The Washington times., 1924-10-18
VITAL STUDY Of
PRA|sALS
MADE
sabcock's Book on Real
Estate Held Authority
on Subject

The highly detailed processes
through which the modern scientific
appraiser Of real estate weighs the
factors entering into that valuation
with such exactness that their rela-
tionsllip can be expressed in alge-
hraic formulas are the subject of
The Appraisal of Real Estate, by
Frederick M. Babcock, published by
the Macmillan Company.
The book is the third in the series
being published by Macmillans
under the auspices of the joint COM
mission on real estate education,
upon which is represented the Ma
tional Association Of Real Estate
boards, the American Association Of
Collegiate Schools Of Business, the
United Y. M. g. Al. Schools, and the
Institute for Research in Land Eco
Monies and Public Utilities.
The publication Of the Babcock
study Is an important contribution
to the technical literature concern
Ing real estate. Mr.. Babcock, who
- q member Of a leading firm Of
Chicago appraisal experts, a1lnder.
takes to accomplish for the first
time; first the outlining Of q series
of appraisal procedures, and second
the indication of which procedure
or method should be applied to each
Of the various classifications Of
property to be evaluated.
Book On Authority.
His Organization OF the whole in
vOlved matter Of the factors enter
ing into real estate valuation rep
resents q distinct advance In
thought on appraisal method and
procedure. The book becomes the
authoritative text book on modern
appraisal work.
With It's attached working tables,
graphs and formulate, the volume is
prepared for the use OF the ap-
praisal student and specialist, but
because 1t deals with the principles
which underlie real estate value and
with the practical elimination of
guess work from calculations Of
that value, it is OF vivid interest to
everyone concerned with real estate.
Something OF the books field Is in
Dictated in the fact that the quail.
fled appraiser Of real estate Is now
called to give a secure foundation
for the sale or purchase of prop.
erty in organizations, receiver.
ships and mergers: in Investigating
the security for real estate loans;
In determining the expediency Of
purchase Of real estate bond issues;
In questions Of rental values, OF
rentals tinder long,term leases, or
to distribute rental value to the
parts of q property. He can hest
determine the assets OF an estate
for inheritance tax purposes or for
the distribution of assets under
Wills. He may locate values for In
come tax purposes or for the de-
termination Of rates for public util.
titles. A most important field FOR
the trained appraiser arises in con-
nection with valuations for taxation
purposes.
Problems Of Appraisers.
No appraiser. Of course. arrives
ct his conclusions by the applica-
ton Of cold formulate. In applying
Q value equation" there enters in
not only reliable determination OF
such factors as interest and dis
count rates. depreciation and abso,
lescenss, forecast Of the general
curve which rents win take over
the life Of 4 building and Of what
the losses will be from uncollectable
rents, but also the whole question
Of the potential highest and best
use to which the given property
could be put.
And this involves the probable
future changes which will take
place In the district in which it is
situated and the whole direction Of
the growth Of the CITY.