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General Information 4 • Appraisal requirements of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), revised June 7, 1994; • Appraisal guidelines of City of Concord. Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We have not performed any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three -year period immediately preceding acceptance of this assignment. Scope of Work To determine the appropriate scope of work for the assignment, we considered the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors. Our concluded scope of work is described below. Valuation Methodology Appraisers usually consider the use of three approaches to value when developing a market value opinion for real property. These are the cost approach, sales comparison approach, and income capitalization approach. Use of the approaches in this assignment is summarized as follows: Approaches to Value Approach ApplicabiIitytoSubject Use in Assignment Cost Approach Appl i cable Uti I ized Sales Comparison Approach Not Appl icabl e Not Utilized Income Capitalization Approach Not Appl icabl e Not UtiIized The cost approach is the most reliable valuation method for the subject due to the following: • There is sufficient data to develop reliable estimates of land value and replacement cost of the improvements. • This approach is typically most relevant for properties for which sales and rental data is limited. The sales comparison approach is not applicable to the subject because: There is limited sales data for the subject property type, and adjustments to the data would be relatively subjective. The income approach is not applicable to the subject considering the following: • There is not an active rental market for similar properties that would permit us to develop a reliable estimate of the property's income generating potential. The Glenn Center irr Attachment number 1 H -5 Page 337