Evening star., 1932-09-10
APPRAISERS SEEK
SYSTEM IN VALUES
Same Definition for All Is
Hope of Avoiding Much
Variation.

Establishment in practice of work
able definition of value Of property i.
one Of the main objectives set for the
new American Institute of Appraisers by
the Committee of the National Associa.
ton of Real Estate Boards which or
ganized this body of specialists.
Possibly one of the reasons why we
get so much variation in the values
| found in appraisal work Is because we
are not all working with the same def
! inition," is is declared by Philip w
! Kniskern, president of the institute.
| Since appraising holds the key to the
success or failure of building enterprise
| any constructive advances in this field
will contribute to real estate investment
stability and security" Mr.. Kniskern
| points out.
Not Exact Science.
"Appraising today is not an exact
science; it can, in fact never be so to
the extent that mathematics, physics,
chemistry, and the like are. An ap-
praisal must always be Judgment. A
scientifically formed judgment is one
thing, while haphazard guess Is quite
another. There are economic laws and
principles that affect and control the
value of piece of property. Some few
of these we understand clearly. Others
we have hazy ideas about, and still
others exist whose influence or existence
is seldom recognized or known.
THE institute proposes by fostering
among the leading appraisers from the
various parts of the country intimate
discussions of economies, appraisal pro-
10 1,VNi1 &c
nuity, valuations, market prices. trans
actions, and like subjects to develop an
agreement, which does not now exist,
as to sound. proper, and reasonably uni
form procedure for each of the varied
appraisal problems. The institute will
do no appraising. The local chapters as
such will not do any appraisal work"
Technical discussion of important
phases Of appraisal work is contained in
the first issue Of the journal of the in
stitute, a quarterly organ.
Legal Value in Practice.
A leading discussion in this publica-
tion declares that legal rulings which
govern the appraiser in condemnation
cases, tax cases and the like must be
followed, of course, in the making of
such appraisals, but that this does not
mean that these rules of procedure,
in so far as they specify appraisal
method. necessarily produce the true
value when applied in practice.
1t is contended in the journal that
judicial decisions may lag behind the
progress of appraisal thought.
LAS the occasion presents itself, ap-
praisers may well give evidence to the
end that these legal rulings be changed
to agree with generally accepted ap-
praisal practice. on which, In the last
analysis, they are based" the article
continues
In the Standards of practice"
adopted by the appraisal division of
the National Association of Real Estate
Boards two years ago the market
value" of a property at designated
date was defined as that competitivelT'
established price which represents the
present worth at that date of all the
rights to future benefits arising from
ownership
The courts, however, have often de-
fined value as the price paid when a
willing and able buyer meets willing
and able seller.
One writer in the journal, on the
other hand, contends that there is no
such thing as the type of sale de-
scribed in the court decisions, arguing
that there are always present other
conditions that motivate buyers and
sellers.