The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-02-27
VALUE IS
|SER|OUS PROBLEM
"a, Etate Dealer Discusses
'sb Methods for Arriving at True
Worth of Property.
.ROWTH OF SALT LAKE
MUST BE CONSIDERED
|rssnectiye Investor Influenced
q Former Sales Rather Than
4 Present Conditions.

.rbe greatest problem for the real
la man in Salt Lake at present is to
buyer and seller TO forget price
.narisons in making their deals and
. down to the consideration of real,
|v;psic value" said local real estate
-Inr Saturday. "Most of the bitches
A DELAYS are caused by the fact that
irrespective purchaser insists in bas-
his ideas on value on prices that
ID existed during the last forty
Ia rather than considering the main
A;ect: what is that piece of ground
sth today''
tWebster says that intrinsic value is
j real and true valuei not an appar-
ar accidental value and that defini-
4 is one that we are trying to i'm
ID on the minds of prospective buy
IlThere are many elements to be con
|oYed in arriving at just determine
,n of true value. One must first elm
sfe the fictitious and accidental values
lahlished by forced sales or by pur-
|aaes where the buyer has adjoining
'onprtv and finds he must have a Ger
IA lot to carry out his plans for build
TIn the first place. income from prop
rty should be the first consideration,
|eal estate Investments, improved, IN
Ialt lake pay all the way from pei
.eut 10 90 per cent on the investment
nd most of the fat and apartment
|i1iings with rents on their present
"a pay IL to Is per cent. This IN
ne has become fixed for apartment
|5ees in the last two years for, de
lie the fact that more than fifty apart
.nts have been erected in Salt Lake
|ee 1906. there is not vacant apart
nt in Salt Lake. so far as [ know
d normal growth of Salt Lake has
nished a demand that has kept rents
income from apartment houses on
vel basis and there is no change IL
b.
Value Is Established.
This condition establishes value
desirable apartment house sites that
J be figured out on a percentage basis
when the style of the contemplated
ilding and its cost are established, il
a matter Of simple arithmetic for 6
pspective investor to determine what
4 particular piece of ground is real
worth TO him if he intends to real
4. say 10 per cent on his investment
Innse that particular lot sold for {
Hfhousand dollars less when 1t was
at ten years ago and when Sal
3 was city of 5000 population i!
basis for forming an idea of 1t:
Isent worth and, likewise. the fac
b some one who was not aware tha'
nditions have changed happened t.
y a similar lot for even half The
ice a few months ago, has no bear
B on the real value Of the lot,
q Regardless of value. it cannot b'
5puted that it. is human nature an(
Q universal rule of business for thu
Ter TO get the highest possible price
ID for the buyer TO buy as cheapl1
he can. This condition is, in ;
~, illustrated by one immense dea
Main street property that is nov
nding. Extensive plans for improve
int have been tentatively drawn am
prospective investor is ready t.
'ke these improvements as soon as h
e the land, When il came TO gettinj
option on fine real estate. the pros
I've buyer heard that the seller wa
11hbg an enormous profit on the trac
'ath he bought nearly twenty year
N for a ridiculously low price. Ou
1ent was Immediately blinded
<ntally. and so far he has been unabl
consider the main question of wha
,zt lot is really worth to him an
nat income on his investment h
culd receive at the price asked,
~ Growth Considered,
.'Salt Lake s growth in the last fey
eEars must be considered in arrivin
m idea of real estate values, for thi
|Y has added Mt least 10000 in tb