HomeMy WebLinkAbout25-317 ED SFR 1425 Mingo Road 08.22.25
APPRAISAL REPORT
SINGLE-FAMILY RESIDENCE
1425 MINGO ROAD
DENTON, DENTON COUNTY, TEXAS
FOR
CITY OF DENTON
401 NORTH ELM STREET
DENTON, TEXAS 76209
16910 DALLAS PARKWAY, SUITE 100
DALLAS, TEXAS 75248
16910 Dallas Parkway, Suite 100 Dallas, Texas 75248
Ofc: 214.340.5880 www.PylesWhatley.com Appraisals@pyleswhatley.com
August 22, 2025
Mr. Mark Mastroleo
City of Denton
401 North Elm Street
Denton, Texas 76209
Re: An appraisal of a single-family residence, located at 1425 Mingo Road, in the City of Denton,
Denton County, Texas.
Dear Mr. Mastroleo:
At your request, we submit this appraisal report to provide an opinion of value of the above referenced
property.
We have considered factors pertinent to and indicative of value: Denton and Denton County area
characteristics, delineated market area data and trends, locational amenities, highest and best use, and
other elements of value. Our opinion of value for the subject is effective as of August 21, 2025.
This is an Appraisal Report, intended to comply with the reporting requirements set forth under Standards
Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for the preparation of an Appraisal
Report. As such, it presents summary discussions of the data, reasoning, and analyses that were used in the
appraisal process to develop the appraiser's opinion of value. Methodology and terminology used
throughout the report can be found in The Appraisal of Real Estate, Fifteenth Edition, as published by the
Appraisal Institute.
According to the information provided and public records, the subject property is legally described as
being all that certain tract or parcel of land situated in the William Crenshaw Survey, Abstract No. 318,
Tract 51, Denton County, Texas.
The appraisal problem, as applied to the subject, is to determine the property’s market value. “The most
probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely
revealed terms, for which the specified property rights should sell after reasonable exposure in a
competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting
prudently, knowledgeable, and for self-interest, and assuming that neither is under undue duress.” The
Appraisal of Real Estate, 15th Edition, 2020, Appraisal Institute, Chicago, Illinois
Page 2
Mr. Mark Mastroleo
August 22, 2025
With reference to the preceding definition, our opinion of value is as follows:
Whole Property (Market Value)$225,000
The information regarding the improvements is obtained from tax records, MLS data, and a site visit.
Based on our observation, the condition of the improvements is poor, the construction quality is average
for homes similar in age.
The following report sets forth a description of the property along with a summary of the market data
considered and the conclusions derived from such data. Your attention is directed to the general
assumptions and limiting conditions on the following pages, as well as the extraordinary assumptions
and hypothetical conditions.
If you should have questions concerning any portion of this appraisal, please contact our office.
Respectfully submitted,
PYLES WHATLEY
Richard McBride Edward Doorley
State of Texas Certification #TX-1380335-G State of Texas Certification #TX-1380698-G
SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS
Parcel Owner
Property Type
Location
Whole Property Land Area 0.524 acres (or 22,821 SF)
Dwelling Size 2,001 SF
Year of Construction 1940
Zoning
Reasonable Exposure Time
Reasonable Marketing Period One to two months
Effective Date of the Appraisal
Date of the Appraisal
Cost Approach N/A
Sales Comparison Approach $225,000
Income Approach N/A
Whole Property (Market Value)$225,000
August 22, 2025
August 21, 2025
1425 Mingo Road
Denton, Denton County, Texas
Calvin W. Gothard
MN (Mixed-Use District), City of Denton
One to two months
Single-Family Residence
TABLE OF CONTENTS
LETTER OF TRANSMITTAL
SUMMARY OF IMPORTANT FACTS
PAGE
SCOPE OF THE WORK ............................................................................................................. 1
DEFINITION OF MARKET VALUE ........................................................................................ 4
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS .............................................. 5
EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS ...................... 7
REGIONAL MAP ......................................................................................................................... 8
MARKET AREA ANALYSIS ..................................................................................................... 9
LOCATION MAP ....................................................................................................................... 14
SUBJECT PROPERTY.............................................................................................................. 15
REAL ESTATE TAX ANALYSIS ............................................................................................ 18
HIGHEST AND BEST USE ...................................................................................................... 19
APPRAISAL PROCEDURE ..................................................................................................... 21
REASONABLE EXPOSURE TIME......................................................................................... 22
IMPROVED SALES DATA ...................................................................................................... 25
RECONCILIATION .................................................................................................................. 35
APPRAISERS CERTIFICATE ................................................................................................. 37
APPRAISERS QUALIFICATIONS ......................................................................................... 38
SUBJECT PHOTOGRAPHS .................................................................................................... 40
TAX INFORMATION ............................................................................................................... 44
FLOOD MAP .............................................................................................................................. 46
PARCEL MAP ............................................................................................................................ 47
ZONING MAP ............................................................................................................................ 48
AERIAL PHOTOGRAPH ......................................................................................................... 49
ZONING EXCERPT .................................................................................................................. 50
SCOPE OF WORK
1
Purpose of the Appraisal
Scope of the WORK
The purpose of this appraisal is to estimate the market value of the subject property in fee simple.
This is an Appraisal Report, intended to comply with the reporting requirements set forth under
Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for the
preparation of an Appraisal Report. As such, it presents summary discussions of the data,
reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion
of value. Supporting documentation concerning the data, reasoning, and analyses are retained in
the appraiser's file. The depth of discussion contained in this report is specific to the needs of the
client for the intended use stated below.
Client/Intended Use/Intended Users
The intended use of this report is for decision-making purposes by the intended user in
connection with the prospective sale of the subject. The client and intended user of this report is
the City of Denton and their authorized representatives. Any other use or users of this report are
not authorized. The appraisers are not responsible for unauthorized use of this report.
Effective Date of the Appraisal: August 21, 2025
Date of the Report: August 22, 2025
Property Rights Appraised
Property rights are an enforceable, legal claim to title of or interest in property. Three primary
property rights may typically be appraised. The rights are fee simple estate, leased fee estate,
and leasehold estate, which are defined as follows:
Fee Simple Estate - 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.
Leased Fee Estate - The ownership interest held by the lessor, which includes the right to receive
the contract rent specified in the lease plus the reversionary right when the lease expires.
Leasehold Estate - The right held by the lessee to use and occupy real estate for a stated term and
under the conditions specified in the lease.
In this report, a market value opinion of the fee simple interest in the real property is developed.
SCOPE OF WORK
2
Identification of Subject Property
The subject is a tract of land comprising 0.524 acres, improved with a single-family residence
and associated site improvements. Owned by the Calvin W. Gothard, the property is located at
1425 Mingo Road, City of Denton, Denton County, Texas.
Legal Description
The subject property is legally described as being all that certain tract or parcel of land situated
in the William Crenshaw Survey, Abstract No. 318, Tract 51, Denton County, Texas.
Subject History
The title is vested in Calvin W. Gothard. The property transferred to Calvin W. Gothard from
Melvin and Shirley A. Gothard on July 11, 2005, as recorded in Instrument Number 2005-89020,
of the Denton County Public Records in a non-arms-length transaction. No other transactions
affecting the subject in the five years preceding the date of this report are known. This is not,
however, a guarantee or warranty of title. As of the effective date of this appraisal, the subject
property is listed for sale at $299,900 and has been on the market for 30 days. Considering the
physical condition of the home, market data for comparable properties in similar condition do
not support this listing price.
Please note that this information is included only to satisfy the requirements of USPAP. It is not
intended as a guarantee to the chain of title and a title search should be performed by a title
company should a definitive abstract be desired.
Inspection Information
The subject property was visually observed and photographed on August 21, 2025. The subject
neighborhood and comparable properties were also observed and photographed on August 21,
2025.
DATA SEARCH
For this report, the subject market was researched for all pertinent data relating to the appraisal
problem including collecting and confirming data through brokers, appraisers, property owners,
lessee, lessors, and others familiar with the real estate market. The information provided by these
sources is deemed reliable, but is not guaranteed. The intended use of this report is to estimate
the market value of the subject property in fee simple estate.
In addition, verifiable third-party sources were utilized including Costar Realty Information, and
the Multiple Listing Service (MLS). When third party sources are utilized in the report, a
reference to the source is made. The information provided by these sources is deemed reliable
but is not guaranteed.
SCOPE OF WORK
3
Competency
The appraisers involved in this assignment have considerable experience in appraising this
property type. The appraisers are actively engaged in appraisal work in the geographical area of
the subject property. The company maintains a database in this area for similar properties. We
have adequate knowledge of the property type and location to meet the competency requirements
of the Uniform Standards of Professional Appraisal Practice.
In addition, other appraisers in the market would perform similar actions in the appraisal process
to fulfill the scope of work in this assignment and the appraisal meets or exceeds the expectations
of parties who are regularly intended users for similar assignments.
DEFINITION OF MARKET VALUE
4
The definition of market value is:
“The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in
other precisely revealed terms, for which the specified property rights should sell after
reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the
buyer and seller each acting prudently, knowledgeable, and for self-interest, and assuming that
neither is under undue duress." *
DEFINITION OF MARKET VALUE
* The Appraisal of Real Estate, 15th Edition, 2020, Appraisal Institute, Chicago, Illinois, p. 58
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
5
The Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics
and Standards of Professional Practice of the Appraisal Institute require the appraiser to "set
forth all assumptions and limiting conditions that affect the analyses, opinions, and conclusions
in the report”. In compliance therewith, and to assist the reader in interpreting this report, such
general assumptions and limiting conditions are set forth below. Specific assumptions, if any, are
referred to in the transmittal letter and their location in the report detailed.
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
Title is assumed to be marketable and free and clear of all liens and encumbrances, easements,
and restrictions except those specifically discussed in the report. The property is appraised
assuming it to be under responsible ownership and competent management and available for its
highest and best use.
No opinion is expressed for legal matters or that would require specialized investigation or
knowledge beyond that ordinarily employed by real estate appraisers, notwithstanding the fact
that such matters may be discussed in the report.
No opinion is expressed on the value of subsurface oil, gas or mineral rights, water rights or
whether the property is subject to surface entry for the exploration or removal of such except as
expressly stated.
The date of value to which the opinions expressed in this report apply is set forth in the letter of
transmittal. The appraiser assumes no responsibility for economic or physical factors occurring
at some later date, which may affect the opinions herein stated. The opinion of value is
considered reliable only as of the date of the appraisal.
The valuation is reported in dollars of U.S. currency prevailing on the date of the appraisal.
Maps, plats, and exhibits included herein are for illustration only as an aid in visualizing matters
discussed within the report. They should not be considered as surveys or relied upon for any
other purpose unless specifically identified as such.
All information and comments pertaining to this and other properties included in the report
represent the opinion of the appraisers, formed after examination and study of the subject and
other properties. While it is believed the information, estimates and analyses are correct, the
appraiser does not guarantee them and assumes no liability for errors in fact, analysis or
judgment.
Neither all nor any part of the contents of this report (especially any conclusions as to value, the
identity of the appraiser or the firm with which he is connected, or any reference to the Appraisal
Institute or to the MAI or SRA designation) shall be disseminated to the public through
advertising media, public relations media sales media or any other public means of
communication without written consent and approval of the undersigned.
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
6
The distribution of the total valuation in this report between land and improvements applies only
under the existing, or proposed/completed program of utilization. The separate valuations for
land and buildings must not be used in conjunction with any other appraisal and are invalid if so
used.
Certain information concerning market and operating data were obtained from others. This
information is verified and checked, where possible, and is used in this appraisal only if it is
believed to be accurate and correct. However, such information is not guaranteed.
Opinions of value contained here are opinions only. There is no guarantee, written or implied,
that the subject property will sell for such amounts. Prospective values are based on market
conditions as of the effective date of the appraisal. The appraiser is not responsible if
unforeseeable events alter market conditions after the effective date of the appraisal. As an
opinion, valuation may vary between appraisers based on the same facts.
No responsibility for hidden defects or conformity to specific governmental requirements, such
as fire, building and safety, earthquake, or occupancy codes can be assumed without provision of
specific professional or governmental inspections. While the general conditions of the property
were observed, no guarantee can be made concerning the individual components of the structures
including but not limited to the heating system, plumbing, electrical services, roof, possible
termite damage or building foundation. This appraiser is not qualified to make a complete
inspection of any well or septic system, consequently, it was beyond the scope of this report and
no statements can be made concerning the adequacy or condition of these or other systems.
No investigation - unless presented in other sections of this report - was made by the appraiser to
determine if asbestos, fiberglass, or synthetic mineral fiber products are present in improved
properties. The existence of such products, if any, would have to be determined by a qualified
inspector. It is assumed that there is no asbestos, fiberglass, synthetic mineral fiber products, nor
other contaminates present that would materially affect value.
No investigation - unless presented in other sections of this report - was made by the appraiser to
determine if any toxic materials are present on the subject tract. The existence of such materials,
if any, would have to be determined by a qualified inspector. It is assumed that no toxic materials
are present that would materially affect value or development costs.
A reasonable investigation was made to determine the existence of any underground storage
tanks (UST) on the subject site. If USTs are present on the subject site details are provided in
other sections of this report. It is assumed there are no USTs present that would materially affect
value.
Any personal property, fixtures, or intangible items that are not real property, are not included in
the valuation, and are identified as personal property and discussed herein.
EXTRAORDINARY ASSUMPTIONS/HYPOTHETICAL CONDITIONS
7
Extraordinary Assumptions/Hypothetical Conditions: The Uniform Standards of Professional
Appraisal Practice require the disclosure of hypothetical conditions and extraordinary
assumptions when employed in the development of an appraisal. The use of these may have
affected the assignment results.
As defined in the Uniform Standards of Professional Appraisal Practice, an extraordinary
assumption is “ an assignment-specific assumption as of the effective date regarding uncertain
information used in an analysis which, if found to be false, could alter the appraiser’s opinions or
conclusions.”
As defined in the Uniform Standards of Professional Appraisal Practice, a hypothetical condition
is “a condition, directly related to a specific assignment, which is contrary to what is known by
the appraiser to exist on the effective date of the assignment results but is used for the purpose of
analysis.”
EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS
The subject is appraised conditioned upon the following extraordinary assumptions:
The property is accessible via Mingo Road. Adequate access to the subject is assumed
legally available as of the appraisal date.
It is assumed that the subject improvements comply with all applicable building codes,
including plumbing and electrical systems, and that no hidden defects exist that would
materially affect value.
The above are set forth for appraisal purposes and no legal reasoning is intended. The reader
should be aware, that, in the event that any of the above proves false or improperly applied, the
conclusions of this appraisal could be changed or invalidated.
REGIONAL MAP
8
REGIONAL MAP
MARKET AREA ANALYSIS
9
A market area, as defined in The Dictionary of Real Estate Appraisal, 7th Edition, copyrighted
2022, is:
MARKET AREA ANALYSIS
"The geographic region from which a majority of demand comes and in which the majority of
competition is located.”
When analyzing value influences, the focus is on the market area. A market area is defined in
terms of the market for a specific category of real estate and thus, is the area in which alternative,
similar properties effectively compete with the subject property in the minds of probable,
potential purchasers, and users. A market area can encompass one or multiple neighborhoods or
districts.
MARKET AREA ANALYSIS
The subject property is located in Denton, Texas, situated within the Dallas-Fort Worth
metropolitan area. The market area is considered to be the City of Denton.
The City of Denton has experienced steady population growth over the past several years, with
an estimated 166,000 residents as of mid-2024, up from approximately 140,000 in 2020. This
strong growth trend is supported by Denton’s location at the convergence of Interstate 35E and
35W, which provides regional connectivity throughout the Dallas–Fort Worth Metroplex and
into Oklahoma. The expansion of the I-35 corridors, along with ongoing improvements to U.S.
Highway 380, are expected to enhance access and reduce congestion, further supporting long-
term residential demand.
The economic base of Denton is anchored by several major employers, including Peterbilt
Motors, Sally Beauty, and Texas Health Denton, as well as several manufacturing and logistics
companies. Higher education also plays a central role in the local economy, with the University
of North Texas and Texas Woman’s University together enrolling tens of thousands of students.
These institutions contribute to a steady flow of employment opportunities, rental demand, and
consumer spending within the city.
The single-family residential market in Denton reflects the city’s overall growth trajectory. New
subdivisions continue to emerge along the U.S. 380 corridor, the I-35W corridor, and in areas
surrounding Denton Enterprise Airport, were land availability and infrastructure improvements
support development. Builders have responded to demand with a mix of entry-level, mid-range,
and move-up housing options, catering both to first-time buyers and to families seeking larger
homes.
MARKET AREA ANALYSIS
10
Market Conditions
Market conditions in Denton remain generally stable with a slightly increasing trend. Buyer
demand has moderated somewhat in response to elevated mortgage interest rates, but population
growth and in-migration continue to provide a strong foundation for sales activity. Home values
have shown resilience, with modest appreciation in recent years, supported by steady absorption
of new inventory. The overall outlook for the single-family residential market in Denton is
positive, with continued long-term growth expected due to population expansion, employment
stability, and significant transportation infrastructure investment.
The scatter plot below visualizes the trend of sale prices of comparable properties with respect to
age, living area and lot size within the market area over the past two years. Each data point
represents an individual property sale, plotted by date and corresponding sale price. Overall, sale
prices have remained relatively flat with a slightly increasing trend, indicating a period of
improving market conditions. Supply and demand are relatively balanced, and external economic
pressures—such as interest rate changes or construction costs—have not yet had a dramatic
impact on pricing within this market. Additionally, the clustering of data points around a
consistent price range supports the conclusion that market participants have relatively aligned
expectations on value.
MARKET AREA ANALYSIS
11
The chart below illustrates the distribution of properties based on the number of days on the
market prior to sale, segmented into 30-day intervals. The highest concentration of sales
occurred within the 0-to-30-day range, with 41 properties sold, suggesting a highly active market
with strong demand. As marketing periods increase, the number of sales declines significantly,
with very few properties remaining on the market for more than 120 days. This pattern indicates
that extended marketing times are uncommon, and that the majority of properties are selling
relatively quickly.
MARKET AREA ANALYSIS
12
Economic Development
The City of Denton benefits from a diversified economic base that supports long-term residential
and commercial stability. Denton’s strategic location at the convergence of Interstate 35E and
35W positions it as a regional hub within North Texas, offering efficient access to Dallas, Fort
Worth, and Oklahoma. Major infrastructure projects, including the expansion of I-35 and U.S.
380, are underway to address congestion and accommodate growth, further enhancing Denton’s
accessibility and attractiveness to both businesses and residents.
Employment in Denton is anchored by several large private and institutional employers. Peterbilt
Motors maintains its headquarters and a major manufacturing facility in Denton, while Sally
Beauty and Texas Health Denton also provide significant employment opportunities. The city
has a strong base in manufacturing, logistics, and healthcare, complemented by higher education
institutions. The University of North Texas (with more than 46,000 students) and Texas
Woman’s University (with over 15,000 students) contribute substantially to the local economy,
both as direct employers and as long-term demand drivers for housing, retail, and services.
The city continues to pursue targeted economic development initiatives, with a focus on
strengthening its industrial base, supporting technology and innovation, and expanding retail and
mixed-use destinations. Denton Enterprise Airport (DTO) is identified by the city as a key
economic engine, with ongoing planning efforts designed to attract aviation-related businesses
and enhance the city’s role in regional commerce. In addition, new commercial projects such as
the announced H-E-B grocery store at the Landmark development demonstrate growing private
investment and confidence in the market.
The housing market in Denton is expanding with a mix of master-planned communities,
multifamily, student, and affordable housing. Major projects include Landmark by Hillwood, a
3,200-acre development with thousands of homes and commercial space, Stark Farms with
energy-efficient single-family homes, and Furst Ranch offering semi-custom homes and
amenities.
Affordable and supportive housing includes McAdams Haven, providing services for chronically
homeless individuals, while RDC Denton Eagle Student Housing serves University of North
Texas students. Multifamily communities like Altera Rayzor Ranch offer modern apartments
with amenities.
Other developments, such as Eagle Cove and Eagle Creek, provide single-family and multi-
generational homes, reflecting Denton’s growing and diverse residential market.
Overall, Denton’s economic development outlook is favorable. The combination of a growing
population, strong educational institutions, transportation improvements, and ongoing private-
sector investment positions the city for continued growth in employment and household
formation, supporting long-term stability in both the residential and commercial real estate
markets.
MARKET AREA ANALYSIS
13
Conclusion
The single-family housing market in Denton reflects the broader DFW region, where elevated
mortgage rates and expanding inventory have tempered price appreciation. While values remain
relatively stable, marketing times have lengthened, and buyers have gained more leverage in
negotiations. Demand continues to be supported by Denton’s employment base, university
presence, and strong population growth, though affordability constraints limit upward pressure
on pricing. Market participants place greater emphasis on competitive pricing and property
condition, with homes in average or better condition commanding the strongest interest. Overall,
the single-family market is best characterized as balanced to slightly soft, with stable near-term
expectations and a reliance on Denton’s long-term demographic and economic fundamentals for
support.
The multifamily sector in Denton is experiencing a period of adjustment as significant new
supply has been delivered to the market. Elevated vacancies and the widespread use of
concessions characterize current conditions, though strong population inflows and student
demand from UNT and TWU provide a reliable tenant base. Asking rents have flattened after
several years of rapid growth, and near-term projections anticipate only modest rent increases as
the market absorbs recent deliveries. Over the longer term, Denton’s position within the I-35
corridor, growing employment base, and expanding university enrollment are expected to sustain
multifamily demand, supporting future rent growth once new construction moderates. For
appraisal purposes, the multifamily market is currently transitional, with income performance
constrained in the short run but supported by favorable long-term fundamentals.
LOCATION MAP
14
LOCATION MAP
SUBJECT PROPERTY
15
A complete survey of the subject property is not available. According to public records, the tract
is irregularly shaped and located along the northern line of Mingo Road. The subject site
comprises 0.524 acres or 22,821 square feet. According to public records, ownership is vested in
Calvin W. Gothard. The property is abutted by multifamily development to the east and north,
and vacant land to the west and across Mingo Road to the south.
SUBJECT PROPERTY
Frontage/Access: The tract fronts the northern line of Mingo Road. The subject exhibits average
access via Mingo Road.
SUBJECT PROPERTY
SUBJECT PROPERTY
16
Topography: The terrain is characterized as mostly level and the drainage appears adequate.
Flood Zone: According to FEMA flood hazard map 48121C0380G dated April 18, 2011, the
subject is determined to be outside the 100-year floodplain, being within Zone X. If the subject
appears to be in a designated flood zone, a hydrological study or survey is required for
confirmation of flood-designated boundaries. Reference the subsequent exhibits for a copy of the
area flood map.
Environmental: A Phase One Environmental study is not available.
Utilities/Community Service: Electric, water, sewer, and telecommunications services are
available to the site.
Water: City of Denton
Sewer: City of Denton
Electric: various deregulated providers
Telephone: various providers
Police: City of Denton
Fire: City of Denton
School: Denton
Zoning: The subject is located in the City of Denton and is zoned MN (Mixed-Use District). The
district is provided to support compatibility between higher-intensity mixed-use areas and
adjacent residential and commercial areas. This district contributes to a vibrant environment for
pedestrians and bicyclists and includes varying densities of residential, neighborhood-serving
retail, restaurants, commercial, and office uses that are sensitive to the surrounding built and
natural context in scale and form.
Easements/Deed Restrictions: A complete survey of the subject is not available. A title
commitment/history covering the subject was not provided. Not all easements and/or restrictions
are known. Typical easements for utilities and access are assumed to exist on the site.
A potential constraint on the development of the site may stem from various deed restrictions. It
is assumed that no deed restrictions exist that would restrict the development of the subject site.
However, if restrictions do exist, this appraisal may need to be adjusted accordingly.
SUBJECT PROPERTY
17
SUBJECT IMPROVEMENTS
The subject is improved with a single-family residence and associated site improvements. The
residence is a single-story single-family home and contains four bedrooms and one bathroom.
Physical Condition
The subject property is in poor overall condition, exhibiting significant deferred maintenance
throughout both the interior and exterior. Observed deficiencies include deteriorated building
materials, evidence of prolonged lack of upkeep, and functional elements that appear to be at or
beyond their typical useful life. The level of wear suggests that routine maintenance has not been
consistently performed, resulting in physical deterioration that negatively impacts both the utility
and marketability of the improvements.
Functional Utility
Constructed approximately 85 years ago, the residence does not conform to modern standards in
terms of floor plan efficiency, room sizes, storage capacity, and mechanical systems.
Additionally, the property’s condition, with significant deferred maintenance, further impairs
functionality and livability. While the residence remains serviceable, its design and physical
characteristics place it at a competitive disadvantage relative to newer housing stock in the
Denton market, thereby reducing its contributory value.
Site Improvements
Site improvements include gravel parking and fencing. The subject does not have covered
parking.
External Obsolescence
External obsolescence is the loss in value of the property resulting from an influence of negative
forces not inherent with the property. It can be caused by the exertion of detrimental external forces
upon the area or property itself. Specific examples are significant fluctuations in the local economy,
noise from nearby expressways or airports, excessive taxes, supply and demand imbalances, special
assessments or certain other governmental actions, the lack of financial liquidity in the marketplace,
or the infiltration of unharmonious groups or land uses. This form of obsolescence is rarely, if ever,
curable. Based upon the relatively stable market conditions within the extended area the property
does not appear to suffer from external obsolescence.
CONCLUSIONS
The subject is a single-family residence in poor condition situated on a 0.524-acre lot. The
subject is located along the northern line of Mingo Road.
Please refer to the subsequent exhibits and addenda for additional details.
REAL ESTATE TAX ANALYSIS
18
The Texas legislature created a system of centralized appraisal districts for each Texas county so
that all real estate within a given county is valued for tax purposes through a standard appraisal
process. Property assessments are based on market value.
REAL ESTATE TAX ANALYSIS
In Denton County, the Denton Central Appraisal District is responsible for ad valorem tax
appraisals of all real estate within the county. Based on the ad valorem tax appraisal, various tax
districts levy annual taxes on property located within their respective districts. Typical taxing
jurisdictions include assessments from the county, city, and school districts in which the property
is located. The total ad valorem tax burden is the sum of the assessments for the various taxing
authorities. The subject is under the taxing jurisdictions in the following table. The 2025 Denton
Central Appraisal District account information for the subject tract is presented below.
City of Denton $0.585420
Denton County $0.187870
Denton ISD $1.156900
Total $1.930190
2024 TAX RATES (per $100)
The following table indicates the assessed value used for determination of tax liability.
Account Number Land Improvements Total
34789 $116,408 $455 $116,863
Based on the above assessment and pertinent tax rates, the annual tax liability is calculated as
follows.
Assessed Value Tax Rate/$100
$116,863 x $0.01930190 =2,256$
Indicated Tax Liability
The assessed value as improved is $116,863, or $58.40 per square foot, and is below the
concluded market value in this appraisal. This difference is typically due to the valuation
methods of the appraisal district.
HIGHEST AND BEST USE
19
The subject is an irregularly shaped tract comprising 0.524 acres, located along the northern line
of Mingo Road, City of Denton, Denton County, Texas.
HIGHEST AND BEST USE
HIGHEST AND BEST USE AS IF VACANT
Possible Use: In arriving at our opinion of highest and best use for the subject, it was first
necessary to determine if the physical characteristics of the site - such as soil conditions,
topography, shape, and frontage were favorable for development. Soil conditions vary
throughout the area and sometimes require engineering. According to FEMA flood hazard map
48121C0380G, dated April 18, 2011, the subject is determined to be outside the 100-year
floodplain, being within Zone X. The subject exhibits average access along Mingo Road. The
subject is irregularly shaped, but of sufficient size and frontage to be economically adaptable to
multi-family or mixed use development.
Permissible Use: The subject property is located within the MN (Mixed-Use Neighborhood)
zoning district of Denton. The intent of this district is to foster a walkable, pedestrian-oriented
environment that accommodates a mix of land uses, including multifamily residential, office,
neighborhood retail, and service uses. While the district was originally designed to allow a
variety of residential formats, such as townhomes and duplexes, amendments to the Denton
Development Code place restrictions on detached single-family dwellings within MN.
Specifically, single-family detached, townhome, or duplex uses are only permitted if they were
approved or constructed prior to October 1, 2019, as outlined in Section 1.5.2I of the code.
Consequently, new single-family detached development is not permitted under current MN
zoning standards, unless it benefits from grandfathered status.
The MN district primarily supports higher-density housing and mixed-use projects, such as
multifamily residential communities integrated with commercial and retail uses. This zoning
framework encourages compact development patterns that emphasize density and neighborhood
services over low-density residential use. As such, the legally permissible and most probable
residential development under MN zoning is multifamily rather than single-family detached. The
existing zoning parameters therefore limit the feasibility of new single-family construction and
direct the highest and best use of land in this district toward mixed-use or multifamily
development consistent with the city’s planning objectives.
Feasible Use: The surrounding properties and land uses are considered for compatibility in
determination of feasible use. The property is abutted multi-family developments to the north
and east and vacant land to the west and vacant land across Mingo Road to the south.
Based on the land usage pattern of the surrounding area, the layout, location, and
frontage/visibility of the site, the most feasible use is for multi-family development.
Maximally Productive Use: As vacant, the highest and best use of the site is for multi-family
development.
HIGHEST AND BEST USE
20
HIGHEST AND BEST USE AS IMPROVED
The subject is improved with a 2,001 square foot single-family residence with four bedrooms
and one bathroom.
Possible Use: The improvements were originally constructed in 1940 and designed for single-
family residential occupancy. The structure is of average quality but is currently in poor condition,
exhibiting signs of deferred maintenance and functional obsolescence. From a physical standpoint,
the site and existing improvements can support continued single-family residential use, as the lot
size, access, and utility connections are sufficient to accommodate such structures. However, the
current condition and age of the improvements limit their functional utility and economic viability
in today’s market. Any continued use in its existing form would likely require significant renovation
or rehabilitation to meet modern standards, code requirements, and market expectations. Thus,
while single-family residential use is physically possible, the deteriorated condition constrains the
immediate highest and best use without investment in repair or redevelopment.
Permissible Use: The subject is located in the city of Denton and is zoned MN (Mixed-Use
District). The subject improvements are a legal non-conforming (grandfathered) use.
Feasible Use: A feasible use must be legally permissible, physically possible, and financially
viable. The subject improvements were constructed in 1940 for single-family residential
occupancy and are of average quality but in poor condition. Physically, the site can continue to
support residential use, and its configuration and access could also accommodate other uses
permitted under the mixed-use zoning designation. Legally, the property can be utilized for a
broader range of uses, including multi-family. Economically, continued use as a single-family
residence is feasible, though significant renovation would be required to meet current market
standards. Alternatively, redevelopment or adaptive reuse for a permitted mixed-use function
may offer greater financial feasibility over the long term, given the site’s location, zoning
flexibility, and market conditions.
Maximally Productive Use: As improved, the subject property is currently developed with a
single-family residence. While the MN (Mixed-Use Neighborhood) zoning district does not
permit new single-family detached dwellings under the current code, existing residences that
were approved or constructed prior to October 1, 2019, are allowed to continue as legal, non-
conforming uses under the city’s grandfathering provisions. As such, the subject’s present
residential use is considered legally permissible within the context of Denton’s zoning
framework.
Accordingly, the highest and best use of the property as improved would be to renovate the
residence to a market-acceptable condition. Renovation would restore the property’s functional
utility and allow it to generate income on an interim basis through leasing as a single-family
rental. This use would provide a reasonable return until such time that market conditions and
land values support redevelopment consistent with the long-term intent of the MN zoning
district, which favors higher-density residential and mixed-use projects. Thus, the most
appropriate use of the improvements at this time is to hold the property in a renovated, income-
producing state until redevelopment becomes financially feasible.
APPRAISAL PROCEDURE
21
The appraisal procedures typically included in the valuation process are the cost approach, the
income capitalization approach, and the sales comparison approach. The applicability of each
approach depends upon the nature of the appraisal assignment.
APPRAISAL PROCEDURE
Data Collection Process: The scope of the appraisal is defined by the Appraisal Foundation as
"The extent of the process of collecting, confirming, and reporting data". For purposes of this
report, the subject market was researched for all pertinent data relating to the appraisal problem
as stated below. This process typically includes collecting and confirming data through local real
estate brokers, appraisers, property owners, lessee/lessors, and others familiar with the local real
estate market. The information provided by these sources is deemed reliable but is not
guaranteed.
Appraisal Problem: The appraisal problem, as applied to the subject, is to determine the market
value of the fee simple interest in the subject property. A preliminary survey of the property
indicates the following:
Given the age of the improvements, estimating depreciation is challenging and unreliable. As a
result, the cost approach does not provide a meaningful indication of market value and is deemed
not applicable. Consequently, the cost approach has been omitted from this report.
The market value of the subject property as improved is estimated via market comparison using
the sales comparison approach.
The income approach was considered but not developed due to the poor condition of the home.
In its current state, the property is not suitable for rental occupancy, and any potential income
would not be reflective of market-supported rental value.
USPAP Compliance: This is an Appraisal Report, intended to comply with the reporting
requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional
Appraisal Practice for the preparation of an Appraisal Report. As such, it presents summary
discussions of the data, reasoning, and analyses that were used in the appraisal process to
develop the appraiser's opinion of value. Supporting documentation concerning the data,
reasoning, and analyses is retained in the appraisers' file. The depth of discussion contained in
this report is specific to the needs of the client and for the intended use previously stated. The
appraiser is not responsible for unauthorized use of this report.
REASONABLE EXPOSURE TIME
22
The opinion of the period for reasonable exposure is not intended to be a prediction of a date of
sale or a one-line statement. Instead, it is an integral part of the analyses conducted during the
appraisal assignment. The opinion may be expressed as a range and can be based on one or more
of the following:
• Statistical information about days on market
• Information gathered through sales verification
• Interviews of market participants
Related information garnered through this process may include the identification of typical
buyers and sellers for the type of property involved and typical equity investment levels and/or
financing terms.
REASONABLE EXPOSURE TIME
The reasonable exposure period is a function of price, time, and use, not an isolated opinion of
time alone. The answer to the question “what is reasonable exposure time?” should always
incorporate the answers to the question “for what kind of property at what value range?” rather
than appear as a statement of an isolated period.
A reasonable exposure time for the subject property at the market value definition and market
value conclusion in this appraisal is developed by discussions with local market participants.
According to local brokers, appraisers, and informed market participants, the reasonable
exposure time for similar properties at a value range consistent with the value conclusion of this
report, is considered to be one to two months.
COST APPROACH
23
The purpose of the cost approach is to develop an opinion of the cost to construct a reproduction of,
or replacement for, the existing structure and then deduct all accrued depreciation in the property
being appraised from the cost new of the reproduction or replacement structure. When the value of
the land and an entrepreneurial profit, if appropriate, are added to this figure, the result is an
indication of the value of the fee simple interest in the property. COST APPROACH
When applicable, the cost approach reflects market thinking by recognizing that market
participants relate value to cost. Investors tend to judge the value of an existing structure by
considering the prices and rents of similar buildings and the cost to create a new building with
optimal physical and functional utility. Investors adjust the prices they are willing to pay by
estimating the costs to bring an existing structure up to the level of physical and functional utility
they desire.
The cost approach is based on the estimated replacement cost of the improvements less
depreciation from all causes, to which is added the market value of the land based on comparable
sales.
The concept of highest and best use is fundamental to real property value. In one application of
the concept, land is valued as though vacant and available for its highest and best use; in the
other application, the highest and best use of the property as improved is estimated. Thus, a site
may have one highest and best use as though vacant, and the existing combination of site and
improvements may have another highest and best use. Existing improvements have a value
equal to the amount they contribute to the site, or they penalize value by an amount equal to the
cost to remove them from the site. Existing improvements that do not develop the land to its
highest and best use are usually worth less than their reproduction or replacement cost.
COST APPROACH AS APPLICABLE TO THIS ASSIGNMENT
The cost approach was not developed in this analysis. The subject improvements are
approximately 85 years old and in poor overall condition with substantial deferred maintenance.
Given the age and physical condition of the residence, accurately estimating depreciation
presents significant challenges and would require subjective assumptions that reduce the
reliability of the results. Furthermore, the contributory value of the improvements is limited, and
the property’s market value is more strongly influenced by land value and comparable sales data
than by replacement cost considerations. For these reasons, the cost approach is not considered a
meaningful indicator of value for the subject property and has been omitted.
SALES COMPARISON APPROACH
24
The sales comparison approach is a method of estimating market value whereby a property is
compared with similar properties that have sold recently. One premise of the sales comparison
approach is that the market will determine a price for the property being appraised in the same
manner that it determines the price of comparable, competitive properties. The principle of
substitution is basic in this approach as it implies that a prudent person will not pay more for a
property than an acceptable alternative available in the market.
SALES COMPARISON APPROACH
The steps of the sales comparison approach are outlined as follows:
(a) Research the market to obtain information about sales, listings, and offerings of
properties like the subject property.
(b) Ascertain the nature of the conditions of sale, including the price, terms, motivating
forces, and its bona fide nature.
(c) Determine relevant units of comparison, e.g. sales price per square foot and develop a
comparative analysis for each unit.
(d) Compare each of the comparable properties' important attributes to the corresponding
ones of the property being appraised, under the general categories of time, location,
physical characteristics, and conditions of sale.
Consider all dissimilarities and their probable effect on the price of each sale property to
derive individual market indications for the property being appraised.
(e) Formulate, considering the comparison thus made, an opinion of the relative value of the
subject property as a whole, or where appropriate, by applicable units, compared with
each of the similar properties.
In the sales comparison approach, the property appraised is compared with known prices paid for
similar properties in the open market. Typically, for most properties, the most common units of
comparison used are the overall price paid per unit and sales price per square foot.
Knowledgeable investors usually consider these methods, as rules of thumb, to establish a value
range. To produce a highly meaningful answer, the comparable properties should be as highly
similar in age and condition, operating expense ratio, and land value as possible.
The following summary information on improved sales judged to be comparable to the property
appraised is included herein, establishing the probable value of the subject property by the sales
comparison approach.
The information regarding the improvements is obtained from tax records, MLS data, and a site
visit. Based on the inspection, the condition of the improvements is average, and the
construction quality is good.
SALES COMPARISON APPROACH
25
IMPROVED SALES DATA
SALES COMPARISON APPROACH
26
IMPROVED SALE 1
Location 2002 Shawnee Street
Denton, Texas 76209
Mapsco DA-5-T
Grantor Sammy Bryan
Grantee Drat Innovations, LLC
Record Data
Sale Date March 24, 2025
Document No.2025-30511
Consideration $235,000
Sale Price/SF $116.34
Conditions of Sale Cash to the seller
Utilities Available All available
Highest and Best Use Current use, Single-family Residence
Flood Plain Status None
Improvement Description Single-story, wood frame and brick veneer construction
Land Area 0.278 acres or
Gross Building Area 2,020 SF
Year Built 1960
Occupancy @ Sale 0%
Comments
12,110 square feet
The property is a single-story wood frame and brick veneer home.
The home contains three bedrooms and two full bathrooms,along
with a one-car attached garage.The property was conveyed in “as-
is”condition,with the sales price reflecting the need for repairs and
maintenance.At the time of inspection,the property is currently
under rehabilitation.
SALES COMPARISON APPROACH
27
IMPROVED SALE 2
Location 3311 Westgate Drive
Denton, Texas 76209
Mapsco DA-5-T
Grantor
Grantee Joseph & Andrea Stillwell
Record Data
Sale Date March 26, 2025
Document No.2025-31154
Consideration $230,000
Sale Price/SF $121.82
Conditions of Sale Cash to the seller
Utilities Available All available
Highest and Best Use Current use, Single-family Residence
Flood Plain Status None
Improvement Description Single-story, wood frame and brick veneer construction
Land Area 0.964 acres or
Gross Building Area 1,888 SF
Year Built 1957
Occupancy @ Sale 100%
Comments
Bank of New York Mellon Trustee
41,992 square feet
The property is a single-story wood frame and brick veneer home.
The home contains three bedrooms and two full bathrooms.The
property was conveyed in “as-is”condition,with the sales price
reflecting the need for repairs and maintenance.
SALES COMPARISON APPROACH
28
IMPROVED SALE 3
Location 1505 Seminole Avenue
Denton, Texas 76209
Mapsco DA-5-T
Grantor Virginia F. Fowler, Bob Frank and Brian R. Watson
Grantee Charlie Shawna Dee
Record Data
Sale Date March 10, 2025
Document No.2025-24287
Consideration $239,000
Sale Price/SF $157.65
Conditions of Sale Cash to the seller
Utilities Available All available
Highest and Best Use Current use, Single-family Residence
Flood Plain Status None
Improvement Description One-story, wood frame and brick veneer construction
Land Area 0.305 acres or
Gross Building Area 1,516 SF
Year Built 1962
Occupancy @ Sale 100%
Comments
13,286 square feet
The property is a single-story wood frame and brick veneer home.
The home contains three bedrooms and one full bathroom.The
property also has a 550 square foot building with electricity.The
property was conveyed in “as-is”condition,with the sales price
reflecting the need for repairs and maintenance.
SALES COMPARISON APPROACH
29
IMPROVED SALE 4
Location 3016 Nottingham Drive
Denton, Texas 76209
Grantor Susanna R. Patteron & Travis Patterson & Attorney
Grantee Denton Homes, LLC
Record Data
Date February 24, 2025
Document No.2025-27256
Consideration $215,000
Sale Price/SF $127.67
Conditions of Sale Cash to the seller
Utilities Available All available
Highest and Best Use Current use, Single-family Residence
Flood Plain Status None
Improvement Description One-story, wood frame and brick veneer construction
Land Area 0.372 acres or
Gross Building Area 1,684 SF
Year Built 1965
Occupancy @ Sale 0%
Comments The property is a two-story wood frame and brick veneer home.The
home contains three bedrooms and two full bathrooms.The property
was conveyed in “as-is”condition,with the sales price reflecting the
need for repairs and maintenance.Since this sale,the property has
been renovated and just sold on August 15, 2025 for $386,000.
16,204 square feet
SALES COMPARISON APPROACH
30
The subject is a 2,001 square foot residence constructed in 1940. The residence is a single-story
home with associated site improvements. Construction is wood frame on a concrete slab
foundation with wood siding and a pitched composite shingle roof.
In estimating a market value for the subject, a comparison is made with similar properties that
have sold recently. One premise of the comparison is that the market will determine a price for
the property being appraised in the same manner that it determines the price of comparable,
competitive properties. The principle of substitution is basic in this estimate as it implies that a
prudent person will not pay more for a property than an acceptable alternative available in the
market.
For single-family residences, the most common unit of comparison is typically either the sales price
per square foot of livable area or the adjusted gross sale price. In the subject’s market area, recent
sales provide sufficient data to indicate what consumers are willing to pay for homes with similar
characteristics. Considering the size, condition, and location of the subject property, the adjusted
gross sale price is deemed the most appropriate method for estimating market value. A review of
comparable sales in the area, selected based on similarity in age, size, and overall characteristics,
indicates a range of prices from approximately $160,000 to $470,000. It should be noted that
properties at the upper end of this range generally represent homes that have been substantially
rehabilitated or renovated, whereas the subject is being considered in its current, “as-is” condition.
Sale No.Address Date of Sale YOC Size SF Price/SF Sale Price Land Area
1 2002 Shawnee Street 3/24/2025 1960 2,020 $116.34 $235,000 0.278 AC
Denton, Texas 76209
2 3311 Westgate Drive 3/26/2025 1957 1,888 $121.82 $230,000 0.964 AC
3 1505 Seminole Avenue 3/10/2025 1962 1,516 $157.65 $239,000 0.305 AC
Denton, Texas 76209
4 3016 Nottingham Drive 2/24/2025 1965 1,684 $127.67 $215,000 0.372 AC
Denton, Texas 76209
Subject 1425 Mingo Road 1940 2,001 0.524 AC
Denton, Denton County, Texas
Summary of Improved Sales
Denton, Texas 76209
SALES COMPARISON APPROACH
31
The first step in any comparative analysis is to identify which elements of comparison affect
property values in the subject market. Each of the basic elements of comparison must be
analyzed to determine whether an adjustment is required. If sufficient information is available, a
quantitative adjustment can be made.
Adjustments for differences are made to the price of each comparable property to make that
property equivalent to the subject in market appeal on the effective date of the opinion of value.
The magnitude of the adjustment made for each element of comparison depends on how much
that characteristic of the comparable property differs from the subject property. We have
considered all appropriate elements of comparison in the following discussions.
In the following analysis, consideration is given for rights conveyed, financing, sale and market
conditions, location, and physical characteristics. Property rights conveyed and financing are
basic components of sale. Rights conveyed should be identical and financing should be on a
cash equivalent basis. Sale conditions require analysis to determine any unusual characteristics.
Consideration of market conditions is necessary because of the cyclical nature of the real estate
market and continuous economic change. The location adjustment considers factors such as
type, compatibility, quality, desirability, and accessibility of area development.
These adjustments are not intended as exact measurements, but are used to more accurately
define the range of values indicated by the market.
ADJUSTMENT DESCRIPTIONS AND ANALYSIS
Rights Conveyed
When property rights are sold, they may be the sole subject of the contract or the contract may
include other rights, less than all of the real property rights, or even another property or
properties. Before the price of a comparable sale property can be used in sales comparison
analysis, the appraiser must first ensure that the sale price of the comparable property applies to
property rights that are similar to those being appraised.
Financing
The transaction price of one property may differ from that of an identical property due to
different financing arrangements. The cost of financing includes the interest rate and any points,
discounts, equity participations, or other charges that the lender requires to increase the effective
yield of the loan. The cost and availability of credit for real estate financing influence both the
quantity and quality of real estate demanded and supplied. Additional financing adjustments
could be made based on owner financing, favorable financing terms, or assumptions. The sales
were purchased with cash, or third party financing which requires no adjustment.
SALES COMPARISON APPROACH
32
Sale Conditions
Adjustments for conditions of sale usually reflect the motivations of the buyer and the seller.
Sales where the conditions significantly affect transaction prices are labeled non-arm’s length
transactions. Any sales that reflect unusual sale conditions are adjusted accordingly and the
circumstances of these non-arm’s length transactions are detailed on the sale summary pages.
Sale No. 3 is adjusted downward 5% or above typical seller concessions. No adjustments are
warranted to the remaining sales.
Market Conditions
Adjustments for market conditions are applied when property values have changed since the
dates of the comparable sales. Based on our analysis and market observations, conditions are
improving, with sale prices showing a modest upward trend. Accordingly, the comparable sales
have been adjusted upward by 5% to reflect the positive market movement.
Location
An adjustment for location within a market area may be required when the locational
characteristics of a comparable property are different from those of the subject property. Most
comparable properties in the same market area have similar locational characteristics, but
variations may exist within that area of analysis. All the sales are similar in location to the
subject with no adjustments required.
PHYSICAL CHARACTERISTICS
Year Built
The subject was built in 1940. The sales were built in 1955, 1960, 1957, and 1962 respectively.
All the sales are considered similar in terms of physical and effective age as compared to the
subject and no adjustments are made.
Condition & Quality
The condition and quality of the sale properties are compared to the subject. Inherent in this
adjustment is recognition of the aesthetic appeal, quality, and finish of each property. All sales
are similar in condition to the subject and are not adjusted.
SALES COMPARISON APPROACH
33
Size
The subject consists of 2,001 square feet of livable area. The comparable sales range in size
from 1,516 square feet to 2,020 square feet. Each comparable sale is adjusted for size based on
an adjustment of $50.00 per square foot of size difference to the subject. The sales are adjusted
$0, +$2,600, +$24,250, and +$15,850, respectively for size differences relative to the subject.
Lot Size
The sample exhibits a range of land sizes from 0.278 acre to 0.964 acres, and the subject tract
contains 0.524 acres. The incremental contributory value of the land on improved properties
tends to go down as land size increases. Although Sale Nos. 1, 3 and 4 have smaller lot sizes
compared to the subject, the differences are not statistically significant in explaining the variation
in sale prices. As such, adjustments for the differences in lot sizes are not warranted.
Parking
The subject lacks covered parking. Sale Nos. 1, 2 and 4 have attached two-car garages and are each
adjusted downward $10,000. Sale Nos. 3 also does not have covered parking and is not adjusted.
Baths
The subject property contains one bathroom, while Sale Nos. 1, 2, and 4 each have two full
bathrooms. Based on our analysis, the contributory value of an additional bathroom is estimated
at $5,000. The comparable sales have been adjusted accordingly to account for this difference.
Sale No. 3 is similar to the subject and is not adjusted.
SALES COMPARISON APPROACH
34
The following table summarizes the adjustment process.
Sale No.1 2 3 4
Year Built
Size SF 2,020 1,888 1,516 1,684
Sale Date Mar-25 Mar-25 Mar-25 Feb-25
Sale Price $235,000 $230,000 $239,000 $215,000
Sale Price Per SF $116.34 $121.82 $157.65 $127.67
Rights Conveyed $0 $0 $0 $0
Financing $0 $0 $0 $0
Sale Conditions $0 $0 -5%$0
Market Conditions 2%2%2%3%
Adjusted Price $239,700 $234,600 $231,591 $221,450
Location $0 $0 $0 $0
Year Built $0 $0 $0 $0
Condition $0 $0 $0 $0
Size - House $0 $2,600 $24,250 $15,850
Size - Land $0 $0 $0 $0
Parking -$10,000 -$10,000 $0 -$10,000
Baths -$5,000 -$5,000 $0 -$5,000
Net Adjustment -$15,000 -$12,400 $24,250 $850
Adjusted Price $224,700 $222,200 $255,841 $222,300
IMPROVED SALES ADJUSTMENTS
The adjusted sale prices of the improved sales range from $222,200 to $255,841, with an adjusted
mean of $231,260 and an adjusted median of $223,500. Based on the foregoing, the market value
of the subject property as improved is estimated at $225,000.
RECONCILIATOIN
35
In the preceding sections of this report, City of Denton area characteristics, market area data and
trends, locational amenities, highest and best use, and other elements of value are discussed. The
market was researched for comparable improved sales and rentals. Sufficient sales of similar
properties to the subject are available to arrive at an opinion of value by market comparison. The
sales used are adjusted to reflect current market conditions and differences in physical
characteristics. The income approach was considered but not developed due to the poor condition of
the home. In its current state, the property is not suitable for rental occupancy, and any potential
income would not be reflective of market-supported rental value. Due to the age of the subject and
difficulty in estimating accrued depreciation, the cost approach is not considered applicable and is
omitted.
RECONCILIATION
Sales Comparison Approach
The surrounding areas were researched for residences similar in age, size, location, and condition
and quality. The adjusted gross price is used in the sales comparison approach to provide an
indication of value for the subject. These transactions reflect the behavior of typical market
participants. Although the sales were somewhat different in age and size, they provide
reasonable value indications of the subject, after adjustment for these differences. The value
range derived by this approach is reasonable based on the best available market data.
Value by the Sales Comparison Approach $225,000
Income Capitalization Approach
The income approach was not developed for the subject property due to its overall poor
condition and functional obsolescence. The home’s age, deferred maintenance, and outdated
systems significantly limit its appeal to potential renters, making it difficult to estimate a reliable
market rental income. Additionally, the property would likely require substantial repairs or
renovations to attract tenants at market rates, introducing a level of uncertainty that would
compromise the credibility of an income-based valuation. Given these factors, the income
approach would not provide a meaningful or supportable indication of value for this particular
property.
Value by the Income Approach N/A
CONCLUSION
In conclusion, the sales comparison approach is the most reliable indicator considering the age
and condition of the improvements and provides a good basis for valuation. Based on the
foregoing, our final opinion of the fee simple market value of the subject, as is, as of August 21,
2025, is $225,000.
REASONABLE MARKETING PEROID
36
The request to provide a reasonable marketing time opinion exceeds the normal information
required for the conduct of the appraisal process and is treated separately from the process.
REASONABLE MARKETING PERIOD
Reasonable marketing time, as defined by the Uniform Standards of Professional Appraisal
Practice, is an opinion of the amount of time it might take to sell a real or personal property
interest at the concluded market value or at a benchmark price during the period immediately
after the effective date of the appraisal. Marketing time differs from exposure time, which is
always presumed to precede the effective date of an appraisal.
The development of a marketing time opinion uses some of the same data analyzed in the
process of developing a reasonable exposure time opinion as part of the appraisal process and is
not intended to be a prediction of a date of sale or a one-line statement. It is an integral part of
the analyses conducted during the appraisal assignment. This opinion may be expressed as a
range or a number. The opinion can be based on one or more of the following:
• statistical information about days on market
• information from data collection services
• information gathered through sales verification
• interviews of market participants
• anticipated changes in market conditions
Related information of market conditions that may affect marketing time includes identification
of typical buyers and sellers for the type of real estate involved and typical equity investment
levels and financing terms. Reasonable marketing time is a function of price, time, use, and
anticipated market conditions, such as changes in the cost and availability of funds and is not an
isolated opinion of time alone. The price that may be achieved in the future, at the end of the
marketing period, may or may not be equal to the current appraised value opinion, depending on
potential changes in the physical real estate, demographic and economic trends, the real estate
market, tenancy, property operations, and the effectiveness of the marketing program, among
other factors.
A reasonable marketing period for the subject property at the market value opinion stated above
is developed in the following manner:
The opinion of value reached herein is considered supportable and reliable. It is based
upon recent market data including conversations with area brokers and principals
involved in the comparable sales utilized in the valuation of the subject.
According to local brokers, appropriately priced similar properties generally sell within time
periods ranging from approximately one to two months. This opinion was supported by the
marketing times reported by several of the parties to the improved comparable sales utilized
herein. A reasonable marketing time for the subject property, priced in accordance with the
market value opinion concluded in this report, is one to two months.
APPRAISERS CERTIFICATE
37
The undersigned do hereby certify that, except as otherwise noted in this appraisal report:
APPRAISERS CERTIFICATE
We have no present or contemplated future interest in the real estate that is the subject of this
appraisal report. We have no personal interest or bias with respect to the subject matter of this
appraisal report or the parties involved. Our engagement in this assignment was not contingent
upon developing or reporting predetermined results. Our compensation for completing this
assignment is not contingent upon the development or reporting of a predetermined value or
direction in value that favors the cause of the client, the amount of the value opinion, the
attainment of a stipulated result, or the occurrence of a subsequent event directly related to the
intended use of this appraisal.
This appraisal report sets forth all of the assumptions and limiting conditions (imposed by the
terms of our assignment or by the undersigned) affecting the analyses, opinions, and conclusions
contained in this report. These are my personal, impartial, unbiased professional analyses,
opinions, and conclusions. To the best of my knowledge and belief, the statements of fact
contained in this appraisal report, upon which analyses, opinions and conclusions expressed
herein are based, are true and correct.
This appraisal report has been made in conformity with the Uniform Standards of Professional
Appraisal Practice. I certify that, to the best of my knowledge and belief, the reported analyses,
opinions, and conclusions were developed, and this report has been prepared, in conformity with
the requirements of the Code of Professional Ethics and the Standards of Professional Practice of
the Appraisal Institute and in conformity with the rules of the Texas Real Estate Commission.
The use of this report is subject to the requirements of the Appraisal Institute relating to review
by its duly authorized representatives.
The Texas Appraiser Licensing and Certification Board requires a program of continuing
education for its licensed and authorized appraisers. As of the date of this appraisal, Richard
McBride has completed the requirements of the continuing education program of the State of
Texas. As of the date of this report, Richard McBride has completed the Standards and Ethics
Education Requirements for Associate Members of the Appraisal Institute.
We have performed no 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. No one provided real property appraisal assistance to the persons signing this
certification. We certify that Edward Doorley personally inspected the property appraised.
PYLES WHATLEY
Richard McBride Edward Doorley
State of Texas Certification #TX-1380335-G State of Texas Certification #TX-1380698-G
APPRAISERS QUALIFICATIONS
38
Appraisers qualifications
RICHARD C. MCBRIDE
Appraisal assignments include retail centers, existing and proposed office buildings, commercial
and industrial properties, self-storage facilities, automobile dealerships, single-family and multi-
family residential properties, and vacant land. Additional consulting assignments include
condemnation and right-of-way work, and other various consulting assignments.
Experience
Appraiser with Pyles Whatley Corporation since 2007; partner in the company
since 2018
Over sixteen years’ experience in valuing various real property interests in Texas and Oklahoma.
Education
Numerous Appraisal Courses offered by the Appraisal Institute Right-of-way courses offered by the International Right of Way Association
Richland College
o Engineering
o General studies
Professional
Texas Appraiser Licensing and Certification Board
o Certified General Real Estate Appraiser #TX-1380335-G
Appraisal Institute
o Associate Member
International Right of Way Association, Chapter 36, Member
APPRAISERS QUALIFICATIONS
39
Edward R. Doorley
Appraisal assignments entail on-site inspection, market research, data analysis, and valuation.
Completed assignments include the following: shopping centers, retail, office, and industrial
properties, multi-family residential (apartment complexes), office buildings, land development,
and specialty properties like convenience store/fueling stations and churches.
Experience
• Conducted market research and assisted in the completion of commercial appraisal
reports, with PYLES WHATLEY from December 2021 to present.
• Appraised commercial properties, with INTEGRA REALTY RESOURCES and JONES
LANG LASALLE from 2015 to 2018.
• Appraised residential properties, with ACCURATE VALUATION & CONSULTING
from 2009 to 2015.
•
Education
• Master of Science – Business Analytics, University of Texas at Dallas
• Bachelor of Business Administration –Finance, University of Texas at Arlington
• Completed numerous appraisal courses and seminars conducted by the Appraisal Institute
and various real estate and financial organizations.
Professional Licenses
• State of Texas – Certified General Real Estate Appraiser: #1380698-G
Affiliations
• Appraisal Institute – Candidate for Designation
SUBJECT PHOTOGRAPHS
40
PHOTOGRAPHED AUGUST 21, 2025
SUBJECT PHOTOGRAPHS
Front view of the subject
Additional front view of the subject
West side view of the subject East side view of the subject
Rear view of the subject Viewing northeast along Mingo Road
SUBJECT PHOTOGRAPHS
41
Viewing deferred maintenance
(exterior siding)
Viewing deferred maintenance
(exterior siding)
Viewing deferred maintenance (fencing)
Viewing deferred maintenance (fencing)
Viewing the subject’s backyard Viewing the subject’s backyard
SUBJECT PHOTOGRAPHS
42
Interior view of kitchen
Interior view of living room
Interior view of bedroom Interior view of bedroom
Interior view of bedroom Interior view of bathroom
SUBJECT PHOTOGRAPHS
43
Viewing damaged drywall
Viewing worn flooring
Viewing cut drywall Viewing cut drywall
Viewing damaged drywall
around bedroom door frame
Viewing worn flooring
TAX INFORMATION
44
TAX INFORMATION
TAX INFORMATION
45
FLOOD MAP
46
FLOOD MAP
Source: FEMA
PARCEL MAP
47
PARCEL MAP
Source: Denton CAD
SUBJECT
ZONING MAP
48
ZONING MAP
Source: City of Denton
EXCERP
SUBJECT
AERIAL PHOTOGRAPH
49
AERIAL PHOTOGRAPH
SUBJECT
ZONING EXCERPT
50
ZONING EXCERPT
ZONING EXCERPT
51
ZONING EXCERPT
52