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Appraisal.pdf1F-Cq-1VEE) APPRAISAL OF REAL PROPERTY d LOCATED AT 10430 231st St SW Edmonds, WA 98020 FOR Kenneth W.. Gunn Owner 10430 231 st St SW Edmonds, WA 98020 OPINION OF VALUE Before: $355,000, After: $392,200, Difference: $37,200 AS OF 4/17/2017 BY Glenn L. Price, Appraiser, James B. Price, MAI, SR/WA Appraisal Group of the Northwest 1409 140th PI NE, Suite 105 Bellevue, WA 98007-3963 Office: (425) 453-9292 GPHce@AppraisaiGroupNW.com A p p ra i s a l g ro u p nw„co m Form GA1V -"TOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE JUL. 0 a 2017 j` " 6:1' EICS: S Address inasn 2i1st St SW 11 Subject Photo Page Snohomish State WA Zip Code 98020 Subject Front 10430 231st St SW Sales Price N/A Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location South Edmonds View Local Area Site 9,668 SF Quality Age Form PIC3X5.SR -"TOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Subject Back (Looking East) Subject Street (Subject to Left) (Looking West) Subject Photo Page 10430 231st St Kenneth W. Gunn State WA ZiD Code Building Addition Pad 10430 231 st St SW Sales Price N/A Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location South Edmonds View Local Area Site 9,668 SF Quality Age Form PIC3X5.SR -'TOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE ROW Looking East ROW Looking West Location Map Borrower Property Address 10430 231st St SW City Edmonds County Snohomish State WA Zip Code 98020 Lender/Client Kenneth W. Gunn Form MAP_LT.LOC -"TOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Address Overhead View Edmonds County Snohomish State WA Zip Code The outline of the subject as well as the ROW portion are highlighted in purple. Form MAP.PLAT-"TOTAL" appraisal software by a la mode, inc. - 1 -800-ALAMODE 300WV1V-008-1- Oul "apow Pg a Aq aaemps lesludde AVID ., -1Vld'dVW wJOJ OZOBB VM 'SONOna3 o Ms islet oE►ol v, �il 0 w 30N3aIS32! NNf1J w31I`/ �i a v $ 16 LLLL A �n'Yppm W 3 N F � ilil flip LL 3 - � ixYM'M a � Co E W 40 uun0 'M 4lauuaN wa110papual 06096 apo0 diz yM alelS 4slwoyouS 4uno0 spuowp3 4.0 MS YS isLCz oevoi, ssa ppV RUadOJd jamoLog U91d UOIIIPPV Appraisal Group of the NorthWest LLP, 91-1704802,(425)453-9292 Client File # Appraisal File #- A-5377 Summary Appraisal Report * Land P' Appraisal Company: Appraisal Group of the Northwest Al Reports.,, Address. .1.4 -- 140th PI NE, Suite 1..............................................................................----- PP P 05, Bellevue, WA 98007 Form 120.04 Phone: Office: (425) 453-9292 Fax: (425) 455-9740 Website: ADoraisalgrouonw.com _ pp Price, App Co -Appraiser: James B Price, MAI, SR/WA Appraiser: Glenn L. 1111.. raise......_ ........... ......... Co-A.� 11.1.1........... ._ ------ AI Membership cif any): El SRA El MAI El sRPA Al Membership (if any): El SPA ®MAI ElsRPA Al Status (if any) ® Candidate for Designation g — ❑ Candidate for Designation -------- ❑ Practicing Affiliate ........ ..A' ❑ Practicing Affiliate ... ....................m,.... AlAI Status Uf any): � g Other Professional Affiliation: Other Professional Affiliation: SR/WA .. ... -n r .................... _ _....... ........ E-mail: GPrice(cr�A.. ppraisalGroupNW.com E-mail: JPrice(cDappraisalgroupnw.com Client: Kenneth Gunn Contact: (206) 542-1549 Address: 10430 231st St SW, Edmonds, WA 1111. _ ..., 98020 — Phone:. (06 ,,,.. ----------- ... 1111... ......... ,_ - -........ 1111 ............... ) 542-1549 Fax: E-mail: Ken.W.Gunn@outook.com PROPERTY"1 , 1 Address: 10430 231st StSW --- -- — . City: Edmonds C.ounty......... Snohomish State:... WA 1111. ZIP: 980 ............ _ 20 Legal Description. Sherwood Estates Block000-DOO Lot 11, Subject to Easement PUD - and Gen Tellts 6-11 have equal and undivided interest in Tract 16. _ Tax Parcel #: 00 4261 000 011 0__0 RE_T_a_xes: 4,315.38 Tax - Year: 2017 Use of the Real Estate As of the Date of Value: Single -F amily/Vacant Use of the Real Estate Reflected in the Appraisal: ... Single-FamilyNacant Before - Single -Family After ..—_.. ___ - -1111 1111.. Opinion of hig,hest and best use (if required): Single -Family PROPERTYSUBJECT 1 Owner of Record: Kenneth W. & Marla Kay Gunn Description and analysis of sales within 3 years (minimum) prior to effective date of valuer There have been no transactions in the last 3 years. ----------------- a _ 1 Description and analysis of agreements of sale (contracts) listings, and options: None .............111..-.. Known RECONCILIATIONS AND CONCLUSIONS Indication of Value by Sales Comparison Approach $ 355,000 Indication of Value by Cost Approach $ Indication of Value by Income Approach $ Final Reconciliation of the Methods and Approaches to Value: Our value estimate is discussed in the Supplemental Addendum. Opinion of Value as of: 4/17/2017 Before: $355,000, After: $392,200, Difference: $37,200 Exposure Time: 3 - 4 Weeks on Average The above opinion is subject to: ❑ Hypothetical Conditions and/or ❑ Extraordinary Assumptions cited on the following page. * NOTICE: The Appraisal Institute publishes this lonie for use by� ?praisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work roduct not caGledpfor in Ihis form. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provided by the individual appniser(s). At Reports® AI -120.04 Summary Appraisal Report • Land © Appraisal Institute 2013, All Rights Reserved January 2013 Form All 204 - "TOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE SUb eCt Property 0430 231st St SW Edmonds, WA 98020 �Aent File # h Gunn C ASSIGNMENT . ���a RpralsaLlTile # A 5377 PARAMETERS Intended User(s): Kenneth Gunn &_the City of Edmonds Intended Use: Potential Vacation of the Easement on the Subject .r ---- -- ct Property This report is not intended by the appraiser for an o__ther use or b any other user, Type of Value: Market Value Effective Date of Value: 4/17/2017 Interest Appraised: X Fee Simple . ...- ..... - —.... _ _ mole ❑Leasehold [1 Other _ Hypothetical Conditions: (A hypothetical condition is that whit is contrary to what exists, but is asserted by the appraiser for the purpose h ' of analysis. Any hypothetical condition may affect the assignment results.) N/A Extraordinary . Assumptions: tions: An extraordinary assumption is di. ._ __,,, assignment ....._._______ _.__ c ____n ry p ( ry p directly related to a specific assignment and presumes uncertain information to be factual. If found to be false this assumption could alter the appraiser's opinions or conclusions. Any extraordinary assumption may affect the assignment results.) N/A In accordance with Standard Rule - h i of the Uniform Standard of Professional A raisal Practice 'IPSP P this is a summa l a rais�al re ort. ca n F WORK Definition: The scope of work is the type and extent of research and analysis in an assignment. Scope of work includes the extent to which the property is identified, the extent to which tangible property is inspected, the type and extent of data research, and the type and extent of analysis applied to arrive at credible opinions or conclusions. The specific scope of work for this assignment is identified below and throughout this report, Scop e of Subject Property Inspechon/Data Sources Uhbzed Approaches to Value Developed Appraiser Cost Approach: Property Inspection: ® Yes ❑ No ❑ Is necessary for credible results and is developed in this analysis Date of Inspection: 4/17/2017 ® Is not necessary for credible results; not developed in this analysis Describe scope of Property Inspection, Source of Area Calculations ❑ Is not necessary for credible results but is developed in this analysis and Data Sources Consulted: Personal Inspection, Public Records, OwnerPersonal Calculations from Plat Mas..........................................................................................................................................................................................................._.._._... Maps Sales Comparison Approach: ® Is necessary for credible results and is developed in this analysis .... ❑ Is not necessary for credible results; not developed in this analysis Co -Appraiser ❑ Is not necessary for credible results but is developed in this analysis Property Inspection: ❑ Yes ® No Date of Inspection: ....----------------------- --- Describe scope of Property Inspection, Source of Area Calculations Income Approach: and Data Sources Consulted: Primary Appraiser's inspection notes and ❑ Is necessary for credible results and is developed in this analysis calculations, Public Records ® Is not necessary for credible results; not developed in this analysis ❑ Is not necessary for credible results but is developed in this analysis Additional Scope of Work Comments: The owners of the subject would like the City of Edmonds to vacate their access easement on their southern property border so they can include it in their unencumbered square -footage. This will enable them to have more flexibility in the future, not only for remodeling the existing structure, but also for redevelopment in the future. According to documents provided by Mr. Gunn, one of the owners, he has the underlying fee interest in the ROW (not included in public records). Our opinion is that the existing easement encumbers the land to such a large degree that it lends little extra utility to the rest of the lot. For the purpose of this appraisal, we are valuing the lot before the ROW easement is vacated, in order to estimate the market value of the subject land before the vacation. This will be refered to as the Before value. We will then estimate the value of the subject after the ROW easement is vacated in order to estimate the market value of the subject land after the vacation. This will be refered to as the After value. The difference between the two values is the additional value created by vacation of the easement. We have appraised the land only. Significant Real Property Appraisal Assistance: ® None ❑ Disclose Name(s) and contribution: * NOTICl The Apppraisal Institute publisfwes Iris form for use by a tiraisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work Imroduct not ealler�for In tVtis forxt'd. The Appraisal Institute plays no role in completing the forrrr and disclaims any responsibility for the data, analysis or any other work producl provirged by the Individual appraiser(s), Al Reports® AM 20.04 Summary Appraisal Report • Land © Appraisal Institute 2013, All Rights Reserved January 2013 Form All 204 - "TOTAL" appraisal software by a la mode, Inc. -1-800-ALAMODE ... - _ .................. Sub ect "Kenneth Gunn Client File# Client Proaerty' . .............................. ._... ... .... ._..,�. .. ... 10430 231st St SW Edmonds WA 98020 "Amp FIIB # A 5377 m -o-.. _ —� ANALYSISMARKET AREA _ Location Built Up Growth Supply & Demand Value Trend Typical Marketing Time _I Urban ❑ Under 25% X Rapid ® Shortage ® Increasing ® Under 3 Months Suburban 1125-75% I Stable ❑ In Balance ❑ Stable ❑ 3-6 Months Rural ® Over 75% Slow ❑ Over Supply El Decreasing 11 Over 6 Months Neighborhood Si......... ------- - - -- - -- .......................... ............................ _....... ngle Family Profile Neighborhood Land Use Neighborhood Name: Sherwood Estates Price Age ..�. 400.. Low e-------- 1_..___0 _..... 1 Family 70%, Commercial 5%. PUD ® Condo ❑ HOA :$ Unk/ 775 High 65 ........................... Condo __..% Vacant 10%, Amenities: Unk. 618 Predominant 7-135 ® Multifamily % Public Market area description and characteristics: The subject is .....,..,. lo p � located in a suburban area in Edmonds, south of the central business district, a short distance east from the eastern border of Woodway. This area is predominantly improved with single -homes purchased by middle to upper middle income buyers. There are often views of the Puget Sound from lots at higher elevations. There are relatively few public parks nearby, with Hickman Park being the only one within convenient walking distance, but there is good proximity to public schools. There is good access to commercial areas by car and two groceries stores are located within a 5 minute drive from the subject. The Edmonds area is well within the commuting ranges of Seattle, Everett, and Bellevue, three of the top employment centers in the state. SITE ANALYSIS II IQimens1ons 3073 it x 136.60 60 fl-_ 131-, ft 114 04, I:I_.... Area: 9� 8 SF ( xc�udre�c� ,r�cia�rrl4errld Aram ) View: Local Nei'711,ahborhood Shape: Irregular Drainage: Appears Adequate ... _...... .. --..� - .. ......... te Utillty: Appears Adeauate Sitc Similarity/Conformity To,l! eighborb L)od Zoning/Deed Restriction Size: View: i Zoning: RS -8 (1 lot every 8,000 Covenants, Condition & Restrictions ❑ Smaller than Typical ❑ Favorable SF) ❑ Yes ❑ No ® Unknown ® Typical ® Typical X Legal ❑ No zoning Documents Reviewed ❑ Larger than Typical ❑ Less than Favorable ❑ Legal, non -conforming ❑ Yes ® No ❑ Illegal Ground Rent $ / Utilities Off Site tutiprovements Electric X Public ❑ Other Street ® Public ❑ Private Gas X Public ❑ Other Alley ❑ Public ❑ Private NIA Water ® Public ❑ Other Sidewalk ® Public ❑ Private Sewer ® Public ❑ Other _ Street Lights ® Public ❑ Private Site description and characteristics: The site has a mild slope around the current improvements, then slopes moderately to steeply up towards the southeast corner. The encumbered land to be vacated is adjacent to the subject's southern border. The lot area stated does not include the ROW to the south of the subject lot, which apparently the current owner does own in fee, but has a permanent easement for access in favor of the city of Edmonds. This ROW slopes moderately to steeply from west up to the east. I have calculated the area of the ROW sought by the owner as 131 ft (based on the most recent survey of the subject's southern border) times 20 ft (the width of the easement) = 2,620 SF. There are scanty site improvements within this area After. The lot will be 9,668 SF (current unencumbered) + 2,620 SF (encumbered area) = 12,288 SF total. After the easement vacation, the total area is still not large enough for a short -plat into 2 lots, as the lot would have to be at least 16,000 SF to do so based on the RS -8 zoning. ANALYSISHIGHEST AND BEST USE ® Present Use _ ❑ Proposed Use ❑ Other rc Summary of highest and best use analysis: The lot is typical for a single-family residencearea in this a c._ -_. m — a and conforms to asingle-family zoning. There is great demand at this time for vacant land and the single-family market in the Seattle area is booming. The highest and best use of the land, as -vacant, is for improvement with a single-family residence. NOTICE: The Att ralsal institute publishes thisturrn dor' use b ?praisers Mitre the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide adc,11onal data, analysis and work roducl not capledpfo¢ in this form, The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis of any other work product proa4dcd by ttre individual appraiser(s), At Reports® AI -120.04 Summary Appraisal Report • Land © Appraisal Institute 2013, All Rights Reserved January 2013 Form All 204 - "TOTAL" appraisal software by a la mode, Inc. -1-800-ALAMODE _Jj�;�p d F _ P raisal C - Subject.m. 4 ... tae # A-5377 ....Property 0430 231st St SW Edmonds, WA 98020 tFde SITE VALUATION Site Valuation Methodology X Sales Comparison Approach: A set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sale prices of the comparables based on the elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparable sales are available. Ll Market Extraction: A method of estimating land value in which the depreciated cost of the improvements on the improved property is estimated and deducted from the total sale price to arrive at an estimated sale price for the land; most effective when the improvements contribute little to the total sale price of the property. ❑ Alternative Method: (Describe methodology and rationale) _....----- Site Valuation - . — .... ITEM _........ SUBJECTCOMPARISON...lW ......_ _.....COMPARISON ..... ...... _ ..-...,. -- 2 COMPARISON 3 Address 10430 231st St SW 22405 96th Ave W 1126 Emerald Hills Dr 19806 8th Ave NW Edmonds, WA 98020 Edmonds,, WA 98020 Edmonds, WA 98020 Shoreline, WA 98177 Proximity to Sub)ect 0.73 miles NE � 1.66 mile _.. s NE 1.18 miles SE Data Source/ , , , Ins ectionPublic Records Inspection, Public Records InspectionPublic Records Inspection, p Iiids Verification Sales Price — $ N!A' $ 2.., 55,00.0 °.. .w_....__............._. $ 375,000 $ 225,000 - - -- -- Price / $ $ 29.39 $ 30.75 $ 29.18 Sale Date ,,, N/A. _ 7/15/2015 +62,500.,_ .. . __... _ ..... 2/22/2016 +61,200 3/25/2016 +31,900 Location South Edmonds Mid-Edmonds-inf. +.. _... - S 20,000 Mid-Edmonds Shoreline Site Size 9,668 S.F.. ......... 8,675 SIF +15,800.12,1..9.6 S 7,71 ---- -------------- Site —. F -39,000 7,710 SF +31,300 Site View Local Area Similar Puqet Snd - Avq 50,000 Similar Sate Improvements ...... m..m............:.:...__ _._ roveme„ is N/A n Short-Plat Profit/Fees No No No Yes +34,000 Other _.............. On bu..m......... .. --------- Other +25,000 Encumbered Extra Land._. 2,620 SIF N -- - - — ...0 None +4,100 None +4,100 None +4,100 Net Adjustment d .... $ 126 300 I � .. W.... �... _..102,400 � � +..... � - .... $ 23,700 �...�� .............- _ ........... Net Adj. 40.2% Net Adj. 6.3% Net Adj. 56.1% Indicated Value Gross Adj. 41 357,400Gross Adj. 41.1%$ 351,300 Gross Adj. 56.1%$ 351,300 Prior Transfer None in the last 3 years Sold on 7/1/2013 for $400,000 None in the Prior 3 years. None in the Prior 3 years History Has since been short-platted. Site Valuation Comments: We conducted a search for vacant single -family lots as close as possible to the subject that sold in the last 3 years. There have been very few sales of single -family lots in the last few years, as to be expected because single -family inventory has been very low in the last few years as single -family values are rising quickly. This area has been mostly built-out already and several of the sales we located have been, or will be, subdivided soon to allow for more dense redevelopment. Due to the lack of comparable sales, we were forced to use a subdivided sale as Comparison 3, halving the sales price and lot size while adding in costs for developers profit and fees to create a townhome lot. We made market adjustments to all sales based on our statistical analysis of competing land sale values over the last three years. We also made lot size adjustments to each sale based on a typical $/SF for the market. Sale 2 has a view of Puget Sound so we made a downward adjustment based on the typical premium paid for such a view. (continued in next paragraph...) Site Valuation Reconciliation: (continued from previous paragraph) We also made an upward adjustment for Sale 3 because it fronts on a busy local arterial, which is not preferred by the market, based on the drop in value typically associated with being located on noisy streets that are less safe for small children. We have also estimated the value of the encumbered land for the subject at $4,100 (as discussed in the addenda). Reconciliation: We only used one approach to value, the Sales Comparison Approach, to value the subject. The range of value is fairly narrow and most weight has been given to Sales 1 and 2 since the lots were not subdivided further, unlike Sale 3. Our opinion of value based on the evidence. Before the ROW vacation. is $355.000. Opinion of Site Value 1 $ 355,000 p d p the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may NOTICE The A prrrisal Institto4e publishes EM�lls form for tree b� ap rakers wt�pro plays 9 t Y responsibility need to provide additional data, analysis and work roduct not ca le dor in this dorm. The Appraisal Institute las no role in cornpletin he dorrrr and disclaims an res onsibili for the data, analysis or ; other %York product provided by the individual appraiaerjs,). At Reports® AI-120.04 Summary Appraisal Report, Land © Appraisal Institute 2013, All Rights Reserved January 2013 Form All 204 - "TOTAL" appraisal software by a la mode, Inc. -1-800-ALAMODE A-5377 Edmonds For the purpose of this analysis we are estimating the difference of value of the subject Before the easement vacation and After the easement vacation. In the sales comparison approach we estimated the Before value based on the subject "as -is." The encumbered land is owned by the subject's owner and the ROW easement is owned by the City (City of Edmonds). Despite fee ownership of the encumbered land, the owner has very limited use of this area. Value of the Encumbered Land - Before When land is encumbered by an easement, we must figure out how much utility the owner is able to derive from the encumbered land. Based on our understanding, the encumbered land is not included for estimating building setbacks, doesn't count towards buildable area, and cannot be improved with landscaping or site improvements. This leaves the owner with little control over the bundle of rights for this land; limited to access and some level of control since the underlying fee ownership has been retained. We estimate, based on what is commonly paid for easements like this, that the owner retains about 10% of the full fee value of this area. We have estimated how much the additional value of this easement lends to the subject as unencumbered. Based on the size of the subject lot, the additional lot area should be valued at $15.75/SF (based on our land area adjustments). This does not reflect the overall $/SF value for the lot, but rather the value of an extra 2,620 SF to the subjects unencumbered 9,666 SF. 2,620 SF (Additional Area) ` $15 75/SF (Unit Value) _ $41,265 (Value of Additional Area- Unencumbered) After we have determined the full fee value of the land, if it was not encumbered by the ROW easement, we can estimate the value of this area as -is. We estimated that the owner only retains about 10% of the bundle of rights associated with the encumbered land. $41,265 (Unencumbered Extra Land Value) " 10% (Encumberance Extra Land Value Remaining) _ $4,100 (Encumbered Extra Land Value, Rounded to Nearest $100) Value of the Unencumbered Land - After Previously we estimated the value of the encumbered land is worth $4,100, but after the easement is vacated, this additional land is worth $41,265. By figuring out what the value of the subject is without any additional land, we take the value before of $355,000 and subtract the $4,100 of easement value for a value of the unencumbered land as -is of $350,900. Then we add the value of the unencumbered additional land value of $41,265 for a total value After of $392,200 (Rounded to Nearest $100) Difference in Value After the easement vacation, the subject will have considerably more buildable area, building setbacks will be set further away from the existing structure (allowing for a larger addition) and provide additional area for landscaping. There is a great financial advantage to the owner to control the entire bundle of rights for this parcel. This is reflected in difference in value of: $392,200 (Value After) - $355,000 (Value Before) _ $37,200 (Difference in Value) This is a reflection of the additional value specifically to the owner and does not necessarily reflect the value of the easement to the City. As it stands, this area has been left almost entirely unused by the public for many years. There is good access in the area provided by sidewalks next to existing roads very close to the easement. The easement itself provides little (if any) public utility, and is more of an annoyance/afterthought for adjacent property owners then anything else based on the very limited uses affored to the underlying fee owners. It is common that value created through acquiring additional land is discounted somewhat because there are costs associated with obtaining this additional land such as engineering, filing for permits and a delay in time before the process is completed. We are not aware of all of the fees or the timeframe for this process to be completed, so we have not included a discount for any fees incurred by the owner in order to acquire the full bundle of rights for this land. As very few others would be interested in acquiring the easement rights to this area, the value is based on what the underlying property owner should pay to acquire the remaining rights to this area. As such, additional fees to enable this easement vacation should be discounted from the difference in value. Summary Value Before = $355,000 Difference = $ 37,200 Farm SUP -'TOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Address Comparable Photo Page Snohomish State WA Zip Code 98020 Comparable 1 22405 96th Ave W Prox. to Subject 0.73 miles NE Sale Price 255,000 Gross Living Area Total Bedrooms Total Rooms Total Bathrooms Total Bedrooms Location Total Bathrooms View Location Mid-Edmonds4nf. View Similar Site 8,675 SF Quality Age Comparable 2 1126 Emerald Hills Dr Prox. to Subject 1.66 miles NE Sale Price 375,000 Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location Mid -Edmonds View Puget Snd - Avg Site 12,196 SF Quality Age Image Taken from Google Earth due to poor quality appraise r photo Comparable 3 19806 8th Ave NW Prox. to Subject 1.18 miles SE Sale Price 225,000 Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location North Shoreline View Similar Site 7,710 SF Quality Age Form PIC3X5.CR -"TOTAL" appraisal software by a la made, inc. -1-800-ALAMODE Kenneth Gunn l_ ,— } [subject Property:Edmonds WA98020 Appra alv#A 537703s 77� This appraisal is subject to the following assumptions and limiting conditions: This report is prepared using forms developed and copyrighted by the Appraisal Institute. However, the content, analyses, and opinions set forth in this report are the sole product of the appraiser. The Appraisal Institute is not liable for any of the content, analyses, or opinions set forth herein. No responsibility is assumed for matters legal in character or nature. No opinion is rendered as to title, which is assumed to be good and marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, having responsible ownership and competent management. a I have examined the property described herein exclusively for the purposes of identification and description of the real property. The objective of our data collection is to develop an opinion of the highest and best use of the subject property and make meaningful comparisons in the valuation of the property. The appraiser's observations and reporting of the subject improvements are for the appraisal process and valuation purposes only and should not be considered as a warranty of any component of the property. This appraisal assumes (unless otherwise specifically stated) that the subject is structurally sound and all components are in working condition. 1 will not be required to give testimony or appear in court because of having made an appraisal of the property in question, unless specific arrangements to do so have been made in advance, or as otherwise required by law. I have noted in this appraisal report any significant adverse conditions (such as needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) discovered during the data collection process in performing the appraisal. Unless otherwise stated in this appraisal report, I have no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and have assumed that there are no such conditions and make no guarantees or warranties, express or implied. I 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 I am not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable public and/or private sources that I believe to be true and correct. I I will not disclose the contents of this appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and/or applicable federal, state or local laws. The Client is the party or parties who engage an appraiser (by employment contract) in a specific assignment. A party receiving a copy of this report from the client does not, as a consequence, become a party to the appraiser -client relationship. Any person who receives a copy of this appraisal report as a consequence of disclosure requirements that apply to an appraiser's client, does not become an intended user of this report unless the client specifically identified them at the time of the assignment. The appraiser's written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. * If this valuation conclusion is subject to satisfactory completion, repairs, or alterations, it is assumed that the improvements will be completed competently and without significant deviation. _C! Market Value Definition (below) C Alternate Value Definition (attached) MARKET VALUE is defined as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Source: The Dictionary of Real Estate Appraisal 5th ed., Appraisal Institute * NOTIM The Appiaisal institute publishes this form pear use byy arpralsers where the appraiser deems use of the form approirdafe, Depending on the assignment, the appraiser may aced to provide additional data analysis and Yount xoduact not caklydp tot in this lona. The Appraisal Institute plays no role in corrapteting the forrn and disdalms any responsibility for the data, analysis or any other wont, product providled by the individual appraiser(s). Al Reports® AI -900.04 Certification, Assumptions and Limiting Conditions © Appraisal Institute 2013, All Rights Reserved January 2013 Form A19004 - "TOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Client Kenneth Gunn Client File .#-: ......w � _ m.. Subject Property .10430 231st St SW Edmonds, WA 98020 Appraisal File # A 5377 certify that, to the best of my knowledge and belief: is The statements of fact contained in this report are true and correct. ■ The reported analysis, opinions, and conclusions are limited only by the report assumptions and limiting conditions, and are my personal, unbiased professional analysis, opinions, and conclusions. ■ I have no present (unless specified below) or prospective interest in the property that is the subject of this report, and I have no (unless specified below) personal interest with respect to the parties involved. I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment was not contingent upon the developing or reporting predetermined results. My 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. My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. Individuals who have provided significant real property appraisal assistance are named below. The specific tasks performed by those named are outlined in the Scope of Work section of this report. ® None ❑ Name(s) As previously identified in the Scope of Work section of this report, the signer(s) of this report certify to the inspection of the property that is the subject of this report as follows: Property inspected by Appraiser X Yes ❑ No Property inspected by Co -Appraiser ❑ Yes ® No Services provided, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment: ® None ❑ Specify services provided: Appraisal Institute Designated Member, Candidate for Designation, or Practicing Affiliate Certify: • The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. APPRAISER: Signature Am prjf� Name Glenn L. Price, Appraiser CO -APPRAISER: Signature Name Jame B, Pri e, GNAW,, S' /WA Report Date 04/27/2017 Report Date 04/27/2017 Trainee ❑ Licensed ❑ Certified Residential ❑ Certified General ® Trainee ❑ Licensed ❑ Certified Residential ❑ Certified General X License # 1101927 Expiration Date 05/04/2017 State WA License # 1100229 State WA Expiration Date 6/13/2018 * NOTICE: The Appraisal Institute publishes this foram for use ba praisers wvl'lere the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work prctluct not oalletl for in this fort. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provirted by the 'ind'ividual appralser(s).. Al Reports® AI -900.04 Certification, Assumptions and Limiting Conditions © Appraisal Institute 2013, All Rights Reserved January 2013 Form A19004 - "TOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE JBP Qualifications Page 1 Borrower ProneqAddress 1n430231c;tStSW cityEdmonds County Snohomish State WA Zip Code 98020 QUALAF)IC.ATIONS OF APPIU]SER JAMES B. PRICE, MAI, SIUWA Piiwiw: No.: (42 5) 453 9292; FAx No. (425) 455-9740 1409 140TI PLAUu, NE, S1'E 105, BELLEVUK, WA 98007-3963 MaKINI= Bachelor of Science in Finance, Real Estate Ernpbasis; Northern filinois University/ University of Illinois. Appraisal Institute courses include 'apitafization Theory, Residential Valuation, F"asernent Valuation, arid Standards of Professional Nactice. Seminars anid Classes include: Al Course 833- Fundamentals of'Separafing Real Property, Personal Property, and intangible business Assets, Rcai Estate Feasibility, Business VahhatiOUI, Van uation of Easements and f-kingation Sl.,Lflls, Appraising for Pension Funds, arid Appraisal of Partial Acquisitions. PROFESSIONAL, MEMBERSHIPS Appraisal Institute Mcnabership: MAI' De�signated Menther ofthe Appraisal Institute since 1979 IFOIMCTiy: President, Director, and Vice President, Seattie Chapter and Alaska Chapter International Right of Way Association Designatiom SRJWA. (Senior Right of Way Agent) Position: international Rigfa of Way Association Valuation Committee, past chan- Fomieriy: Regional Chair-, Region 7, international Right of Way Association Interriatiorial Right of Way Association Director, President, and Vice President; Seattle, Washington and Fairbanks, Alaska 0apters EXPERIENCE: Over 43 years Currently: GencKal Partner, M,piwSAL GROUP oi-, riii, N0RFffWFST1,L,P Developer of subdivision, office building, and residences Owner of office buildings and apaxtments Formerly: proprietor, APPRAISM Gitoup OF THE NORTHWEs-r .Appraiser, Schucler, McKown & Keenan Partner, Price & Associates, Maska Senior Appraiser, Fimt State Bank of Oregon Appraiser, Pacific Fir-st Federal Savings Bank Appraiser, U.S. Small Business Administration Appraiser, Washington State Dept, of-l-ransportation Qualified as an expert wanness in Superior Court, Federal Court Master's Hearings, and Federal Bankruptcy Court. Served as an arbitrator in propeny valuation and lease renewals. Washington State Departinent of Transportation approved appyaiser. F( . -.c reviewer; Washington Dept, of"Fransportation, rnajor banks, and governmental clients. Qualified as a Master; held Masteii's Hearings in Maska. Ciiii renfly certified under the continuing educafiork progii am of the Appraisal Institute. CAurently certified in Washington State as a General Appraiser (Certificate No. it 00229) Vice President- Newcastle Trafls APPIRMSALGROUP OF fl Q-, N0IIRTflI'b" ES7r II' Form MARPLAT - 'TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE JRP Qualifications Page 2 Properly Address 10430 231st St SW Citv Edmonds County Snohomish State WA Zip Code 98020 Lender/Client Kenneth W. Gunn Qualifications of'JAMEs B PRICE, MAA, SR/WA PaLye 2 CIAENTS SERVED Abeyla & Associates, RfW Company Benson & McLaughlin, Accountants Boston Private Rank BuMvant, Houser, Bailey, Pendeqvass &; Hoffman; Bureau of Indian Affairs Bureau of Land Management Camp Korey ( I I I athay Bank Center Bank Cetlified Land Services Chevron Products Company Chur-ch of(jod, Western Washington City of Auburn City of Beflz-vue City of Des Moines City of Issaquah City of lCrUand City of Maple Valley City of Mount Vemon City of Nem(castle City of Port Angeles City of Redmond (,'try of SeaTac City of Seattle City of Shoreline C I lity ofTacorna Coldwell Banker Relocation Columbia Mmir Costco Eastman, Scott, Attorney, Bellevue 0 Centro De La Raza, Felicia Gonzales Enumclaw Public Schools First Sound Bank HER Engineering John Lynch, CPA, Bellevue Johns Monroe Mitsunaga, Attorneys; Michaell Monroe, DarreH Mitsunagra Keating Bucklin & McCormack, Attorneys Kent Schools KeyBank of"Washington King County Library Systein Korea Exchange Bank (KE13), Lwie & Associates, Inc,, R/W Company 0. RColan Associates, Inc, (Acquisition Specialists) 0gifen Murphy Wallace, AttonaeYs Port of Friday Haibor Port of Orcas Port of Seattle Puget Sound Lnergy Reid Middleton, Enginems Saehan Bank Sealde City Ught Seattle School District Sound Transit Tacorna Utilities US, Farah U,S. Fidelity & Guarantee U.S. Postal Service Union Bank Universal Field Servi=, Inc. Washington Dept, offxansportation Approved Appraiser & Reviewcr Washington State Dej)t.. ol"Natural Resourf,.,,es WaMdng,ton State Parks & Recreation Commission Waste Management Wffli=s Northwest Pipeline Wilshire Baink APPRAISAL GROUP OF rNE 19oR-rHwE5i LLP Form MAPPLAT -'TOTAL" appraisal software by a la made, inc. - 1-800-ALAMODE Address 10430 231st St SW GLP Qualifications Page 7 CountV Snohomish State WA Zip Code 98020 QUALIFICATIONS OF APPRAISER «, GLENN L. PRICE .. ±,L , it ...e- . uwµut.Q:�xK�1.w11 taa.1 a t!Ld o �sThoaw)pnAw flI re�erMyawl :�?ah1 PHONE No. (425) 453-9292 #126; FAX No. (425) 455-9740 1409140'" PLACE NE, SUITE 105, BELLEVUE, WA 98007-3963 EDUCATION Bachelor of Science from University of Washington, Geology major, Architecture minor CONTINUING EDUCATION Appraisal Principals, Appraisal Institute, 2005 USPAP & Ethics, Standards of Professional Practice, Appraisal Institute, 2005 Basic Income Capitalization, Appraisal Institute, 2005 Appraisal Procedures, Appraisal Institute, 2006 Right of Way: 100, IRWA, 2007 General Applications, 2007, Appraisal Institute, 2007 Advanced Income Capitalization, Appraisal Institute, 2007 General Market Analysis & Highest and Best Use, Appraisal Institute, 2008 Uniform Appraisal Standards for Federal Land Acquisitions, Appraisal Institute, 2008 General Appraiser Report Writing and Case Studies, Appraisal Institute, 2010 Principles of Real Estate Engineering, IRWA, 2012 Advanced Concepts and Case Studies, Appraisal Institute, 2013 EXPERIENCE: Currently: Appraiser, Partner, Appraisal Group of the Northwest LLP, Bellevue, WA 2003 — 2009, 2012 — Current Past: Hage & Associates Appraisers, Fairbanks, AK 2009-2012 AFFILIATIONS. Member of the Appraisal Institute, Seattle Chapter Member of the International Right of Way Association, Chapter 4 Washington State General Certified Real Estate Appraiser (Certification No. 1101927) SPECIALTIES Commercial, Industrial, Residential, Land Consulting Sensitive Areas and Conservation Easements Right of Way Acquisitions Expert Witness Testimony Form MAP.PLAT -"TOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE UP Qualifications Page 2 Address 10430 231st St SW Edmonds COWIN Rnnhnmic;hState WA Zin Code moon --------------- ­ I I Qualifications of GLENN L. PilucF, APPIUISER CLIENTS SERVED Abeyta & Associates Alaska Department of Fish & Game Alaska Department of Transportation Bellevue College Brandt Law Group Bullivant, Houser, Bailey Cascade Land Conservancy Catherine Janicki, Arty. Carey Lillevik, PL LC Attys. Certified Land Services Chase Bank City of Arlington City of Auburn City of Bothell City of Edmonds City of Kenmore City of Kennewick City of Redmond City of Sammainish City of Shoreline City of Tacoma City of Woodinville Citywide Mortgage Cook Schuhniann & Groseclose, Inc. Davis & Jonas, CAP Denali State Bank Dynasty Mortgage Evangelical Christian Credit Union Fairbanks North Star Borough Financial Advantage 11101100111 HDR, Inc. Howe, Cunningham & Lowe, PLC, Attys. H.W. Lochner, Inc. Joseph DePalma Administrative Trust Johnson River Enterprises Kent Schools Keller Williams Real Estate Key.Bank National Association Pacific Christian Center Pacific City Bank King County Library System King County Water District #1 Law firm of Larkins Vacura LLP 0,R. Colan Associates, Inc, Port of Friday Harbor Port of Seattle Puget Sound Energy Ronald Wastewater District Schwartz, Kales, Accountants Sound Transit Suburban North Wealth Management Tagiuginiullu Nunamiullu Housing Authority Terry Brink, A try, Umpqua Bank UniBank Union Bank Universal Field Services US Bank Wilshire State Bank Weichert Relocation Company Form MAPYLAT -'TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE