Appraisal approaches questioned in trial
Sept. 14, 2010 at 4:14 a.m.
The appraisal approaches used by the Victoria Central Appraisal District were under scrutiny Tuesday in the second day of a civil jury trial.
James Anthony Wayne, 70, is suing the Appraisal District for what he says was an inaccurate appraisal of the Crossroads Industrial Complex, which is made up of seven buildings on the corner of Rio Grande Street and Delmar Drive.
Attorney Clay Cain, who represents the Appraisal District, called the property's appraiser, Joshua Goodnight, to the stand.
Goodnight testified he used a cost-and-market analysis approach when evaluating each individual building on the complex, which ended with the total property appraising at $1.08 million.
Goodnight said he considered, but did not use, a third approach to property appraisal - income - because the office/warehouse buildings were not constructed as income-producing properties, but were intended to serve an end-user.
Goodnight also said Wayne did not provide him with income information that would be beneficial to an income analysis.
"You give the most weight to where you find the best information," he said, maintaining that the cost and market analyses were most appropriate in his appraisal.
At Monday's court, Wayne testified he used an income analysis appraisal form from a textbook to determine the value of his property to be $766,500 as of Jan. 1, 2009.
Wayne's San Antonio-based attorneys, Scott Breen and Kenneth Malone, argued the buildings, which Wayne has owned since 1989, garner rent income.
They called Martyn C. Glen, an appraiser and consultant with the San Antonio branch of Integra Realty Resources, to the stand.
Glen told the jury he thought the failure to perform an income analysis did not meet the generally accepted standards of appraisal.
He also called the cost-and-market analyses incomplete.
While on the stand, Goodnight explained the processes by which he evaluated each building, which included comparing office to warehouse space and considering square footage.
To demonstrate the validity of Goodnight's market analysis, Cain submitted evidence of two nearby office/warehouse properties Wayne bought in 2007 for similar per-square-foot prices.
Glen rebutted the defense's claim that price comparisons from buildings similar to the subject property were relevant because they occupied less total square footage than the complex.
Judge Skipper Koetter is presiding judge of the trial, which will continue at 10 a.m. Wednesday with closing arguments.