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Buying Home - Highway Construction Nearby

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dsd81

Freshman Member
Joined
Aug 13, 2017
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General Public
State
Indiana
We are closing on a home in Greenwood, IN in September and just found out the I-69 interstate expansion is scheduled to begin in a couple of years less than a mile west of our new home. From the plans, no homes in the neighborhood will be demolished and we will still have about 3-4 house rows between us and the highway. There will also be a on/off ramp just south of our home. I have three questions: Should bring up to my appraiser or should they already know? If they know, but the construction will not begin for a couple of years, will it have an impact on our appraisal now? Finally, does this typically lead to lower property values or higher values?
 

Elliott

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Apr 23, 2002
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Certified General Appraiser
State
Oregon
"The draft “couldn’t have been accomplished without the significant amount of public input we received from hundreds of citizens, elected officials and civic organizations along the corridor,” said Indiana Department of Transportation Commissioner Joe McGuinness, who is the former mayor of Franklin and grew up in the Center Grove area. “This draft study moves us closer to what’s been talked about for so, so long — finishing I-69 and having a free flow of traffic from Evansville to Indianapolis.”

http://www.dailyjournal.net/2017/03/25/i69_details_unveiled

Dsd,
As with most highway projects,especially federal ones, there have probably been plans and discussions about the project going on for years. The market is typically informed and behaves rationally. I would think most highway projects are beneficial to most properties in an area.....new exits, more lanes, new businesses. I seriously doubt a residential appraiser is going to make or a lender is going to expect an adjustment for the I-69 project since it generally benefits the whole area.
 
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glenn walker

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Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
You never really know until it's finished and you actually see how the traffic flows effect the area** Where I live being close to major freeways and highways is a positive especially if a good percentage of the population has 1 to 2 hour commutes to work centers. The same goes for metro-rail - back in the old days living next to a train track was considered a negative now the buyers are paying a premium if they can find a home where they can walk or bike to the train.
 

Mark K

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Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
If there's any effect on value, its usually during the construction phase where traffic is rerouted and snarled. After that, I don't think its going to be an issue for most of the owners in your area, especially if you're close enough for the benefit of the interchange but far enough away so the noise isn't overwhelming. For the most part, if you can't look out the window of the house or see it from your patio, there's little or no effect on value.

I've done some appraisal work for the 69 corridor so I'm pretty familiar with the area. When you consider how bad the traffic currently is on SR 37, especially at the I-465 interchange, I think 69 will be a huge improvement, sorta like the US 31 corridor in Carmel that has recently been upgraded to interstate standards.

Preliminary construction (moving utilities, right of way acquisition and demolition, etc.) in your area will probably start in the next 2-3 years but it will take probably take another 3-5 years to complete. If its done before 2025 I'll be surprised. Hopefully they'll build it more quickly than the current section underway from Bloomington to Martinsville that is moving at a snail's pace.
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I've not seen any impact of value except at interchanges were land is bought at any price just to build a C store or other commercial building. That far away I doubt any impact is going to happen but there are unique situations and as a consequence there may be pockets of property that are particularly affected by echoing or noise from the road...but ask the appraiser if they know where the road is going to be. That is a subtle way for them to get informed.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
If you were an appraiser, you could find existing neighborhoods that have a similar proximity to a freeway on/off ramp as you will have and then do a little analysis to see how those prices compare with homes closer and further from the freeway.
As a member of the general public, you could hire an appraiser to do that for you if you were really interested in finding out.
Or, you could drive such a neighborhood, see if there are any homes for sale, and call the Realtor and ask them (they should know as they should have taken into consideration any positive or negative that might exist).
 

dsd81

Freshman Member
Joined
Aug 13, 2017
Professional Status
General Public
State
Indiana
All, Thank you for the thoughtful and informative replies!! This confirms what we thought and what our real estate agent advised. I am not really concerned about property values dropping due to construction because it's relatively temporary and plan on living in this home for, at least, the next 20 years. Nor, am I concerned about the highway possibly decreasing the property value many years from now because we can't predict the future and most anywhere we choose to live could have an external event like this happen. Even if the value drops some, I'm fine with that. I was worried about a drastic drop in value that I could never rise above. From your responses, it sounds like our appraiser should have a grasp on the local situation already but, Terrel, I'm going to take your advise and ask a subtle question to just make sure. This is a VA loan and the lender is setting up the appraisal so much of my worry is due to not arranging the appraisal myself.

Other than the appraisal concerns, I'm still really excited about this home and I actually think the road improvement will be beneficial. IN-37 has always been a bear to deal with since it connects with 465 at the largest truck stop in the state and, with all of that logistical traffic, it probably should be a super highway to get rid of the intersections. However, Mark, I agree with you and I hope the construction on this last section improves. I have friends in Bloomington that complain about all of the serious accidents due to the construction and I can't believe they are so far off schedule!

Anyway, you all rock!! I wish I would have known about this forum years ago. Thanks again for the great advice!
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
...., it probably should be a super highway to get rid of the intersections...

It will be built to interstate standards; no at-grade intersections, just on-off ramps, basic interstate highway interchanges. No stoplights from Evansville to Flint, MI.... not that there's any reason to go to Flint.
 
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JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
As with most highway projects,especially federal ones, there have probably been plans and discussions about the project going on for years. The market is typically informed and behaves rationally. I would think most highway projects are beneficial to most properties in an area.....new exits, more lanes, new businesses.

Well said.
 
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