Spencer Heath Archive

Item 2323

Letter to Heath from Douglas L. Elliman, President, Douglas L. Elliman & Co., 15 E. 49^th Street, New York City 17

August 2, 1950

 

 

 

 

Douglas L.Elliman & Co.

 

REAL ESTATE                                                                                     INSURANCE

15 EAST 49th STREET

NEW YORK 17. N. Y.

PLAZA  3-92OO

August 2, 1950

Dear Mr. Heath:

Your letter of the 26th, enclosing copy of “Romance of Realty”, was received and I have read the same with great interest.

 I am not sure that the plan you propose would be acceptable to the average real estate owner, who is usually a rugged individu­alist. It would probably be very difficult also to combine a number of properties at any uniform figure because the owners have such a vary­ing opinion as to value.

 Of course, there is one factor that I do not think you mention­ed, namely, that of additional value to the individual pieces by the combination into plottage. In appraising plots, we always give at least 10% additional value for plottage.

 I feel it would be difficult to persuade a group of owners in any block that their mutual interest lay in a combination at a uniform price.  Most owners have a firm belief that their property is the most valuable in the block, that it is a key piece or that it has some special value not attributable to the others.

 Otherwise, your argument that tenants are willing to pay more for special services rendered is sound, but what good would their willing­ness to pay be when the vicious rent laws would prevent any increase. Until we have a free market, any chance of improvement in the situa­tion is doubtful.

 With thanks for your courtesy in sending me this excellent treatise, I am

 

Sincerely yours,

(signed) Douglas L. Elliman

   DLE:K                               President