Real Estate Principles and Practices by Philip Adolphus Benson

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Author
Philip Adolphus Benson
Publisher
Theclassics.Us
Date of release
Pages
128
ISBN
9781230737539
Binding
Paperback
Illustrations
Format
PDF, EPUB, MOBI, TXT, DOC
Rating
3
50

Book review

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 edition. Excerpt: ...may be stated as follows: (a) It should first be determined whether the building is the proper or adequate improvement, that is, whether it is the improvement which yields the greatest amount of economic or ground rent. Such a building will be the one which, as an income producer, is most suited to the neighborhood. (b) If a building is the adequate improvement for the plot it is worth its cost to produce minus a reasonable allowance for depreciation. (c) The cost of a building can be computed to a fair degree of accuracy by means of factors determined by experience. These factors are applied to the number of square feet of floor surface in the building, or to the number of cubic feet contained within its walls, the result being estimated cost. (d) Buildings cease to be adequate improvement when the land (i.e. the location) is suited for a building of a higher type. The condition is usually progressive and is indicated by increasing land values. (e) It is usual to value first the land and then the land and building together. The difference will be the amount of value the building adds to the land. In the case of new buildings and those which are the proper improvement the amount of value the building adds to the land equals the amount it cost to construct. In the case of old or obsolete buildings, or those not proper improvements for the site, it will be an amount much less than cost. (f) Consideration should be given to fluctuations in the cost of labor and materials entering into building construction. Buildings produced in periods of low costs, if they remain the proper improvement, increase in value with increasing costs, and conversely if they are produced when costs are high these values drop with falling labor and material costs....


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