withdrawing competition. To overcome this, the choice of the properties was sold, the bidder having the right to take one or more of the houses. This nullified their efforts to

obtain them at a low figure.

The old adage that every man has a right to his own opinion and a right to express that opinion is never more true than at an auction sale. No auctioneer should refuse to consider any bid made by anybody, for every bid tends to raise the price. Just as it depends upon the number of rungs on a ladder how high the ladder will reach, so it depends upon the number of bidders you can get as to what the property will bring. The auctioneer's best assets are bidders who know that he is prepared to listen to them, to accept their bids, and to give them a fair and square deal, without fear or favor.

The climax of a sale requires ability, energy, concentration, and alertness, as the auctioneer is endeavoring to get the highest possible figure. It reminds one of the angling to catch and land a five-pound bass; but, oh, what satisfaction when success is achieved!

After the Sale.-The first thing is to have the contract of sale signed. Below is a sample which can be remodeled to suit the different parts of America:

The buyer shall pay whatever deposit required, and approve of this sale in form and manner following, to wit:

I, the undersigned, do hereby acknowledge to have this day bought the property above described for the sum of. . . . .

and Auction Fees added, subject to the terms and conditions herein declared, now confirmed, and which were fully described, explained and read out before the sale, and thoroughly understood by me before buying. Buyer's signature..

Buyer's address.

Vendor's signature.

Vendor's address.

Witness' signature.
Witness' address.

Auctioneer.

In the above you will notice one important thing, and that is, in the Province of Quebec the buyer has to pay the Government 1 per cent, which is a handicap to the auctioneer,

for many a "canny Scot" (as well as others) considers it when making his bids.

Then there is the receipt given by the auctioneer to the buyer, which is as follows:

Property sold.

Montreal.

AUCTION RECEIPT

. 1923

The amount for which this property was sold by the Auctioneer is the amount specified opposite the buyer's name and address, i.e..

form and manner following:

The buyer approves of this sale in

"I, the undersigned, do hereby acknowledge to have this day bought the property above mentioned for the sum shown opposite my name and address, and Auction Fees added, subject to the terms and conditions herein declared, now confirmed, and which were fully described, explained and read out before the sale, and thoroughly understood by me before buying, and I hereby make the necessary deposit and approve of the sale. Amount deposited. Buyer's signature. Buyer's address.

Auctioneer's signature..

The advertising department should immediately make a folder, with copies of all the different advertisements, circulars, circular letters, etc., and the total cost thereof, and file this away for future reference. Then, when anybody wishing to put on an auction sale comes in, show him exactly what can be done and the cost.

The mailing department should secure new names for future lists.

Some people hesitate to put up their property at auction, fearing that, in the event of its not reaching a sufficiently high figure, it might be a detriment to the future sale of the property. Thirty years of auctioneering has proved that auction advertising has the effect of causing people to be attracted to the property, and although it may not be sold at the auction sale, good leads are secured to "follow up" and a sale may be eventually closed. Thus, an auction sale. is an indirect method of approach to a direct sale.

CHAPTER LVIII

SELLING COMMERCIAL PROPERTY

By ALBERT B. ASHFORTH

1

Real Estate Values Past and Present.-The increase in real estate values in some cases is almost incredible-for example, when one compares the terms of the purchase of Manhattan Island from the Indians with the present prices for real estate in New York City. It might be natural to believe, however, that the romance in the development of New York real estate is near its end and that a more or less static condition has been reached. Yet in the year 1900 the taxes paid on real estate in Manhattan Island amounted to only $46,404,723.36, while the real estate taxes levied for the year 1923 were $306,330,347.34, an increase of more than six and one-half times in twenty-three years.

While this increase in return from the tax levy has been going on, the Borough of Manhattan has naturally not increased proportionately in area. This enormous increase in real estate taxes is made up for the great part from the tax levied on new commercial structures. Twenty years ago there was scarcely a building above Fourteenth Street, and but few

1 Albert B. Ashforth, New York, N. Y. President, Albert B. Ashforth, Inc. Mr. Ashforth started in the real estate business in 1890. In 1896, he formed his own company under the name of Ashforth and Durye, having associated with him, Harvey D. Durye. In 1901, Mr. Durye resigned and Mr. Ashforth continued the firm under the name of Albert B. Ashforth, until it was incorporated in 1910. He was President of the Real Estate Board of New York in 1913, and is associated with the following companies: President, Albert B. Ashforth, Inc.; President, 12 East 44th Street Corporation; Vice-President and Trustee, North River Savings Bank; Director, National Surety Company; Director, Colonial Iron Company; Director and Treasurer, Alclimac Realty Company. During the War, as a Dollar a Year Man, he was Assistant Enemy Alien Custodian of Real Estate.

below that street. which could be described as a commercial structure; yet observe the development of this type of building north of Fourteenth Street today. Many of the tenants for these buildings have been supplied by the growth of the city's industries. The centralization in a particular locality of other industries and the increased number of out-of-town concerns who have found it to their advantage to have their executive or entire organization in New York, have combined to create a constant demand for space. This demand has been for the past few years in excess of the supply.

The Broker's Place in the Development of Real Estate Values. In the development and building of the commercial structure, the real estate broker has been a most important factor. It has been his initiative, his vision, and his thorough analysis of the trend of business conditions which have convinced the investor of the need for these buildings and of their soundness as an investment. Following their construction, the real estate broker has figured also in an equally important manner. It has been his ability to market the commodity his vision and foresight have helped create which has made further development possible.

It is difficult to give any specific rules which will serve the broker as a helpful guide in carrying through a building project, for each building must be considered upon its individual merits. Yet, it may be of value to state the general information the real estate broker must have in order to undertake such a problem with a fair hope of success.

What a Real Estate Broker Should Know.-He should know the Zoning Law, the Tenement House Law, the Building and Fire Department requirements, the Labor Laws, the Building Code, and all other City Department regulations that govern the erection and the maintenance of buildings. He should be familiar with changing locations; with present and future developments, and with the trend of business and transient possibilities. He should be informed accurately and in detail of the selling prices and the various rentals of property in the neighborhood similar to the proposed building. He should be able to plan and to lay out roughly the contemplated improvement of the property he hopes to market.

He should be able to estimate approximately the cost of the improvement. He should have a complete list of the known buyers and builders of the type of structure contemplated, so that, if a particular client he has in mind is not interested, he may immediately present the proposition to another investor.

After the acquirement of this general information there remains the practical work of applying this knowledge to the search for the investor. Here years of experience yield but few guiding principles other than those common to good salesmanship. Too much emphasis cannot be placed, however, upon a most thorough and painstaking study of details. For example, every site in the district must be investigated. It would not augur well for the broker's success to learn from the investor that a similar site near the proposed building could be purchased for several thousand dollars less. Similarly, in every other phase of the project, the most thorough preparation is necessary.

It may not be amiss here to note that the marketing of real estate is a problem vastly different from the marketing of some other commodities, in that ability to sell real estate can be acquired only by long experience. The selling of a manufactured article may be left in the hands of a $25-a-week clerk, who may acquire the ability to be a good salesman in a few weeks. To be an expert real estate salesman a thorough training of many years' selling experience is necessary. Often a man who has had some training in salesmanship makes a good real estate man, but as a rule he must also be first thoroughly equipped with the real estate knowledge outlined in the previous pages. Above all, he must be prepared for discouragement. It is an unfailing law that one's reward is measured in proportion to the amount of knowledge and energy expended, but there are few professions where the resultant reward is so ample.

Take the case of the manufacturer, who is obliged to have a large money investment. He is harassed by strikes, worried over the purchase of raw material at the right price, subject to break-downs in plant and machinery, changes in freight