Evening star., 1914-10-03
OUTLINES NEW MARKET
FOR REALTY SERVICE

The real estate business in the last
few years has been undergolnS
changes so subtle that few real estate
men have recognized the Importance
of the trend to which certain isolated
and seemingly accidental transactions
point says Joseph ?. Day in New
Markets for Real Estate Service pub
hshed recently in System.
Still fewer are training themselves Or
, collecting the data to take advantage
of this coming demand for a peculiar
kind of service which they logically
should render rather than some new
type of export. There is every reason
to believe that when this evolution has
proceeded 2 little further the man who
is prepared will gain important cash
by products from his preparedness. AL
ready, in fact. some brokers are finding
important benefits in this feld-some
are earning cash fees from it. though
the greater proportion are using it as
an additional inducement for clients to
bring real estate business to them
Pay for Advice.
Indications point to the adoption of
plans where the broker for the buyer
will be retained on definite fee basis
and "be remunerated directly for his
advice not to buy. just as a lawyer is
advises a client not to enter costly and
fruitless or profitless litigation"
Continuing. Mr.. Day says:
The most positive indication of the
growing market for professional serv
ice by brokers on a fee basis is the
fact that more people are paying for
expert appraisals. whether they buy or
not This is a great step forward. In
the past. brokers naturally have pre-
ferred the selling end of the transac-
ton But with increasing willingness
on the buyers part to pay expenses.
the real estate columns of the news
papers now record many transactions
where each side had its brokers.
Brokers Replacing Lawyers.
1t was not many years ago that the
. sellers alone employed a broker, and
the buyer was represented only by a
lawyer. But buyers are now demand
ing, in addition to legal guidance, the
protection of the knowledge and sea-
soned judgment as to values and meth
ods which can only be supplied by real
estate brokers.
the day is coming, 1 believe, when
man who is not widely experienced in
real estate will no more think of put
ting his money into deal without con-
sulting his own real estate expert than
ne would of going to court without
having a loyal attorney. Take, for in
sance. the young married man who is
thinking of buying a suburban home
his first real estate venture. The
chances of a wise or safe purchase are
decidedly against him. Sentiment, en-
thusiasm at getting a home for his
dear ones. his idea of how the place
should look, all conflict with the cold
blooded analysis of property which
should precede a purchase.
Many Heed Advice.
Not ten out of 100 home-buyers really
know how to figure carrying charges
or ground value or to deal with fac
tors looking to the increasing or fail
ing value of a home once they have
occupied it. Think what twenty-five or
fifty dollars worth of advice from an
honest and able broker would be worth
to those people The time is near when
the value of such service will be recog-
nized. and when the first step in buy
ing real estate will be the retention
of an impartial broker to guard the
buyers interests
about expert management is it's i'm
personal way of looking at expenses
and handling them, is the belief of Mr..
Day.
Management of income properties is
manufacturing function of brokers'
Office, the article reads
He manufactures poorly paying
rental properties into income produc-
ers- But there are also a number of
other manufacturing possibilities for a
brokers' office. These lie always in a
middle ground between some other
profession and the real estate brokers'
experienced and special knowledge of
what will sell or rent.
Helps the Architect.
For example, many architects. if re-
tanned, can plan handsome and struc-
tUrally sound apartment house or Of
flee building or loft or store or manu-
featuring building But under present
real estate conditions this is not
enough-more than art and architec-
ture has to go into planning a building
to make it rent satisfactorily. Here
the real estate broker who has studied
the human demand of people and has
knowledge of the particular house
keeping requirements, space arrange
ments or peculiar requirements of GER
tain trades or business can be of
tremendous service.
In New York today, apartments over
two years old are not considered abso-
lutely up to date. Yet the changes
shown in the new apartments are so
slight that one not familiar with the
changing styles and demands of ten
ants which every season brings forth
could not see any marked reason why
one should rent more easily and for
higher prices than another.