- 132 -
It appears that Mr. Brown's appraisal is too low. One
of the comparable sales in 1983 is a house located on the
same cul-de-sac as the subject property, 3510 Tower Hill
Lane. That property was 116 square feet smaller and was
sold for $64,400 ($53 per square foot) to an unrelated
buyer in the same month that the partnership purchased the
subject property. This is $9,400 more than Mr. Brown's
appraised value of its larger neighbor. Similarly, a
second comparable that was 173 square feet smaller than
the subject property sold in September 1983 for $62,500.
In valuing the 11 properties that are the subject of
his report, Mr. Brown used a total of 15 comparable sales,
8 from 1983, 1 from 1982, and 6 from 1987. In applying the
comparable sales approach, Mr. Brown followed the same
approach in valuing the 11 properties. As to each of the
properties, he reviewed three to five of the comparables.
He adjusted the sales prices of the comparables for age,
location, and size, as described above, and computed an
adjusted fair market value per square foot of the
comparable. He then selected a value per square foot that
represented his opinion of the fair market value of the
subject property.
Set out below is a summary, for each of the subject
properties, of the fair market values per square foot of
Page: Previous 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 NextLast modified: May 25, 2011