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E. True Ranches
1. Marketable Minority Interest Values
a. H&H Report
Hall and Hall Mortgage Corp. (H&H) prepared a detailed
appraisal of land and improvements owned by True Ranches as of
January 1, 1993, and June 3, 1994.76 Mr. Hall and his colleagues
gathered data from local sources, including ranch owners,
government offices, other appraisers, and real estate agents.
They also personally inspected the True Ranches properties and
examined comparable sales. Mr. Hall concluded that the highest
and best use of True Ranches’ property was its current use as an
integrated commercial livestock range and finishing operation.
Mr. Hall found the cost approach to be the most reliable
measure of fair market value for True Ranches’ land and
improvements; however, he also used the income and sales
comparison approaches to corroborate his cost approach values.
Mr. Hall explained that the term “cost approach” was misleading,
because even though the method valued improvements based on
estimated replacement cost, it valued land based on comparable
sales.
76H&H conducted a full appraisal of the subject property as
of June 3, 1994. The H&H report stated that fair market value
did not change between June 3 and June 4, 1994. Mr. Hall
adjusted the June 3, 1994, value to reflect fair market value as
of Jan. 1, 1993, rather than conducting another full appraisal.
These adjustments took into account property acquisitions and
inflation in land values between the two valuation dates.
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