Evening star., 1936-12-19
APPRAISAL FACTS
TOLD TO STUDENTS
Many Considerations Taken
Into Account in F0rmu-
iating Opinion.

In addressing students Of the real
estate course jointly by Southeastern
University and the Washington Real
Estate Board, Joseph A. Herbert, jr.,
class counselor, outlined the funda-
mentas necessary In modern real es-
tate appraisals.
Herbert, who is o member Of the
American Institute of Real Estate
Appraisers, carefully traced each step
the experienced real estate appraiser
follows in arriving at his opinion,
stating that the competent appraiser
does not reach conclusions by valuing
labor and materials and land, but
takes into consideration such factors
as trends of growth, economic condi-
tions, taxation and future assessment
costs, zoning, deed and building re-
strictions; public and social environ
ment, utilities-pubhc and private. So
cial and income level of the neighbor-
hood, design, construction, exposure
and arrangement and architectural
design.
Other Factors Considered.
Among other factors to be consid-
cred which have a direct bearing upon
the value Of the property are past,
present and future income; proper
capitalization rates, supply and de-
mand, over and under improvement,
remaining economic life of structure.
The purpose Of an appraisal, ac-
cording to Mr.. Herbert, Is to provide
interested parties with an opinion Of
the value of certain property as of
a given time, and under certain limit
ing conditions based on determine
tion and study of existing trends and
influences and are frequently used to
determine the security for loan, the
sale or purchase price. for taxation,
condemnation, accounting or other
purposes. Apprsising is frequently
termed an observational science for it
requires the use of good judgment,
backed by years of experience, to-
gether with unquestioned integrity
upon the part Of the appraiser. The
ability to assemble and weigh data
affecting values are necessary qualifi-
cations Of an appraiser and his prob
lem Is to analyze, express and support
his estimate Of value of a particular
piece Of property at certain time.
Six Steps Outlined.
The importance of assembling de-
tailed information concerning every
phase Of the property, its location and
proposed usage were stressed by Mr..
Herbert, who described six steps to be
followed by students of appraisal
procedure. The correlation of all
data which has been collected, the
conclusions Of the appraiser as to the
final estimate of value and the prepa-
ration of the appraisal report, which
should include all factual information,
conclusions and reasons therefor were
touched upon by Mr.. Herbert, who
cited examples Of some local proper
ties appraised for the Federal Gov
eminent In the development Of the
Capital park development program.
Discussing factors which are causing
attention to the modern influences in
architectural design, air-conditioning
equipment and many other devices
which q number of structures erected
within the past few years have had
installed in an effort to overcome OBJ
solescence.
Due to the Christmas holidays the
real estate course will recess until
January 4, at which time Mr.. Herbert
will discuss condemnation methods
and procedure in the District.