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Deeds - 6/17/1997 - Lot 5, Block 14, Huntsville Township, appraisal - 6/17/1997 APPRAISAL OF REAL PROPERTY LOCATED AT; 13th Street Lot 5, Block. 14, Huntsville Township Huntsville, Teras FOR: The City of Huntsville 1212 Avenue M Huntsville, Texas 77340 AS OF: 6/17/97 BY: Andy Flack H l and Properties (409) 295-2500 "TOTAL"appraisal software by a la mode,im, $J800)a28-9825 LETTER OF TRANSMITTAL Mr. J. D. Schindler c/o The City Of Huntsville 1212 Avenue M Huntsville,Texas 77340 June 17, 1997 Subject: A real estate appraisal on Lot 5, Block 14, Huntsville Township,Walker County,Texas, together with improvements. a/k/a The J.A. Johnson Property. Dear Mr. Schindler; At your request, I have inspected the above referenced property. The purpose of this report is to estimate the "as is" market value of the subject property in Fee Simple Estate. The function of this report is to estimate the aforementioned value, in accordance with the guidelines contained herein (and provided by the client), .and is for asset evaluation purposes. A real estate appraisal report, setting forth the findings and conclusions derived therefrom, is attached. The appraiser has reviewed Guide Note 8 of the Standards of Professional Practice adopted by the Appraisal Institute,January 1, 1991, relative to lalown or unknown environmental conditions which may or may not be present. No obvious evidence of any environmentally hazardous condition was noted during inspection; however, the appraiser is not an expert in this field and can only recommend that a qualified person or company be consulted if any concern exists. The "as is"final estimate of market value for the subject property in fee simple estate, as of June 17,1997, subject to the assumptions and limiting conditions contained herein,is; SEVENTEEN THOUSAND FIFE HUNDRED DOLLARS ( $ 17,500.00 ) The estimated marlketing time for the subject property is 6-12 months. This is to certify that the undersigned appraiser,including employees and associates, has no present or prospective interest in the property appraised and compensation is not contingent upon the valuation.Acceptance of and/or use of this report constitutes acceptance of all the assumptions and limiting conditions contained in this report. This appraisal has been made in accordance with the Standards of Professional Ethics of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice and is subject to the assumptions and conditions contained herein. Respectfully Submitted, And .___...._..._ . y Flack Appraiser Homeland )erties (409) 295-2500 J.A. JOENSON 1�AITRAJSAL REPORT File No. CITy-HUNISVILLE Pr perty Description UN"RM iIIALD pro pany CiftliuuLavillae..... ...... sere Tex, s-ZIPG�0 Legal Description Lot-5, Block 11-11untsville nty Walker --TcwnsUp--- Go. Alk —19 R-E�T -V Mw— a. Special AtaOss Me 2 _me__ _a _95 JaZ Borrower n Current Owner J,A, o-pam; ow- Tenant -x]vacant Property rights appraised X Fee Simple L...Ihod Project Type PUD Condominium(HUDNA only) HOA$ n /Mo. N 0 map Reference QW Page census Tract n ­' mtown area 34 Sale Pros $ Il/ Data Of 5812 n/r� X Description and$amount of loan cha%wmincessione to be pati by Lender/Client City of Huntsville........ Atkinass 1212 AvenueM. Huntsville, Texas Appraiser Ar1dV FlaCk Address PC) 1782. B=sville, Texas 77340 Location UrbanSuburban Rural Predominant Single family housing Present land use% Land use chap e Built UP occupancy PRICE AGE X O.r 75% 25-75% Under 25% "(000) (Yra' Cast family 50 Not lkaly Ukely Growth rate Rapid Stable slow Owner Lear 2,4 family In process 25010 Property values Increasing Declining Tenant 0Q) High Mulfi-farolly StableTO: Predominant DemaruVaupply Shortage In balance Over supply V..a I adominant commercial 3Q Marketing time Under 3 mos. 3-6 mos. Over 6 mos. V-.(..,5%) 65000 40 Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood boundafts and chaecteristict: -G�mtml-area...of Bf,i alder buil CmTner:i -d side residential MaintainL --amerage—­ Factors that affect the marketability of the properties in the neighborhood(proxinfity,to employment and amenities,employment stability,appeal to market,etc.): Proxima all--amenities-is average tococci....J�lcnnn _t Js average to goodwith-anl?ax from State Prison_and Stato_T7nvers�t. - - to-Market-.is averacxe WJ�h1 l=ot and W best e a Bete.. .._'nin fa High q and—Best TJSdefined as thatuse which will vie➢ - _ the Ottbigbw-t-iralue far the­subjecL-p-r—qpe21vL—­­ Market oondifirmis in the subject neighborhood(i ng support for the above WnCIUSIOM related to the trend of property values,demand'supply,and marketing time such as data on oornipetilf"properties forsalein the nsig—hbo&Kod,descripfio-n-of the prenlendo-of-sales and finari-ng ro—rxawiom,etc,): values are ending -acpexty with s ight cia -tx -upward tions in the-.. ar-peatr to beinbalance, hover, marketing tiers is averagin6 12 crcmth for bene 3 in- the neigorhocxl. ---------- —----­­-—- Project Information for PUDs(If applicable) Is to clawioperibuilder in control of the Home Owners'Associatron(HOA)? vas No Apipmodmale total number of units In the subject project Approxarate total number of units for sale in the subject project Z: Describe common elements and recreational facilities; Dimensions 70-'--X---7000 IaQ-'­ Topography Site area Cc"(Lot YesNo si.8 Spoof zoning dawitication and description Shape manning(Gra inzoning Drainage le Zninrg�000rpllanco 1XI Legal iathered use) Illegal NaNo ng A.�: Highest&best use as Improved: X Present use Other use(explain) vie. Utilities Public Other Off-site Improvements Type Public Pri.te Landscaping J it—--- E—lefty street -paired........ ... Dn"way Surface ];a-,,?ed...... Ga. Curgufter H Apparent easements ty icw _pla-- Water Stdtwalk a F ­ No— EMA Special Food Hazard Area Y L Sanitary sew., Street lights C FEMA Zone Map Date 2 Sto" FEMA Map No,sewer Allay no 480639 0005 3 Comments(apparent adverse,easements,encroachments,special assessments,slide areas.Illegal or legal nontionioning mining use,etc.): t=r adverse ... . easeffer7ts, enc=C. S. s0ecia1­azaeasmenLa-.sJZiAe -araaa-oril ectal & noncorltonung-zoning .- use. GENERAL DESCRIPTION EXTERIOR DESCRIPTION FOUNDATION BASEMENT INSULATION No-of Units Foundation Slab Area Sq.Ft. - Pact - ----- pier�/!eem M no . No.of Stories Exterior Walls Crawl Space no -atone/-Iaric --- %Finished - Coiling -no Type DetdAtt.) de Roof Surface tio Basement Ceiling - Well. -t 1111- ccmposi no unk. Design(Style) trad_Gutters&D-.pt.. none Sump Pump no Wall's - Floor Existing/Proposed t' Window Type wood Damp- none nated_ Floor - _None -v n yes Outside Entry - Unk- Age IYrsf Slorm/Somens Warrant T-I M d Be Manufactured House Infestation Eflecfi"Age(Ym,) 50+ vrs. no t I I ROOMSFoyer Living Dining Kitchen Dart Family Rm. Rec,Rm. Bedrooms a Baths Laundry -titer Area Sq.Ft. Basement IiA—----- The ect 9 U�e hdE been cr �utted lwith ndint ri or wa lls. Level 2 Finished area above grade contains: Rooms; Bedroom(s); Bath(s); 2,1164 Square Feet of Grow Living Area Ilk: INTERIOR MaterialarCondiftion HEATING KITCHEN EOU11ATTIC AMENITIES CAR STORAGE: Floors n/a Type _see Refrigerator None Fireplace(s) None Wells see below Fuel b Range/duan Stairs patio Garage of cars Tarn/Finish n II Condition Disposal Drop Stair Dock Attached Bath Floor COOLING Dishwasher Scuttle Parch Detached Cantrel Both Wainscot see FarVHwcl Floor Fence Buitt-In if 11 Other Microwa" Heated Pool Carport Doors below I Condition I washer/Dryer Finished Driveway Additional features(apecial energy efficient items,oto.): ......... ------ Condition of the Improvements,depreciation iphysical,functional,and extennal),repairs needed,quality of construction,remodling/addirtions,etc.: The Nil subject house but con exterio ly deteriorated --sider -able. Based on a -ns --ed- or X depreciation peroentage-tbe- is considered 106 good. ... ................ I Adverse environmental conditions(such as, but not limited to, hazardous wastes,toxic substances,etc.)present in the impm-onts,on the sue,or In the Immediate vicinity of the M. sub* "Y' No adverse enviromientai cizinditions obvious to the ar,�raiser were" noted ot�rin the uu,=eutents. on the site, or in the imediate vicinity. Freddie Mac Form 70 6.93 Fannie Mae Form 1004 6.93 'TOTAL"appraisal software by a Is mode,ine. 1.800-ALAMODE PAGE 1 OF 2 J.A. MEWSON Valuation Section UNTORM RESIDENTIAL APPRAISAL REPORT File No. CJr1Y-1i.=SV-J HUNrSVI N.N.: ESTIMATED SITE VALUE For residential use....-$ 8,000 comments on Cost Approach(such as,source of cost estimate,Site ESTIMATED REPRODUCTION COST-NEW-01`IMPROVEMENTS: value, square foot calculation and for HUD, VA and FrnHA, the Dwelling a.1�64 Sq.Ft. @s 40.00 ___8,6_56Q estimated remaining economic life of the property):The 210 Sq.Ft. @$_25.00 3-150 -physical depreaiation stima, -e— te in the cost :x -appmach was cal_culat usethe ageZ—life a 354 Sq Ft cs 15 Garage/CarpDrt 00 5,310 _mthod which..relates—the effectiveageof ip.�: Total Estimated Coal New 95,..-020 the,Subject to the-overalleconomic life.._.. Low Physical F—clonal Elclemal -The reproctiction ccet isbasedon b_�lder_ Depreciation _ 85 _518L_ .$-, 85.518 ,P_r_1Lce5_and costs deri�ved_f_r_mthe_Marshall Depreciated Value of improvements $ — 911,5U and Swift (bst Guide. "As-is"Value of Site Improsentents, INDICATED VALUE BY COST APPROACH.. _s 17.5021 ITEM SUBJECT COMPARABLE NO-1 COMPARABLE NO.2 COMPARABLE NO.3 13th Street The Sales Address lle IX Olson Approach Pfly to rootin, subject to value is not E/ i Price/Grow Liv.Area $ s —ml $em Data andfor utilized herein due Verificalkan Source to he=r +M$Adjustment W VALUE ADJUSTMENTS DESCRIPTION DESCRIP"NON DESC.IPTON� $Adjustment DESCRIPTION $Adjustment S alas 0 11 nrl,, condition of' , me Im-p-r-cpar-ty,_K ...... Concessions e subject Leaseho -th Date of salemme _Location average _and—tbe-la—ck simp!! fee1Wle si _of sales Sill 7QQ0 SF,,— for view rcial _come Lrison DRsdgn and APP�0�2_1 trad to the sublect. Age Condition Ahove Grade Total admire Baths Total admire: Baths _Total�_ adults Baths Toial Bdrms Baths Room Count Grow;Living Area-___2 164 Sq:..Ft, Sq.Ft. Sq,Ft. Swernent&Finished — Rwinis Below Grade Functional Utility Heating/Cooling none Ersufly Efficient items Porch,Patio,Deck, front 14:Rlreplwo(A etc. __.n a yr Ferns Pana,a,*- Not Adj.(total) 1x]+ L7-- s 01 + $ Adjusted Sales Price of Comparable WEE Comments an Sales Comparison including Ow subject Property's compatibility to the neighlorllhood,etat: See 029pentS Above. ITEM SUBJECT COMPARABLE NO,f _r COMPARABLE N0.2 COMPARABLE N0.3 is Date,Price and Data n/a Source,for prior..Iss within year of appraisal Analysis of any current agreement of sale,option,or listing of the subject property and analysis of any prior sales of subject and oomparables,within one year of the date of appraisal: INDICATED VALUE BY SALES COMPARISON APPROACH iiYa INDICATED VALUE BY INCOME APPROACH(if Appli,cabli Estimated Market Rant$ n /Mo.x Grow Rent Multiplier n -$ n/a E This appraisal is made 17 "w IV Mbilld to ff.Wairs,afterations,inspections or conditions listed below L] subject W completion per plans and specifications. Conditions of Appraisal: No c t1i .— or _t19 Final Recoricilisfion: The Comet AJ7roach.. to Value is..-,the onlya) utilized r a h due to the lack of, p — IR infonTation in theusubject to substantiate a value for the subje ...... -property based-on its parr condition, Toa fipurpose of praiser is to estimate the market value of the real property that is the subject of this report,based on the above conditions and ft carlification,contingent and limiting fi.. wrWoms,and market value definition that am stated in the attached Freddie Mac Form 439[Pannie Mae Form 10048(Flelwd 6/93 I(WE)ESTIMATETHE MARKETVALUE,AS DEFINED,Of THE REAL PROPERTYTHAT IS THE SUBJECT OFTHIS REPORT,AS OF June 17_1997 (WHICH IS THE DAT OF INSPECTION AND THE EFFECTIVE DATE OF THIS REPORT)TO BES_17 $QQ): APPRAISER . 8 U PERVISORY APPRAISER(ONLYIF REQUIRED): Did Did Not Flack. Name _n/a Inspect property Dale Report Signed June :L7,. 1997 ..N state centificati-ri a 1323511 G StOhaTeXas State Carlifficanon state Or State License 41 344465 State TeXaS Or Slate License state Freddie Mac Form 70 6-93 Fannie Mae Fon 1004 6-93 "TOTAL"appraisal software by.1.mode,inc. 11-800-ALAMODE PAGE 2 OF 2 HIGHEST AND-BEST_USE A fundamental proposition in land economics and an essential requirement to the valuation of real estate property is the assessment of a property's highest and best use. Subject to the constraints imposed by law,prevailing market conditions and the overall character of the property itself,highest and best use may be defined as the optimum or most probable use/development of a property which yields the highest land value or net return to an. owner/investor. The definition of highest and best use as recognized by current real estate practitioners is as follows: "The reasonably probable and legal use of vacant Land or an improved property,which is physically possible, appropriately supported,financially feasible,and results in the highest value."' Therefore,it is considered that reasonable and probable use will support the highest present value as of the effective date of the appraisal. The highest and best use conclusion provides the basis for an appraiser's market value analysis. The remainder of the valuation process is conducted in relation to these conclusions. Therefore, it is essential that the highest and best use conclusion relate to the motivations of the market for the subject property. Physically Possible The first constraint imposed on the possible use of any property is dictated by the physical attributes of the property. The size and location of any property are the two most important determinants of value. Generally,the larger the site,the greater its potential to achieve economies of scale„and flexibility of development. The physical attributes of the site are also a determinant in the potential use of the site. The topography of the site,easements,and drainage may limit the scope of the project and utilization of the site,and thus must be analyzed. The subject property consists of 7000 square feet of land with residential type building improvements. The property has frontage along 13th Street. The subject property is not located in Zone"A",the 100 year flood plain. The shape,size,and topography of the subject site would allow for several forms of development. The location of the site suggests a commercial usage,as this type use would be homogeneous with surrounding properties. Abutting properties include commercial properties. Utilities to the subject include electricity,water,sewer,and gas as well as private utilities such as telephone and cable services. Other services such as police and fire protection are also available to the subject site.. In considering the subject property's highest and best use,surrounding land use patterns and the principle of conformity were both utilized. This is an important concept in that a property's physical attributes must blend„or conform,to surrounding uses. In this particular location,commercial development is prevalent along the primary thoroughfares and residential development is prevalent along the secondary thoroughfares.Due to the subject property's site size and in consideration of the principles of balance'and conformity',a commercial use would be considered as the most viable form of development,as vacant. Legally l rrnis,silAe The second consideration given the subject property was for its legally permissible uses. The City of Huntsville does impose zoning restrictions. The subject property would,therefore,be restricted based on its use.The City of Huntsville classifies the subject property as management. Based on this premise of legally permissible usage and considering the size and physical attributes of the property,it is concluded that a commercial building could be constructed on the site. A commercial use of the subject property as currently improved would be prohibited under the development code of The City of Huntsville due to a lack of parking. Financial casihility The third step in analyzing a property's highest and best use is to address the financial feasibility of the development. All uses that are expected to produce a positive return are regarded as financially feasible. In analyzing a development,the significance of the relationship between the supply and demand in the area for similar developments was considered. The demand level for any development is of primary concern,particularly in a recovering economy,because when a market segment is severely overbuilt,vacant land for that use cannot be utilized immediately,but must be held until the end product can be absorbed. Therefore,an analysis of the current market conditions for the possible use is provided. As stated in the Area and Neighborhood Analyses,the Huntsville real estate market declined somewhat in the mid-1980's. Vacant properties are available,with development activity increasing.It is,therefore,concluded that a new development in the area would receive average market response,and will most likely continue as such.Therefore,the highest and best use of the subject site,as vacant,is for commercial development. Maximally Prmliactive Among financially feasible uses,the use that produces the highest price or value consistent with the rate of return warranted by the market is the maximally productive use. The appraiser has applied the same market rate of return to capitalize projected income streams from different physically possible,legally permissible,and financially feasible uses to their respective values. This procedure is appropriate if all competing uses have similar risk characteristics. Upon completion of this analysis,the maximally productive use,as vacant,is concluded to be future commercial development and,as improved,is concluded to be residential.Therefore,the estimate of market value for the subject property is made for residential usage. COST APPROACH The Cost Approach to Value is predicated on the assumption that an indication of market value of a property can be estimated by its current cost to reproduce,less observed accrued depreciation. This valuation technique has its greatest validity when the improvements are new and representative of the highest and best use of the land. This approach can also be related to the principle of substitution which holds that a buyer is not justified in paying more for a property than the amount required to construct a new property of equal desirability and utility. However,the Cost Approach is difficult to apply, Accurate building costs are difficult to estimate as construction bids by equally qualified contractors can vary on the same structure. The Cost Approach basically consists of the following steps: 1. Estimate value of the land if vacant 2. Estimate current reproduction cost of the improvements 1 Estimate and deduct observed accrued depreciation from all sources 4. Add indicated land and improvement values 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 considers his 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 safe. 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 its 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 LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS:The appraiser's certification that appears in the appraisal report is subject to the following 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. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report 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 the appraisal report whether 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. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used, 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, 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 normal research involved in performing the appraisal.Unless otherwise stated in the appraisal report,the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions(including the presence of hazardous wastes, toxic substances,etc.)that would make the property more or less valuable,and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. 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, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information,estimates,and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. 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 completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report(including conclusions about the property value, the appraiser's identity and professional designations,and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower;the mortgagee or its successors and assigns„the mortgage Insurer;consultants;professional appraisal organizations; any state or federally approved financial institution;or any department,agency,or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising,public relations,,news,sales,or other media. Freddie Mac Form 439 6.93 Fannie Mae Form 1004e 6.93 'TOTAL'appraisal Software by a la mode,ino. 1-900-ALAM00r: Page 1 of 2 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. 1 have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to,or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and,if a significant item in a comparable property is inferior to,or less favorable than the subject property,I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. 1. have taken into consideration the factors that have an impact on value in my development of the estimate of market value In the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge,that all statements and information in the appraisal report are true and correct. 3. 1 stated in the appraisal report only my own personal,unbiased,and professional analysis,opinions,and conclusions,which are subject only to the contingent and limiting conditions specified in this form. 4. 1 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 the estimate of market value In the appraisal report on the race, color, religion,sex, 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. 6.. 1 have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. 1 was not required to report a predetermined value or direction in value that favors the cause of the client or any related party,the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation,a specific valuation,or the need to approve a specific mortgage loan. 7. 1 performed this appraisal in conformity 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 as of the effective date of this appraisal,with the exception of the departure provision of those Standards,which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report,unless I have otherwise stated in the reconciliation section. 6. 1 have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements,on the subject site,or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. 1 personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If 1 relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s)and disclosed the specific tasks performed by them in the reconciliation section of 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 the report;therefore,if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report,he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above,and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: 13th Street., The J.A. Johnson Pror-erty--___.. APPRAISER: SUPERVISORY APPRAISER(only if required): Signature: Signature: Name: Flat Name: n/a Date Signed: _June 17, 1997 Date Signed: State Certification : 1323511 G State Certification#: or State License#: 344465 or State License#: State: Tag State: Expiration Date of Certification or License: 10/31/98 Expiration Date of Certification or License: Did ❑ Did Not Inspect Property Redd.Mao Form 439 6.93 Fannie Mae Form 1004B 6-93 'TOTAL"appraisal sofbvare by a la mode,Inc. 1•8W-ALAMODE Page 2 of 2 PHOTOGRAPH ADDENDUM Bo„grower/ClienT rild Pro--- Address 13th Street, The J.A. JohnsonP-2e1�t-y— _ Clty Huntsville County Walker Slate— TedS Zip Coda 77340 Lender The Cit of Huntsville OR i PP IIS Ali Ir IIV; r4 'N 41 i� riPr„ N I r ti, r "earl� i r�� X5 Seep,141 12 a..t Ave FIa�• sr ° 7+5 n xflnN ;ty I too 2 c I t--rrs j Y I. " z. r fivrrrsille 3 tQ ( 7741-to11,NTy MNMR M A08 I I a rt----� E,Ha7ZEY 33. S I AG117I 17f p 10G, °,^ 1 i 3 N14 . T i i P lZl . KL. A9YRDq8' i 47 ✓a ynbON Bar /bo y I /� 4• ray 7.! ] F3(li►g4ie SkoPP+nG11 Cen•o-r ►o. �. 8• 7, 6. 0IAIMOlW.�° I G.H.R115SE 0 z 8 SNAMRorK, HASH ? (williIro ,, ,y I I� col_J fCJeas1 , '` W ARLI I Mj a�11RNITVRE 53 °4•• Q too I cA 'i b to /aa 1 teas ® d damAve,HOust n A- AveI� a: )�, r ,at � �z L 114 0 REGION t EpUCAT)oN 198 SERVICE (CENTER +� n(Dcwor WhlCLrL) �" s •4k .1114.. ®HACK/FItgNKLNV LYLE a ,sa RO1 4)REGION •gt EDUCATION I � 17 R +SERMFCENTER ' ________-__ _-_-_ �_-R,L.BRUNER s �o � c• t� �i &B .634 AC. 85 Y w ZWC 203)j i vc 3. 6 75, s Nar Dr NO Ian 1'"F. �AJ, It• U F11 ve NS l t y Ave. � I• 1 Ns 63 7.2 ® � Nz .rL"a. I r"t 6 ao N,C,N.B. I �gz ( 1. 1a kr„� M M m B , . 9. 892 Ld 91 90 '8 � aR a I bbs b". v99 4.1 7y O h _ _ RMY T K!"AVAC4E a' is J.W. Z -4,kin BTANDEFER 0,25A1 60 g G.H.aRara 16.4 koo aog 12 � r i ��J� �z7 �•w.Delr t9. I I T�fepi�one o Gibbs o Flk!T BA1-rST I I I Dom C.M2�hCi„a ga 97 I r ®I ® (r) a 63 a 6R 61 N i I p Aao I Azo � � h I r �•M.I Sl h+YCY • 1 Y Y i? 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O {5$ O fl7 O 0U 0.1 03 x 6 0.3 11TH STS stip f z SPROT4 PINE 12T'N ST u. 11TH 51 Q w A0AMS D nfl O yF4AOOW5 COL ,III 13TH 13TH',ST 13TF TEXAS s _ a QI:IiH ATE ST U W ©s Oa RE Z ®p1S D0.Pa >D d SUBJECT' PRISON IOTHST a ¢ UL.a Pa 4 a,M GEDAR0 OR9 (7 O 2 14T_I- ST STp „Dn ti T W 0 F w ISiH ST { 9a Z w 9G = �G rt 16tH ST V L S \ � ;,� a - ' ltln sr ITT'N 5r saer a`�� 4 a°¢ a°,•a R. Y 1dTH _ 1 x �l ia e I4THST O 45 PpSF. G e w 201x254' g NDO,vDi a B 31ST 51 £RS BIND D -0rJL. 4 21 P2>, 4`i DOW o 4r9 ST 4 ST 22ND 51a 2}STST OAK LAWN T ND (CIU p a OLIVE OLIVE ST :10 33RD P JP 5T SF$ q RooKR ¢3 !fie/ '� yO SFW 5i rt PAPK HILL 1, 24THST F{1, S' x- o S4UTkPgAK, ...n 4f4C11 �Y ADON. w w v / i PS-E� 25TH LT dW Qt'4 Sry D ngLM 4 D G 13 �ya`I c o sy 1 D VE J9:L5 .11'x,5, FAKER a Orap sr a '4 ,J 1 J q9E.%`USWk2,q'T"FgS9A acl w O ,PSSS / NO 45, -o. MIC.UIRF LN ¢ aG 0111 'IP E12 ast OO 4 5 x1, Ty MCUaUG I.Si y c S1L'MF`� CLINE 51 � O � I� -K tGy -I McGOLL UNI MM""vA IIA✓MnN aro 1 75 1�, p,. 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PEBBLE \ Oi a SABRi LN U BROOK ' HEtEN ST a<p 11a PNSt {IIIA{AM RD i1B SAND � Y'UHNEP N _ S Gil �Q aG' HARDY SiEI�TQ ST' CP 3 caLLAPa s4 10 45 113 rs 1 P p •., w"� t�I `I D HUNTS — im iva� NATIONAL FLOOD INSURANCE PROGRAM FIRM FLOOD INSURANCE RATE MAP I CITY OF HUNTSV'ILLE, TEXAS WALKER COUNTY a ONLY PANEL PRINTED COMMUNITY-PANEL NUMBER 480639 0005 B EFFECTIVE DATE: FEBRUARY 4. 1981 federal emergency management agency federal insurance administration 2.ONE ZONE E RMINSFrgwt��� � ;I 916 ON �SrRE��fi �ti m - 412 9 � � ���,� ,� _,� sTrvEt r_ w ZONE B RM .DED MADISONVILLE ROAD 5 � EVENfH� � Sf r "l� ��� R 1VI4 ZONE 8�� 24 r Z JB E _ _ NINTH- ��� S9REET R I'Vl —...I 331 c ZONE EZ 32� �� � �L ,TENTH I STREET 1,s�arr,,, IF 331 :_ � �A RMQ � 339 � �� ' DNE B z 3 ZONE Twv Rhil�i� uMIZ(?NE B �! sue�aec " 34 Al 3 LIMIT OF 338 IL- �OF � �,,,. r _ 3.x38 11I DETAILED I� -i rHIRrFEN �� E" 1 ETAIL FD STUDY 5'i"UDY I D 1 359 ONE" �� STREET ZONE --1 �X 10 353 �N. z�IR�� � _. IXTEENT7 SII -.. STREET _.. 2 - �� _.��..... -...s .......__ If l� o SII I II M/SSOURv'j— �'� RAILROAD �OAD z > III I I EI"( VW fEENTH -� IINTEF NiN STREET I r/ STREET I/NINTEENTIi �— G ���, — ZQNE 14 AND'h ST , +-C7ND. STREET �TWEMTIETH VENi4 - - _ -_ �. --�� STREET SE- lb � I11 9 ZONE G f � R .r NEA JI it / ZO ` � I T!" 1'I j� CLINE STREET.II 11 �` HAYMAN S1"RFEf O �, ih Po'aild 4'woA j2j TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD BE IT FJVO WV THAT ROBERT ANDREW FLACK HAVING PROVIDED SATISFACTORTEVIDENCE OF THE QUALIFICA77ONSREQUIRED BY THE TEXAS APPRAISER LICENSING AND CERTIFICATIONACT, AR77CLE 6573a.2, VERNON'S TEXAS CIVIL STATUTES, IS AUTHORIZED 1)TO USE THE 77TLE STATE CERTIFIED GENERAL REAL ESTATE APPRAISER Number: TX-1323511-G Date of Issue: October 31, 1996 Date of Expiration: October 31, 1998 In Witness Thereof Ne 6 Jr.,Chair tenil C.Lirl6r,n6r,Commissioner A.E.Nelson,Jr., Chair Benjannin E.Barnett,Vice-Chair Debra S.Runyan,Secretary Leonel Garza,Jr. David Gloier Vidal Gonzalez Jacqueline G.Humphrey Maria F.Teran Cecil Wimberly QUALIFICATIONS Broker: Andy Flack Age: 36 years Residence: Huntsville,Texas 16 years Educational Background: Graduate of Bellaire High School Graduate of S. H. S. U., 1984 Bachelor of Science degree in.Agri-business Special Real Estate Studies: Real Estate Principles Real Estate.Appraisal Real Estate Law Farm Sr Ranch Management Real Estate Finance Property Management Rural Real Estate Appraisal Graduate Study Topics: Ad Valorem Tax Values-Rural Real Estate Uses Effects of Land Management on Rural Real Estate Values Microcomputers - Real Estate Application Land and Natural Resource Economics Advanced Marketing Real Estate Economics Macro and Micro Economics Advanced Real Estate Marketing Production Theory Economics Professional Experience: Owner/Broker of HomeLand Properties Active in: listing,marketing,sales,propertymanagement,investment, development, financial advisement and appraising of all types of real estate. Professional Organizations: State of Texas Real Estate Broker, License # 0344465 Huntsville Board of Realtors-member Texas Association of Realtors-member National Association of Realtors-member State of Texas General Certified Appraiser, License # 1323511 REFERENCES Mr, Gerald.McCoy, President Lake Area National Bank P.O. Box 1769 Trinity,Texas 75862 409-594-7575 Mr. Richard OhendalsId, C.P.A. 1410-B Brazos Drive Huntsville,Texas 77340 409-291-3603 Mr. Ronald J. Mitchell„President American Bank P.O. Box 1779 Huntsville, Texas 77342 (409) 295-6481 Mr. O.J. Moak,Attorney at Law 1215 University Huntsville,TX 77340 409/295-5497 CLIENTS American Bank, Huntsville, Texas Ameritrust, Mtrust/Mrealty, Houston, Texas Amoco Federal Credit Union, Houston,Texas Bluebonnet Savings, Dallas, Texas Champion International Corporation, Huntsville,Texas Citadel Bank, Houston, Texas Citizens Bank, Huntsville, Texas City of Huntsville, Huntsville, Texas Commerce National Bank, College Station,Texas Countrywide Funding, Inc. Houston, Texas Dayton State Bank, Dayton,Texas Department of Corrections Employees Credit Union East Texas Legal Services, Huntsville,Texas The East Texas National Bank of Palestine, Palestine , Texas Family Court, Houston, Harris County, Texas Farmers Home Administration, USDA, Bryan, Texas Federal Deposit Insurance Corporation First City Bank, Houston, Texas First National Bank, Cedar Hill, Texas First National Bank, Huntsville, Texas First National Bank of Trinity, Trinity, Texas First State Bank of Bedias, Bedias, Texas First State Bank- Dime Box, Texas Greater Denver Land Development Corporation, Denver, Colorado Lake Area National Bank, Trinity, Texas Lovelady State Bank, Lovelady,Texas Mcorp/Realty Alliance of Texas, Dallas,Texas Metropolitan Mortgage Corporation, Dallas, Texas Mortgage Max Services, Inc., IGaty, Texas NationsBank, Huntsville, Texas and Bryan/College Station, Texas The National Bank of Madisonville, Madisonville,Texas Old Republic Title Insurance Company, Houston, Texas Resolution Trust Corporation, Houston, Texas Small Business Administration, Houston, Texas Texas Commerce Bank, Houston, Texas United States Bankruptcy Court, Houston,Texas Various attorney's, accountants, est.ates,and trusts.