New-York tribune., 1922-01-29
BEFORE You Buy
or Sell ct
Expert Advice
Iantinuous Changes III Com
ditions in New York Be-
vond Mental Grasp of I'm
initiated, Says J. P. Day
Bv Joseph P. Day

,ast two years. CauSoo ~ "e W
hu;1diucs: scarcity of space, lead
:. n greatly increased rentals; neigh
,arhoods changed from residential TO
.,.;ne.s the extraordinary increase
-, rents paid by retail stores at busy
.s,ters. the great demand for build
80, to serve as permanent busircss
.,me. for corporations, firms and IN
.sx;duals: the exemption from taxation
!, certain percentages of costs Of new
..sdiurs Ger ten years, and the demand
:. small. and medium sized dwelling
...x. by those persons anxious to Sc
.,ra permanent homo and not be a
~ 10 Increasing apartment rents and
Z. everloonling danger Of being com
lied to move at the termination Of a
sss.. have caused many an anxious
bousht to tho real estate owner or
mortgage investor rs to the perma
,,uey Of tire present market value Of
rr.n pieces Of real estate.
lpprasing real estate to-day is a
.iscult proposition, and an appraisal
N be Of value requires the thought.
s.ovledge and skill Of real estate
.ypert OF years OF experience in the
handling Of sales and purchases of
ral estate, especially one who, of an
,nslytic mind, through this constant
Yntact is able to form a proper judg-
-ent Of real estate values and obtains
knowledge which is Of inestimablc
= ~'ir - l..
wH.
The appraiser must keep records of
transactions, Information gathered
from the daily papers and other
sources, from the record Offices, from
buyers and sellers, and should keep in
touch with every section of the city
through frequent visits, making notes
of the changes and indicated changes,
Keeping familiar with improvements
and studying tho possible result of
these changes on the value OF real cs-
,s.e in the ghborhood. Ne must
hsTe general working knowledge of
:ss cost Of construction and should
also be familiar with the rental pos
sbilities and be able to weigh the CT
let's Of changing conditions upon
reality values A few factors which
aust be considered by the real estate
appraiser arc as follows:
He must have thorough knowledge
d neighborhood conditions and a GER
.an familiarity with its past history.
lrfnlte care must be used by the ap-
sTa!ser II those sections where the
aa7cter is changing, for there are
many pitfalls To be overcome, and here
,rs'o trr-,~l r.le~c &c
natial TO success.
Overproduotion Affects Values
Overproduction Of certain buildings
d given sections affects values, and the
'wsrse. Is equally true. Supply and
snand play important parts In or
81 to properly Judge the present and
i!iure values, tho appraiser must con-
Htst immigration, the natural growth
I'D the scale of wages TO determine
is rentals which can be paid, etc, in
Mer that q logical conclusion may be
a,hed
The food OF travel is important, be
aae it affects not only corners but
10 interior lots. In manufacturing
stsicns accessibility to railroads and
s:erways and possibility of obtaining
ieor supply near by must be consid
ned, and in residential districts near
.'ss to lines of transit has important
'sanng. Corner lots arc always more
aluable than inside lots, the greatest
Increase in corner lots being where two
'feets Of Importance cross. From this
'olnt values decrease 10 the point
sherc the corner lot is TO longer a
actor for light and air easements, etc
separate appralsals should be made
lor the lot and the building. Many
methods are employed to determine the
value OF the Improvement. such as
measuring the cubic feet of contents,
&C, but the knowledge as to the utility
VI tne structure, plus experience and
correct Judgment of the location, is
sea,'y tne thing that establishes the
real valuation.
. lhere must be no ruesswork on the
psrf OF the appraiser. He must have
'uowieoge based upon constant study.
and observation, OF the
,:' :sus and extravaganccs Of the commu-
..y' "hlch has direct bearing on
,ues. 'O'
lake new section, for EXAMPLE
'4e appraiser must be able to visual
ss the future. He must be able Ia
ssec: strategic or key situations: in
~ there are hundred and one things
Dat must be considered. To make a
'oHn'whlse appraisal requires many
esss OF experience In order that judc-
aeht may mature, and that oninion
~! be formed, not upon d limited OBJ
sNatlon Of passing furry of activ-
", but upon d broader vision based
'poa past experience.
specIal need has arisen for expert
~ .Sa careful appraisals of real estate
.s'augh the workings OF the income
y. - law Let US assume that a man
~ | leaving several pieces OF real
ss's ,s and large income from per
"sa property. II an indifferent ap-
assr OF small experience be selected
e,. aAe the appraisal of the real
i. Ss :. Tor fixing the transfer tax to
NJ etatc Of New York and Federal
s'tance ..s. tax to the Federal govern
,,s ssas he may appraise some of the
/. tI..'oesty lower than it's market value.
s.s. sale Of the property be made
4. IA or Two later at higher price
Az government might with good rca-
WI W Claim the difference between the
}. 'ppfslsal and the selling price to
pfohc or gain and charge a large
sri.m rSu,e TAX upon this. But the most
as so.,. mistake is often caused by
,on ssAse lenders not having appraisals
so,s .ompetent appraisers when
"a, se ts IS made and at the time of
b. .snewal OF such loan. Many times
sou;,ss ;ssices OF an expert appraiser are
ssessr HISS 70 secure reductions in tax
.ty lieats, liss aus, especially where the prop
zen d. III section where values have
asat bsslng bss and the Tax Depart
he. tas nas not made sufficient allow
un,. ior this. OF course fbe bonest
s,n,. sssc'seT will rot attack tar assnsse ons
80 which he knows to be Just.
when to Sell
.s.s interesting side OF the zeal
0pDIat2cI I'll