New-York tribune., 1911-09-10
ESTATE BUYERS INVEST S33,0OO,0OO
B Volume of High Class Prop critics Disposed of at Voluntary
Sale at the Auction Rooms.
EcoRD FOR YEAR SATIsFACTo TO PROPERTY OWNERS

More than SSS,O0oooo has been paid this
year for Manhattan property sold at the
Real Estate Exchange salesroom, Nos. IA
and l6 Vesey street. The sum total Of
these auction sales compares favorably
with any similar period.
The predominant note of the auction
mart however has been its high character,
coupled with an apparent strength to at
tract for a long time the big buyers. Many
large voluntary sales of choice vacant
and improved property have formed the
budgets, and besides, there have been
goody number Of executors ahd trustees
sales.
The results have been more than pleas
ing. In a few instances only has a some
what lower price been realized than an
ticipated Al every Offering the rooms
were crowded. What else could be desired
by owners seeking buyers!
OF the S33,O00OoO paid for Vesey street
parcels. about 100000 represents the
price at which the voluntary and trustee
offerings changed hands. The remaining
So. .0O0,00O was invested in properties pur-
chased at forced sales. A forced sale is
a foreclosure and that generally means
that somebody or company has met with
financial difficulties and failing to meet
obligations the realty involved has been
offered at the salesroom TO satisfy the
debt.
The less forced sales the better for all
concerned with the upbuilding of the great
real estate market of this city For such
sales usually indicate that there is some
thing wofuny wrong with the foundation
on which rest stability and earning power
of real property. And the larger the num-
Der Of sales the bigger the flaw in that
foundation.
In view Of these facts, how can any one
ever point with pride at the volume OF
such properties sold at foreclosure? The
person who can do so can laugh at the mis-
fortunes of others.
Most realty failures are avoidabe, and
that is probably why the plight Of the
majority of defendants in foreclosure9pro-
ceedings arouses little, if any, sympathy
No assertion is more easily proved than
that it is harder for an average person to
fail in the real estate field than in most
other places OF speculation.
Realty Buyers Helped.
Buyers are surrounded by experts, and
expert advice is TO be had for a mere pit
But in ninety-nne times out of a hundred
they will be compelled TO act according to
the views Of others because most buyers
must borrow to perfect a contract and in
tho loan channels they will soon know
what the loan experts think of their pro-
posed purchase
The loan given Will usually be 60 per cent
OF the appraisal Of the property made by
the expert. Sometimes the loan will be "a.
per cent. and seldom more than so per
cent Of the purchase price. Whenever the
loan is more than 90 per cent Of the value
Of the property IL is a certainty that the
purchase price is rather low or the earning
power Of the property is exceptionally good
or that the worth Of the property will
soon be enhanced. From the time the loan
IL made until it is repaid the loan men or
their agents inspect once or twice year
the premises affected by the loan TO see
that the property receives ordinary care.
The mortgage men cannot force borrowers
10 safeguard their equities by providing
a sinking fund. but for the careless prop
erty owner there is generally a sorrowful
day of reckoning.
Careless and short sighted management
is among the principal causes Of realty
disasters. The unavoidable failures spring
from 5ncountering unforeseen obstacles and
are mostly along building walks in the new
or business or residential districts.
Undoubtedly one OF the best signs of the
vieor of the realty field is the volume and
character of voluntary auction sales. The
bigger this auction market the more per
sons will become property owners. Real
property should be as quickly saiable as
stocks 1t will be when it is possible 10