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D. Richard Property
Atkinson valued the Richard Property using three approaches:
(1) The comparable sales approach, (2) the income approach, and
(3) the cost approach. Under the cost approach, Atkinson valued
the land component of the Richard Property using the comparable
sales approach.
Hulberg valued the Richard Property using the comparable
sales approach and the income approach. He considered, but
rejected, the cost approach for the same reasons he gave with
respect to the Parker Property. See supra note 19.
Table 8 shows Atkinson’s and Hulberg’s valuations of the
Richard Property under their respective approaches.
Table 8
Approach Atkinson Hulberg
Comparable sales $223,860 $321,000
Income 190,000 301,000
Cost 221,000 --
Conclusion 200,000 320,000
In their comparable sales approaches both Atkinson and
Hulberg valued the Richard Property solely by reference to the
floor area of the machine shop building, and not by reference to
the total area of the property. Atkinson concluded that the
Richard Property should be valued at $39 per square foot of floor
area in the machine shop building; Hulberg concluded $65 per
square foot. Atkinson also valued the Richard Property by
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