large proportion of all the wealth of modern nations. The commodity in which he deals is one concerning which expert knowledge is required in the public interest, and there is no assignable limit to the knowledge which is desirable. The more one knows, the more one is conscious of what is still to be learned. The ordinary purchaser needs expert help, rendered in the professional spirit of service. Needless losses amounting to hundreds of millions annually and countless human tragedies can be avoided and national prosperity promoted by proper land policies and in establishing and applying them the real estate dealers of the country must play a leading part.

The National Association of Real Estate Boards is composed of forward-looking real estate dealers who have professional aims. Their association has combined with the United Y. M. C. A. schools and the Institute for Research in Land Economics and Public Utilities to establish a course of study. At present a two-year curriculum has been worked out, but it is expected to elaborate this, and ultimately we shall have work beginning with texts of high school grades and going on to those appropriate for the college and university; and all supplemented by scientific research in this rich and almost unworked field of knowledge. To change the figure, what we know is only a small bay here and there; what we don't know is a mighty ocean.

While the present work is simple and elementary in character, as all the books in this two-year course are intended to be, it is scientific and lays a proper foundation for the work that is to follow.

Those interested in this undertaking and who desire further information and especially those inclined to help in the enterprise upon which national welfare and even national survival depend are invited to correspond with

one of the representatives of the three organizations in the Federation responsible for this undertaking, namely: Mr. T. H. Nelson, United Y. M. C. A. Schools, 347 Madison Avenue, New York City; Mr. E. M. Fisher, Educational Director, National Association of Real Estate Boards, Sterling Hall, Madison, Wisconsin, or the undersigned,

RICHARD T. ELY,

Director of the Institute for Research in Land Economics

and Public Utilities.

PREFACE

The rapid strides that are being made in raising the plane of the practice of real estate emphasize the need for information and general educational material on the subject. The day is rapidly passing when the untrained man is able to make an enviable success of this trade that is swiftly becoming a profession.

No one realizes this fact more than those who are engaged in the business. No one is more anxious for the men who expect to enter the real estate business to come to it with some training than those who have had to learn its difficulties through experience. The demand for informed real estate operators, brokers, and salesmen was never greater than it is now.

In view of this situation the National Association of Real Estate Boards called a conference on real estate education at Madison, Wisconsin, early in 1923. At that conference representatives of the United Y. M. C. A. Schools, the Institute for Research in Land Economics and Public Utilities, and the National Association of Real Estate Boards outlined and adopted a course in real estate practices and principles that could be used in educational institutions as a standard. The outline of this book was approved by the conference as suitable for the first elementary course designed to introduce the student to the whole field of real estate practice.

In the preparation of the material an effort has been made to keep in mind the needs of the man who expects

to enter the real estate business without experience, and the one who is already in the business but wants to make his work more effective. It is hoped that the book will exert influence toward greater effectiveness and uniformity in real estate practices.

At the urgent request of the conference at Madison, the text has been prepared with all possible haste so as to be available for classes starting in the autumn. In the work of preparation the author has been generously assisted by a large number of real estate dealers, who have given of their time and experience in going over both the plan of the book and the material to be contained in it. To all these he wishes to acknowledge his thanks.

Special assistance has also been given by Dr. Richard T. Ely, the editor of the book, at whose suggestion it was first undertaken.

The author is under deep obligations to the National Association of Real Estate Boards for putting at his service its entire organization and files for purposes of research and help, and for a generous allowance of time in which to produce the book.

Special acknowledgments are due to Mr. Paul E. Stark, Chairman of the Committee on Educational Courses of the National Association of Real Estate Boards, for making valuable suggestions regarding the outline and the point of view of the book, for reading the manuscript and suggesting many revisions of importance ; to Mr. Paul Loeber, Chairman of the Appraisal Committee, for making suggestions on the chapter on Valuation; to Mr. Hiram S. Cody, treasurer of the National Association, for reading the chapter on Financing and making suggestions on it; to Mr. Ivan O. Ackley, member of the Board of Directors, for assistance on the chapter on Building Operations; to General Nathan William MacChes