Is There A Standard Adjustment For A Residential Appraisal With A New Environmental Issue With In 90

[Kick Back]

Is there a standard adjustment For a residential appraisal with a new environmental issue with in 900 feet?

 

[Terrel L. Shields]

No, but a little explanation of the situation would help. FHA, etc. requirements expect the appraisal to report potential environmental hazards if known.

 

[Meandering]

environmental issues vary in the hazards, the ability to, and length of time, to clean.

You wouldn't expect the same decrease in value for a property in the Chernobyl zone as the property where the oil man spilled the heating oil outside the tank.

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[Kick Back]

No, but a little explanation of the situation would help. FHA, etc. requirements expect the appraisal to report potential environmental hazards if known.

I have a brand new open pit rock quarry it is just opened up next to my very nice home. They are blasting at least once a week and it shakes the whole house! There a rock crusher runs five days a week 10 hours a day or more. The dust from the plant crushing the rock, from the trucks coming in and out of the plant, and moving new dirt making room for more rock storage. I’m on a total of approximately 100 acres. My home is Approximately 2000 feet from the blasting. One of my rental homes is approximately 900 feet from the blasting.

 

[Kick Back]

I have a brand new open pit rock quarry it is just opened up next to my very nice home. They are blasting at least once a week and it shakes the whole house! There a rock crusher runs five days a week 10 hours a day or more. The dust from the plant crushing the rock, from the trucks coming in and out of the plant, and moving new dirt making room for more rock storage. I’m on a total of approximately 100 acres. My home is Approximately 2000 feet from the blasting. One of my rental homes is approximately 900 feet from the blasting.

I forgot to say thank you for responding. Please forgive me.

 

[Michigan CG]

Is there a standard adjustment For a residential appraisal with a new environmental issue with in 900 feet?

There is no standard adjustment for anything in appraising. It is all based on market reaction.

 

[Kick Back]

environmental issues vary in the hazards, the ability to, and length of time, to clean.

You wouldn't expect the same decrease in value for a property in the Chernobyl zone as the property where the oil man spilled the heating oil outside the tank.

.

Thank you for responding.
I have a brand new open pit rock quarry it is just opened up next to my very nice home. They are blasting at least once a week and it shakes the whole house! There a rock crusher runs five days a week 10 hours a day or more. The dust from the plant crushing the rock, from the trucks coming in and out of the plant, and moving new dirt making room for more rock storage. I’m on a total of approximately 100 acres. My home is Approximately 2000 feet from the blasting. One of my rental homes is approximately 900 feet from the blasting.

 

[Kick Back]

There is no standard adjustment for anything in appraising. It is all based on market reaction.

Thank you for responding. It’s not exactly what I wanted to hear. I was hoping for something a little bit more black-and-white.
Could you explain to me a little bit more about market reaction? Again I really appreciate you responding.

 

[George Hatch]

Market reaction will amount to how buyers/sellers react to this proximate influence. An appraiser might attempt to quantify this reaction by seeking out other such examples - locally, if available; or less local if not available.

The first questions I would have in this situation is how much noise or risk from flying debris to your property and how long it can be reasonably expected to continue. The next questions I would have would be what the price or rent ranges are on these units and what the availability is in the area for the alternatives.

The reason I'd be considering price and rental ranges is because adverse influences sometimes have different effects on market participants at the different pricing levels. So how the typical rental tenant for your second unit (at 900sf) would react might be different than how a rental tenant for a 4,000sf home in that same spot would react.

These are all questions to be carefully researched and analyzed, not assumptions to make.

 

[Michigan CG]

Market reaction is measured locally. One must find sales of homes that are similar that have sold with and without a certain influence (good or bad).

Subject house is a 1,200 SF home built in 1980 and in good condition. A new rock quarry locates just down the street.

In the ideal situation the appraiser will find sales of 1,200 SF homes in good condition that have sold next to rock quarries and ones that have sold that are not next to rock quarries and measure the market reaction.