have, and tell them of your difficulties so that they may be in a position to solve your problem if you have one to solve. Supply your broker with this information as thoroughly as you would inform your lawyer in regard to the details of a legal claim.

CHAPTER LX

OBSERVATIONS ON SELLING REAL ESTATE

By BLAKE SNYDER

It may be said that the question, "Shall I sell?" is always confronting an owner. It is, indeed, often profitable or advisable to sell very soon after a property has been acquired, a prompt decision being necessary to take advantage of revealed conditions. The decision upon which success will hinge centers around picking the time to conclude the negotiations; in other words, deciding when to close the sale. While there is no formula that will take the place of thinking through a real estate problem, there are, however, certain questions which should form the basis of the selling policy of the watchful owner.

Purposes of Use. The ability to sell is to a very large degree dependent upon the trend of public opinion in regard to a certain type of property or locality, and an owner sensing any inherent weakness in either of these should avail himself of the advantages of any present favorable sentiment to market his property. We often come to feel that districts are oversold or over-extended and that property in those districts does not yield a surplus; an inspection of the district may reveal a trend in this direction which should be reckoned with; yet, on the other hand, one or two foreclosures and an occasional vacancy may evidence hard times rather than overexpansion.

The watchful owner will study carefully the purposes for which his own and similar property is being used, so that he may not overlook a cause for decrease in value or a likely deterioration. He should develop his powers of observance so that he may distinguish in the general trade movements or the population shifts, and other city's tendencies, the proper

course to pursue in selling or holding, rather than follow the common tendency to drift and be guided in their sale by impulse or necessity instead of by foresight and facts.

Ability to Hold.-The owner will consider the margin of equity in relation to his financial strength, the risk of a temporary break in income, possible difficulty of mortgage renewal, or any known pending demand requiring an additional investment of capital in the property, such as special assessments or alterations. Then he will measure his ability to meet the condition through his own strength or by reason of the inherent value of the property, or both; for inherent value may enable him to borrow enough to pay off his mortgage or mortgages or provide adequate capital to meet needs. He will consider well what other demands are likely to be made upon him, or what more profitable use could be made of the money invested in his equity by the advantage of having liquid finances. It is a well-known fact that the financial strength of an owner very often has a decided effect upon the price he can obtain, because buyers as well as brokers are always looking for an owner who is forced to sell and out of whose necessity they may drive an unusually good bargain.

A common tendency is for an owner to hold property which is so heavily mortgaged that his resources are not sufficient to protect it in adverse times, or which does not yield sufficient income to pay its way and provide for depreciation. The prospects of advancing value may justify either of these attitudes for a time; but unless an owner has so convinced himself of this, by a careful survey of conditions, it would be best to choose an opportune time to sell, and reinvest in something within his means to protect. For instance, the financial strain of holding vacant property with its continuous taxes and interest should be justified by something more tangible than a hope of increased value.

Balance Your Budgets. The wealth of many of our old American families has been conserved by wise and wellmanaged investments in real estate. There are a few estates, like those of the Astors' and Goelets', having the record of but a few sales throughout their real estate history. But the

policy of refusing to sell was always firmly linked with a tradition that no mortgages should be placed upon property unless justified by proposed improvements that would earn additional profits. It was also the practice of these estates to set aside regularly, for every mortgage, an amount of money sufficient to retire the indebtedness at maturity. By such safeguards as these, estates have been maintained in strong position so that it has never been necessary to sell at a sacrifice because of the danger of foreclosure.

Another reason for their great success has been the policy of balancing investments in unimproved property by sufficient income from tenanted buildings to pay all the charges for taxes and assessments that might accrue. Numberless estates have become bankrupt by failure to make such provision.

Determining the Price. We now come to the more particular points to be decided when property is placed upon the market for sale. The first of these is the price at which the property shall be offered. The factors that go to make the value of real estate have been discussed at length in the chapter on appraising, which indicates a scientific method by which a value can be determined.

The same factors that influence the judgment of a purchaser and form the basis of his decision as to price given should help determine the selling policy. The principles of both operations are the same, with the action reversed and the interest changed. The old saying, "Property well bought is half sold," is every day well justified, for the price at which a piece of property is offered has the same effect upon quickening a sale as when the price of merchandise is made attractive.

Give the buyer a chance: do not over-reach or hypnotize yourself into a belief in a fictitious value. Cultivate the ability to take a detached viewpoint on all phases of a transaction.

Do not think that yours is the only desirable property? On the other hand, you can generally find plenty of good opportunities for reinvesting your profits.

Put Property in Salable Shape.-Whenever a building or a vacant plot is offered for sale it should be put in salable

shape and maintained at all times in good condition. Prices are affected by an appearance of neglect, while a property which is clean and in good physical condition will always have much to recommend it.

Slight alterations, or additions, to a property are sometimes advisable in order to bring out an impression of its true value. Such changes often increase the obtainable price far beyond the cost of the work required and make the property more readily salable.

Make Short Leases on Old Buildings.-If you have an old building, likely to be sold or to be torn down and rebuilt, it is best to provide in any leases a favorable right of cancellation.

A provision to pay off mortgages prior to their due date will often make a sale or an improvement of the property easier because of the facility with which the required new loans can then be placed on the property.

Be a Good Listener.-When all the evidence for and against a sale has been carefully assembled, it still remains for the owner to use common sense in arriving at a decision.

Form the habit of being a good listener. When offering a property for sale one is brought into contact with many prospects, some of whom may indicate uses and values that may have been overlooked, or there may be pointed out reasons for appreciation or depreciation that had not before been considered.

Sentimental Value.-When you really want to or think you should sell, do not let pride of ownership or love for the property, through personal or family associations, give you a false idea of its value to others.

Be Ready with a Plan for Financing the Sale. When selling property the ability of the owner to accept as part payment a mortgage, either first, second, or third, on attractive terms, adds to the possibility of bringing about a sale at a good price. This is especially true in selling vacant property, where, in addition to taking back mortgages, an owner, in consideration of an agreement on the part of the purchaser to erect a building, may subordinate a certain portion of the purchase price to a first mortgage. In reality