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DEFINITION OF MARKET VALUE <br />The following is a definition of market value typically utilized in the appraisal of real property. As <br />per the extraordinary assumption, stated herein, the results of this appraisal may not equate to market <br />value. <br />Market Value is the most probable selling price in terms of money which a property should bring in <br />a competitive and open market under all conditions requisite to be fair sale, the buyer and seller, each <br />acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit <br />in this definition is the consummation of a sale as of a specified date and the passing of title from <br />seller to buyer under conditions whereby: <br />1. Buyer and seller are typically motivated; <br />2. Both parties are well informed or well advised, and each acting in what they consider <br />their own best interests; <br />3. A reasonable time is allowed for exposure in the open market; <br />4. Payment is made in cash in U.S. dollars or in terms of financial arrangements <br />comparable thereto; and <br />5. The price represents a normal consideration for the property sold unaffected by <br />special financing or creative financing or sales concessions granted by anyone <br />associated with the sale. <br />Source: The Interagency Appraisal and Evaluation Guidelines, Federal Register, Volume 75, No. 237, <br />December 10, 2010. <br />PROPERTY RIGHTS APPRAISED <br />Fee Simple Estate, Leased Fee Interest and Leasehold Interest are defined as follows: <br />Fee Simple Estate: Absolute ownership unencumbered by any other interest or estate, subject <br />only to the limitations imposed by the governmental powers of taxation, <br />eminent domain, police power, and escheat. <br />Leased Fee Interest: The ownership interest held by the lessor, which includes the right to receive <br />the contract rent specified in the lease plus the reversionary right when the <br />lease expires. <br />Leasehold Estate: The right held by the lessee to use and occupy real estate for a stated term and <br />under the conditions specified in the lease. <br />Source: (The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute 2022). <br />To the best of my knowledge the subject property is not encumbered by any lease agreements. A <br />cursory review of Public Records and an interview with the client was conducted. Therefore the <br />property rights appraised is the fee simple estate. <br />4 <br />542 <br />