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Petitioner’s Experts
Schwartz also utilized the Ohrmund report’s $1,388,000
valuation of the California motel; in a footnote, however,
Schwartz indicated, without elaboration, that he had adjusted the
value of C&L Bailey’s assets downward by $193,000 to reflect “the
land originally owned by C&L Bailey, Inc., but discovered to be
owned by” decedent.
In his “desk review” of the Ohrmund report, Biles accepted
the Ohrmund report’s conclusion that the combined value of
parcels 1 and 2 was $250,000 and sought to allocate this value
between the two parcels. Using the commercial land sales
comparables contained in the Ohrmund report, Biles concluded that
the value of parcel 1, as a stand-alone asset, was $185,895.
Biles then concluded that the $64,105 “residual value”
represented the value of parcel 2, which he concluded should be
treated as decedent’s separate property.
In his “desk review”, Biles faulted the Ohrmund report for
failing to give appropriate weight to a number of economic
factors cited therein, including a downturn in the Ridgecrest,
California, motel market. The Biles report also faulted the
Ohrmund report for failing to consider a “‘QUICK SALE VALUE’
which, based on the review appraiser’s [i.e., Biles’] knowledge
of the NEED TO SETTLE THE ESTATE, should have been a MAJOR FACTOR
in the FINAL ESTIMATED VALUE”. (Idiosyncratic typography in
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