Aldersgate Trust-Happy Harbor property to CLP (Summary Appraisal Report-end of deed paperwork)

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Happy Harbor Methodist Home La Porte, Texas SCOPE OF THE APPRAISAL An appraisal is a study in the law of probabilities with respect to the value of real property. Through the appraiser's education, training. experience and integrity, he is able to project sellers' and buyers' past activities into a forecast of real property value. Because of the uniqueness of each property, comparisons oflike properties often entail adjustments in arriving at a conclusion. Financial consideration for similar properties sometimes reflects sentiment, compassion, sympathy, bias, politics, specific needs, lack of understanding, and other factors that cannot be considered by the impartial appraiser. The appraiser cannot be an advocate without compromising the very reason for the profession. An appraisal cannot be guaranteed nor can it be proved. However, the opinion of value can be substantiated and justified, and the final opinion of value is the result of a professional analysis of a considerable quantity of physical and economic facts. An appraisal must not be considered absolute, but should be used as a basis of negotiation between concerned parties, whatever their interest. The Scope of this appraisal is concerned with developing an appraisal reported in a summary fonnat in estimating the fee simple market value of the subject property. We have not considered the going-concern value which would include the furniture, fixtures and equipment (FF&E) and the business enterprise value (BEV). The standard appraisal process considers three approaches: Cost Approach, Income Approach, and Sales Comparison Approach. The approaches to value offer alternative ways of analyzing market behavior affecting the value of a particular property. Value estimates are based on the most likely outcome perceived if the property were exposed to the open market. This appraisal was prepared without limitation of scope and involved thorough collection, checking and analysis of economic data, sales data, competitive market data and other information required in the appraisal process. In developing our opinion of market value for the subject, all three traditional approaches to value have been used: the cost. income and sales comparison approaches. The cost approach has been used in fonning an opinion of value for the subject property. This approach is sometimes not applicable for several reasons, including the difficulty involved in accurately quantifying various types of depreciation due to the age of the improvements. However, based upon this type of property typically being purchased including the BEY & FF&E, the cost approach was included for a comparison basis between the other two approaches to value. Within the Cost Approach, the first step is to develop a land value. Several comparable sales have been taken into consideration in developing a land value. The comparables were compared to the subject property and adjusted for their various differences. After deriving this land value, various costs, which are necessary in constructing a similar building, have been taken into consideration. In developing these costs, the Marshall Swift Valuation Guide utilized and it provides cost data based on years of experience and continuing analyses of the cost of new buildings. This cost data is published nationwide and is adjusted using current cost multipliers as well as local multipliers to bring the data in line with time/regional/local differences. The subject represents an existing older building and no actual cost estimates were available. The Gerald A. Teel Company, file.