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Windsor Oaks to take into account the fact that those buildings
had assumable financing. Respondent contends that Glen
undervalued the apartment building because Glen did not compute
whether an assumption would be more advantageous than a
conventional mortgage, and because Glen did not know the interest
rates on the assumable notes on the 7600 Windsor Oaks and 7592
Windsor Oaks properties. We disagree. Glen explained that an
assumable mortgage increases the value of a building since a
buyer need not qualify for a mortgage, incur substantial closing
costs, or provide as large a downpayment as the buyer would if
the property had a conventional mortgage. There is nothing
persuasive in the record to the contrary. Thus, we accept Glen’s
analysis on this point.
Respondent contends that Glen’s appraisal was defective
because he did not estimate how much it would cost to conform the
apartment building to the comparable properties. We disagree.
The purpose of an appraisal is to estimate the value of a
property, not to determine the cost of conforming it to a
comparable property.
Based on the foregoing,
Decisions will be entered
for petitioners.
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