In The Eyes Of The Beholder

[bbr711]

Appraising a property located adjacent to a stone quarry. The quarry opens at 6:30 am Monday through Friday, closing at 4:30 pm. They “crush” every 3rd week, which is a rather noisy process. Otherwise they move and load gravel and sand through the week. Which may also be a noisy process. Not to mention truck traffic...

Curiously, it seems that folk who purchase properties adjacent to such features pay them no mind.

The property at hand was on market only a few days before going under contract at asking price. At present, a buffer of trees protects the property from a quarry sighting. This buffer may not be so effective come fall and winter.

I’ve located 5 such quarries within a 25-mile radius and analyzed adjacent residential sales data, reaching back 3 years, and I can’t determine any consistent effect these things have on property value and/or marketing times. I’ve also analyzed data for properties adjacent to railroad tracks, again finding no clear effects... These are rural quarries and railways and, thus, rural residential properties.

Adverse external factor? Yes, I think so.
External Obsolescence? Market data indicate no consistent value/marketability impact in this general area, so (considering AI’s definition of EO), I have to say no.

What do you think?

 

[Michigan CG]

We have a bunch of them around here. No one cares.

 

[J Grant]

If the market says no, then no. Describe it well though so nobody can accuse you of being misleading. Get comps with similar quarry proximity to demonstrate market acceptance. Are days on market similar for quarry vs non quarry adjacent properties? Short DOM for subject indicates no additional DOM or maybe even a preference, due to tree buffers/privacy from neighbors.

I've also seen properties back up to power lines and other oddball stuff that "should" be an adverse impact but turns out not to be...imo a few factors at hand 1) no rear or side neighbors is a big plus for some buyers 2) the kind of buyers drawn to these properties may even see them as a positive, perhaps they own big vehicles themselves or work at home in a noisy workshop and dont' want neighbors complaining.

For example, the house I appraised backed up to what were to me, very ugly tall high towers for power lines. The buyer bought it same price other properties sold for (though on market longer ). When I asked why, they owned all terrain dirt vehicles they liked to ride along the power line easement.