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value of approximately $112,000 for the subject property under
the cost approach.
Based on the values that he found under the sales comparison
approach and the cost approach, Mr. Fischer concluded that the
fair market value of the subject property was $90,000 as of the
date of contribution. In his analysis, Mr. Fischer gave more
weight to the sales comparison approach than the cost approach
because he was able to rely on two comparable sales that, in his
opinion, were indicative of value and determined, as noted, that
the cost approach tended to set the upper limit of value. Thus,
he found that the property would generally not be worth more than
$112,000 but that $90,000 was a more appropriate value based on
the facts of this particular situation.
In sum, we place significant weight on the valuation
conclusions of Mr. Fischer, respondent’s expert. Respondent’s
expert is experienced in the valuation of properties comparable
to the subject property, and we are impressed by the thoroughness
of his analysis and conclusions respecting the subject property.
We also note that the $90,000 value determined by respondent’s
expert is quite close to the prior purchase price of the subject
property and tends to corroborate the prior purchase price as
evidence of the valuation of the subject property.
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