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DEFINITION
OF "TYPICAL" VALUE
"The price which best represents what is
being paid for a comparable property, in average
condition, 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 sale.
*The Virtual
Appraiser makes no adjustments to the comparables. No adjustments are
necessary for those costs which are normally paid by sellers as a result
of law or tradition. The 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 Virtual Appraiser report
by comparing financing terms offered by a third party institutional lender
that is not already involved in the property or transaction.
The financing
adjustment should not be calculated on a mechanical dollar
for dollar cost of the financing or concession.
The dollar amount of any adjustment should approximate
the market's reaction to the financing, or concessions, based
on the end user's judgment.
STATEMENT OF LIMITING CONDITIONS
AND VIRTUAL APPRAISERTM CERTIFICATION:
CONTINGENT
AND LIMITING CONDITIONS: The Virtual AppraiserTM certification,
which appears in the appraisal report,
is subject to the following conditions:
1. The Virtual AppraiserTM will not be responsible
for matters of a legal nature that affect either the property
under evaluation or the title to it. The target property is
evaluated as though free and clear and under responsible ownership.
2. The Virtual AppraiserTM depend's on the
end user's estimate of gross living area, and description
of comparable features, for the property under evaluation.
The reliability of the finished report is dependent upon the
accuracy of the user's answers on the Virtual AppraiserTM
target property feature's page.
3. The Virtual AppraiserTM does not identify the target
property's location in flood hazard areas, or locations suffering
from negative environmental impact, and/or economic obsolescence.
No statements or guarantees, express or implied, are made regarding
these location factors for the target property.
4. The Virtual AppraiserTM and Home Pro, Inc. officers
and staff will not give testimony or appear in court because the
VA produced a report on the property in question, unless
arrangements, to do so, have been made beforehand.
5. The Virtual AppraiserTM has estimated the value
of the land together with the improvements . The combined value
of the land and improvements represents the "typical" value for
the property described by the user on the VA feature's
page.
6. The Virtual AppraiserTM has not noted in its report
any adverse conditions (such as, needed repairs, depreciation,
the presence of hazardous wastes, toxic substances, etc. ) because
there was no physical inspection of the target property or
comparables. The Virtual AppraiserTM has no knowledge
of the condition of the report sales or any 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 any properties used in
its report.
7. The Virtual AppraiserTM obtained it's data from Home
Pro, Inc. comparable data base. Estimates expressed in it's
report, from information compiled in the data base, are considered reliable
but are not guaranteed. The Virtual AppraiserTM and
Home Pro, Inc. do not assume responsibility for the accuracy of data furnished
by other parties.
8. The Virtual AppraiserTM will not disclose the contents
of the end user's report, except as provided for in the Uniform Standards
of professional Appraisal Practice. However, because the indicated values
represent "typical" sales and list price for the property described ,in
average condition, another user describing the same or similar property
at the same location would receive a duplicate or similar value.
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