Evening Star Newspaper, February 2, 1924, Page 16

DATATOFOREGAST FARM VALUES AIM Importance Emphasized by Present Economic Distress, 1 Dr. Ely Points Out. Possinbly that data can be secured which will enable scientific forecasting of farm land values, a possibility of im- POrt not only to holders and-to buyers and sellers of farm lands, but to the en- tire economic life of the country which 13 closely bound up with farm pros- perity, is presented by Dr. Richard T. Ely of the University of Wisconsin, head of the Institute for Research in Land Economics. Dr. Ely, in a discus- aion before a recent meeting of the American Statistical Association, ad- ‘vanced the assertfon that such forecast- ing 1s ppesible with some degree of ac- curacy. over long periods, even up to forty years. Imy ce of forecasting land value movements is emphasized by the fact that a very large part of present eco- nomic distress is due to mistales made 8 few years ago in estimating value changes, Dr. Ely points out. On the other hand, forecasting based on =8 complete data as can be obtained will help the farmer to secure continued prosperity, because it will ald him and the bther elements in the economic population to secure that proportionality in production which is essential to pros- ity. P here Is much to support the thesis that the movements of farm land values are wavelfk: Bly asserts. He ints out that farm land values have Pecn ‘transterred from ono part of Eu- rope to another, and from Europe to America, and from one part of America o 10 ese are the factors outlined by Dr. Ely as those by which farm land prices in America in the coming period will be ected: = e tential ‘new land that may be brought into use throughout the world, taking into_account quality as well as quantity. Rapidity with which poten- tialitles in Siberia and South America and in the tropics are likely to be reeal- 2. Itfes of future events in El:;op;h“ ot the , in Russia, m the effort of certain European countries to become more nearly self-sufficing with respect to agricultural products. 3." Improvement to be expected in the utliization of lands already under culti- vation, Progress here has been 80 re- markable that we are recelving an in- creasing food production with decreas- ing expenditures of labor and capital. [ tentialities of the growth in 1d population. T BoPhes gn regard to what has happened in the past should enable us 10 find & working answer to the ques- tion of what rate of growth In popula; tion will more than oftset the rate of growth in the improvement of lan utllization, Di. Ely asserts. 3 = REAL ESTATE SALES OF $103,600 ON LIST Petty & Petty Report Transactions in City Recently. Petty & Petty reported recent sales totaling $103,600, as follows: Miss Mary T. Merrick sold to a local investor premises 1754 S street north- west, a sixteen-room dwelling. The Fisher company represented the seller. The property will be improved for investment purposes. William F. Donnelly purchased from Joseph E. Dowd a two-story arage in the rear of 1015 22d street ofthwest, and from Patrick F. Car ley two gerages at 7th and Raleigh streets southeast. William F. Donnelly sold to Patrick F. Carley premises 825 Allison street northwest, a_six-room brick dwell- ing, and 20 Hickory avenue. s si room detached frame dwelling. Mr. Carley in turn sold this property to Dora M. Yearn: Ernest L. Conant sold a dock prop- erty at 32d and Water streets, com- prising 10,000 feet, to a local in- Vestor. Eva R. Love sold two lots in Rose- dale Park, Md., to Charles H. Viett, who proposes improving them with a detached dwelling. Coras Gompers purchased from Hor- riet E. Steadman a dwelling of eight rooms at 3921 Illinois avenue north- west. Lillian M. Johnson sold to Schaey Oriovetssky a dwelling of six rooms &t 4611 9th street northwest. Miss Josophine Black purchased from. John Ash a one-story store at 3114 11th street northwest. Mrs. May D. Lokerson sold to Rob- ert E. Dove 1633 6th street northwest, 2 _six-room frame dwelling. INVESTORS ATTENTION Two Good Buys Modern Fireproof: Apartméht House, located near 16th and R, con 13 Apartments. Practically’ new bullding: low rentals; ylelding over 40% net on cash invested! 3-Story Brick Pa. Ave.N.W,, Near 213t St. Containing Modern Store; 3 Apts. 2- Garages; rented for $154 per month; poesession it required; camr be bought for 318,000 on easy terms, a quick sale. | E e ESTATE. Five atery snd English basem by William A. HflL at 2610 Kalorama a partm by Caude N. ortom, architeet. avenue ents nnd tx to be competed about September type apartment house to be erected 't wil contatm thirty The plans wepe drawn Real Estate Appraisement For Loan Purposes Outlined BY CHARLES T. CLAYTON, Secretary Mouat Pleasant Building Axxoclation. Appralsement of real estate for loan purposes s almost & profession. In large cities experts earn fees com- parable with the fees of leading law- yers for estimating such values. Yet it is possible, by applying the well defined rules of appraisement, for one of ordinary experience, plus good common sente, to make reasonably correct diagnoses of value for loan purposes. This is a brief outline of the methods emploved by profes- sional appraisers, adapted for use In valuations for small loans by Indi- viduals and bullding and loan asso- ciations: 5 Land and improvements may well be valued separately. although the appraiser must not forget that the value of any improvement is largely qualified by its adaptation to the spot of land it occuples. For example, & fine residence, built at South Capitol and M streets, would be a waste of money, and a business block would be equally out of place on 12th at uclid Fair Market Value Comsidered, The falr market value of land is the price it will bring in open mar- ket when offered by one who is not compelled to sell and purchased by one who wants it, but is not com- pelled to have it. The force-sale value of land is the price it would bring under the hammer. In appraising city lands the mod- ern practice is to find the market value of & standard sized lot. usually a lot 25x100 feet, located close to the middle of *he block, #nd then con- sider that the lot of 25 feet frontage next the corner is worth 10 per cent more than the standard lot and the corner lot worth 60 per cent more than the lot next to the corner. In Washington we buy and sell by the square foot, but the principle is the same. If land in the middle of the block is worth $1 a square foot. the lot next the corner of equal frontage and depth is worth $1.10 a foot and the corner lot is worth $1.75 a foot. Residence lots do not vary quite so much, and the percentages should be: MiddI® lots, square foot, $1; lot next the corner.'$1.05; corner lot, $1.55. Four Elements Invelve Four elements bear on the land value, and each should be given sep- arate consideratios 1. Recent sales within one or two blocks. Character of buildings in the block and the extent of construction. 3. The tax assessments of land in the block. 4. The tendencies of realty values and use in the neighborhood. €o not entirely determine For Sale i | f { 1457 Fairmont Street N.W. Has 16 rooms, 3 baths, fine garage and nearly _ 18,000 square feet of ground - rounded by brick wall. Owner occupled for 18 vears. Is ex- ceptionally fine premises. Price, 35,000. House vacant. Key can be had at WM. H. SfiUNDERS & CO. 1tors. 1433 K Street N.W. Main 1016 and 1017, 29 1130 4th This is the last Homes built by us chasers. Exception QUALITY F you know anything about lumber you can judge for yourself; if you don’t, let us be the judge. We offer only _the highest grades, “Better lumber here” be arranged. porch and two rear R R e, porches. throughout, with el and a built-in bed 7 T e Ty A New Northeast Home have proven very satisfactory t6_pur- This is a brick home of six rooms, bath and built-in garage; colonial front be used as breakfast and sleeping The floors are hardwood every room; a pantry off the kitchen rooms are features seldom found in homes at the low price of— $8,650 value: by the needs of bi The prices may be affected cer or seller or be merely speculative. But they have important bearing, hecause they ure opinions of neighborhood value which have been bucked by hard eash. If of improved property, it is important not to be misled by the influence of the improvements on the total price. Tho character of the improvement and the extent to which the block buflt up has great importance, for a block of nice buildings may be spoiled by a cheap house being put in among the better properties. The intrusion of a negro family into a white block may reduce the value of the whole block 50 per cent. The tax assessments are by no means final. They are usually well below the market and often much be- low the forced-sale value of the land. But they cannot safely be disre- garded. Neighborhood Tendencles. The fourth element—neighborhood tendencies—Is perhaps ameng the most important. If the nelghborhood is going back. no long-time loan is safe, no matter at what margin. At the same time a changing tendency, —_— PLANS BIG GARAGE ON IRVING STREET Harry Winingder to Erect Four- Story Building on New Site. Hatry Winingder announces that he has just purchased a large prop- erty at 1437 Irving street northwest and will erect thereon a four-story fireproof garage bullding with a ca- pacity for over three hundred cars. The land and building will represent an investment of over $200,000. The Irving street property has. a frontage of 78% feet by a depth of 105% feet—a total of nearly 8.300 square feet. The building will cover the entire plot. building will have a white front with the remainder ck, steel and concrete. Plans for the building have been drawn by Robert F. Beresford, and construc- tion will be in charge of the Allan E. Walker Investment Company. It is planned to begin construction at —A ttention— —Good— . —Salesmen— Established and_well organ- ized Real Estate Firm doing a (blg business desires the serv- ices of two experienced Real Estate Salesmen. We have a big listing of good property to sell. We are furnishing our salesmen with an abundance of Eood prospects. This is a real opportunity for men with sell- ing ability. Replies held con- fid Address Box 19—D St. NE. of a group of New in this ‘section that ally easy terms can porches, which can ectric floor plugs in in one of the bed- R e v Main 4752 1415 Eye St. N.W. as from pure residence to first or "f' ond commercial, is not necessarily deterioration in val For example, the upper 14th street section, which is being taken over by commerce, w :ho land is worth more than ever ore. The safe practice in appraising land would seem to be as follows: 1. Obtain the square foot values by {a) recent sales, which, If of corner lots, should be reduced by of improveménts and neighborhood ten- dencies. Add the three different esti- mates and divide by three. The re- sult should be the average square font value for the middle of the block, and all lots in the block except the Iots next the corner, add 6 per cent for residence and 10 per cent for business blocks and the corner lots; 2dd 56 per cent of the middle-block rate for residence, or 75 per cent for commercial blocks. Tho result is the probable market value, and is too high for loaning purposes. Reduce this figure 25 per cent for loaning purpose States Suppositious Case. For example, - suppose the recent sales Indicated a square-foot value of a corner lot at $2.50, which would re- duce (divide by 1.56) 'to. $1.60 in the middle of the block; that the tax as- Sessment Vs $1.25, reducing similarly to 80 cents; that the estimate, after considering - the kinds -of bulidings, the people and the-tendencies, places land in the middle of the block at $1.50 & square foot—31.60 plus 50 cents plus $1.50 is $3.90, divided bv 3. equals $1.30; reduced by one-fourth 98 or, in Tound num- bers, $1 a square foot; the lots next the corner would rate at $1.05 & foot, and the corner lot at:$1.85. This Jvould be a safe appraissl for loan- ng. . Valuing improvements does not neces- e ‘s’ knowl- The appraiser is to-determine what the improvements will bring in the market, not what they cost-to build or, will cost to reproduce, and, {In fact. the value of the improve: ments may be entirely out.of rela- tion to elther construction or to re- production cost. At the same time the appraiser cannot know too much about construction costs as a check on his own judgments. Computation of Values. In valuing improvements there are numbers of indicla of value—(1) income from improvements, (2) cost of construction, (3) cost of present reproduction, (4) quallty of construc- tion and present condition, (5) suit ability to neighborhood and neigh- borhood tendencies, (6) expense of maintenance, and (7) character of location. What u building produces fs gen- erally the acld test of its real value, If the building will yield $1,000 in rent it is earning on a value basls, if the land is worth $2,000, of $15.000 for the building. Take the example another way for greater clarity: Suppose we have a lot worth $2,000, 20x100 feet. and we erect a house on it costiig 315.000. We have a total investment” of $17,000. The ground should net & per cent, $100 a vear, and the building 6 per cent, $900—or $1,000 clear. Allowing an annual de- preciation of 3 per cent, $450, taxe@ $130, insurance $18, the building must rent for $140 a month to earn 6 per cent on the $15!000 building and & per cent on the $2.000 land valu When Buflding Becomes Ol When a building becomes old—in these days of rapid city changes that may not be so long—unless it can be remodeled, it may be an actual in- jury to the value of the land jt covers. But what a building cost originally to build is an clement to consider if has & present useful with, of course, due reduc- tions for the age of the structure. A building that is of good brick. weil constructed, in the mild climate of Washingtor may be currently valu- able fifty or seventy-five years if the nelghborhood has not changed too e small bearing, however, on the present market value What cost, if very old, Whether recent or older, the an- Main 5526 Nothing First Tim_e Thos. A. Jameson Co. nual depreciation -charge sheuld de from 13% to 3 per cent. The cost of - more pertinent bearing, and there is a simple method of obtaining it, gen- erally used by estimators and Leur- “"Take the area of the bullamg in al sauare feet. "Muitiply by the hefeht. thus obtaininlg the cublc contents of the whole structure. Then— If a two to four story brick, usual {ypo. figure at 15 to 25 cents & eublc oot If a ¥fireproof” small apartment house, without elevator, from 15 to 20 _cents a cublc foot. If a store bullding, steel beams, brick walls, but not 50 _cents a cuble foot. If a small apartment hout with elevator, fireproof stairways and mod- ern typé decorations, etc., 3§ to 76 cents a cubie foot. For example, a brick dwelling. seven rooms, two stories, the ground area being 1,044 square feet (1858 feet), height to cellar floor 30 feet, cubic feet 31,320, at 20 cents = eublc foot, $6,264. . There is a third element which none of the books on appraising see: consider, and yet which ev: cessful banker and lender give: consideration. It the element of the borrower himself. No man whose reputation s shady or who is a bad mansger or who is filghty and unreliable is a safe cus- tomer for a loan, no matter how good his property may be. Losns' for a bullding assoclation are intended to stay for a long time and to_be stead- ily "and certainly repald. Mést well managed bullding assoclations pride themselves on never having say fore- closures. Buch results ex- pected it the borrowers are mot a superior class—steady, honest. capa- ble and possessed of good or reason- able {ncomes. This does not mean that the bulld- ing and loan appraiser should turn down a poor man. To the contrary, the honest poor man, trying tq & and pay for a home and steadily em- ployed at reasonable w: exactly requirements and supplies rsonal element. The appraifer should investigate the borrower, quietly and discreetly, and be able to tell what sort of man he is, what his reasonable prospec are, and what likelihood there is that he can keep his payments up. Appraiser's Duty Stated. 1 really do not think the appraiser should make any recommendation as to the granting or withholding of the loans. The appraisers duty is to provide the facts and it s the busi- ness of the board to pass upon the facts. But if the appraiser does wish to make any recommendation it should be after he has gathered all the- facts as herein outlined and latd them before the board. Then, if. in the light of his own inquiry, he feels disposed to make a recommendatio he will receive, because his know! e will fully’ entitle him to it. a very respectful hearing, as one who really knows whereof he speaks. P g WET ASHES REDUCE DUST. To reduce the amount of dust in the home during winter it is a good idea to wet the ashes down in the range, heater or furnace before re- moving them fireproof, 30 to JUST COMPLETED 1006 Quincy St. N.W. (Just East of 13¢h) Open for Inspection Until 8:30 P.M. Baturdsy and Sunday 8ix Large Rooms—Spacious Porches— Buil-in Bath and Fistures—Open Pire- place—Side Lights—Oak Floors. BRICK GARAGE Price, $10,950 Easy Terms Ready for Ocoupancy Phose Owner, Col. 5424 Offered House 20 Feet Wide Inspect at Once 1120 & 1122 Holbrook St. N.E. 12-Sq. North of lith and Florida Ave. N.E. One is a corner House, 6 extra large rooms, tiled bath, h.-w. h., electric lights, hardwood floors, built-in ice box, wash trays, servants’ toilet and other extras. Double rear porches, wide ce- ment front porch. Built-in Garage Sold on Easy Terms © 806 New. York Avenue Better in This Location Exhibit House, 14 DESCR! Six large, out, outside pantry and butl eabinet, built-in ironing hoard sleeping porches. Owner an 1416 K Street N.W. Just One Block from 16th Street = 27 Varnum Street $13,250 IPTION spacious rooms, tiled bath and shower, extm shower in basement, attic over entire house, oak floors t-in ice box, white enamel kitchen and many other wi tares. Large concrete front porch, doubie rear porches, twe lot to wide alley. Open and Lighted Daily and Sundsy. Representstive on Premisss To Inspect—Take 14tk Street Car to Varnwm Street or Motor Oxt 16th Street to Varnum d Builder Realtors | | i SEEK HEIRS TO FORTUNE. Estate Estimated st $31,000,00 l ts 2 I 1 [ BIRMINGHAM, ‘Alx, Februsry 2. Claim of Alabams relatives to a shane in estates estimated at between $12,- 000,800 left by Edwin REEAL ESTATE. B..and Jobhn Drake Jennings of Chi- cago s being Investigatsd by Aris :utggjmfiusg. MWW Attorney. ot Ch y who arrived here yesterday. s Ahaong the claimants is Mrs. Nell Virginia Wood Dale. She says she has'papers to substantiate her claim. Mrs. Dale says she does not know Charles E. Miner of Louisville, Ky. ang. denles he is an helr to the for ufe. ’ i PLANS MUSIC COURSE. . Instruction. in, various_sleme mitsic not ‘usually ‘stresded average teacher of music was s 3 maude avsilable to children of Army officers on duty in th ton yesterday A cl w! e formed, accord! Lieut, Lewis, h}'av‘( er of' the Army Bans 1 dJ Stannard, Ing lead — pointment of the modern conveniences. quickly. 9 wood floors; h.-w.h.; elec.; rated throughout and in fine low type, stucco_over bri spacious porches; 7 large roo reasonable terms. 16th and Upshur S tive 2-story brick residence, h.-w.h, elec. Many special - If You Believe in the United States—. Bargain in Chevy Chase—$12,350; only $1,000 cash and $90 per month; beautiful detached 8-room house, bath, extra lavatory and.built- in 2-car garage; vapor heat, elec, and-all Lot Chevy Chase, D, C—Only $9850; very at- tractive colonial brick, containing 6 rooms and bath; sleeping porch; built- Corner on, Albemarle St.—Detached bunga- hardwood floors throughout; slate roof and many other features; brand-new house. ready for immediate occupancy. Price, $17,750. On 5.—$13.950. at a special price for immediate sale. for immediate occupancy., Terms. " Two Unusual Homes in Chevy Chase Open Tomorrow for Inspection! No. 5303 41st St.—Just North of Jenifer St. ®Very beautiful detached house on lot 50x130 feet in very desirable location; 7 “rooms, tile bath and. shower and first floor tile lavatosy, together with every ap- Moderate price and attractive terms. No. 5314 41st St.—Just North of Jenifer St. mExcellent 6-room amd bath brick, completely rendvated, redecorated, with h.-w.h., elec., sleeping porch: and built-in garage. Price $985%. Terms. Don’t Fail to See These Houses Tomorrow! fine modern residence. and Brookville 60x100. Act You Believe in Washington! Homes at “Wihtexj Prices” Chevy 'Chase, Md—Between Conn. Ave. road, near Chevy Chase Club, 2-story and attic detached residence; garage; porches; shrubbery; trees and large lot; best buy in this section at ). Mt. Pleasant—$12,500. Price greatly reduced $18,000. by owner, who must sell, 2-story brick, 8 rooms and 2 at_once. in garage; hard- Chevy Chase, entirely redeco- condition. Terms, porch; stone ck construction; ms with tile bath: 4 toilet, laundry. to_suit. garage; offered at a sacrifice. close to highest point and attractive rooms, tile bath and shower; Ist floor tiled lavatory; plete homes imaginable; on large lot. baths, h.-w.h, elec., built-in See this house D. C—$15,250. in Ideal location; C.; 7 large very large living hardwood fireplace; floors throughout house; large closets with lights, h.-w.h., elec., Pittsburg water heater, servants’ In fact, one of the most com- Terms Near 8th St. and Penna. Ave. S.E—$7,000. 2:story brick, 7 rooms and bath, property of An _attrac- 8 rooms, 2 baths, features; offered Ready arranged. anestate and must be sold. Terms. Near P0th and D-Sts. SE—$6250. 6-room and bath brick, furnace heat, offered at this low figure to-close an gstate. Terms can be It will pay you to see our offerings before you buy. WARCER 813 15th St. N.W. Member of Washington Real Estate Board The Newest Home Group BDor In EITH At 36th and R Sts. N.W. Somewhat larger than the other homes, though equal in every refinement and detail of finish. It is estimated by conservative authorities that this home should sell up to $8,850. " The same policies that controlled the price fixing of our other properties here still prevails, and we now . offer these homes at i As a cons_iflerable ‘number.-are already sold, we ! would advise immediate inspection. : : / A Moderate Cash Payment and $82.50 Monlhly Including AH Interest and Principal - " .TO INSPECT. By suto—Drive atrom the Q Street Bridfe, turn north ose block io R Strest and drive due west to 36th Strest {right next the Western High School Or take. P Street Car to 35th Street arid walk north so R Street, or Wisconsi Avenue car. to R Street, and vu_lk west to 36th SM