Finance 454 Market Analysis

CHAPTER ONE

FACTUAL DATA AND DESCRIPTIONS

IDENTIFICATION OF THE SUBJECT PROPERTY

The subject property is located ?

It is legally described as:

?

The ? County Tax Assessor identifies the subject as parcel number ?.

Other geographic identifiers are as follows:

MSA: ?

Census Tract: ?

Thomas Brothers ? County Map Guide, page/grid: ?

Postal Zip Code: ?

PROPERTY RIGHTS INCLUDED IN THE ANALYSIS

The value of real estate can be defined as the present worth of the expected future benefits associated with the ownership of property rights. The restriction of these rights serves to reduce a property's value. The property rights included and analyzed in this report are based on the ? estate unencumbered by loan, leasehold, or taxation interest.

Fee Simple is defined as "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat."1

Leased Fee Estate is defined as "a freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e., a lease)."2

PROPERTY OWNERSHIP

Title to the subject property is currently vested in the name(s) of :

?

Ownership information was obtained from ?. The current owner acquired the property on ?.

Additional information regarding the subject ownership was obtained from ?.

PROPERTY OWNERSHIP HISTORY

Property ownership history was obtained from records of ? (FARES, MLS, or ?) The records show the following ownership changes:

Date

Document #

Grantor

Grantee

PURPOSE OF AND THE DEFINITION OF THE MARKET ANALYSIS

The purpose of this market analysis is to ? as of the date shown in this report.

Market analysis can be defined as "the process for examining the demand for and supply of a property type and the geographic market area for that property type."3 Market analysis seeks to identify the highest and best use of a property in terms of market support (demand), timing (absorption rates), and market participants (probable users and buyers). This section of the appraisal will include a brief overview of the economic environment that affects the property. Our study of supply and demand characteristics will aid us in determining the effective demand for and the competitive supply of ? property type in the subject location as of the date of value stated in this report.

There are various levels of market analysis that can be included in an appraisal. These levels can be classified from A to D, with A and B levels being inferred demand studies and C and D levels being fundamental demand studies.4 The inferred demand study is an attempt to estimate future changes in value by investigating past market behavior. This type of analysis if often called a trend analysis. The fundamental demand study attempts to forecast demand based on segmentation of broad demographic and economic data to reflect the subject's specific market. As one would expect, and level A type of study is broad and general and the level D study is narrowly focused and detailed. The intended use of this analysis is for ? purposes. Because of this use an ? (inferred or fundamental demand study) was completed.

INTENDED USE OF THE MAREKET ANALYSIS REPORT

This market analysis report was prepared to aid ? in ?market evaluation. ? intends on using this report in their analysis of ?.

This market analysis report is intended to be used by the "client" only who has hired and contracted "analyst" to perform this market analysis report. The "client" which we are performing this appraisal for is ?. No part of this report is to be shown to or given to or discussed with any potential buyer, seller, loan broker, real estate broker or any other 3rd party without the express written consent of Wayne Foss Appraisals, Inc. As such, this market analysis report is not intended, in any manner whatsoever, to affect or be relied upon by buyers, sellers, real estate agents, loan brokers or any other 3rd party. Such buyers, sellers, real estate agents, loan brokers or other 3rd parties have their own methods to determine value, age and conditions of the property including obtaining their own appraisal on the property.

DATE OF THE ANALYSIS

The date of the investigation and analytical conclusions stated in this appraisal report is ?. The date represents the date of property inspection by the analyst. The date of report preparation is ?.

SCOPE OF THE INVESTIGATION

This market analysis was completed to develop an opinion as to the ?. The specific instructions given to us by ? were to develop a market analysis and to prepare a complete report of our findings and conclusions. In this regard, the following investigative inquiries were made.

1. An onsite inspection of the subject property was conducted. Our instructions from you were to perform an exterior inspections. The inspection of the property included verification of the offsite and onsite improvements located on the property.

2. Research into the real estate market of Orange County and specifically in the region surrounding the City of Fullerton was conducted.

3. Exterior