09-28-15 Agenda, Packet & Committee Meeting Notice

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(Uniform Standards of Professional Appraisal Practice) USPAP SR1-2 In developing a real property appraisal an appraiser must: A) identify the client and other intended users. The client is identified as City of South Bend Department of Community Development. b) identify the intended use of the appraiser's opinions and conclusions: This appraisal is to be used by the client to assist in negotiating a sale price for the subject property. c) identify the purpose of the assignment, including the type and definition of the value to be developed and, if the value opinion to be developed is market value, ascertain whether the value is to be the most probable price: (i) in terms of cash; or (ii) in terms of financial arrangements equivalent to cash; or (iii) in other precisely defined terms (iv) if the opinion of value is based on non-market financing or financing with unusual conditions or incentives, the terms of such financing must be clearly identified and the appraiser's opinion of their contribution to or negative influence on the value must be developed by analysis of relevant market data. The purpose is to estimate market value. The definitions are as follows: DEFINITION OF MARKET VALUE: 3.The following definition of market value is used by agencies that regulate federally insured financial institutions in the United States:The most probable price that 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: •Buyer and seller are typically motivated; •Both parties are well informed or well advised,and acting in what they consider their best interests; •A reasonable time is allowed for exposure in the open market: •Payment is made in terms of cash in U.S.dollars or in terns of financial arrangements comparable thereto;and •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. (12 C.F.R.Part 34.42(g);55 Federal Register 34696,August 24. 1990,as amended at 57 Federal Register 12202,April 9, 1992;59 Federal Register 29499.June 7, 1994) Source: Appraisal Institute, The Dictionary of Real Estate Appraisal,5th ed. (Chicago: Appraisal Institute, 2010). 2