New-York tribune., 1907-11-20
HOW APPRAISERS WORK
REALTY SCHOOL FACTS.
r. III. Gilbert Says Unit Of Iat"c
Must First Be Established.

II Gilbert Of T. Edgar Leaycraft d Co.
snoke last night about "Appraisals' az the real
.s+ata school of the West Side branch OF the
vounq Mems Christian Association He said
that the power Of appraising is neither an art
nor 2 science, just faculty Of the Judgment
acouired by long familiarity with prices oO-
tanned and analysis Of them and the resultant
formula ton of certain rules. these rules pelhg
few and simple. By their application approx
mate values are determined, after establishing
what is technically called a unit OF value. 10
rules are absolute.
The unit Of land value Is the value OF single
lot of land fronting on any street or avenue
and lying about or near the middle of the block
on Manhattan Island this unit of value is cal
culated from such lot % feet wide by 100 feet
deep In Brooklyn the unit of value is usually
o0,1OO feet The unit Of value serves as a basis
Of all other calculations It is therefore essential
10 determine the fair market value Of a unit
as a starting point.
Mr. Gilbert further said:
The value of a lot OF land Is the measure of
the best use to which it can be put, considering
the location and the surroundings-represente
"a money. There is seldom any material recess
sion in the value Of land in the thicdy settled
districts of Manhattan Island from prices OBJ
tained at any period. and this comparative sta
bflity enables US to say that the value of any
land in that borough is it's present value, based
upon a reasonable comparison of price quota
tions on lots similarly situated in a like neigh
borhood and amid like surroundings. Where
such quotations can be shown to be the outcome
of agreements TO buy and sell under normal and
eGuable trade conditions they are the first facts
TO be sought as an indication Of the unit Of
value. The sources of these facts are the copies
of the records In the Registers Office.
Some knowledge Of actual cash transactions
in the neighborhood is essential to accurate
judgment. These transactions may be sales or
they may be leases Of land for long periods,
from the rental reserved IN which the fee value
may be inferred. The knowledge Of these may
be personal or communicated upon satisfactory
authority Wherever quotations or such de-
scribed knowledge cannot be had in the time
given for appraisal the opinion Of at least
one competent judge should be obtained as a
check against error If there should be an er-
rot made in determining the unite of value the
appraisal built upon II WILL of course, be inaccu-
rate. The prime essential is, therefore, a correct
valuation Of the unit-all the rest flows from
this quite logically. The practical process of
appraising may differ slightly with different
men, but it is substantially the same In all Of
fees Assuming that we are asked for the value
Of a single vacant lot about or near the centre
VI the DlOCh, nrSt HOOK al II 10 see If II is
waited and how deeply, if il is at grade or above
grade, and if there is rock upon it and to what
extent. What is the character Of the bottom .?
Note the physical conditions and then examine
the surrounding class of improvements Is the
property accessible? What are the prospects Of
the neighborhood? After the physical inspec-
ton the history Of the property IS looked into
and such sales OF it as have been made are to
be noted, with dates, such prices of adjoin-
ing lots lots in blocks similarly situated.
As many possible should be discovered
and noted Il quotations can be had from
the records inquiry must be made of persons
familiar with sales in the neghborhood Of the
property as to prices which have obtained Al
most every neighborhood has one OF more local
brokers who are familiar with the conditions Of
their own locality and with its history A large
acquaintance Of such persons is advantageous
In estimating the value of one lot standing by
itself and SO surrounded that it must be sold
singly IS an important consideration. have
known it TO make a difference Of 20 per cent
under the value obtainable from the same lot
where such limitations were absent The valua-
ton Of parcels containing an area of less than
$500 square feet is more complex. Very irreg-
ular lots are especially difficult to appraise In
the case of lots that have the regular frontage
Of 25 feet, or approximately that, but whose
depth varies within 100 feet, certain rule has
been formulated based upon a graduated scale
Of values for each five feet of depth the kew TO
which is found in the presumption that the front
half of the lot is worth two-thirds of the value
of the whole. This is called the Holman rule.
after the name OF its author. This rule has
gained great authority and is. in fact, the only