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been an appraiser since 1971. The majority of his assignments
(80 percent) are in the San Francisco Bay area.
Ms. Simons was also recognized by the Court as an expert in
real estate appraisal. She is a member of the Appraisal
Institute and has been appraising since 1975. She, however, has
limited experience with blockage and fractional interest
discounts.
After a careful review of the entire record, we believe Mr.
Talmage’s report best represents the fair market value of
decedent’s interest in the Brocato properties; however, we do not
agree entirely with his results.
A. Blockage Discount
1. Mr. Talmage’s Report
In determining the appropriate blockage discount, Mr.
Talmage assumed the Brocato properties would be placed on the
market contemporaneously or over a reasonably short period and
sold within the normal marketing period. Mr. Talmage determined
that the normal marketing period for buildings with five or more
units in northern San Francisco during 1993 was 6 months. He
also found that all of the Brocato properties except 1359 Bay
(the duplex) would compete with each other if listed
contemporaneously, thus requiring a blockage discount for eight
properties. Mr. Talmage determined that a 12.5-percent blockage
discount was appropriate based on various factors, particularly a
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