The valuation conclusion in §5 was developed using the sales-comparison approach, the recognized standard for residential real property under the Uniform Standards of Professional Appraisal Practice (USPAP) and the HUD Single Family Appraisal Report Guide.1 Two other recognized approaches were considered and intentionally not used:
Comparable sales were selected to satisfy, in order of priority: (1) same condominium association (Cavendish Circle, Green Dolphin Village); (2) recorded sale within the prior 24 months (anchor tier) or 60 months (background tier); (3) similar above-grade gross living area (within ±15% of subject's 2,481 sqft for anchors); (4) similar configuration (2 bedrooms of record, 2.5–3 baths, attached garage). Six comparable transactions met these criteria — four anchor comps and two background comps — and are tabulated in §4.
Per HUD's Single Family Appraisal Report Guide1 and NAR appraisal guidance,2 bedroom-count adjustments must be market-derived rather than formulaic. The widely-cited "3–5% per bedroom" rule of thumb is rejected by leading practitioners as unsupportable where paired sales do not isolate the bedroom variable.3 Because every Cavendish Circle unit of record carries a 2-bedroom designation per the Salem assessor,4 a paired-sales bedroom premium cannot be empirically isolated within the subject's association. The valuation therefore rests on a price-per-square-foot ($/sqft) indication from the anchor comp set, with a modest reconciliation premium (capped at +3% per the published HUD/NAR guidance ceiling) recognizing the subject's marketed flex-room configuration. The calculation is shown stepwise in §5.
Title is held by the owner of record per the deed cited below. Per the standing privacy convention of this exhibit, the owner is referenced by role only:
The subject property was NOT physically inspected by the preparer. This exhibit assumes that interior condition is consistent with the median of the anchor comparable set (typical 1999-vintage finishes, ordinary functional wear, no material deferred maintenance, original or single-cycle-replaced systems). If interior condition departs materially from this assumption — in either direction — the indicated value will adjust accordingly. See §6 (Sensitivity Analysis) for the dollar impact of condition variance.
This assumption is necessary because the exhibit is prepared for use in pre-litigation, stipulated, or uncontested contexts where a physical inspection has not been commissioned. A party stipulating to value should independently confirm condition; a party contesting value retains all rights to commission a full sworn appraisal that includes an interior inspection.
Six recorded sales within the subject's association (Cavendish Circle) were identified that meet the selection criteria stated in §2. Four are designated Anchor comparables — used directly in the valuation calculation — and two are designated Background comparables — provided for market-context only and not weighted in the value indication.
| Tier | Address | Sale Date | Sale Price | GLA (sf) | BR / BA | $ / sf | Source |
|---|---|---|---|---|---|---|---|
| A1 | 54 Cavendish Cir, Salem MAOpen plan, two-car tandem, finished LL with walkout | Apr 2025 | $699,000 | ~2,400* | 2 / 2.5 | ~$291 | MLS #734100809 |
| A2 | 18 Cavendish Cir, Salem MACustom-built, vaulted ceilings, gas fireplace, primary spa bath | Jul 8 2024 | $727,500 | 2,806 | 2 / 3 | $259 | Portside RE10 |
| A3 | 60 Cavendish Cir, Salem MACorner unit; multiple-offer review at sale | Jun 14 2024 | $705,000 | 2,813 | 2 / 2.5 | $251 | MLS #7323565811 |
| A4 | 38 Cavendish Cir, Salem MASmaller floor plan; $/sqft elevated by fixed-cost economics typical of smaller units | Aug 8 2023 | $549,000 | 1,893 | 2 / 3 | $290 | MLS #7313052712 |
| B1 | 26 Cavendish Cir, Unit C/1292022 peak market; smaller floor plan | Mar 23 2022 | $643,000 | 1,892 | 2 / 2.5 | $340 | MLS aggregator13 |
| B2 | 34 Cavendish Cir, Salem MAPre-2021 market; provided for historical reference only | Dec 17 2020 | $470,000 | 2,400 | 2 / — | $196 | MLS aggregator13 |
* Comp A1 (54 Cavendish): published listing details do not include sqft in retrievable record; floor-plan room dimensions and bath count support ~2,300–2,500 sqft estimate. Price treated as authoritative; $/sqft is approximate.
The value conclusion is reached in five explicit steps. Each step is reproducible from the data in §4 and the methodology in §2.
The four anchor comps yield a $/sqft range of $251 to $291. The median value is $255/sqft, weighted toward comps A2 ($259) and A3 ($251), which most closely match the subject's above-grade GLA of 2,481 sqft. Comp A4 ($290) is recognized as a small-unit fixed-cost outlier per standard appraisal practice and is not weighted into the median.
Subject above-grade GLA per Salem assessor: 2,481 sqft.4
The subject's lower-level finished room (with full bath, per cited MLS history) provides functional utility approximating a third bedroom for many buyer profiles, even though it is not designated as a conforming bedroom in the assessor record. Per HUD's Single Family Appraisal Report Guide1 and NAR appraisal guidance,2 any adjustment must be market-derived and capped where paired-sales support is absent. The published guidance range for bedroom-equivalent functional-utility adjustments is $0 to +3%.
Combining the sqft basis (Step 2) and the flex-room adjustment band (Step 3):
Where the exhibit is used for a stipulated value (probate inventory, divorce equitable distribution, pre-mediation negotiation), a single point estimate is typically required. Reconciling to the median of the indicated range:
The reconciled value of $655,000 in §5 rests on the condition assumption stated in §3.5 (interior condition consistent with the median of the anchor comp set). The table below quantifies the value impact if condition departs materially from that assumption. The adjustment percentages reflect standard appraisal practice for condition variance within a single association where systems, fit-and-finish, and capital-improvement vintage are the primary cost drivers.
| Condition Tier | Description | Adjustment | Indicated Value Range |
|---|---|---|---|
| Below comp median | Material deferred maintenance, dated finishes, end-of-cycle major systems (HVAC, water heater, kitchen, baths older than peer comps) | −5% to −10% | $590,000 – $622,000 |
| At comp median (stated assumption) |
Typical 1999-vintage condition; ordinary functional wear; systems within expected replacement cycle | 0% (baseline) | $645,000 – $665,000 |
| Above comp median | Custom finishes matching the top of the anchor set (e.g., comp A2 / 18 Cavendish: vaulted ceilings, gas fireplace, primary spa bath, upgraded kitchen) | +3% to +6% | $675,000 – $695,000 |
The sensitivity table is provided to allow counsel, executor, or mediator to test the indicated value against alternative condition assumptions without re-engaging the analysis. Where the parties dispute condition materially, the appropriate procedural remedy is to commission a state-licensed appraisal that includes an interior inspection (see §7, paragraph 1).
The value conclusion in §5 is subject to the following limiting conditions, which are incorporated as if recited in full at each point of use:
Every factual claim in §1–§7 is keyed to a numbered footnote below. Sources are categorized as PRIMARY (government record or recorded instrument), SECONDARY (industry guidance or peer-reviewed practitioner authority), or AGGREGATOR (MLS-fed listing service or commercial real-estate data platform).
By signing below, the preparer of record certifies that they have reviewed this exhibit in its entirety, that the methodology and limiting conditions stated herein are understood and adopted, and that the exhibit is being submitted for the purpose stated in §1 of this document.
The preparer's signature above adopts §1 (Statement of Purpose), §2 (Methodology), and §7 (Limiting Conditions) as fully incorporated. Any modification to the analytic content of this exhibit must be initialed at the point of modification and noted in an addendum attached to the back of this document.