d' Alene, ID 83816