-17-
contribution.9 Mr. Fischer used two of the three traditional
approaches to property valuation in his report, determining that
the income approach was not appropriate under the
circumstances.10
Mr. Fischer used the sales comparison approach to estimate
the price the subject property would bring in a sale, based on an
analysis of comparable market transactions. Under this approach,
comparable market transactions are identified and adjusted to
account for differences of market conditions, size, location,
physical features, and other factors. American Institute of Real
Estate Appraisers, The Appraisal of Real Estate 417, 422-423
(12th ed. 2001). Mr. Fischer identified two sales of property
comparable to the subject property for his analysis. One of
these comparable sales was the sale of the subject property to
petitioners 17 months before the valuation date. The other
comparable sale was a sale of a 15.89-acre monastery in Hastings,
Nebraska, in 2000 for $65,000. Mr. Fischer adjusted these
9We bear in mind that when TRC purchased the subject
property, much of the personal property inside the buildings had
already been sold by the Monks Nonprofit to pay their debt. The
purchase price paid by TRC included any remaining personal
property, but respondent’s expert’s appraisal values the real
estate alone.
10The income approach is most relevant to determine the
value of income-producing property. The income approach
determines the value based upon the income stream that the
property is anticipated to produce in the future. American
Institute of Real Estate Appraisers, The Appraisal of Real Estate
471 (12th ed. 2001). Annual income and expenses are projected
and the difference between projected income and expenses is
discounted to present value to compensate for the risk and the
waiting period before the owner receives the income. Id. at 491-
495.
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