Estate of Lewis A. Bailey, Deceased, Frances Jeanette Foster, Executrix - Page 21

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               We are unconvinced that Biles, an Arkansas appraiser who               
          performed only a “desk review” of the Ohrmund report and who                
          testified that he had never even spoken with Ohrmund about it,              
          was in a better position that Ohrmund, a California appraiser, to           
          make the key economic assumptions required for applying the                 
          income approach in valuing the California motel.  Indeed, leaving           
          aside faulty assumptions regarding the ownership of parcel 2 (a             
          matter in which the Ohrmund report and the Biles report are both            
          guilty, though differently), we generally found the Ohrmund                 
          report to be better explained, better supported, and more                   
          convincing than Biles’ “desk review” of it.  Both petitioner’s              
          other expert, Schwartz, and respondent’s expert, Smith, utilized            
          Ohrmund’s report without expressing any reservations as to its              
               In sum, we are unpersuaded by Biles’ conclusion that the               
          value of the California motel was only $819,000.6  Although it              
          may be true, as petitioner contends, that the divided ownership             
          of parcel 2 impaired the value of the California motel to some              
          degree, Biles’ report–-which does not purport to separately                 
          identify the effects of the “clouded title” on the California               

               6 Even if we were to assume, for sake of argument, that the            
          Biles report appropriately adjusted the Ohrmund report’s                    
          application of the income method of valuation, the Biles report             
          nevertheless fails to address the two other valuation methods               
          (the sales comparison method and cost method) that the Ohrmund              
          report also applied and correlated in reaching its final                    
          valuation estimate.                                                         

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