James H. Japhet - Page 10




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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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