- 10 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10
Last modified: May 25, 2011