Estate of Eileen K. Brocato - Page 15




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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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