New-York tribune., 1908-12-16
APPRAISING PROPERTY
SOME EXPERTS METHODS
Iring RuldRd Commends York of
Realty Board on Values.


Many well known real estate experts were present
night a. session of the realty school of the
west Side Young Mems Christian Association at
which I---ing rutland vice-president OF the RuIand
& Whiting Company, Of the leading real estate
brokerage houses OF this city, spoke on The Stand
s-dizirg Of Real Estate Valuations" Mr. rutland
said that there had been many indications for some
tine % growing dissatisfaction particularly in
TIE minds OF those most interested in such matters
With Inadequate facilities which are available
for Obtaining uniformly reliable valuations of real
estate The TACT that leading appraisers iafre-
ore1ts- differed their valuations of property bv
as much 80 per cent had raised q doubt as 10
rhsssourdness Of the app.aisslS. not only of these
r sn but also. a consequence. Of the appraisals
O. men less prominently known il the profession.
TIE natural result IS & lack Of confidence in an
--siseIs generally He the demand is for
s-stions which shall he in ali approximately
exact and for the establishment of some official
body OF high character so composed that IL shall
Re qualified TO make exact appraisaIs. The rossi-
s.ity o. satisfying this demand may he questioned
Any effort il this direction is. however. commend
ale ara deserves encouragement.
NJ rutland further said:
II is generally accepted that value Of real estate
rests on two fundamental factors namely. income
7tpscitv and the certainty that the income will
oontinue when. therefore. say that certain
property is increasing in value say. in other
ucrSs thst its income capacity is increasing, or
thet SIS income is becoming more certain. To be
SHE 10 decide rightly TO whether the income
c.pscity OF property is increasin or decreasing
- is becoming more or less secure: 10 analvze
,les--v the causes producing these changes and 10
conclude correctly 10 the stability such causes
n. must nave intelligence supplemented by ex-
s-ienoe IN real estate matters: but especially one
ryust hsye the intimate knowledge concerning a
--7rsrfy and its surroundings which a prolonged
tsrd careful study Of them alone can give. This
.s-;s1 knowledge about any certain property is OBJ
v5ouslv more within the reach Of q man actively
-raesd in The real estate business in the particl-
lar section where the property lies than Of any one
else
THOSE WHO DO THE BEST WORK
Tt is undoubtedly true that an experienced real
.s-ste rlsn is qualified in a measure to estimate
vslves IN sections not familiar 10 him by outward
srns snd general conditions and by the aid Of
such records OF sales and mortgages as are avail
srls lsuch Indicating what else,
rightly or wrongly. estimates the value OF property
IN that relgh5orhood 10 be-; but such 4 -alustion
* a best. skiEul guess when compared TO the
valuation given by a man Of equal experience and
integrity who has the intimate acquaintance that
s7ec5aIzing e particular neghborhood gives,
sns Il TOO often goes wide OF the mark. is this
gong wide Of the mark by the highly
st-6ed appraisers that IS as was said before.
q TIE root ~ fhe prey siling dissatisfaction
New York is vast. complex city of dwellings,
manufactures ana houses o1 commerce. Its physi-
ca restrictions necesstate its development along
unique lines; its population is probably di-
verse than thar q any city in the world. All OF
-hese elements add TO The difficulty OF the general
appraiser and emphasize the necessity for special
kn97ledge
"As one studies the city it fass naturally into
t-c-CvIsiors that fairly homogeneous By the
financial district the drygoods district the whole
grocery district the lower East Side tenement
district and so on TO the number Of a score or
ro-e indicate sections the boundaries OF which
defined with some CleaTneSs. In each district
trs requirements of the tenants are Of certain
krd rents that be paid have certain
Limits; The leases date from fixed months More
-tsn Thts. practically everywhere throughout the
city changes are constantly taking place; some of
trsn obvious 70 all otfer subtle and apparent
cry 70 the careful observer To have an intimate
knoufedEe Of the conditions and changes in dis
ti-t real estate must specialize in that dis
tr-t
It I'll be apparent 70 ar observer that different
real estate men are identified mora or less closely
with certain areas of the city Activity IN me
FIFTH avenue section brings to notice certain men,
II Washington Heights certain. otner mem II one
wants ? dwelling in the upper West Side one
knovs a. once 10 whom TO apply; If one wants
business quarters IN the drygooos or "Iloles7l7
E-ocery district. in the Greenwich village sec
ton south Of 18th street in the nnddle ioIt as
r--- in ire ars the names OF the specialists in 1
these sections at once come TO his mind Inc same
hing IS true no matter what section OF me city |
you ht upon. These men, therefore, by The very |
nature Of their business have greater opportunities
tbgB an enc else TO acquire special knowledge Of
values N their respective districts.
Special knowledge, however. Is not the ohlE |
Qualification necessary IN an appraiser "tfo VIII /
command confidence. EharaCte- and judgment are !
Fr-- r. He highest importance If therefore. there
ve-e ezta aItshed central body known to be com
posed orlv q men Of high character whose mem
bershp included the Jeadng specialists IN the cI'E'
should re competent TO issue appialsals ihlt
nou1d fe accep1ed as standard, because they would
express both special know ledge and high character
n the Board Of Brokers of New York city TINS |
continuation 50 far il is humanity possible mas
eeen brought about; from the members OF the |
5os-6 an z7Drsfsal committee has been selected |
v-h special reference 10 The qualifications OF the
lFere-t n~en upon respect to their character,
fragment md special knowledge as 10 dlheTehl
sections fn this city. When an appraisal from the
bos~S fe ssxed for valuation IS given by the
n-r fin whose district the property 10 be appraiser
les Their ioiut opinion. checked, If necessary h.
III cra -nan OF N5ce-charman or the coTnalt-e or