Evening Star Newspaper, January 26, 1929, Page 19

REAT TESTATED THE EVENING APPRAISING CALLED SPECIALIZED FIELD Worth of Skilled Opinions on Values of Real Estate Cited by Lawson. ‘The appraisal of real cstate, it was inted out by Alfred H. Lawson at the . M. C. A. real estate class Monday, is a specialized field, and as such it includes the esti- mating of the value of land, building: parts of buildings and leascholds, Mr. Lawson stated that opinions of real estate vzlue have become market- able in the business world and as prop- erties become more complex and their values harder to determine, the im- portance of the “offhand” appraiser dimishes, It is quite easy for one slightly familiar with “real estate values, it was pointed out, to make & fair appraisal on a dwelling, but when the same person undertakes to appraise & valuable downtown or commercial roperty, it is impossible because of ack of requisite skill and experience. It was brought out that the occa- sions for appraising are numerous, chief among them being the sale or pur- chase of a piece of property which might depend upon an appraisal and which should be made upon the basis of the fair cash market value. In addition, Mr. Lawson stated, appraisals are made to determine rental value under a long term lease, property held for estates, determining rental for a department in a store in order to cor- rectly charge such a department in its cost accounting department; determin. ing the assets for inheritance tax pur- poses: distribution of assets under wills for income tax; establishig rates foi public utilities; for taxation purpos and for condemnation purposes. M A. H. Lawson, | building and engineering work in Bal- | taled $4.866,400, according to figures | gain of 24 per cent over the total ¢f { December, 1 of a piece of real estate is “the price which a seller who is willing and able, | but not compelled to sell, will accept | for his property from a purchaser who is willing and able but not compelled | to buy.” Assumptions Are Listed. It was pointed out by Mr. Lawson | that in appraising an income producing | property that the appraiser must make the m or the length of time which e before placing a new building on the site, the extent of the present net income; the selection of im- | provements which' will represent the i highest and best use of the propert the determination of the actual costs involved in changing the improvement the assumed gross rental which will | ductions in the form of operating e: penses, taxes and depreciation which will be incurred in the operation of the new building. In the appraisal of residential prop- erly there are a number of elements | to be considered, Mr. Lawson stated. | prominent among them being natura advaniages, civic advantages, the ra and state of the city's growth and the character of the community. Comparison Cited. One of the best and surest ways| to determine the value of real estate Mr. Lawson said, is by compariso | usually called the method of “com- parative value,” which Involves the | | principle of uniformity, by which is | | meant the established district s | | characterized by a basic or fundamental | value. The utilities of sites, it was| brought out, are similar_because the firms attracted to the dist similar requirements for sit | factors apply in_determining the long- | time value of all the lots. { | " The effect of speculation upon the | | value of land is far-reaching,’Mr. Law- | son_stated, as individuals are lured | | by the rapid rise in property valucs | to speculate in real estate, and inves ments in land are frequently made not with the purpose of using the land so much as with the purpose of re- selling it at a profit. BUILDING GAIN SHOWN. Special Dispatch to The Star. BALTIMORE, January | te 26.—New timore contracted for in December to- f the building inspector’s office. A 7, and 13 per cent over Lawson explained that courts have held that the fair cash market value 4443 FESSENDEN ST. (WEST CHE CORNER BRICK HOME $9.750 English type—admirably located in the path of daily in- creasing values. A little beyon restricted developments, All values of surrounding properties. Semi-detached, six large tub and shower, oak floors throughout. Fully screened, auto- matic gas water heater. Garage. and the many attractive casement windows give a warmth and cheerfulness not found in INSPECT (DRIVE WEST ON FESSENDEN ST. FROM WISCONSIN AVE.) National Mortga 1004 Vt. Ave. A New Marietta Park Semi-Detached Homes Newest Frigidaire & Detached Garage 27 Built—18 Sold Prices $8,950 up Exhibit Home 413 Madison St. OREST HILLS | Qverlooking | ROCK CREEK PARK In setting and environment, in archi- tecture and finish—this unique stone res- idence sets a new m the price. 2831 Chesterficld Place Individually built, center-hall pian, 6 bed fully wooded lot, 100. aarc St fiel cast to Linnean Az Ild Place. OPEN AND HEATED ALL DAY SUNDAY HEDGES & M 1412 Eye St. N.W. $h Reached wia Conn, . 'e., then north to Che November, 192 port said was registered, the re- VY CHASE) d is Kenwood and other highly of which greatly enhance the rooms and bath with built-in The southoarn exposure many homes. SUNDAY ge & Inv. Corp. Main 5833 Showing - Textone Walls Throughovt Wood-burning Fire- places ' Tiled Baths with Built-in Tubs Built-in Showers Paved Streets And Alleys ark of achiceement at of stone room ft. fron and cenent, 3 baths, wonder- tge and two-car . to Albemarle ter- IDDLETON, INC. Franklin 9503 Realtors | be produced and the toial annual de- | STAR; WASHINGTON, D. €, SATURDAY. TANUARY 926, 1 7 AVIATION IN REALTY FIELD EMPHASIZED New Factor to Be Consid- ered in Present-Day Utilization. BIRMINGHAM, Ala., January 26— ation as a factor to be considered in y utilization of real estate was | emphasized in the address which Harry H. Culver of Culver City and Los Angeles, Calif., gave here before the delegates at_the annual business meet- ing of the National Association of Real Esfate Boar of president for the coming year. “Railroads are buying additional yard- age for aircraft.” he pointed out. “Manu- facture of light articles are moving to airports. Homes adjoining airports are giving way to hotels, apartments and restaurants, Executive offices are being ’| erected on the fields. “As the automobile extended metro- politan are: so that villages 30 miles 2 when he took the officé®| from our city centers became parts of that city, so will the airplane shift and expand realty holdings in all directions.” Mr. Culver deplored the “cumbersome laws and red tape” retarding the sale of real estate, and urged members of the association to work for an climina- tion of obsolete provisions in laws gov- erning property transfer. “A million dollars’ worth of bonds can be purchased in one hour,” he said. “The transfer of automobiles consumes only a trifle more time, but the tran fer of real property is surrounded by legal safeguards and technicalitics, some of which are wise and necessary, but many of which are a heritage from the distant past and do not fit modern conditions. “The instruments of finance used in real estate are in many States sur- rounded by legal limitations which re- tard the free flow of money and pre- vent adjustment of the relationship between buyer and lender on a busi- ness-like basis governed by economic considerations. The result is that cer- tain types of real estate financing are unnecessarily difficult to obtain and are costly. It is tmportant that we study this problem and that we find a ketter solution than now exists. “Increased development of building and loan associations will be helpful in many communities. The co-opera- tion of banks, their participation in real estate loans and in the sale of these loans, will also in many cases be UNIFORM REALTY STATUTES ADVISED Simplification of Laws Gov- erning “Difficult Com- modity” Urged. BIRMINGHAM, Ala,, January 26.— | Simplification of the laws governing |real estate in the various States so that real estate will not remain, as some one has said, “the most difficult of all commodities to transfer,” and uniformity for these laws should be the central aims for real estate for 1929, Henry G. Zander, Chicago, retir- ing president of the National Associa- tion of Real Estate Boards, emphasized in his report for 1928, given before delegates of member boards at the an- nual business meeting, which was con- cluded here yesterday. “Elimination of discrimination against real estate in the Federal income tax laws must be secured,” Mr. Zander con- helpful,” he said. tinued. “Especially must we work for 4% feet wide at the RIGHT POINT The additional four feet in width—I added to this house, gives you rooms of excep- tional size, This house, at its price, with a one-car brick garage, is, according to experts in the Real Estate Business, the greatest buy offered to the public in recent years, Exhibit house, 4212 37th St. N.W. Open, heated and lighted until 9 P.M. To inspect drive out Connecticut Ave. to Van Ness St., west to 37th St., or out Wisconsin Ave. to Van Ness St., east to 37th St. N.W. WALTER A. DUNIGAN National 9530 QIX big porches the well equip, toilet, etc. EXHIBIT HOME National 925 15th St. N.W. National 9530 S 235 a reduction of the rate on capital gains and the treatment of commissions paid for making of long-term leases.” Commenting on the outlook for real es:.:te at the present time, Mr. Zander said: “I think conditions are sound, more 50 than they were three or four years ago, when I felt that our activity was above normal. “Money for real estate development is everywhere obtainable. Indeed, the growth of capital wealth in our country, which amounts to some $7,500,000,000 per year, has now reached such pro- portions that in good real estate mort- gages the demand exceeds the supply. Building is still continuing at a whole- same rate, and will, in my opinion, be still more active next year. New liv- ing standards in America are creating demands for a new type of housing in dwellings and in business structures and in factories.” Measurable advancement made . dur- ing the past year alone in grasp of basic facts about real estate, in better- ment of legislation affecting real prop-: PEAAIANA PR s ie SR «~ REATESTATE: erty, and in the establishment of high standards of business practice has been so great as to justify effort made under the leadership of the association in the 21 years it has been in existence, Mr. Zander said. Federal legislation affecting real property and removing handicaps on the sale of real estate was the chief gain made during the year, he said. Mr. Zander included in his report the following: “An inclusion in the Federal revenue act permitting the classification on a sale of real estate on an installment basis if the payments received dur- ing a calendar year did not exceed 40 per cent of the selling price, instead of the 25 per cent provision hitherto in effect. “Retroactive relief for real estate syn- dicates and trusts with respect to taxes already due and payable to the Govern- ment under the Federal income tax law. This has affected a direct saving to owners of real estate of a sum es- timated variously from $100,000,000 to $150,00( e NI NS EK, First Time Offered for Sale Opposite the N ational Cathedral Massachusetts Avenue Park No. 2911 34th Street Just completed and ready for occupancy. Here you will find an outstanding example of a true center-hall Colonial Home— graced by dignity of line and generous scale. The price, which is ., 19 LUMBER DEMAND GANS. National Association Reveals 20 Per Cent Increase. A lumber demand more than 20 per cent greater than that shown during the previous week was indicated for the third week of the new year by re- ports from 807 hardwood and softwood mills to the National Lumber Manufac- turers’,Assoclation for the week ended January 19. Aggregate new business in both the hardwood and softwood fields called for 417,281,000 feet, which represents not only a strong recovery from the holiday season (a 20 per cent increase having been reported for the week end- ed January 12), but an unusually high demand in itself. cELmee o Ulster's bill for giving the vote to women over 21 has been placed before the House of Commons. AR ARG RGN RR AR FRA I AIR A IR RE AR RGRARGHARN under $30,000, is the builder’s realization of offering a new home of character at a modest figure. Pantry—closets. Covered porch. P § Huge living room 25x14. Colonial fireplace. Dining room 16.3x14. Sun Parlor 14x12. First floor lavatory. Oak floors throughout. Two-car built-in garage. Features Included: Four Slate roof. Open all day Sunday Exclusive Agents Avenue % i Fifth and F arragut Streets rooms, three big — plenty of closet space; a cold storage pantry of f ped Eitchen. A bath that is exceptional —tiled —with built-in fixtures Light, airy cellar—laundry tubs, Nice back yards and —A GARAGE. and shower. & \ e b Phone 1267 5024 Fifth Street N.W ‘8,950 Easy monthly payments—just like rent— make it possible to own these homes for the money you now pay as rent. Every effort is made to meet your requirements and con- venience. .D. J. DUNIGAN, Inc. C elevation. ms, generous bedroos 24x14, 18x12, 14x14, 14x12.8. Two tile baths. Large cedar closets. Sleeping porch. Attic with 2 finished rooms. Maid’s room and bath. Choice fixtures. Schwab, Valk & Canby 108 Connectious Potomac 830 unigan’s Petworth Homes Open Every Day and Evenings Till 9 P.M. ONVENIENT to cars, busses, schools and stores. Just off Kansas Ave- Good nue, a double roadway boulevard. Streets and alleys are paved—in fact, all improvements, includ- ing streets, alleys, curbing, side- walks, sewer and water, are made and paid for. There can be NO SPECIAL TAXES. 1319 New York Avel_xue