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5.3. ERMUSR 12-12-2012 VV • Elk River Municipal Uti Milestone Appraisal Services File No.m727 APPRAISAL OF r_ l J S • LOCATED AT: 1627 Main Street NW Elk River,MN 55330 CLIENT: Troy Adams 13069 Orono Pkwy Elk River,MN 55330 AS OF: November 21,2012 BY: Brent Nordstrom 20479131 • Milestone Appraisal Services File No.m727 • November 26,2012 Elk River Utilities Troy Adams 13069 Orono Pkwy Elk River,MN 55330 File Number: m727 The appraisal of a single family dwelling, In accordance with your request, I have appraised the real property at: 1627 Main Street NW Elk River,MN 55330 The purpose of this appraisal is to develop an opinion of the defined value of the subject property,as improved. • The property rights appraised are the fee simple interest in the site and improvements. In my opinion,the defined value of the property as of November 21,2012 is: $150,000 One Hundred Fifty Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, final opinion of value,descriptive photographs,assignment conditions and appropriate certifications. Regard, Br ,t Nordstrom 20479131 • Milestone Appraisal Services Residential Appraisal Report File No. m727 The purpose of this appraisal report is to provide the client with a credible opinion of the defined value of the subject property,given the intended use of the appraisal. Client Name/Intended User Troy Adams E-mail • Client Address 13069 Orono Pkvvy city Elk River State MN Zip 55330 • Additional Intended users No additional Intended Users are identified by the appraiser Intended use See Attached Addendum PropertyAddress 1627 Main Street NW city Elk River State MN Zip 55330 Owner of Public Record Teresa Lee County Sherburne Legal Description That Pt Of Foll Desc Property;Lyin Nly Of S 75 Ft As Measured As Rt Angles Thereof.That Pt Of Lots 1 2,3 &4 Blk 2 O' " Assessor's Parcels 754110240 Tax Year 2012 R.E.Taxes s 4,671 Neighborhood Name Auditors Addition Map Reference 33 D1 Census Tract Property Ri hts ApDraised W Fee Sim file I 11-easehold Other describe M research LJdid 1z did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. PriorSale/Transfer: Date N/A Price Sources MILS and County Records Analysis of prior sale or transfer history of the subject property(and comparable sales,if applicable) Non noted per MILS and County Records. Offerings,options and contracts as of the effective date of the appraisal None Neighborhood Characteristics One-UnitHousing Trends One-Unit Housing Present Land Use% Location Q Urban Suburban I JRural Property Values Increasin X Stable Declinin PRICE AGE One-Unit 75% Over75% X 25-75% Under 25% Demand/supply Shortage X In Balance Q oversupply woo) (yrs) 2-4 Unit 5% Growth LJRapid X Stable U Slow Marketin Time UUnder3mths X 3-6 mths L lover6mths 80 Low 1 Multi-Family 5% • Neighborhood Boundaries Subject is bounded on the north by Ridgewood Dr,on the east by 169, 265 High 41 Commercial 10% • on the south by 178th Ave NW and on the west by Waco St. 160 Pred. 25 Other Vacaant 5% Neighborhood Description See Attached Addendum Market Conditions(including support for the above conclusions) See Attached Addendum • Dimensions 29621 sf Area 29621 S .Ft. Shape Rectangular view Average/Homes Specific Zoning Classification R-1 Zonin Descri tion Residential Zoning Comfit iance X Le al Legal Nonconforming Grandfathered Use No I ing LJ illegal describe Is the highest and best use of the subject property as improved(or as proposed per plans and specifications)the present use? X Yes No If No,describe. See Attached Addendum Utilities Public Other describe) Public Other describe Off-site Improvements—Type Public Private Electricity X Water X Street Gas X U Sanitary Sewer X U Alley Site comments The landscaping and general curb appeal of private properties in the area is good.The topography is mainly level;the tVpical views are of other dwellings.The streets are laid out with proper regard to drainage,land contours and traffic flow. GENERAL DESCRIPTION FOUNDATION EXTERIOR DESCRIPTION materials INTERIOR materials Units X One Onew/Acc.unit LJ Concrete Slab Crawl Space Foundation Walls Concrete/Gd Floors C t&Vin I/ OOd #of Stories 1 LJFullBasement LXJ Partial Basement Exterior Walls Vin I/Gd Walls Drywall/good TyQe Lx1 Det. Att. S-Det/End Unit Basement Area 544 s.ft. Roof Surface AS h/Gd Trim/Finish Wood/good WExisling U Proposed LJ Under const. Basement Finish 80% Gutters&Downspouts Alum./Good Bath Floor Vinyl/good Design(Style)Split Level LJ Outside En /Exit 0 Sump Pump Window Type Csmt/Good Bath Wainscot Fiber lass/ ood Year Built 1987 Storm Sash/Insulated Yes/Good Car Stora a None Effective Age(Yrs)15 Screens Yes/Good I ZJ Driveway N of Cars 2 Attic LJ None Heating X FWA HW Radiant Amenities LJ WoodStove s N Driveway Surface Asphalt Droo,Stair Stairs 41ndividu ther Fuel X Fire laces R 2 X Fence 1 X Garage N of Cars 2 Floor X Scuttle n X Central Air Concitionin X Patio/Deck 1 X Porch 1 Carport N of Cars LJ Finished Heated al Other Pool None Other None X Att. Det. Built-in A linnces X Refri erator X Ran elOven ishwasher X Di s osal 1XIMicrowave X Washer/D er LJ Other describe • Finished area above grade contains: 5 Rooms 2 Bedrooms 1 Bath(s) 1 058 Square Feet of Gross Living Area Above Grade Additional Features The features of the subject are considered typical of the others lit level style homes of similar age and condition in the market area.None of the features unfavorably effect the market value of the property. The subject features include an attached 3 season porch. Comments on the Improvements The subject is in good condition with no deferred maintenance noted.Quality of construction appears average and typical of the market area. The floor plan is assumed functional for today's standards. There was no functional or external . obsolescence noted. No structural deficiencies were noted.Within the past 24 months the the following has been done:retaining wall, interior paint,new fixtures and ceiling fans.The deck was replaced 4 years ago.The windows and siding were replaced 7 years a o. Oparm. PmdmeauigACI%ftwmc.0]02348727w acKwbmm Thisf—Upogh1a2005W10ACO.,,analISOClaimS--1-AJIRigohotsRes d, Page 1 ar4 (gPAR-)General Purpose AppGPARIt0a4 700sz6mia q - s.niPn,-n r.pnr, Milestone Appraisal Services Residential Appraisal Report File No. m727 FEATURE SUBJECT COMPARABLE SALE NO.1 COMPARABLE SALE NO.2 COMPARABLE SALE NO.3 1627 Main Street NW 18207 Ironton Street NW 18196 Gary Street NW 1639 Main Street NW Address Elk River Elk River MN Elk River MN Elk River,MN Proximitv toSubect 1.16 miles WSW 1.03 miles WSW 0.02 miles SSW • Sale Price E 1 E 159,900 S 152,000 Is 134,900 Sale Price/Gross tiv.Area $ 0.00 s.ft. E 164.51 sq.ft. E 144.21 .tt $ 141.70 sq.ft. Data Sources MAAR MAAR Sherburne County Tax Verification sources Sherburne Countv Tax Sherburne Count,Tax Sherburne Count,Tax VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION A-)SAd'slaent DESCRIPTION )$Ad'stment DESCRIPTION (-SAd' bnent Sale or Financing FHA Conventional Other Concessions 4797 -1199 4560 -1140 Date ofSale/rime n/a 06/01/2012 09128/2012 10/2012 Location Suburban Suburban Suburban Suburban Leasehold/Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple site 29621 S .Ft. 12197 sf 4,356 10454 sf 4,792 8775 sf 5,212 View Average/Homes Avera a/Homes Average/Homes Av/Homes/Comrr 2,500 Design(Style) Split Level Split Level Split Level Split Level Quality of Construction Average Average Averacie Avera e Actual Age 25+/-Years 17 Years -2,000 17 Years -2.000 25 Years Condition Averacie Averacfe Averacie Avera e Above Grade Total I Bdrms Baths Total Bdrms Baths Total Bd,.. Baths Total Bd ms Baths Room Count 5 2 1 5 1 2 1 1 5 1 2 1 1 5 2 1 Gross Living Area 1,058 s.ft. 972 sq,ft. 3,010 1,054 sq.ft. 952 sq.ft. 3,710 Basement&Finished Partial 400 Fin Full W/O 920fin -7,700 Full 438 Fin Full 900 Fin -5,000 Rooms Below Grade 1 BR 3/4 Bath 2BR 3/4 Bath -2,000 113R,3/4 Bath 2 BR 2.29L0 Functional Ublity Acceptable Acceptable Acceptable Acceptable HeatinglCooling FWA C/Air FWA C/Air FWA C/Air FWA C/Air Energy Efficient Items Typical Typical Typical Typical Garaqe]Carpon 2 Attached 3 Attached -2,000 2 Attached 2 Attached Porch/Patio/Deck Deck 3 Sea Pch None 7,500 Deck 5,000 Deck 5,000 Fireplace 1 F/P None 2,000 None 2,000 None 2,000 Fence Fence Fence None 1.000 None 1,000 Main Street Main Street Ironton Street -5 000 Ga Street -5,000 Main Street Net Adjustment(Total) Is 3 033 Is 4,652 E 12,422 Adjusted Sale Price Net Adj. -1.9% Net Adj. 3.1%1 Net Adj. 9.2% of Com arables Gross Ad 23.0% E 111,867 Gross Ad 13.8%I- 156 652 GmssAd. 19.6% $ 147 322 Summary of Sales Comparison Approach See Attached Addendum • COSTAPPROACHTO VALUE Site value Comments The cost approach was not used and would not have lead to a more credible conclusion. ESTIMATED REPRODUCTION OR U REPLACEMENT COST NEW OPINION OF SITE VALUE........................................=E 30,000 Source of cost data Marshall&Swift Contractors Builders Dwelling 1,058 S.FL 0 E 100............=$ 105,800 Quality rating from cost service Effective date of cost data 2012 Bsmt:544 S .Ft. S.Ft.@$ 40............=E 21,760 Comments on Cost Approach(gross living area calculations,depreciation,etc. Other Features 20,000 Cost Parameters based on regional Publications,contractors and Garafle/Carport 506 S.Ft.@$ 25............=$ 12,650 experience.The depreciation is determined by the Marshall and Total Estimate of Cost-New =$ 160,210 Swift depreciation schedule condition of the property and field Less 85 Physical Functional External experience. Depreciation $28,272t =E 28,272) Depreciated Cost of Improvements................................=$ 131,938 "As-is"Value of Site Improvements................................=E 5,000 INDICATED VALUE BY COST APPROACH...................... =$ 166,900 INCOME APPROACH TO VALUE Estimated Monthly Market Rem$ X Gross Rent Multiplier =E Indicated Value by Income Approach Summary of Income Approach(including support for market rent and GRM) The income approach was considered but not used because a search in the market indicated no single family houses similar in location and characteristics.The neighborhood is an owner occupied neighborhood. Indicated Value by: Sales Comparison A roach$150000 Cost Approach if develo ed$ 166,900 Income Approach if develo ed$0 See Attached Addendum This appraisal is made "as is," subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, ❑subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed ❑subject to the following: • Based on the scope of work,assumptions,limiting conditions and appraiser's certification,my(our)opinion of the defined value of the real property that i s the su bject of th i s report I s$ 150,000 asof 11121/2012 ,which is the effective date of this appraisal. par,p Prof-dus,rg ACl software,8002348727 www a-bmm TMs Wm Copyngm o 2005.2010 ACI Men or 150 Cle-Swims.Inc.An Rills Resmved Page 2 of 4 (g PAR")General Purpose Appraisal Re A 8512010 yenwrnlpurnsn.anprn4"'ry ACI-ISO GPAR1001 1005262010 port Milestone Appraisal Services Residential Appraisal Report File No. m727 FEATURE SUBJECT COMPARABLE SALE NO.4 COMPARABLE SALE NO.5 COMPARABLE SALE NO.6 1627 Main Street NW 947 York Avenue NW 1745 Tipton Circle NW 11966 193rd Lane NW Address Elk River Elk River MN Elk River MN Elk River,MN Proximity to Sub ect 0.63 miles NW 0.20 miles NW 1.31 miles NNE Sale Price $ Is 188,900 is 159,000 $ 184 900 Sale Price/Gross Liv.Area $ 0.00 s.ft. $ 129.03 s.ft. $ 97.19 so.ft. $ 182.71 s.ft. Data Sources MAAR MAAR MAAR Verification sources Sherburne Count,Tax Sherburne Counb,Tax Sherburne Count,Tax VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION S Aditisnant DESCRIPTION +IISAduslmenl DESCRIPTION +J)SAdstment Sale or Financing Cash Conventional Active Concessions $307 0 Date ofSale/Time n/a 04/24/2012 06/28/2012 Active -11094 Location Suburban Suburban Suburban Suburban Leasehold/Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple site 29621 S .Ft. 14810 sf 3,703 10454 sf 4,792 28750 sf V Average/Homes Wooded 5,000 Average/Homes Wooded -5,000 Desi n(Style) Slit Level Ranch Ranch Ranch Quality of Construction Average Average Average Average Actual Age 25+/-Years 40 Years 3,750 18 Years -1,750 34 Years 2,250 Condition Avera a Average Average Good -5,000 Above Grade otal Bd ms Baths Total Bdnns Baths Total Bdrms. Baths Total Bdrms Baths Room Count 5 2 1 6 3 1.75 -2,250 5 2 1 6 3 1 -3,000 Gross"'In Area 1,058 sq.ft. 1,464 sq.ft. -14 210 1,636 s.ft. -20,230 1,0 12 s.ft. 1,610 Basement&Finished Partial 400 Fin Full W/O 850 Fin -7,000 Full W/O 1083fin -9,300 Full W/O 920fin -7,700 Rooms Below Grade 1 BR 3/4 Bath 1 BR 3/4 Bath 1 BR 3/4 Bath 1 BR 3/4 Bath Functional Utility Acceptable Acceptable Acceptable Acceptable Heating/Cooling FWA C/Air FWA C/Air FWA C/Air FWA C/Air Energy Efficient Items Typical Typical Typical Typical Garage/Carport 2 Attached 2 Attached 2 Attached 3 Attached -2,000 Porch/Patio/Deck Deck 3 Sea Pch Deck 5,000 Patio,3 Sea Pch 1,000 Screen Porch 5,000 Fireplace 1 F/P F/P None 2,000 F/P Fence Fence None 1,000 None 1,000 None 1,000 Main Street Main Street York Ave -5,000 Tipton Circle -5,000 193rd Lane -5,000 Net Ad ustment(Total) + X- $ 20,007 L&- $ 27,488 X- $ 28.934 Adj Adjusted Sale Price Net . -10.6% NetAdj. -17.3% NetAdj. -15.6% ofCom arables Gross Ad. 24.8% $ 168,893 GmssAd. 28.3%1$ 131,512 1 Gross Ad. 26.3% $ 155,966 Summary of Sales Comparison Approach ��m, R,d,M-g ACI wft ar-.800.2]4 8727 wxw�.a-b.com This am Copyliglt a M+W10 Act O swn d ISO CW-Smites.Irc..AI Rgre Rene W Additional Comparabim (gPAR-)General Purpose Appraisal R7,1 0512010 GPAR1aaP°a 052rmta Milestone Appraisal Services Residential Appraisal Report File No. m727 Scope of Work,Assumptions and Limiting Conditions Scope of work is defined in the Uniform Standards of Professional Appraisal Practice as"the type and extent of research and analyses in an assignment."In short,scope of work is simply what the appraiser did and did not do during the course of the assignment.It includes,but is not • limitedto:the extent to which the property is identified and inspected,the type and extent of data researched,the type and extent of analyses applied to arrive at opinions or conclusions. The scope of this appraisal and ensuing discussion in this report are specific to the needs of the client,other identified intended users and to the intended use ofthe report.This report was prepared for the sole and exclusive use of the client and other identified intended users for the identified intended use and its use by any other parties is prohibited.The appraiser is not responsible for unauthorized use of the report. The appraiser's certification appearing in this appraisal report is subject to the following conditions and to such other specific conditions as are set forth by the appraiser in the report.All extraordinary assumptions and hypothetical conditions are stated in the report and might have affected the assignment results. 1.The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or title thereto,nor does the appraiser render any opinion as to the title,which is assumed to be good and marketable.The property is appraised as though under responsible ownership. 2.Any sketch in this report may show approximate dimensions and is included only to assist the reader in visualizing the property.The appraiser has made no survey of the property. 3.The appraiser is not required to give testimony or appear in court because of having made the appraisal with reference to the property in question,unless arrangements have been previously made thereto. 4.Neither all,nor any part of the content of this report,copy or other media thereof(including conclusions as to the property value,the identity of the appraiser,professional designations, or the firm with which the appraiser is connected),shall be used for any purposes by anyone but the client and other intended users as identified in this report,nor shall it be conveyed by anyone to the public through advertising,public relations,news,sales,or other media,without the written consent of the appraiser. 5.The appraiser will not disclose the contents of this appraisal report unless required by applicable law or as specified in the Uniform Standards of Professional Appraisal Practice. 6.Information,estimates,and opinions furnished to the appraiser,and contained in the report,were obtained from sources considered reliable and believed to be We and cared. However,no responsibility for accuracy of such items furnished to the appraiser is assumed by the appraiser. 7.The appraiser assumes that there are no hidden or unapparent conditions of the property,subsoil,or structures,which would render it more or less valuable.The appraiser assumes no responsibility for such conditions,or for engineering or testing,which might be required to discover such factors.This appraisal is not an environmental assessment of the property and should not be considered as such. 8.The appraiser specializes in the valuation of real property and is not a home inspector,building contractor,structural engineer,or similar expert,unless otherwise noted.The appraiser did not conduct the intensive type of field observations of the kind intended to seek and discover property defects.The viewing of the property and any improvements is for purposes of developing an opinion of the defined value of the property,given the intended use of this assignment.Statements regarding condition are based on surface observations only.The appraiser claims no special expertise regarding issues including,but not limited to:foundation settlement,basement moisture problems,wood destroying(or other)insects,pest infestation, radon gas,lead based paint,mold or environmental issues.Unless otherwise indicated,mechanical systems were not activated or tested. This appraisal report should not be used to disclose the condition of the property as it relates to the presence/absence of defects.The client is invited and encouraged to employ qualified experts to inspect and address areas of concern.If negative conditions are discovered,the opinion of value maybe affected. Unless otherwise noted,the appraiser assumes the components that constitute the subject property improvement(s)are fundamentally sound and in working order. Any viewing of the property by the appraiser was limited to readily observable areas.Unless otherwise noted,attics and crawl space areas were not accessed.The appraiser did not move furniture,floor coverings or other items that may restrict the viewing of the property. 9.Appraisals involving hypothetical conditions related to completion of new construction,repairs or alteration are based on the assumption that such completion,alteration or repairs will be competently performed. 10.Unless the intended use of this appraisal specifically includes issues of property insurance coverage,this appraisal should not be used for such purposes.Reproduction or • Replacement cost figures used in the cost approach are for valuation purposes only,given the intended use of the assignment The Definition of Value used in this assignment is unlikely to be consistent with the definition of Insurable Value for property insurance coverage/use. 11.The AC General Purpose Appraisa I Report(GPAR'")is not intended for use in transactions that require a Fannie Mae 1004/Freddie Mac 70 form, also known as the Uniform Residential Appraisal Report(URAR). Additional Comments Related To Scope Of Work,Assumptions and Limiting Conditions Clarification of Intended Use and Intended User: The Intended User of this appraisal report is the Client.The Intended Use is to evaluate the property that is the subject of this appraisal for a purchase transaction,subject to the stated Scope of Work,purpose of the appraisal,reporting requirements of this appraisal report form,and Definition of Market Value.No additional Intended Users are identified by the appraiser. Clarification of the term"complete visual inspection": Certification#2 on page 5 of this report states that the appraiser has performed a"complete visual inspection"of the property. It should be understood that the"complete visual inspection"was performed within the context of the intended use and intended user identified on page 4 and clarified above. That is,the appraiser's inspection of the property is for valuation purposes only and is strictly for the purpose of assisting the lender/client(and only the lender/client)in evaluating the property for a mortgage finance transaction. The appraiser's inspection of the property was limited to what was readily observable without moving furniture,floor coverings or personal property. Unless otherwise stated,the appraiser did not view attics,crawlspaces or any other area that would involve the use of ladders or special equipment. The appraiser's viewing of the property was limited to surface areas only and can often be compromised by landscaping,placement of personal property or even weather conditions. Most importantly,the appraiser's inspection of the property is far different from and much less intensive than the type of inspections performed to discover property defects. The appraiser is not a home inspector,building contractor,pest control specialist or structural engineer. An appraisal is not a substitute for a home inspection or an inspection by a qualified expert in determining issues such as,but not limited to,foundation settlement or stability,moisture problems,wood destroying(or other)insects,rodents or pests,radon gas or lead-based paint. The client is invited and encouraged to employ the services of appropriate experts to address any area of concern. I have not performed any services,as an appraiser or in any other capacity,on the subject property within the three-year period immediately preceding acceptance of this assignment. • �p Produced nrig ACl soM1ware,900.2N 8727"xw.azixeb.mm This tint Cepyngld a 2005-2010 ACI 0rvisiM d 150 Orion Soviar,tic..All R41S Reseved. Page 3 er 4 NPAR"")General Purpose Appraisal Wit 0512010 g�nxelp,inna- GPAR1004 1005262010 pra.an:rnport Milestone Appraisal Services Residential Appraisal Report File No. m727 Appraiser's Certification The appraiser(s)certifies that,to the best of the appraiser's knowledge and belief: • 1.The statements of fact contained in this report are true and correct. 2.The reported analyses,opinions,and conclusions are limited only by the reported assumptions and limiting conditions and are the appraiser's personal,impartial,and unbiased professional analyses,opinions,and conclusions. 3.Unless otherwise stated,the appraiser has no present or prospective interest in the property that is the subject of this report and has no personal interest with respect to the parties involved. 4.The appraiser has no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5.The appraiser's engagement in this assignment was not contingent upon developing or reporting predetermined results. 6.The appraiser's compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client,the amount of the value opinion,the attainment of a stipulated result,or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7.The appraiser's analyses,opinions,and conclusions were developed,and this report has been prepared,in conformity with the Uniform Standards of Professional Appraisal Practice. 8.Unless otherwise noted,the appraiser has made a personal inspection of the property that is the subject of this report. 9.Unless noted below,no one provided significant real property appraisal assistance to the appraiser signing this certification.Significant real property appraisal assistance provided by: Additional Certifications: Definition of Value: ®Market Value ❑Other Value: Source of Definition: ADDRESS OF THE PROPERTY APPRAISED: 1627 Main Street NW Elk River,MN 55330 EFFECTIVE DATE OF THE APPRAISAL: 11/21/2012 APPRAISED VALUE OF THE SUBJECT PROPERTY$150,000 APPRAISER SUPERVISORY APPRAISER Signature: Signature: Name: Brent rdStfOm Name: State Certification# State Certification# or License# 20479131 or License# or Other(describe): State#: State: State: MN Expiration Date of Certification or License: Expiration Date of Certification or License: 08/31/2014 Date of Signature: Date of Signature and Report: 11128/2012 Date of Property Viewing: Date of Property Viewing: 11/21/2012 Degree of property viewing: Degree of property viewing: ❑Interior and Exterior ❑Exterior Only ❑Did not personally view ®Interior and Exterior ❑Exterior Only ❑Did not personally view Pradu[od UVng ACl sdh-800.2348727 xxw—eb— Mkrm CoWgh1 o 20052010 Aa IXSisioi d ISO Claims 5avires.1-Aa RDAs Revaved Page 4 of 4 OPAR-)General Purl: A..GPMl004 10 051201 � GPAR1009_1005282010 <n.rnlPu nnseanp n•.nnb...... ACI-ISO ADDENDUM Client: Troy Adams File No m727 Property Address: 1627 Main Street NW Case No City: Elk River State. MN Zip: 55330 Intended Use . The Intended User of this appraisal report is the Lender/Client.The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction,subject to the stated Scope of Work,purpose of the appraisal, reporting requirements of this appraisal report form,and Definition of Market Value.No additional Intended Users are identified by the appraiser. Neighborhood Description The subject neighborhood is mostly comprised of single family dwellings. Typical views for homes in the area include residential and some water views.Main Street NW can be a busy road at times compared to other residential streets within the neighborhood.The subject does have easy access to Hwy 10 that connects to Hwy 169.The city of Elk River is about 40 minutes NW of Minneapolis.Elk River is the main area for shopping,recreation,schools,and places of employment.There is also a light rail stop in Elk River that provides daily access to Minneapolis.The overall appeal of the neighborhood is good and consistent with the other neighborhoods in the market area. Neighborhood Market Conditions Marketing time is currently under three months for competitively price properties,although some higher priced properties may stay on the market longer.Financing concessions from the sellers are more common due to competition in the market place and stricter lending guidelines.Sales to asking price ratio is typically 95%percent or better for competitively priced properties.A moderate amount of the active listings within the subject's market area are REO properties;which are lowering sales and listing prices for the non-distressed properties on the market.The subject is located within Elk River an outer Twin Cities job market area,which has remained stable.Based on information from the Minneapolis Association of Realtors through October 2012 the average marketing time for single family homes in the subject's market area was 110 days.YTD closed sales there were 33 sales with an average sale price$163,140 as compared to the previous year in which there were 327 sales,and an average sale price of$147,350 indicating a stable to improving market. As improved:Other(explain) Given present zoning and demand,highest and best use is limited to single unit and the present use is the most practical use. Comments on Sales Comparison I have not performed any services,as an appraiser or in any other capacity,on the subject property within the three-year period immediately preceding acceptance of this assignment. All comparable sales are similar in style,area,appeal,and marketability. A thorough search was made to locate comparable sales in the market area. Resources for this information includes but is not limited to the RMLS of Minnesota, . realtors familiar with the market area,and builders. Information from the RMLS is labeled"Deemed Reliable But Not Guaranteed". Information is sometimes confirmed by realtors or physically measuring the comparable in question. The comparable sales used are considered to be the most similar,recent,and proximate. The sold comps range is sale from$134,900 to$188,900.These were deemed the best sold comparables and adjustments were made accordingly.All comparables chosen have meaningful attributes and a blended value conclusion was utilized.The comparables used in this report were the best available to demonstrate current market value and would be considered direct competition to the subject. All comparables are considered to be in average to good condition per MLS interior listing photos. Adjustments: No adjustments made under$1000. Adjustments were made for amenities. AGF was adjusted at$35 per square foot. BGF was adjusted at$10 per square foot.Walkout adjusted at$2500.Room count adjusted at$3000 per bedroom and bathroom. Site adjusted at$.25 per SF.Active listing adjusted at 6%per the Minneapolis Association of Realtors.Condition adjusted at$5000.Main Street location adjusted at$5000.Concessions adjusted at 25%. Five sold and one active(6)comparables were used. Date of sale used for the sold comparables.After extending the search the appraiser was not able to find a comparables that bracket the GLA of the subject.This resulted is across the board positive adjustment. Individual adjustments were made to reflect the above grade finished SF.Similar functional utility,location,and GLA were the major criteria for finding comparables. All comps have been given equal consideration in the final valuation opinion as all comps have meaningful and similar attributes,with the most weight given to comparable 1 and 3 due to location an lowest net adjustment.List to sale adjustment is only an averaged adjustment with little weight as active sales are unpredictable and may sell higher or lower than asking or may be removed from the market. RMLS does not provide offering history/prices and it is common in this market for the sale price to be below the last published asking price,therefore it is necessary to apply the same adjustment. The comparables displayed are all 2-3 bedroom above grade with GLA that brackets subject's GLA. All comps are arm length transactions. Finance Concessions The financial concession adjustments to the comparable sales reflect the difference between their actual sales prices with the concessions and what their sales prices would have been without theconcessions.The financial concession adjustments do not reflect a dollar for dollar adjustment(unless the impact to the sales price reflects a dollar for dollar adjustment),nor are the financial concession based on the typical concessions for the market area.Rather,each financial concession adjustment was individually derived from the impact the financial concession had to the sale price of the comparable.The financial concession adjustments to the comparables were based off either the comparable paired sales analysis(primary), the difference between the financial concession and the negotiated sale price to listing price ratio(due to limited paired sales),and/or phone interview with seller's agent(if possible and time permitted).One or all of these methods were used to determine the impact of the financial concession to the comparables sale prices. Addendum Page 1 of 2 ADDENDUM Client: Troy Adams File No.: m727 Property Address: 1627 Main Street NW Case No.: City: Elk River State: MN Zip: 55330 Exposure Time A reasonable exposure time for the subject property at the opinion of value indicated is estimated to be under 110 days and was derived through analysis of all prior sales within the last 365 days of the subject's neighborhood and external factors that may have an influence to the marketing time for similar properties deemed by that of the appraiser at the time of this analysis. USPAP:The appraiser has conducted a complete appraisal intended to comply with the Uniform Standards of Professional Appraisal Practice.This report reflects a summary that is an opinion of the current marketability of the subject property.The depth of the discussion in this report is intended to be specific to the needs of the client.The appraiser is not an engineer, home inspector,electrician,plumber,heating contractor,or similar expert and has no formal training in these trades.The observed condition of the physical and functional utilities comprising the subject property are based on a visual inspection of exterior surfaces only.Any observed condition comment contained in this report should not be taken as a guarantee a problem does not exist.The appraiser is not responsible for unauthorized or unintended uses of this report.The Scope Of The Appraisal is defined as a comprehensive valuation analysis to determine market value of the subject,given the current conditions of the real estate market and the physical condition of the property.The sales comparison approach was reconciled to provide a final estimated value.The scope of the investigation includes a personal inspection of the subject property,a review of county records,and a search of the RMLS.This inspection is for valuation purposes only. The Scope Of The Appraisal is defined as a comprehensive valuation analysis to determine market value of the subject, given the current conditions of the real estate market and the physical condition of the property.The sales comparison approach was reconciled to provide a final estimated value.The scope of the investigation includes a personal inspection of the subject property,a review of county records,and a search of the RMLS.This inspection is for valuation purposes only. Final Reconciliation The high quality of the data used in the sales comparison approach demonstrates its viability as the best value indicator. The cost approach does not have lead to a more credible conclusion. As indicated,the income approach to value was not developed because a search in the market indicated no single family houses similar in location and characteristics.The neighborhood is an owner occupied neighborhood. • • Addendum Page 2 of 2 DIMENSION LIST ADDENDUM Client: Troy Adams File No.: m727 Property Address:1627 Main Street NW Case No.: City: Elk River State:MN Zip:55330 GROSS BUILDING AREA(GBA) 1,058 GROSS LIVING AREA(GLA) 1,058 Area(s) Area %of GLA %of GBA Living 1,058 100.00 Level 1 1,058 100.00 100.00 Level 0 0.00 0.00 Level 0 0.00 0.00 Other 0 0.00 0.00 GBA Basement ❑ 0 Garage ❑ 506 Area Measurements Area Type Measurements Factor Total Level Level Level Other l3smt. Garage 34.00 x 16.00 x 1.00 = 544.00 ❑X ❑ ❑ ❑ ❑ ❑ 23.00 x 20-00 x 1.00 = 460.00 ❑X ❑ ❑ ❑ ❑ ❑ 9.00 x 6.00 x 1.00 = 54.00 ❑X ❑ ❑ ❑ ❑ ❑ 22.00 x 14.00 x 1.00 = 308.00 ❑ ❑ ❑ ❑ ❑ ❑X _2240 x 9.00 x 1.00 = 198.00 ❑ ❑ ❑ ❑ ❑ ❑X x x _ ❑ D D ❑ D D x x _ ❑ ❑ D ❑ O ❑ x x = D O ❑ ❑ D D x x = O O D ❑ D D x x _ ❑ D D ❑ D D x x _ ❑ D D ❑ O ❑ x x _ ❑ ❑ ❑ ❑ D ❑ x x = D ❑ ❑ ❑ O D x x = D ❑ ❑ ❑ D ❑ x x _ 0 0 0 0 0 0 • x x _ x x _ ❑ ❑ ❑ ❑ D D x x _ _ ❑ ❑ O ❑ D O x x = D D 0 D D x x _ ❑ D D ❑ D ❑ x x _ ❑ D O ❑ D ❑ x x _ ❑ ❑ O ❑ D ❑ x x _ ❑ ❑ ❑ ❑ D D x x _ ❑ ❑ ❑ ❑ D D x x _ ❑ ❑ D ❑ D D x x = D ❑ D ❑ D ❑ x x = D ❑ D ❑ D D x x _ ❑ ❑ O ❑ D ❑ x x _ = D ❑ D ❑ D O x x _ ❑ ❑ D ❑ D D x x = D ❑ D ❑ D D x x - = D D ❑ ❑ D D x x = ❑ D ❑ ❑ D ❑ x x = O ❑ O O D ❑ x x _ = D ❑ D ❑ D ❑ x x = D ❑ D ❑ D ❑ x x _ ❑ ❑ D ❑ D ❑ x x = ❑ ❑ D ❑ D O x x = D ❑ D ❑ D D x x _ D D D ❑ D D x x = D ❑ O ❑ D ❑ x x = D ❑ o ❑ D ❑ x x = ❑ ❑ D ❑ D E)x x — = o ❑ D ❑ D ❑ X x = D ❑ D ❑ O ❑ x x _ ❑ D O ❑ D D x x _ ❑ ❑ D ❑ D ❑ X x _ = O ❑ ❑ ❑ D ❑ X x = D ❑ ❑ ❑ D D x x _ _ • X x _ x x = D ❑ D ❑ D ❑ x x _ _ ❑ ❑ D ❑ D ❑ Reduced using ACI sa8wme,800.2348727—aawb mm DIM02092007 SUBJECT PROPERTY PHOTO ADDENDUM Client: Troy Adams File No.: m727 Property Address:1627 Main Street NW Case No.: Cit :Elk River State:MN Zip:55330 FRONT VIEW OF SUBJECT PROPERTY Appraised Date:November 21,2012 Appraised Value:$150,000 REAR VIEW OF SUBJECTPROPERTY STREETSCENE r tv j • COMPARABLE PROPERTY PHOTO ADDENDUM Client: Troy Adams File No.: m727 Property Address:1627 Main Street NW Case No.: City: Elk River State: MN Zip:55330 Nz COMPARABLE SALE#1 18207 Ironton Street NW Elk River,MN Sale Date:06/01/2012 Sale Price:$159,900 ` COMPARABLE SALE#2 18196 Gary Street NW Elk River,MN Sale Date:09/28/20 • Sale Price:$152,000 0 C tea. COMPARABLE SALE#3 1639 Main Street NW Elk River,MN Sale Date: 10/2012 Sale Price:$134,900 nZR t COMPARABLE PROPERTY PHOTO ADDENDUM Client: Troy Adams file No.: m727 Property Address:1627 Main Street NW Case No.: City:Elk River State:MN Zip:55330 s COMPARABLE SALE#4 947 York Avenue NW :`. Elk River,MN Sale Date:04/24/2012 _ Sale Price:$188,900 COMPARABLE SALE#5 1745 Tipton Circle NW Elk River,MN • Sale Date:06/28/20 Sale Price:$159,000 COMPARABLE SALE#6 #'~ 11966 193rd Lane NW .; Elk River,MN Sale Date:Active t; Sale Price:$184,900 Milestone Appraisal Services Client: Troy Adams File No.: m727 Property Address:1627 Main Street NW Case No.: City: Elk River State: MN Zip:55330 bib, Bit Ii side view rear view garage „i it I P living room 3 season porch kitchen dining bedroom main floor bathroom bedroom basement laundry mechanicals Produced using ACI m1—a @]0.2348727 vnm.a—b.mm PHT12 Milestone Appraisal Services Client: Troy Adams File No.: m727 Property Address:1627 Main Street NW Case No.: Cit : Elk River State:MN Zip:55330 �9 � lirhr�il i � basement bathroom basement bedroom • Produced LrNACI soft—8W234A7271mY1a Avb= PHT12 Milestone Appraisal Services Client: Troy Adams File No.: m727 Propert Address:1627 Main Street NW Case No.: Cit :Elk River State: MN Zip:55330 • Local Market update-October 2012 wf A RrA4 T£ir25 ♦ 23.3% +6.9% + 28.8% Changeir OnVoin in Elk River °i "�°`--------- ------ -. -- ems October Year to Data 2244 3442 +1- 20411 2012 +J- hm tistir>a 43 m -233% 500 4a9 .64% Glosed Sew 29 31 •69% $27 an +1b% Medmi Price' 312"m0 t"49W r 28.6% $191,000 ti67AN +1124% Average Smies Prict# $147.196 $1726110 +16AM $447,950 t4B&M +117% Price Per Square Foc1' $r2 344 +20.4% $73 so +*A% Percent 04 01i*w 1x64 PAN ReaeKVIr 41.7% 932% -1.644 it-046 44.7% +$A% Dawan Menus UftlSois i2c 81 .323% 151 116 -2&4% MNeniary d Homed 4nr aak 177 412 -3AT% — McrAhs SLq%*ct — WOW 520-- filar t4 Date 2N1 WW,2 • 6S � 4 4% 21 at ? 333 +2U% +8 9!! 8,41111% +S,O% New U3tirw +_iosed SaW New$jowls Ciosed Salsa Chars In NVIIIININ SoW Pt1Ce film PrW Year(6-MoMhAveWej - ThIn Elk R .___......_,des... a% t r5% 85!4 i _..._.. �. _ _..�._�........Y ._._.�.........._......_..,. r.;r1Je � 4 i,AEYi' S.9ite8 Ali" 1' 74" i.arie �..•:.. •.*max a. wus:.rr...wswa*�+�» ��a+3rfi^�°awpr wr�gr m+e..,�.e'r+c•sawwawraw�+w.rM wfmwe.+e� +c eta�o vzmaa e,n s.sa :-wr�r s+�o.0 .t.#aaen..q�sMR �+.�r�y;x sti...y�wdiwstW•4��M%4+ .�+ '- B+q • FLOORPLAN SKETCH Client: Troy Adams File No.: m727 Propegy Address:1627 Main Street NW Case No.: City:Elk River State:MN Zip:55330 34.a Both Bedroom Bedroom s.a e.o oea "chm Dvmg 35eason Roron !v a U.V Room 26.01 Garage R b 22.01 • sanppvv^ Comments: AREA CALCULATIONS SUMMARY LIVING AREA BREAKDOWN Code Description Net Size Net Totals Breakdown Subtotals GLAl First Floor 1058.0 1058.0 First Floor GAR Garage 506.0 506.0 16.0 x 34.0 544.0 20.0 x 23.0 460.0 6.0 x 9.0 54.0 • Net LIVABLE Area (Rounded) 1058 3 Items (Rounded) 1058 PLAT MAP Client: Trov Adams File No.: m727 Property Address:1627 Main Street NW Case No.: Cit : Elk River State:MN Zip:55330 • Sherburne Co^f, MN b e ac o rp-," ir ate, •... 75x111 32 ,- ,a, r �' C zh�s�tsts.•, rim-cr�o °t-o�lo ,et •? 411A POMM cd 73au-ob o +Ai num iD r4m aws r A"PM 10 ual>wm" 33.1426 can 20i-RmMo m i we ReF+N►Ad*�W WMSr1Mf€ AIM abaft nNe D]s axomma" s"Tw.peoariptlaw. "to UNdon"N tartOWa 1pgd:ttl28120121t:tlt 37 AM �tiwitc en4 r.�wrw�wwfewrw�awrr+refirir.t sarw wrwiar.w►r're.w.w.awrpw� rw��#wi�wra�w�slYMw l�i�ry�Ypy�yri�awra W�aaKaYrM► YNF ee bv 1 t m rSrari e -tn7.r-a=NKw Iowa"w.6mompomom.Cam ��jd� +.w.•arh�aA.rrrsT^:xn • LOCATION MAP Client: Troy Adams File No.: m727 Property Address:1627 Main Street NW Case No.: Cit y: Elk River State: MN Zip:55330 M11,I".VIVO 13 ar Msado~0.Rd NW z T-, k.cmparaLlo �ol-::15 96tF Avg mw i 11Ybt) 1j'3id 1-11 N%bi Ell, Riior.%114 55Z30 f,1 1 m i 1p.;NNF i Pot Cc mp arable 3 515 4 Q47'if,.i-1; FJkV Ell Iyer,mpJ 35330 (F1 F n i Pcz KV-1) NYC x. Corrpo•nblc Salo 5 Elk River, [414 5E3013 ul.20 rriles NA) cu I 1p�I b1= S'flu 1 .5C5'00 1320-;ronton G_VA' ti EkF.i%Er MW f5330 .16 its taho 163•43 Ate NO w.narame,"IF q 1L39 Mah�;t =:k Frpr,RIN c5:130 'SWI 17 Ul Ip�f:Ibl.2 s:jru 1-91%Gar,, ;t rikv Elk '5533C {1.C-3 nilas WSVY} 44t,,,t4L gSChNir 77 Ark t N F EKX 35 f6 a ysx 7 NF RQ*ft toc 1.3 MILS` Client: Trov Adams File No.: m727 Property Address:1627 Main Street NW Case No.: City:Elk River State:MN Zip:55330 • STATE OF MINNESOTA ae�r-t�wvr�e!ICS� ' � Dcl ,rlmurw a rtrl� a wHbErlawx 1�yL°1JMMEl/tStdiaxthevitdkt Q1 E nortrtserlrkv&wku {te:4�lY 1'16"!WOOS Tpaso NP)1'Vo,.IV v Lir*4$151 * NA"r-19)% A,MW owl t*ax Mrh6+rM1 wwi ipw arl# tl!#a4sm iced%hm&1*k peel d wo pwtam! * geVA"d ftoci"er Mereeerf li-J*q e -uMA%V 31,IWA M'fQCl IT ;t%aw Irwenw o wwrr my hand Omit"pwet 71;M3 CODIRl�1a1pC�Q1" Iir�rrwwrlt�roetilrwsw? GreeMlenws�tie�aMm° 4ewgDwon It iMcFbMfiwt*sul t w Taw-Ifavrw+w X= M Nat.bw W404M LfiMp Z b"We.Ittt�2 45$IQ !brat ►rm era Mted 'tawmwu eel" �Rflt 'cf fawlw i !n wwwr swwm��rW.wrww M/uaa s t vinr4�tfi+� .761�r*e ■ � kearB�rwnr�t t�wpeattwwnno�wr��we':�+�ms+e. r7rrswf #tAe Low=iww" iF W,Ib�. ■ atrisrnea • Sherburne County, MN Obeacon I'M Date Created: 11129/2012 overview N T5-402-0244 Ak L 75-411-0325 J t, Legend 75r 411-0240 Roads 75-411-0320 Parcels :x'. •T5-411-0250 75-411-0210 a 75-411=0230 q' 75-133-4211 75-411-0120' 75411 •�, � � -0130 1 . � I 13 ft Parcel ID 75-411-0240 Alternate ID n/a Owner Address n/a Sec/Twp/Rng 33-33-26 Class 201-Residential 1 unit Property Address 1627 MAIN ST NW Acreage 0.38 ELK RIVER District ELK RIVER CITY Brief Tax Description n/a (Note:Not to be used on legal documents) Last Data Upload: 11/28/2012 11:02:31 AM Disclaimer:Every attempt has been made to ensure that the information contained on this web site is valid at the time of publication.Sherburne County developed by reserves Schneider the right to make additions,changes,or corrections at any time and without notice.Additionally,Sherburne County disclaims any and all liability for The S Corporation damages incurred directly or indirectly as a result of errors,omissions or discrepancies and is not responsible for misuse or misinterpretation.Data is p updated periodically.For the most current information contact the appropriate county department. Schneider www.schneidercorp.com • Sherburne County, MN Obeacon TM Date Created: 11/29/2012 Summary Parcel ID 75-411-0240 ft4i*4W. Parcel n/a Parcel Type RE � ; Property Address 1627 MAIN ST NW,ELK RIVER Plat 411-AUDITORS ADDITION Sec-Twp-Rng Sec.33 T33N R26W Legal Description THAT PT OF FOLL DESC PROPERTY;LYING NLY OF S 75 FT AS MEASURED AS RT ANGLES THEREOF.THAT PT OF LOTS 1,2, 3,&4 BLK 2 OF AUDITORS ADD DESC AS FOLL:BEG AT NW CORNER OF BLK 2;THENCE SELY ALONG N LINE OF BLK 2 FOR 90 FT;THENCE SLY PARA WITH E LINE OF LOTS 1 THROUGH 4 INCLUSIVE FOR 243 FT;THENCE WLY TO A POINT ON W LINE OF BLK 2;THENCE NELY ALONG W LINE OF BLK 2 FOR 232 FT TO POB. (Note:Legal descriptions here are for tax Click to Enlarge purposes only.Do not use them for recording purposes.) Last Recording A 591383 Date:06/30/2005 Class 201-Residential 1 unit Occupancy HOMESTEAD Deeded Acres 0.38 Tax District ELK RIVER CITY School District 728-ELK RIVER • Owner i This Owner information is password protected. Click here for information on obtaining a user account. Residential This Residential information is password protected. Click here for information on obtaining a user account. Other Buildings This Other Buildings information is password protected. Click here for information on obtaining a user account. Sales Document -Sale Date Sale Price AdI Price A 591383 06/2005_ _ p $195,500 $195,500 A 521715 06/2003 1 $177,000 $177,000 12/1995 $94,900 $94,900 Valuation 2012 Assessment 2011 Assessment 2010 Assessment 2009 Assessment Estimated Land Value $30,300 $35,200 $42,8001 $47,000 Estimated Building Value $94,700 $105,500 $107,900 — $110,000, Total Estimated Value $125,000 $140,700 $150,700 $157,000 Tax Histoi 2012 Payable 2011 Payable 2010 Payable 2009 Payable Taxable Value $140,7001 $150,700E—�157,000 $166,500 Net Tax $2,009.00 $2,163.20r-- $2,158.00 $2,158.001 Special Assessments $575.00 $604.80 $10.00 $10.00 Principle Balance of Spec.Assessments $1,505.00 $2,010.00 $10.00 1 $10.00 • Total Payable $2,584.00 $2,768 00 $2,168.00)9_m m- $2,168.00 Penalty Due $0.001 $0.00[ $0.001 $0.00 Cost Due&Fees $0.00 $0.00F $0.001 $0.00 Interest Due $0.00 � $0.0 $0.00 $0.00 _ _ Total Unpaid $0.00 _ v$0 00F- --� $0.00 � $0.00 Penalty/Interest amounts are valid only for a limited time Pay Taxes Online Click here for General Information &Payment Options For totals and payment information for past due taxes contact Auditor/Treasurer:763-765-4352 Tar.Statement 2012 Tax Statement 2011 Tax Statement 2010 Tax Statement Photos a i a l .y r' t j Sketches This Sketches information is password protected. 9 Click here for information on obtaining a user account. Disclaimer.Every attempt has been made to ensure that the information contained on this web site is valid at the time of publication.Sherburne . County reserves the right to make additions,changes,or corrections at any time and without notice.Additionally,Sherburne County disclaims any and all liability for damages incurred directly or indirectly as a result of errors,omissions or discrepancies and is not responsible for misuse or misinterpretation.Data is updated periodically.For the most current information contact the appropriate county department. Contacts: For questions about valuation or classification contact: Assessors Dept.?assessor @co.sherburne.mn.us?phone(763)765-4900 For questions about taxes due contact: Auditor/Treasurer?auditoraco.sherhurne.mn.us?phone(763)765-4350 For address or mapping questions contact: Public Works Dept.?gis @co.sherburne.mn.us?phone(763)765-3300 For questions on,or to request a copy of,the last recorded deed contact: Recorder?recorder @co.sherbume.mn.us?phone(763)765-4420 For questions about zoning classifications contact: Zoning Dept.?zoning @co.sherburne.mn.us?phone(763)765-4450 ast[beta,ll�ln�;1 developed by The Schneider Corporation Schneider www.schneidercorp.com