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the identity of the purchaser would support a downward adjustment
to the sales price of the San Jose Fox.
On brief, respondent argues that the sales prices of the San
Jose Fox and the Stanford Theater "should be adjusted downward to
account for the thin market participant potential in Redwood
City." While we realize that lack of a market is a factor to
consider in evaluating the fair market value of property, we do
not think it is an appropriate adjustment here. Respondent
admits that the sale of the San Jose Fox, as well as the sale of
the Stanford Theater, represent comparable sales. The fact that
there are comparable sales belies respondent's argument in this
regard. Additionally, as mentioned, there is no evidence in the
record to suggest that these properties were acquired by the
respective purchasers for anything less than fair market value.
Furthermore, we are troubled by the fact that the value
conclusions proffered by Mansbach, respondent's expert, appear to
focus on the views of the buyer, to the exclusion of the seller.
See Mandelbaum v. Commissioner, T.C. Memo. 1995-255 (expert's
disregard for views of a willing seller may be fatal to the
expert's opinion), affd. without published opinion 91 F.3d 124
(3d Cir. 1996); see also Estate of Cloutier v. Commissioner, T.C.
Memo. 1996-49. Although a buyer would most likely want to
purchase the Redwood City Fox at Mansbach's ascertained value,
the test of fair market value rests on the concept of a
hypothetical willing buyer and a hypothetical willing seller.
Ignoring the views of the willing seller is contrary to this
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