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Estate Appraiser”. The qualification sheet attached to his
reports indicates that he has passed examinations of various
subjects relating to appraisal and that he has extensive
experience in valuing real estate.
Mr. Schmidt and Mr. Bollinger used similar methods to value
the restaurant property. Each appraised the property on the
basis of sales of comparable properties, on the basis of
capitalized earnings, and on the basis of the cost needed to
replace the properties, less depreciation.
Mr. Schmidt determined that an appropriate value for the
building, based upon comparable sales of similar properties, is
$42.50 per square foot. Mr. Schmidt’s report multiplied the
$42.50 figure by the 6,474 total square feet of the building’s
floor space to arrive at a value of $275,145 for the building.
He also determined that the value of the property without
improvements was $55,000. The total figure, rounded off, was
$330,000.
In preparing his valuation of the restaurant property for
respondent, Mr. Bollinger consulted Mr. Schmidt’s 1991 valuation
report and township assessment cards. He also performed a visual
inspection of the exterior of the building in January 2000. He
was not asked to perform interior inspections. Because the
property was being leased to its owners, he did not inquire into
what the leasing arrangements for the building located on the
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