Appraisal - Wise - 128 W 32nd St.

Appraisal of 128 W 32nd Street, Holland, MI 49423 Single Family Residential Rental Property

MTT Docket #: 14-001385-TT

Date of Value: 12-31-2013

Date report written: 7-16-2014

Date of Inspection: N/A

Written By: Devin Goulooze, MCAT

Reviewed By: David VanderHeide, MMAO, Certification #R-4215

July 17, 2014

Michigan Tax Tribunal

Ottawa State Office Building

611 W Ottawa Street

2nd Floor

Lansing, MI 48913

RE: MTT Docket #: 14-001385-TT

Dear Michigan Tax Tribunal:

Attached is the appraisal of 128 W 32nd Street, located within the City of Holland. The subject property

is a single family rental property.

The City of Holland Assessor’s Office attempted to schedule an on-site interior and exterior review of

the subject property by letter on Monday, June 30, 2014 and by phone on Monday, July 7, 2014. The

homeowner denied this review from taking place. As of the date of valuation, December 31, 2013, no

permits have been taken out and thus no remodeling is believed to have been done. The Assessor’s

Office did not receive a Real property Statement from the Financial Institution, this is an additional

reason the sale was not included in the valuation process.

The Subject property is located in ECF neighborhood J07. The comparables chosen were done so with a

focus on similarities first, and location second.

This report is presented as a proof of valuation for tax tribunal proceedings. The purpose of the report

is to estimate the market value of fee simple title to the subject property as of:

December 31, 2013

Market value is defined by the International Association of Assessing Officers 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” (Property Assessment Valuation, Third Edition, pg. 15).

On the basis of my analysis, I estimate the market value of the subject property, 128 W 32nd Street,

Holland, MI 49423, as of the appraisal date of December 31st, 2013, to be:

One Hundred Twenty Six Thousand Dollars

($126,000)

Sincerely,

Devin Goulooze, MCAT Appraiser │ Assessor’s Office | City of Holland

TABLE OF CONTENTS

SUMMARY OF SALIENT FACTS AND CONCLUSION ......................................................................... 1

DEFINITION AND EXPLANATION OF MARKET VALUE

MARKET VALUE DEFINED .................................................................................................... 2

FORECLOSURE SALES CONSIDERATIONS ............................................................................ 2

SITE DESCRIPTION ............................................................................................................... 3

IMPROVEMENT DESCRIPTION ............................................................................................ 3

IMPROVEMENT CONDITION ............................................................................................... 4

NEIGHBORHOOD ANALYSIS ................................................................................................ 4

LEGAL DESCRIPTION ............................................................................................................ 4

SALES HISTORY .................................................................................................................... 4

ASSESSMENT HISTORY ........................................................................................................ 5

TWO APPROACHES TO VALUE

COST APPROACH INTRODUCTION ...................................................................................... 7

ASSESSOR’S PROPERTY RECORD CARD FOR SUBJECT PROPERTY ........................... 8

COST APPROACH ANALYSIS .............................................................................................. 11

SALES APPROACH INTRODUCTION ................................................................................... 12

SALES APPROACH ANALYSIS ............................................................................................. 15

FINAL CONCLUSION OF VALUE ..................................................................................................... 16

CERTIFICATION .............................................................................................................................. 17

ADDENDA

SUBJECT AND COMPARABLE PHOTOGRAPHS

SUBJECT – 128 W 32ND ST ................................................................................................... 1

SALES – COMP 1: 33 W 34TH ST, HOLLAND, MI 49423 ........................................................ 2

SALES – COMP 2: 74 E 32ND ST, HOLLAND, MI 49423 ......................................................... 2

SALES – COMP 3: 123 W 35TH ST, HOLLAND, MI 49423 ...................................................... 3

SALES – COMP 4: 627 CENTRAL AVE, HOLLAND, MI 49423 ................................................ 3

SALES – COMP 5: 59 W 35TH ST, HOLLAND, MI 49423 ........................................................ 4

SALES – COMP 6: 775 PINE AVE, HOLLAND, MI 49423 ....................................................... 4

SALES AND OTHER SUPPORTING DOCUMENTS

128 W 32ND ST – WARRANTY DEED .................................................................................... 6

128 W 32ND ST – PTA ........................................................................................................... 8

128 W 32ND ST – RENTAL CERTIFICATE ............................................................................... 9

IMPROVED SALE 1 – 33 W 34TH ST - DEED ........................................................................ 10

IMPROVED SALE 1 – 33 W 34TH ST – PTA .......................................................................... 12

IMPROVED SALE 1 – 33 W 34TH ST – REAL PROPERTY STATEMENT ................................. 13

IMPROVED SALE 2 – 74 E 32ND ST – DEED ......................................................................... 14

IMPROVED SALE 2 – 74 E 32ND ST - PTA ............................................................................ 16

IMPROVED SALE 2 – 74 E 32ND ST – REAL PROPERTY STATEMENT ................................... 17

IMPROVED SALE 3 – 123 W 35TH ST - DEED ...................................................................... 18

IMPROVED SALE 3 – 123 W 35TH ST - PTA ......................................................................... 20

IMPROVED SALE 3 – 123 W 35TH ST – REAL PROPERTY STATEMENT ............................... 21

IMPROVED SALE 4 – 627 CENTRAL AVE - DEED ................................................................ 22

IMPROVED SALE 4 – 627 CENTRAL AVE -PTA ................................................................... 24

IMPROVED SALE 5 – 59 W 35TH ST - DEED ........................................................................ 25

IMPROVED SALE 5 – 59 W 35TH ST - PTA ........................................................................... 27

IMPROVED SALE 5 – 59 W 35TH ST – REAL PROPERTY STATEMENT ................................. 28

IMPROVED SALE 6 – 775 PINE AVE - DEED ....................................................................... 29

IMPROVED SALE 6 – 775 PINE AVE - PTA .......................................................................... 31

IMPROVED SALE 6 – 775 PINE AVE – REAL PROPERTY STATEMENT ................................ 32

ECF NEIGHBORHOOD ANALYSIS ....................................................................................... 33

HOLLAND, MI CODE OF ORDINANCE – R-2 ....................................................................... 35

QUALIFICATIONS OF APPRAISER ................................................................................................... 37

QUALIFICATIONS OF PRINCIPLE APPRAISER ................................................................................. 38

Appraisal of 128 W 32nd Street MTT Docket # 14-001385-TT

1

Summary of Salient Facts and Conclusions

Purpose of Appraisal: Estimate market value for Michigan Tax Tribunal proceedings

Property rights appraised: Unencumbered, Fee Simple Interest

Address of Subject Property: 128 W 32nd Street, Holland, MI 49423

School District: Holland Public, Ottawa County Intermediate

County: Allegan County

Improvement Description: Single family rental, 1.0 story masonry with masonry garage

Lot Size: 120’ x 130’ – wide, rectangular City lot

Zoning: R-2 - Residential

Assessed Value for 2014: $62,900

Taxable Value for 2014: $62,900

Highest & Best Use: Residential

Actual Age: Built 1952 (61)

Effective Age: 35 Years

Cost Approach Valuation: $125,831

Sales Approach Valuation: $126,000

Final Opinion of Value: $126,000

Date of Appraisal Valuation: 12/31/2013

Date of Inspection: N/A

Date Report Written: 7/16/2014


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Definition and Explanation of Market Value

Market Value Defined

Market value is defined by the International Association of Assessing Officers 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 specific date

and 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 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 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.”

(Property Assessment Valuation, Third Edition, pg 15)

Foreclosure Sales Considerations

Special care should be taken in light of sales where a financial institution has taken a property back

through foreclosure proceedings, facilitated the “short sale” of a property to satisfy a failing mortgage

arrangement, or is selling a property to an end-user after already having taken the property back

through the foreclosure process. These circumstances illustrate abnormal conditions whereby the sale

price of the property may be, and often is, affected by financing considerations that yield a sale price

that is usually substantially less than what the arms-length market normally pays for a similar property.

The standard practice of reviewing foreclosure sales is that the circumstances of the sale must be

reviewed and validated through. This process is pursued through requests for submission of a “Real

Property Statement – Financial Institution – Previously Foreclosed Property” (Michigan Department of

Treasury Form 4546) and site visits to properties to review and consider the physical conditions of the

property at the time of the sale. Both of these issues present obstacles to determining the usability of

foreclosure sales. Real Property Statements are difficult to attain due to lack of cooperation of buyers

and a misunderstanding of the requirements of the form. The City of Holland sent 70 Financial

Institution RPS’s out in 2009 and received only one back. The one that was returned had a note that no

information would be shared. This illustrates the difficulties in determining the specifics surrounding a

particular distressed sale and whether or not the sale price is indicative of the property’s market value.


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Site visits on foreclosure or bank-owned properties are sometimes hard to arrange due to vacancy, out

of town banks, or transition periods in ownership. Regardless, the major issue brought to light by this

part of the process is that typical foreclosure sale properties are in poor condition and in need of repairs

and maintenance. In the circumstances of rental properties, they are usually remodeled and repaired in

preparation for listing and rent. This remodeling usually immediately returns value to the property for

items of obsolescence and curable deferred maintenance that have been updated and corrected.

Therefore, there is usually money spent on the property after the purchase that substantially affects the

value of the property as of the forthcoming Tax Day, December 31st. This rehabilitative work will

enhance the value of the property and make the sale price less relevant to the market value of the

property.

Included in the addenda of this appraisal is a blank Real Property Statement – Financial Institution –

Previously Foreclosed Property form that shows the requirements and questionnaire that illustrate the

possible deficiencies in assuming that the sale price of a foreclosure property is indicative of the

property’s true cash or market value.

Site Description

The subject property is a typical residential lot located near the southern edge of platted subdivision

areas in the city. The lot is a wide city lot that has a flat topography and serves a highest and best use as

the location of a residential home in a residential neighborhood. The lot is rectangular with 120 feet of

frontage and 130 feet of depth. The residential lots in this area, as well as the majority of the city, are

valued on a “front foot basis.” This property has a lot value of $13,296, derived from a front foot rate of

$115/FF, which is the standard rate used in this neighborhood. Most or all of the comparable sales in

the market approach are slightly smaller lots and lave been adjusted to compare to the subject

property.

Improvement Description

The subject property is a 1 story masonry ranch single family home with a half basement and half crawl

foundation and half the basement area having recreational finish. It is similar in design, style, and layout

to many of the homes in the neighborhood that were built in the same era of the mid-twentieth

century. The property record card indicates that the home was originally built in 1952. The home is

1,364 square feet above grade and features two bedrooms and one and a half bathrooms. The house

has a forced air furnace with ducts system which is connected to air conditioning. The home has a 28

square feet front wood covered porch and a 200 square feet rear wood glass enclosed porch. The

quality of construction classification on the home is C+10, which is ten percent above average. This is

typical for a home of this age and style in the edge of platted subdivision areas of the city.


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Improvement Condition

The subject property home was built in 1952 and has no recorded remodeling work, regular

maintenance is assumed. The depreciation for the condition of the home is currently set at 73% good,

i.e. 27% depreciated.

Neighborhood Analysis

The subject property’s neighborhood is a well-established, residential neighborhood located on 32nd

Street a major thoroughfare near the southern edge of subdivisions in the city. The property values in

the neighborhood steadily decreased from 2008 through 2011 but were level for 2012 and have been

increasing in 2013 and 2014. This is generally typical for the housing market in western Michigan and

beyond.

Utilities in the subject property neighborhood are typical for residential properties and include: city

water, sanitary sewer, storm sewer, municipal electric, natural gas, telephone, and cable (including

internet). Max transit authority offers a fixed route bus service in the surrounding areas. There are

several churches in the area as well as shopping and commercial districts. This home is in the Holland

Public School District with an elementary school and high school all within roughly one mile.

All subject and comparable properties listed within this report are in the same general vicinity of the

core neighborhoods of the City of Holland. Each of these neighborhoods has similar utilitarian value and

desirability.

Legal Description

Lot 2 except the south 130 feet, Pine Grove Subdivision Section 5 Township 4 North Range 15

West

Sales History

The subject property was purchased on 7/31/2013 from Carol Ann Boeve to Kristin B Wise. This last

transfer does constitute a typical, “arm’s length” transaction.


5

Assessment History

As of December 31, 2011, the 2012 assessed value was $60,000 with a true cash value of $120,000. As of

December 31, 2012, the 2013 assessed value was $59,100 with a true cash value of $118,200. The 2014

assessed value was increased to $62,900 with a true cash value of $125,800.

Year Assessed Value True Cash Value Act 25

2012 $60,000 $120,000 $0

2013 $59,100 $118,200 $0

2014 $62,900 $125,800 $0


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THREE APPROACHES TO VALUE

COST APPROACH

MARKET (SALES) APPROACH

INCOME APPROACH


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Cost Approach

Cost Approach Introduction

The cost approach for the subject property was developed using BS&A Software’s Assessing program.

We use this software to appraise all properties city-wide. All residential properties are appraised using

the cost approach so that we can maintain consistency based on various units of comparison. Some of

those units of comparison include, but are not limited to, land size (front footage and depth), square

footage of the home, size of the garage, basement finished area, number of bathrooms, porches, decks,

accessory buildings, condition/depreciation, etc. This valuation method is updated annually by local

(County) multipliers for material costs as well as neighborhood market changes through using an

Economic Condition Factor (ECF) in each neighborhood. The ECF is developed by comparing the sales

price of properties that have sold with the appraisal system’s valuation and taking of average of those

ratios to determine the change in the market for the year. This change is applied to all properties in the

neighborhood. Through this method, the appraisal software is a market adjusted cost approach.

The cost approach is illustrated in the property record card and sketch of the subject property home as

shown on the following pages.


8

Assessor’s Property Record Card for Subject Property

Page | 10


9


10

Sketch of Subject Property


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Cost Approach Analysis

Based on the condition of the home, the depreciation of the house as of 12/31/2013 was 73% good.

This valuation yields a total value of $125,831 (land of $13,296 and building of $112,535).

The subject property is located in the J07 ECF neighborhood; this ECF neighborhood had an ECF of .943

which is higher than the surrounding areas. This was due to a lack of sales, eight (8), in the

neighborhood. The ECF should have been blended with the surrounding ECF’s.

Based on the cost approach as illustrated on the property record card details, the City Assessor’s Office

has determined the market value of 128 W 32nd St, Holland, MI 49423, rounded to the nearest $100, as

of 07/08/2014 to be:

$125,800


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Sales Approach

Sales Approach Introduction

For determination of the subject property’s market value by means of the market (sales) approach to

value, the appraiser looked for all sales of residential properties with the following criteria:

*Sold at arms-length with no financial hardship involved (short sales and foreclosures removed).

* Sold within the 1-year sale window used for 2014 County Equalization plus any sales through June of

2014 (6 months past the date of valuation), with time adjustments made as needed. Sales between

10/1/2012 and 6/1/2014.

*Sale properties located within general area of West 32nd St, where like amenities, public utilities, and

comparable market demand and desirability exists.

*Comparables were between 1,200 square feet and 1,600 square feet, and masonry or frame built.

*Style was 1.0 Story over basement.

Based on the above criteria, the sales analysis grid on the following pages was established by the

appraiser using what he felt were the most comparable sales available.

Adjustments were made to the comparable to reflect the characteristics of the subject. In other words a

comparable with a larger lot was adjusted downward with a minus adjustment to better reflect the

smaller lot of the subject.

All comparables were reviewed. Adjustments for date of sale, location, sales or financing concessions,

building condition, layout, and age, were considered, but none were made.

Adjustments were considered and made for each of the following characteristics.

Square foot adjustments were made based on the premise that the marginal square foot cost is

approximately fifty percent or less of the total square foot cost of the building without land. In this case

we are reviewing homes that average 118,100 dollars, less an estimated 16,000 per lot for land value.

$57,600 building value divided by an average square foot of 1,400 equals $41.14 per square foot for the

improvements. To use a marginal square foot of $35.00 for each variance in square foot is appropriate

because at this point the mechanical and plumbing and kitchen cabinets are not being addressed.

Next, building quality was also considered. This appraiser is familiar with the neighborhoods,

construction and quality of the various comparables and again allowed an adjustment of $4,000.00 for

each increment in quality grading as found in the comparable sales.


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The subject does have air conditioning and comparable #5 does not have air conditioning. Comparable

#5 was adjusted up to reflect the value as if it did not have air conditioning with a plus $1,500.00.

The value of a garage stall is estimated at approximately $2,000.00 per stall.

This appraiser has estimated the adjustment for each additional bedroom to be an extra $2,000.00

dollars. One would have to do a very complex study to prove this estimate right or wrong, and therefore

this appraiser is relying on common sense and thirty-five years of experience to estimate this

adjustment.

All comparables as well as the subject have at least one bathroom. The value difference between a one

or two bathroom home in this price ranges is believed to be $2,500.00 per bathroom.

Most of the homes of this vintage have the ceiling height to allow for viable living space in the basement

if it is finished. The value adjust per square foot of basement is believed to be $11.00.

Porches were considered in summation and if significantly less or more in square foot than the subject,

the comparables were adjusted up or down $500.00 as the case may dictate.


14


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Sales Approach Analysis

For the market (sales) approach analysis grid that was provided in this review, the average sales

price of the six comparable properties is $118,100. The average adjusted sales price of the six

comparable properties is $136,700.

Based on the sales approach analysis, the appraiser has determined that the most comparable

properties are comparables #2, #3, #4, and #6. The average adjusted sales price of the three

comparables given the most consideration is $124,900. Comparable #2 was given the most

consideration due to its numerous attributes that were similar to the subject property, having

the fewest adjustments, the third lowest net adjustment dollar amount, and the lowest

absolute adjustment amount. The adjusted sales price of Comparable #2 is $119,800.

A value was determined by using a weighted average of all six (6) of the comparable sales.

Comparable two was given the most weight at 30% followed by comparable three, four, and six

at 20% each. The appraiser has determined the market value of the subject property based on

the sales approach, located at 128 W 32nd St, Holland, MI, 49423, as of December 31st, 2013, to

be:

$126,000


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Final Conclusion of Value

Based on reviewing the subject property via two approaches to value, the appraiser has

determined the following market values as of December 31st, 2013:

Cost Approach: $125,800

Sales Approach: $126,000

The subject property is currently an income producing property that was purchased by

an investor and remodeled for the purpose of financial gain. However, the indication of value

as determined by review of the market (sales) approach indicates that the highest and best use

of this single-family home would be for an end user. The cost approach is deemed the least

reliable indicator of value due to the age and condition of the property. For this reason, the

sales approach has been used as the final determination of the value of the property.

By this approach, the 2014 assessed value of $62,900 and the 2104 true cash value of $125,800

are an accurate representation of value.

The market value of the subject property as of December 31st, 2013 is:

One Hundred Twenty Six Thousand Dollars

($126,000)

_____________________________________ __________

Devin Goulooze, MCAT, T-1115 Date

_____________________________________ __________

David VanderHeide, Principle Appraiser Date

MMAO, R-4215

State Certified General Appraiser, State of Michigan, License #1201002752


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Certification

DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a

competitive and open market under all conditions requisite a fair sale, the buyer and seller each acting

prudently, knowledgeable 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 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 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.

Adjustments to the comparables must be made for special or creative financing or sales concessions. No

adjustments are necessary for those costs which are normally paid by the sellers as a result of tradition

of law in a market area; these 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 comparable property

by comparisons to financing terms offered by a third party institutional lender that is not already

involved in the property transaction. Any adjustment should not be calculated on a mechanical dollar

for dollar cost of the financing or concession but the dollar amount of any adjustment should

approximate the market’s reaction to the financing or concessions based on the appraiser’s judgment.

CERTIFICATION AND STATEMENT OF LIMITING CONDITIONS

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 the appraisal, nor the compensation for it, is contingent upon

the appraised value of 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 properties in the vicinity of the property appraised.

3. The appraiser has personally inspected the exterior of the subject property, and has made an exterior inspection of all comparable sales listed in the report. 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 assignments or by the undersigned affecting analyses, opinions, and conclusions contained in the report).


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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 on the appraisal report, unless indicated as ‘review appraiser.’ No change of any item in 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 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.

2. Any sketch in the report may show approximated 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 the appraisal with reference to the property in questions, unless arrangements have been previously made therefore.

4. Any distribution of the valuation in the 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 conjunctions 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 the 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 the appraisal report is governed by the Bylaws and Regulations of the professional appraisal organizations with which the appraiser is affiliated.

8. Neither all, nor any part of the content of the report, or copy thereof (including conclusions as to the 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 specified in the report, the borrower if appraisal fee paid by same, the mortgagee or its successors and organizations, any state or federally approved financial institution, any department, agency, or instrumentality of the United States, of any state or 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.


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9. On all appraisals, subject to satisfactory completion, repairs, or alterations, the appraisal report and value conclusion are contingent upon completion of the improvements in a workmanlike manner.

ADDITIONAL CERTIFICATION: The appraiser further certifies and agrees that:

1. This appraisal conforms to the Uniform Standards of Professional Appraisal Practice

(“USPAP”) adopted by the Appraisal Standards Board of the Appraisal Foundation, as found in

Standard Six governing mass appraisal, except that the Departure Provision of the USPAP does

not apply.

2. Their compensation is not contingent upon the reporting of a predetermined value or

direction in value that favors the cause of the client, the amount of the value estimated, the

attainment of a stipulated result, or the occurrence of a subsequent event.

3. This appraisal assignment was not based on a requested minimum valuation, a specific

valuation, or the approval of a loan.

ENVIRONMENTAL DISCLAIMER: The value estimated in this report is based on the assumption that the

property is not negatively affected by the existence of hazardous substances of detrimental

environmental conditions. The appraiser’s routine inspection of and inquiries about the subject

property did not develop any information that indicated any apparent significant hazardous substances

or detrimental environmental conditions which would affect the property negatively. It is possible that

tests and inspections made by a qualified hazardous substance and environmental expert would reveal

the existence of hazardous materials and environmental conditions on or around the property that

would negatively affect its value.

Appraisers are required to be licensed and regulated by the Michigan Department of Labor and

Economic Growth, Bureau of Commercial Services, P.O. Box 30018, Lansing, Michigan 48909.

However, this appraisal assignment is completed and complies under Standard Six of USPAP, but may

or may not comply with Standard Two of USPAP.

__________________________________ _____________________

David VanderHeide, MMAO, R-4215 Date

State Certified General 1201002752

Assessor, City of Holland

Appraisal of 128 W 32nd Street MTT Docket # 0452042-TT

Addenda


Addenda | 1

Subject & Comparable Photographs

Subject – 128 W 32nd St.


Addenda | 2

Sales - Comp 1: 33 W 34th St. Holland, MI 49423

Sales - Comp 2: 74 E 32nd St. Holland, MI 49423


Addenda | 3


Sales - Comp 4: 627 Central Ave. Holland, MI 49423


Addenda | 4


Sales - Comp 6: 775 Pine Ave. Holland, MI 49423


Addenda | 5

Supporting Documents

Sales & Other Supporting Documents

All deeds, property transfer affidavits, property record data, and sketches were taken from public

records. They can be referenced via the appropriate County Register of Deeds Office or the local

Assessor’s Office.


Addenda | 6

128 W 32nd St. – Warranty Deed


Addenda | 7


Addenda | 8

128 W 32nd St. – PTA


Addenda | 9

128 W 32nd St. – Rental Certificate


Addenda | 10

Improved Sale 1 – 33 W 34th St. – Deed


Addenda | 11


Addenda | 12

Improved Sale 1 – 33 W 34th St. – PTA


Addenda | 13

Improved Sale 1 – W 32nd St. – Real Property Statement


Addenda | 14

Improved Sale 2 – 74 E 32nd St. – Deed


Addenda | 15


Addenda | 16

Improved Sale 2 – 74 E 32nd St. – PTA


Addenda | 17

Improved Sale 2 – 74 E 32nd St. – Real Property Statement


Addenda | 18



Addenda | 19


Addenda | 20



Addenda | 21

Improved Sale 3 – 123 W 35th St. – Real property Statement


Addenda | 22

Improved Sale 4 – 627 Central Ave. – Deed


Addenda | 23


Addenda | 24

Improved Sale 4 – 627 Central Ave. – PTA


Addenda | 25



Addenda | 26


Addenda | 27



Addenda | 28

Improved Sale 5 – 59 W 35th St. – Real Property Statement


Addenda | 29

Improved Sale 6 – 775 Pine Ave. – Deed


Addenda | 30


Addenda | 31

Improved Sale 6 – 775 Pine Ave. – PTA


Addenda | 32

Improved Sale 6 – 775 Pine Ave. – Real Property Statement


Addenda | 33

Neighborhood ECF Analysis

The subject property is located in the ECF Neighborhood J07. The Comparable properties are located in

ECF Neighborhoods I02, J01, and J07.

Subject Property ECF Neighborhood: J07: South Side of 32nd St. ECF: .943 Sales: 8

Comparable Properties ECF Neighborhoods: I02: Core 23rd and State St. to Michigan Ave. ECF: .787 Sales: 38 J01: Maplewood West ECF: .782 Sales: 28 The subject property ECF Neighborhood J07 only had eight (8) sales in 2013. Thus, it was combined with the ECF neighborhoods in which the comparable properties are located to create an average ECF for the subject, as shown:


Neighborhood ECF Analysis


Holland, MI Code of Ordinance –Traditional Residential Neighborhood District

Holland, Michigan, Code of Ordinances >> Part II - THE CODE >> Chapter 39 - ZONING >> ARTICLE VII. - RESIDENTIAL DISTRICT REGULATIONS >> DIVISION 7.3. - R-2 ONE AND TWO-FAMILY RESIDENTIAL DISTRICT: >>

DIVISION 3. - R-2 ONE AND TWO-FAMILY RESIDENTIAL DISTRICT:

Sec. 39-220 – Permitted Uses

Sec. 39-221 – Prohibited Uses

Sec. 39-222 – Off-Street Parking

Sec. 39-223 – Height and Area Regulations

Sec. 39-224 – Conversions

Sec. 39-225 – (Reserved)

Sec. 39-226 through Sec. 39-229 – (Reserved)

Sec. 39-220 – Permitted Uses

The R-2 One- and Two-family Residential District allows two-family dwellings and certain other residential uses in addition to the uses permitted in the R-1 District. The following uses are permitted:

(a) The uses permitted by Section 39-210.

(b) A single residential building containing not more than two dwelling units on each lot. In addition, no more than a total of two roomers and boarders are permitted within the single

residential building when approved as a special exception under Section 39-407.

(c) Accessory uses that are customarily incidental to any principal use permitted by Subsections (a) and (b) of this section; provided, however, that such uses are in conjunction with an existing permitted principal use on the premises; and provided further, that such accessory uses shall not constitute, create or increase a nuisance in fact which adversely affects a legal use of adjoining or nearby premises. Such accessory uses shall include home occupations and home businesses as defined in Section 39-2 and regulated in Section 39-192, and signs as

specified in Article IX of this Code.

Sec. 39-221 – Prohibited Uses

Within any R-2 District, no building, structure or premises shall be used and no building or

structure shall be erected or altered which is intended or designed to be used in whole or

in part for any use not permitted by Section 39-220.

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Addenda | 36

Sec. 39-222 – Off-Street Parking

Off-street parking shall be provided in R-2 Districts in accordance with the requirements of

Sections 39-45 to 39-59.

Sec. 39-223 – Height and Area Regulations

The following height and area regulations shall apply in R-2 Districts:

(a) Height. No building shall exceed a maximum of 35 feet in height.

(b) Front yard. There shall be a front yard of not less than 25 feet from the street line.

(c) Side yard. For one- and two-family residences there shall be two side yards totaling at least 15 feet, and no side yard shall be less than six feet; provided, that where a side yard

adjoins a side street, a minimum yard of 16 feet is required. For all other building, minimize side

yards of 20 feet on each side are required.

(d) Rear yard. There shall be a rear yard of at least 25 feet.

(e) Lot area and width. There shall be a lot area of at least 7,200 square feet for each new single-family dwelling hereafter erected, and a minimum lot width along the front building line of 60 feet. Two-family dwellings may be erected with a lot area of at least 4,800 square feet per family, and a minimum lot width along the front building line of 80 feet.

(f) Exceptions. For height and area exceptions, see also Section 39-185.

Sec. 39-224 – Conversions

Conversion of existing single-family homes from one-family to two-family use is permitted in

R-2 Districts with a lot area of at least 4,800 square feet for each family, and a minimum lot

width along the front building line of 80 feet. In addition, a conversion must be approved by

the Zoning Board pursuant to Section 39-189.

Sec. 39-225 – (Reserved)

Sec. 39-226 through Sec. 39-229 – (Reserved)


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Addenda | 37

Qualifications of Appraiser

Devin Goulooze, MCAT

(616)355-1356

EDUCATION: Western Michigan University – Bachelor’s Degree Major in Finance

Board of Real Estate Appraisers Limited Real Estate Appraiser I.D. # 1201074583 Michigan State Assessor’s Board Michigan Certified Assessing Technician Cert #: T-1115

WORK HISTORY: 2013 – Present Appraiser City of Holland Assessor’s Office 270 River Ave Holland, MI 49423

OTHER PROFESSIONAL DESIGNATIONS:

Michigan Assessor’s Association Member: 2013 – Present.


Addenda | 38

Qualifications of Principle Appraiser

David VanderHeide

EDUCATION: Bachelor of Arts; Business Administration; Hope College; Holland, Michigan

(The above includes twenty-one semester hours of accounting.) CONTINUING EDUCATION: University of Michigan Extension Program of Real Estate Course 1 Residential Property Appraisal Course 2 Appraisal of Income Producing Property Grand Rapids Junior College Course Bu 259 Assessment Administration 2 Course Bu 260 Assessment Administration 3 International Association of Assessing Officers Course 001 Fundamental of Real Property Appraisals Course 002 Income Approach to Valuation Course 302 Mass Appraisal of Income Producing Property Course 201 Appraisal of Land Course 202 Advanced Income Approach Course 003 Narrative Report Writing Course 004 Assessment Administrations

Davenport College Course CIS 151 Micro Applied Spreadsheet Course CIS 152 Advanced Spreadsheet Course CIS 153 Micro Applied Database Course CIS 204 Micro Applied Programming Course ADS 141 Micro Word Processing I Course ADS 142 Micro Word Processing II PROFESSIONAL MEMBERSHIPS: International Association of Assessing Officers Michigan Assessors Association


Addenda | 39

David VanderHeide

Page 2

PROFESSIONAL DESIGNATIONS:

Michigan State Assessors Board Level IV Certification

Certificate Number R-4215; Received September 2007

State Tax Commission "Personal Property Examiner"

Certification #386; Received February 1984

Board of Real Estate Appraisers; Certified Appraiser

License; #1201002752; Received June 1992

OCCUPATIONAL BACKGROUND:

City Assessor City of Holland, Assessor’s Office

270 River Ave; Holland, Michigan

(2007 to the Present)

Acting City Assessor City of Holland, Assessor's Office

(2003 to 2007)

Appraiser: Smeenge and Associates

Real Estate Appraisal

2165 Woodlark Drive

Holland, Michigan 49424

Contractual Assignments (1992-2003)

Appraiser Analyst: City of Holland, Assessor’s Office

(July 1, 1984 to Sept. 2003)

Appraiser II: City of Holland, Assessor’s Office

(September 29. 1978 to June 30, 1984)

Abstractor: The Title Office

321 Settlers Road; Holland, Michigan

(July 1976 to September 1978)

Bookkeeper: Hamilton Community Schools

136th Avenue; Hamilton, Michigan

(August 1975 to July 1976)


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