Evening star., 1915-05-15
REALTY MEN MAY FORM
VALUATION BOARD HERE
Plan to Be Considered at Meeting
Of Brokers Asso-
citation.
Success of Undertaking In Other
Cities-How Board Operates
Explained.

The feasibility Of establishing in this
city a real estate valuation board such as
now exists in Pittsburgh. Minneapolis and
other cities is to be considered at a meet
ing of the Washington Real Estate Brok-
ers' Association, to be called in the next
few days. according to an announcement
made yesterday by John l.. Weaver. its
president The members Of the associ-
alton probably will be called together at
a luncheon meeting to be held al the Com
mercial Club.
For more than a year members Of the
realty brokers' organization Of this city
have been considering the advisability of
establishing a real estate valuation board.
Such boards have been operating in other
cities for several years. and are reported
to have been highly successful in their
undertakings. The National Association
of Real Estate Exchanges. Of which the
Real Estate Brokers Association of Wash
ington is member, has devoted con-
siderable time to discussions concerning
valuation boards at its conventions. and
has gone on record in favor of the estab-
lishment of such boards in every city.
Function Of Board.
The function Of the real estate valu-
alton board is to value properties for
prospective purchasers, owners, estates.
courts. banks or any other individuals or
associations desiring to obtain expert
opinion as to the worth Of properties
Where the property in question Is large
one. fee of one-tenth of l per cent is
charged. The boards generally have a
minimum fee Of $25 for small properties
Valuation boards which have met with
the greatest success are composed of five
or seven members, real estate men. who
are members of the local realty brokers
association or exchange The valuation
board usually is affiliated with the local
association, into which is paid a portion
of the fees collected.
Every effort is made to get men hav-
ing only the best qualifications to con-
stitute the board. In the matter OF
lecting its members all of the realty
men of the community usually coop
crate in endeavoring to determine upon
the best judges of realty values, know
ing that their decisions with regard to
values will be Of vital Importance to
the entire realty profession of the To-
cality.
Best Men Selected.
The members Of tho board are Sc
lected for their all-around knowledge
Of real estate conditions and values.
They must be men of high standing in
the community SO that their decisions
will demand respect.
The board Is permitted to engage the
services of other real estate men II IT
believes that by doing so truer in
sight into values will be obtained. If,
for instance, the valuation board is
called upon to pass judgment on a
piece of property in some subdivision
located without the central portion of
the city. two brokers who have special
lied in the handling of property in that
No rfin 10 iehI no
conference. They are instructed to ex-
anime the property and furnish the
board their individual estimates Of its
value.
When these have been received the
board then takes the matter under ad-
visement The board may or may not
accept either of the two Individual
estimates which have been submitted
AS general rule, however, these in
dividual estimates play an important
part in the deliberations of the board,
for it Is realized that they have been
submitted by men who may be con-
sidered experts in the particular class
of property to be valued.
Fee Is Divided.
In cases involving large pieces of
property the fee charged by the valua-
ton board for its services is shared
by the members of the board, the ex-
perts who have been called into con-
ference. the broker or brokers who
brought in the business" to the board
and the local realty brokers' associa-
ton. The money received by the as
sociation is used to defray expenses in
connection with it's annual banquet
outing and other festivities.
In cities where there is valuation
board associated with the brokers' as
sociation. prospective purchasers con-
slider it equally important to get the
opinion of the board concerning the
value of piece of property before
making a purchase as it is to have the
title examined. 1t is maintained that
in localities where there are such
boards real estate is sold for figures
which represent true values The ten
dency of both parties to a trade to
initiate the values of their holdings il
eliminated where the valuation board
Is called upon to pass Judgment on
these values
Banks call upon these valuation
boards to pass judgment on properties
before making loans. realizing that
the men who constitute the boards
generally are tho best fitted for such
work that are available in the com
munity- In the division of estates the