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Sample Appraisal Report

The following is a portion of a sample appraisal report. It contains the main elements of an appraisal; it has excluded the photo pages, floor sketch, location map, appraiser certification, appraiser resume and a standard statement of limiting conditions. This specific example is for a condominium unit being refinanced.

Subject

Property address 3741 W. SEDGWICK

City CHICAGO

State IL

Zip code 60614-1077

Legal description SEE ATTACHED ADDENDUM

County COOK

Unit # 1702

Assessor's Parcel No. 23-155-102-322-017

Tax Year 1998

R.E. Taxes $1,826.50

Special Assessments: NA

Project Name/Phase No. Gold Coast Frontenac, Phase 2 |Map Reference 1200

Census Tract 0307

Borrower JONES

Current Owner OF RECORD

Occupant OWNER

Property rights appraised fee simple

Monthly Homeowners Association Assessment $229.00

Sales Price NA (REFINANCE)

Date of Sale N/A |Loan charges to be paid by seller NONE

Lender/Client INTEGRITY MORTGAGE

Address 4928 W. IRVING PARK RD, CHICAGO, IL 60641

Appraiser BETH APPRAISAL SYSTEMS

Address 1234 S. HIGGINS ROAD, BERWYN, IL 60029

Neighborhood

Location URBAN Built up OVER 75% Growth rate STABLE Property values STABLE Demand/supply IN BALANCE Marketing time UNDER 3 MOS

Predominant single family occupancy OWNER & VACANT 0-5% Single family housing price $375,000 to $3,000,000+ Predominant: $1,076,000 Single family housing age NEW to 75 years old Predominant: 75 years Predominant condominium occupancy OWNER & VACANT 0-5% Condominium housing price $55,000 to $3,000,000+ Predominant: $298,000

condominium housing age NEW to 75 years old Predominant: 75 years

Present land use % One-Family: 40% 2-4 Family: 10% Apartments: 20% Com'l: 10% Ind'l: 0 Vacant: 0

Land use change: IN PROCESS TO SINGLE FAMILY RESIDENCES AND CONDOMINIUM/CONVERSIONS

Neighborhood boundaries and characteristics: SUBJECT NEIGHBORHOOD IS BOUNDED BY STATE STREET TO THE NORTH, RANDOLPH TO THE SOUTH, HALSTED TO THE EAST AND ASHLAND TO THE WEST.

Factors that affect the marketability of the properties in the neighborhood: HIGH MARKET APPEAL DUE TO EASY ACCESS TO ENTERTAINMENT, PARKS, EMPLOYMENT, AMENITIES AND SHOPS.

Market conditions in the subject neighborhood (including support for the above conclusions related to the trend of property values, demand/supply, and marketing time—such as data on competitive properties for sale in the project and neighborhood, description of the prevalence of sales and financing concessions, etc.) GENERAL MARKET CONDITIONS ARE FAVORABLE DUE IN LARGE PART TO THE AVAILABILITY OF FINANCING AT ATTRACTIVELY LOW RATES. THERE IS STRONG SUPPORT FOR THE condominium MARKET. TYPICAL condominium STYLE PROPERTIES SELL WITHIN 1-3 MONTHS, WHEN PROPERTY MARKETED. THE TYPICAL AVERAGE MARKETING TIME IS 51 DAYS IN IMMEDIATE AREA.

Site

Specific zoning classification & description RBPD NO. 403 GENERAL BUSINESS/RESIDENCE

Zoning compliance LEGAL

Highest & best use as improved PRESENT USE

Electricity PUBLIC

Gas PUBLIC

Water PUBLIC

Sewer PUBLIC

Street PUBLIC (Asphalt)

Curb/gutter PUBLIC (Concrete)

Sidewalk PUBLIC (Concrete)

Lights PUBLIC

Topography GENERALLY LEVEL

Size INTEGRAL

Density AVERAGE

View SIMILAR RESIDENCE

Drainage APPEARS ADEQUATE

Apparent Easements NONE

FEMA Zone C

FEMA Special Flood Area NO

FEMA Map No. 170074 0060B

Map Date 06/01/81

Comments (apparent easements, encroachments, special assessments, slide areas, illegal or legal nonconforming zoning use, etc.) THE SUBJECT HAS NO KNOWN ADVERSE EASEMENTS, ENCROACHMENTS OR ASSESSMENTS ASSOCIATED WITH IT. NO SPECIAL ASSESSMENTS WERE REPORTED TO THE APPRAISER.

Project Improvements

No. of stories

37

Exterior walls

CONCRETE

No. of elevators

Roof surface

FLAT

Existing/Proposed

EXISTING

Total # parking

35O

If conversion, original use

\PARTMENT

Ratio (spaces/units)

1.1:1

Conversion date

989

Type

GARAGE

Age (Years)

1

Guest parking

AMPLE

Effective Age (Years)

If project completed Total # of phases 2 Total # of units 336 Total # of units for sale 0 Total # of units sold 336 Total # of units rented 57 Data source MLS/MGMT

If project incomplete Total # of phases Total # of units Total # of units for sale Total # of units sold Total # of units rented Data source

Subject Phase

Total # of units 168

Total # of units completed 168

Total # of units for sale 0

Total # of units sold 168

Total # of units rented 27

Data source MLS/MGMT

Project type: E Primary res. □ 2nd home or recreational □ Row/townhouse □ Garden □ Mid-rise E High-rise □ Other:

Condition of the project, quality of construction, unit mix, appeal to market, etc: THE PROJECT IS IN GOOD OVERALL CONDITION WITH WELL-MAINTAINED COMMON AREAS. MARKET APPEAL IS GOOD DUE TO THE RECENT RENOVATION/CONVERSION.

Are the heating and cooling for the individual units separately metered? NO If no, describe and comment on compatibility to other projects in market area and market acceptance: SEE ATTACHED ADDENDUM

Describe common elements and recreational facilities: COMMON AREAS AND EXERCISE ROOM, BIKE ROOM, LAUNDRY AND 24-HOUR DOORMAN

Are the common elements completed? YES Is the builder/developer in control of homeowners association? NO

Are any common elements leased to or by the home owners association? NO

Subject Unit

Rooms

Foyer

Living

Dining

Kitchen

Den

Family

Rec.

Bed

Bath

Laundry

Other

Area SF

Basement

O

Level 1

1

1

1

1

1

539

Level 2

O

Level 3

O

Finished area above grade contains: 3 Rooms: 1 Bedrooms; 1.00 Bathroom; 539 Sq. Ft. of Gross Living Area for Unit

GENERAL DESCRIPTION Floor # 24 No. of levels 1

INTERIOR (materials/condition) Flooring CARPET/GOOD Walls DRYWALL/GOOD Bath floor CERAMIC/GOOD Bath wainscot CERAMIC/GOOD

HEATING

Type HOT WATER Fuel GAS Condition GOOD

COOLING Central YES Other NONE Condition GOOD

KITCHEN EQUIPMENT E Refrigerator E Range/oven E Disposal E Dishwasher E Fan/hood E Microwave □ Washer/dryer

AMENITIES Fireplaces N/A Patio N/A

Balcony CONCRETE Deck N/A Porch N/A Fence N/A

CAR STORAGE Type: GARAGE # of cars: 1

Assigned/owned: OWNED

INSULATION Roof CONCEALED Ceiling CONCEALED Walls CONCEALED Floor N/A

Comments

Condition of the unit, depreciation, repairs needed, quality of construction, remodeling/modernization, additional features (special energy efficient items, etc.): SEE ATTACHED ADDENDUM_

Adverse environmental conditions (such as, but not limited to, hazardous waste, toxic substances, etc.) present in the improvements, on the site, or in the immediate vicinity of the subject property: THERE ARE NO KNOWN OR APPARENT ADVERSE ENVIRONMENTAL CONDITIONS THAT WOULD NEGATIVELY IMPACT THE VALUE OF THE SUBJECT PROPERTY.

Cost Analysis

Estimated Site Value $10,720,000

Estimated reproduction (new) cost

Structure: 250,000 sq. ft. @ $205 per sq.ft $51,250,000

Extras: bathroom/carpeting, equipment, etc $3,200,000

Garage: 60,000 square feet @ $110 per sq. ft $6,600,000

Total Estimated Cost New $61,050,000

Less Depreciation: Physical--$6,105,000; Functional--$0; Economic-$0 $6,105,000

Depreciated Value of Improvements $54,945,000

"As is" Value of Site Improvements $553,600

Indicated Value of Cost Approach $55,498,600

Comments on Cost Approach (such as, source of cost estimate, site value, square foot calculation and, for HUD, VA and FHA, the estimated remaining economic life of the property): THE LAND IS ESTIMATED AT $95 PER SQUARE FOOT, BASED ON SIMILAR LAND SALES IN THE AREA. LAND IS VERY SCARCE IN THIS COMMUNITY AREA AND, THEREFORE, VERY EXPENSIVE. VERY LITTLE LAND IS AVAILABLE FR NEW CONSTRUCTION DEVELOPMENT. THE SUBJECT PROPERTY IS DEPRECIATED AT 10% DUE TO AGE AND ACCRUED DETERIORATION. NO OTHER DEDUCTIONS ARE NEEDED. THE COSTS DATA USED HERE WAS OBTAINED FROM THE MARSHALL & SWIFT COST HANDBOOK. BASED ON THE ABOVE DATA, THE INDIVIDUAL DWELLINGS WOULD HAVE A SQUARE FOOT COST VALUE OF $221 PER SQUARE FOOT.

Project Analysis

Unit charge $229.00 per month x 12 = $2,748 per year

Ratio of annual assessment charge per year to square feet of gross living area: $5.10 per s.f. Is the project subject to ground rent? NO

Utilities included in unit charge: E Heat E Air conditioning □ Electricity E Gas E Water E Sewer

Note any fees, other than regular HOA charges, for use of facilities: NONE

Compared to other competitive, similar projects, the subject unit charge appears: TYPICAL

To properly maintain the project and provide the services anticipated, the budget appears: ADEQUATE

Management Group: □ Homeowners association □ Developer E Management agent: LAURENT & CO.

Quality of management and its enforcement of Rules & Regulations based on general appearance: ADEQUATE

Special or unusual characteristics in the condominium Documents or other information known to the appraiser that would affect marketability: NO SPECIAL OR UNUSUAL CHARACTERISTICS WERE OBSERVED. condominium DOCUMENTS NOT AVAILABLE FOR REVIEW.

Sales Comparison Approach Analysis

ITEM

SUBJECT

COMPARABLE #1

COMPARABLE #2

COMPARABLE #3

Address

3741 W. Sedgwick #1702

3741 W. Sedgwick #1214

3741 W. Sedgwick #1010

2544 S. State Street #1200

Proximity to sub.

Same building

Same building

3 blocks

Sales price

Refinance

$139,900.00

$137,500.00

$135,000.00

Price/GLA

$271.12

$264.42

$249.09

Data Source

Inspection

MLS #99030555

MLS #99051835

MLS #99041189

Value Adjustments (Description & Amount)

Sales or Finance

None

Conventional; No concessions

Conventional; No concessions

Conventional; No concessions

Concessions

Date of Sale

N/A

4/24/99

6/19/99

5/12/99

Location

Urban/Average

Urban/Average

Urban/Average

Urban/Average

Lease/Fee Smpl

Fee Simple

Fee Simple

Fee Simple

Fee Simple

HOA Assessmnt

$229.00

$302.00

$304.00

$363.00

Common Elements

Typical, Common

Typical, Common

Typical, Common

Typical, Common

Project Size/Tp

Mid-rise/Condo

Mid-rise/Condo

Mid-rise/Condo

Mid-rise/Condo

Floor location

17

22

10

12

View

Similar residence

Similar residences

Similar residences

Similar residences

Design/Appeal

Condo/Good

Condo/Good

Condo/Good

Condo/Good

Construction

Concrete

Concrete

Concrete

Concrete

Age

10 years

10 years

10 years

8 years

Condition

Good

Good

Good

Good

Above-Grade Room

Total-3

Total-3

Total-3

Total-3

count & Gross Living

Bedrooms-1

Bedrooms-1

Bedrooms-1

Bedrooms-1

Area

Baths-1.00

Baths-1.00

Baths-1.00

Baths-1.00

539 s.f.

516 s.f.

520 s.f.

544 s.f.

Finished Below-Grade

None

None

None

None

Rooms

Functional Util

Average

Average

Average

Average

Heating/Cooling

Gas H/W C/Air

Gas H/W C/Air

Gas H/W C/Air

Gas H/W C/Air

Energy Efficient

Typical

Typical

Typical

Typical

Car Storage

Garage: 1

Garage: 1

Garage: 1

Garage: 1

Balcony, Patio,

Balcony

Balcony

Balcony

Balcony & Fireplace $5,000

Fireplace, etc.

Upgrades

Good

Good

Good

Adjusted Price

  • 139,900.00
  • 137,500.00
  • 140,000.00

Comments on sales comparison (including the subject property's compatibility to other condominium units in the neighborhood, etc.): SEE ATTACHED ADDENDUM.

Analysis of any current agreement of sale, option or listing of the subject property and analysis of any prior sales of subject and comparables within one year of the date of appraisal: PERSONAL PROPERTY IS GIVEN NO VALUE IN THIS REPORT. ALL SALES ARE CLOSED. NONE OF THE ABOVE SALES WERE SOLD PREVIOUS NOR SINCE THE ABOVE LISTED SALES.

Reconciliation

Indicated Value by Sales Comparison Approach $138,000

Indicated Value by Income Approach [Estimated market rent $_/mo x GRM] N/A

Indicated Value by Cost Approach N/A

The appraisal is made S AS IS □ subject to repairs, alterations or conditions □ subject to completion

Conditions of appraisal: SEE ATTACHED ADDENDUM Final reconciliation: SEE ATTACHED ADDENDUM

The purpose of this appraisal is to estimate the market value of the real property that is the subject of this report, based on the above conditions and the certification, contingent and limiting conditions, and market value definition that are stated in the attached Freddie Mac Form 439/Fannie Mae Form 1004B.

I/WE ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT, AS OF 6/30/99 (WHICH IS THE DATE OF INSPECTION AND THE EFFECTIVE DATE OF THIS REPORT) TO BE $138,000.00.

Signature:_License Number/Certification

ADDENDUM PAGE

Legal description

Refer to the lender's title policy. Unavailable to the appraiser.

Neighborhood market factors

The subject is located north of the Chicago Loop in an area commonly known as Old Irving Park. The immediate area consists of varying aged structures, predominantly New to 120 years old mid-rise condominiums/apartments, 2-4 family housing, manufacturing and commercial building exhibiting good curb appeal. Good access to various schools, shopping, parks and pubic transportation on arterial streets.

Compatibility of Market to Metering

The subject's common radiant heating system is typical for condominium buildings this age and market. Both situations are typical and readily accepted by the market.

Condition of the unit

The subject is a single-level one-bedroom one-bath condominium located in Chicago's Near North side. The subject unit experiences typical depreciation due to normal wear and tear. There are no functional or external inadequacies noted. The subject unit faces south on LaSalle. The subject was constructed in 1989 in the form of an apartment building and converted into condominiums in 1992, completed in 1993. The subject property has the following additional features: Berber carpet throughout, sliding/thermo-pane windows, beveled edge mirrors, mirror closet doors, ceiling fans in living and dining room, the bathroom has ceramic tile flooring, ceramic wainscot and standard wainscot, the kitchen has white cabinets, rolled edge counter tops and mirror backsplash.

Comments on Sales Comparison

The comparables used in this report are the most recent closed sales of the most similar condominiums in the Near North side of Chicago. All comparables offer similar utility and marketability. No adjustments are required for lower and higher association fees, as the fees vary due to different gross living areas and amenities received. Comparable 3 has a corner location buy required no location adjustment due to the additional monthly association fee for the superior view. Comparables 2 and 3 are located on lower level floors and received no floor level adjustment due to the similar views of units above the 5th floor.

Conditions of Appraisal

The appraisal is made from an interior and exterior inspection of the subject property and an analysis of the Near North Side real estate market. No liability is assumed for the structural or mechanical elements of the property. Personal property was given no value in this report. All sales are closed.

Final Reconciliation

The market approach is considered the most reliable indicator of value. The cost approach is considered inapplicable due to the difficulty in estimating the value of the improvements in combination with land value based upon percentage of ownership. The income approach is not utilized in this report. However, significant rental data is available for a reliable GRM.

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Assistance from Atlas Mortgage

If you would like to obtain a mortgage loan preapproval to determine your optimum loan qualification, please complete the Preapproval Application form. We will obtain a preliminary approval for you, based on the information you provide in the application. There are no obligations on your part; you may decide to cancel at any time until the closing, and even until three days after the closing with refinances of owner-occupied properties.

Questions? Ask Atlas Mortgage

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