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parcels with the most difficult problems. It is our
opinion that the appropriate estimate of market value
for each of these parcels is $750 per acre.
Because of its marginal utility, it is our opinion
that * * * [parcel 10–the Pit] is of less value per
acre than the lowest priced sales. It is our opinion
that the only possible market for the parcel is a
neighboring land owner. Since the parcel would add
little or no utility to the neighboring parcel, its
value is accordingly nominal.
Respondent criticized Mr. Gilman's failure to specify in his
report whether an adjustment was made to comparable properties
located in an agricultural preserve. Mr. Gilman's report does
not indicate whether the comparable properties were in
agricultural preserves; however, if they were not, a positive
adjustment would have been required because a hypothetical
willing buyer would likely prefer the absence of such a
contractual restriction. If the comparable properties were
located in agricultural preserves, no adjustment would have been
required. Thus, we agree with petitioner that the lack of
adjustment, if any had been required, would have tended to result
in an overvaluation of decedent's property interests.
After determining that the value of a fee simple interest
was $750 per acre for the Nipomo ranch properties and $1,000 per
acre for the Machado Ranch, Mr. Gilman proceeded to calculate the
value of decedent's partial interests in the properties. He
examined six sales of partial interests and determined the
partial interest discount for each comparable sale. Comparing
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