How To Handle Proximity To Airport?

[BarrySW1963]

1004 refinance assignment.

Subject and comps are within a mile of a municipal airport (no commercial or cargo traffic, but frequent light aircraft (Cessna-type and size) and some small jet traffic), and in the approach path. You can hear and see planes coming in throughout the day with some at night as well. Airport noise studies put the neighborhood outside (below) the formal noise 65 DNL (Day-Night Average Sound Level) contour threshold maps, with the FAA having established 65 DNL as the line between noise levels that are compatible and incompatible for residential areas.

I spoke to a few agents for the recent sales in the immediate neighborhood and they said no one mentions it or even asks. That may be because so much of the city is within a few miles of the airport and the typical aircraft is small.

Would you mark pg. 1 of the URAR with YES for adverse external site factors (because you can see and hear the planes), or NO, because the noise level is below the FAA threshold and therefore considered (by the FAA) to be compatible for residential use?

If I mark it as adverse location, I'll put that on the grid for the subject and all comps, with no adjustments for location and comment comment comment.

I'm inclined, however, to mark it as NO, because the FAA says the noise level is acceptable, and then disclose, disclose disclose. For the disclosure, I have the 2014 noise contour map that shows the neighborhood outside the boundary, the muni airport FAQ that describes types of traffic with no plans for commercial/cargo planes, and then states that although planes can seen and heard, the impact, if any, on selling prices is already accounted for in the selling prices of the comparable sales, as they are all in close proximity to the subject and similarly situated to the airport.

What would you do?

 

[sandpiperapp]

I think either way with adequate explanation would be considered reasonable.

Personally, I put the location as adverse with no adjustments as any potential effect on value is already reflected in the sales prices of the comps as long as all of the comps are equally effected by the airport.

 

[Mike Garrett RAA]

It may or may not be detrimental. Is the subject property in the approach path? Are the comparables similarly affected?

 

[Michigan CG]

I have a small city airport less than a mile from me and I only remember it when airplane noise is brought up on this site or on Saturdays when the hobbyists are flying and I happen to be outside.

Checking YES to adverse site condition (in my case) would be wrong as we rarely even know it is there and inside the house we can't hear it unless it is the helicopters once every month.

 

[jay trotta]

We have a similar airport in my work area and would agree on the No and short explanation. In our area it expands through two different towns and two different price ranges, with no lack of sales or price growth over the past 20+ years.

 

[J Grant]

I agree with the others. I'd only check adverse if the subject was in immediate proximity, such as backing the airport or within several blocks of it where noise might be more intense. Within a mile is a radius of influence, not direct adverse impact on the particular property. Explain that all the comps are within the same influence of airport proximity and any impact on marketability is seen in the sale prices and marketing times of the comps.

 

[Terrel L. Shields]

Most homes near our regional airport seem unaffected, most are below level of strip. It's home a mile or two away near the approach that seems to have the most noise.

 

[glenn walker]

No with explanation ** I live near a small airport and a large international airport and no measurable difference except the ones closest to the International airport actually get higher prices. Today with dual pane windows and insulation a person can live almost anywhere. Like they used to say in car sales there's an *** for every seat : ) LOL

 

[Mark K]

I'd mark it NO. My office is about 3 miles from a large airport and my service area includes many areas that are noise affected and I still mark them NO.

Many of the noise affected areas are also located along a major interstate highway. Nearly everyone I've talked with that live in those areas say that the highway noise is more bothersome than the planes. Planes come and go but the highway noise is 24/7. Neither seems to have any affect on value. It does affect the size of the potential market, i.e., number of buyers, but not the sales price. Some buyers won't buy in those areas at all but most others don't care. Sorta like living next to a cemetery or school.

Many studies have shown no effect on value in this area. Maybe because there's a large Fedex hub and a lot of employees live nearby and they gladly trade off a bit of noise for having only a 5-10 minute drive to work.

I note the airport proximity and noise in the report but also note the absence of effect on value. Use comps from the same area and your valuation should be credible.

 

[Deleted member 77547]

If your comparables are all located in similar proximity to the airport then the external obsolescence is already reflected in the sales prices as they all suffer similar adverse location. Having lived and appraised many homes around a major international airport, homes closer to the airport tended to sell with similar marketing time and price ranges for similar quality homes with those located further out. Thus, no measureable impact in value.