FHA/VA Case No.

APPRAISAL REPORT
RESIDENTIAL INCOME PROPERTY

Subject Information PROPERTY IDENTIFICATION
File No.
Borrower/Client
Map Reference
Property Address
Census Tract No.
City
County
State
Zip Code
Legal Description
Current Sale Price (if applicable)     $
Date of Sale
Loan Requested     $
Terms of Sale
Property Rights Appraised    
Lender
Lender's Address
Instructions to Appraiser:   The purpose of this Appraisal is to estimate the current Market Value of the Subject Property. The Definition of Market Value is the highest price in terms of money which a property will 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 cash or its equivalent; (5) financing, if any, is on terms generally available in the community at the specified date and typical for the property type in its locale; (6) the price represents a normal consideration for the property sold unaffected by special financing amounts and/or terms, services, fees, costs, or credits incurred in the transaction. ("Real Estate Appraisal Terminology," published 1975)
ATTACHMENTS
If this Appraisal is made for FHLMC, attach items 1, 2, 5, 6, and 7. Attach additional sheets and check box if considered appropriate for this Appraisal.
SUMMARY OF SALIENT FEATURES
TOTAL NUMBER OF APARTMENT UNITS
CONSTRUCTION:    
Approximate Year Built
DATE OF APPRAISED VALUE
ESTIMATED MARKET VALUE (Unfurnished) (SEE PAGE 8 FOR CONDITIONS AND REQUIREMENTS)
$
Value:     Per Unit $ Per Room $ Per Sq. Ft. of Building Area $
GROSS ANNUAL INCOME MULTIPLIER
OVERALL CAPITALIZATION RATE
%
FORECASTED GROSS ANNUAL ECONOMIC INCOME
$
VACANCIES:
Actual No. Vacant Percentage of Total Units %
Projected Percentage of Forecasted Gross Annual Economic Income
$
FORECASTED ANNUAL EXPENSE AND REPLACEMENT RESERVES     ( % of Forecasted Gross Annual Economic Income)
$
FORECASTED NET ANNUAL INCOME FROM REAL PROPERTY
$
PARKING RATIO
spaces/units
SUMMARY OF NEIGHBORHOOD AND PROPERTY
NEIGHBORHOOD PROPERTY
Employment Stability of Immediate Location Architectural Attractiveness
Convenience to Employment Centers Landscaping
Protection from Detrimental Conditions Quality of Construction (Materials & Finish)
Adequacy of Shopping Facilities Condition of Exterior
Adequacy of Public Transportation Condition of Interior
Adequacy of Utilities Room Size and Layout
Police and Fire Protection Closets and Storage
Recreational Facilities Light and Ventilation
Property Compatibility Overall Livability
General Appearance of Properties Compatibility to Neighborhood
Appeal to Market Overall Appeal and Marketability
FHA/VA Case No.
AREA DATA
The population is approximately
Population: % per year % per year
Describe the economic base which contributes a major influence on the stability of real estate
Discuss employment stability
Rent Control: Comment
Are local Government Agencies discouraging apartment development?    
Comment
General comments, if applicable
NEIGHBORHOOD AND MARKETING AREA
Type:    
       
       
        Property values:    
       
       
Present Land Use:
Built up %
   
Single Family %
   
Condominiums %
   
Apartments %
   
Commercial %
   
Industrial %
   
Vacant %
Change in Present Land Use:    
       
       
       
From to
Comment, if applicable
Describe overall property appeal and maintenance level
Describe any incompatible land uses (if none, so state)
Single Family:     Price range $ to $ Predominant $ Age to Predominant yrs. yrs. yrs.
Apartments: Predominant Range in Immediate Area (excluding extremes) WALK-UP ELEVATOR
Number of Units in Each Building
Units
Units
Age
Years
Years
Height (number of stories)
Stories
Stories
Condition
Rental Range by Unit Type:
Unit Types:
$
$
$
$
$
$
$
$
Comment on any unusual aspects of the above ranges
Est. neighborhood apartment vacancy rate %
Rent Levels are    
Describe the unit type(s) by number of bedrooms and rental range that are in the greatest tenant demand
Describe the unit type(s) by number of bedrooms and rental range that are in oversupply
Describe the potential for additional units in area considering land availability, zoning, utilities, etc.
Describe the unsatisfied demand for additional units in area by type and rental
Is population of relevant market area of insufficient size, diversity and financial ability to support subject property and its amenities?
If yes, specify.
ITEM DISTANCE FROM SUBJECT PROPERTY ACCESS or CONVENIENCE
Public Transportation
Employment Centers
Shopping Facilities
Grammar Schools
Freeway Access
Describe any probable changes in the economic base of neighborhood which would either favorably or adversely affect apartment rentals (e.g. employment centers, zoning)
General comments including either favorable or unfavorable elements not mentioned (e.g. public parks, view, noise, parking congestion)
FHA/VA Case No.

SITE
Dimensions
Area Sq. Ft. or Acres
Zoning (uses and densities permitted)
Zoning Classification:
Present improvements    
Highest and Best Use:    
Site improvements:
Access By:
Street Surface:
Maintained By:
Ingress and Egress (adequacy and safety)
Topography, View Amenity, Lot Drainage, Flood Condition, Slopes, etc.
Easements or Encroachments On Site and Off Site (if any)
Is the property located within a HUD Identified Special Flood Hazard Area ?
Favorable or unfavorable conditions not mentioned above including any nonconforming use(s) of present improvements.
DESCRIPTION OF IMPROVEMENTS
ITEM DESCRIPTION Construction:
Approx. Year Built
Foundation
Basic Structural System Type Project:
Exterior Walls
(Specify)
Roof Covering
No. of Bldgs. No. of Stories No. of Units
Interior Walls
Gross Bldg. Area Density Units Per Acre Sq. Ft.
Floor Covering
Ceiling Heights or Units
Finished Floor to Finished Ceiling is Ft.
OVERALL IMPROVEMENT RATING
Bath Floor and Walls Architectural Attractiveness
Insulation Quality of Construction
Soundproofing Condition of Exterior
Condition of Interior
Heating System, Central or Individual and Fuel Rooms Size and Unit Layout
Kitchen Facilities
Air Conditioning System, Central or Individual and Fuel Closets and Storage
Soundproofing Adequacy
Hot Water Heater(s) Insulation Adequacy
Built-In Kitchen Appliances Electrical Service Adequacy
Comment on items rated fair or poor and items not covered above.
Elevator (No. )
Plumbing Fixtures
Security Features
Effective Age Est. Remaining Economic Life Yrs. Years.
PARKING:     Total Spaces In Buildings In Garage (separate) In Carport Open (on-site)
Parking Ratio Space(s) / Unit.
Discuss parking adequacy and convenience to apartment units
Driveways, curbing, sidewalks, lighting (adequacy and condition)
Describe recreational facilities
Describe basement, lobby, FGarage, laundry, and other building items not described above
Comment if any of the above items or other building items are inadequate or are in below average condition
Recommended observable repairs: (List repairs, painting, termite treatment, etc., you recommend be made to the improvements to make the property readily marketable; if none, so state).
General comments if applicable:
FHA/VA Case No.
COMPARABLE RENTAL DATA
Comparables selected are the most recent rentals, similar and proximate, known to the undersigned, that a tenant of subject property would have given consideration to renting.
ITEM COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3
Address
Proximity to Subject
Map Code
Date of Rental Survey
Brief Description of Property Improvements
No. Units:
No. Vac.:
Yr. Blt.:
No. Units:
No. Vac.:
Yr. Blt.:
No. Units:
No. Vac.:
Yr. Blt.:
Quality & Condition
Quality
Condition
Quality
Condition
Quality
Condition
Individual Unit Breakdown Unit Rm. Count Size
Sq. Ft.		 Monthly Rent Unit Rm. Count Size
Sq. Ft.		 Monthly Rent Unit Rm. Count Size
Sq. Ft.		 Monthly Rent
Tot. BR b $ per sq. ft. Tot. BR b $ per sq. ft. Tot. BR b $ per sq. ft.
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Utilities, Furniture and Amenities Included in Rent
Comparison to Subject
General comments (including any rental concessions) if applicable:
MONTHLY RENT SCHEDULE--SUBJECT PROPERTY
Rental schedule is shown by type of units. Scheduled rents are actual rentals for an existing property, or projected rents for a proposed or incomplete building. Economic rents are forecasted rents to indicate the fair market rental the subject units would command if available for rent on the open market.
No. of Units Unit Rm. Count Total Rooms Sq. Ft. Area Per Unit No. Units Vacant SCHEDULED RENTS ECONOMIC RENTS
Tot. BR b Per Unit Total Rents Per Unit Total Rents Per
Sq. Ft. or Room
Unfurnished Furnished Unfurnished Furnished
$
$
$
$
$
$
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TOTAL
$
$
OTHER MONTHLY INCOME
Parking
$
$
Laundry Income
$
$
Commercial Space
$
$
$
$
$
$
Total Gross Monthly Income
$
$
Total Gross Annual Income
$
$
Utilities Included in Scheduled (actual) Rents:
Utilities Included in Economic Rents:
If proposed project or project under construction, the rent up time necessary, after completion, to lease 80% of the units at the projected economic rents is estimated to
be months.
Comments (including any rental concessions in scheduled rents, or anticipated in economic rents; if none, so state).
FHA/VA Case No.
MARKET APPROACH
The market data selected are the most recent sales of properties, similar and proximate to subject, known to the appraiser, that a buyer of subject property would have given consideration to purchasing. In the absence of actual sales, listings of comparable properties may be used but an explanation must be included in the "Comments" section below.
ITEM SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3
Address
Proximity to Subject
Map Code
Lot Size
Brief Description of Property Improvements
No. Units:
No. Vac.:
Year Built:
No. Units:
No. Vac.:
Year Built:
No. Units:
No. Vac.:
Year Built:
No. Units:
No. Vac.:
Year Built:
Quality
Condition
Recreational Facilities
Pool
Parking
Tenant Appeal
Other Feature
Other Feature
Unit Breakdown No. of Units UNIT ROOM COUNT No. of Units UNIT ROOM COUNT No. of Units UNIT ROOM COUNT No. of Units UNIT ROOM COUNT
Total BR b Total BR b Total BR b Total BR b
Utilities Paid by Owner
Data Source
Price
$
$
$
$
Sale--Listing--Offer
Date of Sale
Terms (Including conditions of sale and financing terms)
Complete as many of the following as possible using data effective at the time of sale
Gross Annual Income
$
$
$
$
Gross Ann. Inc. Mult. (1)
Net Annual Income
$
$
$
$
Expense Percentage (2)
%
%
%
%
Overall Cap. Rate (3)
%
%
%
%
Price Per Unit
$
$
$
$
Price Per Room
$
$
$
$
Price Gross Bldg. Area
$ /sq. ft. bldg. area
$ /sq. ft. bldg. area
$ /sq. ft. bldg. area
$ /sq. ft. bldg. area
COMMENTS
COMPARISON TO SUBJECT
VALUE INDICATORS FOR THE SUBJECT PROPERTY
Indicated Gross Income Multiplier Gross Annual Economic Income   $ X
$
Indicated Value Per Unit   $ X Units
$
Indicated Value Per Room   $ X Rooms
$
Indicated Value Per Sq. Ft. of Gross Bldg. Area   $ X Sq. Ft. Bldg. Area
$
Indicated Overall Capitalization Rate
%
(1) Sale Price / Gross Annual Income (2) Total Annual Expenses / Total Gross Annual Income (3) Net Annual Income / Price
RECONCILIATION:
INDICATED VALUE BY MARKET APPROACH
$
Rounded to
$
FHA/VA Case No.
ANNUAL EXPENSE ANALYSIS
ITEM
APPRAISER'S FORECAST APPRAISER'S CALCULATIONS OR COMMENTS
FIXED EXPENSES:
$
1. Real Estate Taxes
% of Value $ Tax Rate Per $100
$
$
2. Other Taxes or Assessments
3. Insurance
4. Licenses
5. Unsubordinated Ground Rent
OPERATIONAL EXPENSES:
6. Fuel
$
$
7. Gas
8. Electricity
9. Water & Sewer
10. Trash Removal
11. Pest Control
12. Building Maintenance & Repairs
13. Interior & Exterior Decorating
14. Cleaning Expenses
15. Supplies
16. Elevator Maintenance
17. Pool Maintenance
18. Parking Area Maint. & Snow Removal
19. Gardening
20. Nonresident Management
21. Resident Manager's Salary   (No. )
22. Resident Manager's Apt. Allowance
23. Custodian's Salary   (No. )
24. Custodian's Apt. Allowance
25. Engineer's Salary   (No. )
26. Elevator Operator's Salary   (No. )
27. Telephone Operator's Salary   (No. )
28. Security Personnel's Salary   (No. )
29. Other Salaries   (No. )
30. Payroll Taxes
31. Advertising
32. Telephone
33. Legal & Audit
34. Leased Furniture
35.
36.
REPLACEMENT RESERVES:
37. Carpeting & Drapes
$
$
38. Ranges & Refrigerators
39. Dishwashers & Disposals
40. Individual Heating & AC Units
41.
42.
TOTAL EXPENSES & REPLACEMENT RESERVES
$
$
Comments (identify items by number):
INCOME APPROACH
Total Gross Annual Economic Income (See Rent Schedule)
$
Less Forecasted Vacancy and Collection Loss
( %)
$ ( )
Effective Gross Annual Income
$
Less Forecasted Annual Expenses and Replacement Reserves     ( % of Total Gross Annual Economic Income)
$ ( )
Net Annual Income from Total Property
$
Less Return on and Recapture of Depreciated Value of Furnishings     ( $ @ %)
$ ( )
Net Annual Income from Real Property
$
Detail clearly method and mathematics of capitalizing Net Annual Income from Real Property
INDICATED VALUE BY INCOME APPROACH
$
Rounded to
$
FHA/VA Case No.
RECONCILIATION AND VALUE CONCLUSION
Indicated Value by the Cost Approach
$
Indicated Value by the Market Approach
$
Indicated Value by the Income Approach
$
FINAL RECONCILIATION
CONDITIONS AND REQUIREMENTS OF APPRAISAL (include required repairs, replacements, painting, termite inspections, etc.)
VALUATION: This Appraisal is based upon the definition of Market Value, the Certification, the Contingent and Limiting Conditions, and the requirements that are stated in this report.
As a result of my investigation and analysis, my estimate of Market Value of the subject property as of is
$


Date
Appraiser
If Applicable, complete the following

Date
Appraiser
Date

CERTIFICATION: The Appraiser certifies and agrees that

1. The Appraiser has no present or contemplated future interest in the property appraised and neither the employment to make this Appraisal, nor the compensation for it, is contingent upon the appraised value of the property.

2. The Appraiser has no personal interest in or bias with respect to the subject matter of the appraisal report or the participants to the sale. The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color, or national origin of the prospective owners or occupants of the property appraised, or upon the race, color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised.

3. The Appraiser has personally inspected the property, both inside and out, and has made an exterior inspection of all comparable sales listed herein. To the best of the Appraiser's knowledge and belief, all statements and information in this report are true and correct, and the Appraiser has not knowingly withheld any significant information.

4. All contingent and limiting conditions are contained herein (imposed by the terms of the assignment or by the undersigned affecting the analyses, opinions, and conclusions contained in this report).

5. This Appraisal Report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the appraisal organizations with which the Appraiser is affiliated.

6. All conclusions and opinions concerning the real estate that are set forth in the Appraisal Report were prepared by the Appraiser whose signature appears above on this Appraisal Report, unless indicated as "Review Appraiser." No changes of any item of the Appraisal Report shall be made by anyone other than the Appraiser, and the Appraiser shall have no responsibility for any such unauthorized change.

CONTINGENT AND LIMITING CONDITIONS: The certification of the Appraiser appearing in the Appraisal Report is subject to the following conditions and to such other specific and limiting conditions as are set forth by the Appraiser in the report.

1. The Appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor does the Appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership.

2. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. The Appraiser has made no survey of the property.

3. The Appraiser is not required to give testimony or appear in court because of having made this Appraisal with reference to the property in question, unless arrangements have been previously made therefor.

4. The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other Appraisal and are invalid if so used.

5. The Appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. The Appraiser assumes no responsibility for such conditions or for engineering which might be required to discover such factors.

6. Information, estimates, and opinions furnished to the Appraiser, and contained in this report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished the Appraiser can be assumed by the Appraiser.

7. Disclosure of the contents of this Appraisal Report is governed by the By-laws and Regulations of the professional appraiser organizations with which the Appraiser is affiliated.

8. Neither all nor any part of the contents of this report, or copy thereof (including conclusions as to property value, the identity of the Appraiser, professional designations, reference to any professional appraisal organizations, or the firm with which the Appraiser is connected) shall be used for any purposes by anyone but the client shown on Page 1 of this report, the mortgagee or its successors and assigns, mortgage insurers, consultants, professional appraisal organizations, any state or federally approved financial institution, any department agency, or instrumentality of the United States or of any State or of the District of Columbia, without the previous written consent of the Appraiser; nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media, without the written consent and approval of the Appraiser.

9. On all Appraisals involving proposed construction, the Appraisal Report and value conclusion are contingent upon completion of the proposed improvements in accordance with the plans and specifications prepared.