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Page 52 Nagell Appraisal Incorporated | 952.544.8966 Sales Comparison Approach – Continued Discussion of Adjustments Property Rights: Refers to the ownership interest conveyed at the time of sale. Properties with leases or other encumbrances in place can sell for more or less than comparable properties that sell fee simple interest. The sale prices of the comparable properties were not impacted by existing lease terms (if any). Financing: The impact financing may have had on the sale price, favorable interest rate or term. All sales were cash or estimated to be near or at market rates. Conditions of sale: Reflects non-market conditions, which may or may not have impacted the sale price, such as differing motivations of buyer or seller (related parties, distressed or liquidation sale, listings, pending, occupancy, assemblage, etc.), impending eminent domain proceedings, influence du e to tax ramifications, or lack of market exposure. Market Conditions: The market did not indicate a time adjustment, therefore no adjustment. Location: This adjustment is based on the appraiser's judgment. It takes into consideration surrounding land uses, intended use, neighborhood characteristics, traffic, exposure and access. Comparable 5 adjusted for superior location near the Eden Prairie mall. Zoning/Use: Comparables had similar uses. Physical Characteristics: Shape and topography adjustments reflect the market preference for rectangular and level parcels, which optimize development potential. Improvements: The comparables were either vacant or had buildings with nominal value. Utilities: The comparables have competing public utilities, no adjustment. Number of Units: Comparable 5 adjusted for lower unit counts. Typically, as the number of units increases, the price paid per unit drops. Site Size: Accounted for in the price per unit comparison unit.