THOMAS E. CARLSON
U.S. Bankruptcy Judge
MEMORANDUM DECISION RE DEBTOR'S MOTION TO AVOID JUDGMENT LIEN
The court held a trial on October 27, 2011 on Debtor's motion to avoid the judgment lien of Stephanie and Mike Rosen (the Rosens). Raymond R. Miller and Bradley M. Kass appeared for Debtor. Lawrence D. Miller appeared for the Rosens.
Debtor seeks to avoid the judgment lien on his residence at 1255 Millbrae Avenue, Millbrae, California (the Subject Property) as impairing his homestead exemption. 11 U.S.C. § 522(f). The parties stipulated that the balance on the Rosens' judgment lien far exceeds any equity in the Subject Property in excess of consensual liens. The court reserved for another time determination of the exact balance of the consensual liens on the petition date (February 25, 2011). The court heard testimony regarding the value of the Subject Property, and makes the following findings of fact.
(1) The fair market value of the Subject Property as of February 25, 2011 was $1,175,000.
(2) The most useful comparable sale was that involving 1176 Millbrae Avenue, Millbrae, California, which closed on January 14, 2011 for $1,113,000. Both appraisers utilized this sale, and it was close in time to the valuation date. This sale clearly indicated that the Subject Property is worth substantially more than $1,113,000 for the following reasons: (a) both this property and the Subject Property are on the same street; (b) the Subject Property is substantially superior in view, location, quality, and every other respect except size; and (c) the smaller size of the Subject Property can be easily adjusted for, and does not offset its other advantages.
(3) The second most useful comparable is that involving 26 Estate Drive, Millbrae, California. This is the only other comparable both appraisers utilized, and both appraisers derived similar indicated value for the Subject Property from this sale. Debtor's appraiser concluded that this sale indicated the Subject Property was worth $1,235,000. Creditors' appraiser indicated that this sale indicated the Subject Property was worth $1,239,000.
(4) The sale of the property at 1248 Millbrae Avenue, Millbrae, California for $1,000,000, although close in location, is not very useful, because it was remote in time from the valuation date (six months later). This time difference is important, because the seller dropped the price by $300,000 shortly before the sale.
(5) The other comparable sales utilized by Debtor's appraiser are less useful, because each was different from the Subject Property in one or more of the following respects: much nearer the freeway, not a custom home like the Subject Property, showed signs of being a distress sale (owned by a bank and/or vacant at time of sale).
(6) The other comparables relied upon by Creditors' appraiser are less useful, because they were too remote in location from the Subject Property.
(7) Creditors' appraiser was generally a more persuasive expert witness than Debtor's appraiser.
**END OF MEMORANDUM DECISION**