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Oil Refineries

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Lee SW IL

Thread Starter
Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
If an oil refineries are within say 0-2 miles of a subject property do you mention it?

If so, where would you mention it?

I have a copy of an appraisal that has two refineries less than one mile from the subject home. No mention of the refineries in the report. I normally mention in the subject neighborhood section.

The comparables used are taken within the same market area. So this would be typical for the area, but I feel this is not describing the area.

Thanks
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Pam,

Had that happen here .. did one downwind from the Knolls Atomic Power Labs. Made mention that streetlights were unnecessary, as everything glowed in the dark .. tore up the U/W something terrible ..
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Lee;
I'm tappin the old noodle here, but I think Refineries-fall under the old "Super Lein Laws" of the 1980's which are some serious obligation's for the owners; secondly, since the late 80's & early/mid 90's take backs, the Banks have changed all the language in the newly drafted mortgage documents, so I don't know what negative impact it presents as far as "marketability" goes.

Have any other dwellings in the area "Sold", if so whats the negativity :?:

Lastly, if your using a "Multi-Purpose Addendum" within your software it should have an area that address's that issue and all they want to know is if it exists-don't know where it goes from there. :?

Good Luck 8)
 

Lee SW IL

Thread Starter
Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Other homes have sold in the area, but that is not my question. Shouldn't Oil refineries, industrial factories, Hospitals, Parks ect, be mentioned? Negitive or positive values should the market area be described?

I'm not doing an appraisal on the property, I was asked to look at this appraisal. Im just curious if others mention it and how, I do mention it in my reports.


Thx Lee
 

xmrdfghap

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Florida
In a summary report I would, for the sake of brevity, not include any information concerning refineries a couple of miles away so long as all comparables are subject to the same influence. I would treat it the same as any other major industry. Perhaps in the neighborhood comments section you might mention the neighborhood is adjacent to an industrial area including heavy manufacturing and refining.....but for the type of housing often found in such areas, the proximity to work is an advantage.

Needless to say, I would do a full analysis of the impact of the refinery and any other industrial and commercial areas near the subject were it to be a narrative.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
For what it is worth I would make at least a mention of it. I can't say that you should or shouldn't but I would rather my lender know that now in case they ended up owning the house. It would make me feel better.

We have an area where a land fill is close to a rural neighborhood. I can find no effect on values in the area but I always mention it is nearby.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Lee;
Ok, "NOW" your saying your *NOT doing an appraisal and someone has asked you to look :roll: at the report 8O

Bad Move On Your Part :x

First off, you need to address the issue :?

Do you know what USPAP is :?:
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
I would mention it in my report, but would also state that the sales came from the same area and have the same impact or suffer the same external depreciation (if any). Fannie and Freddie will take a loan near the facility as long as there is current market data.

Mell.

P.S. Those things are a common site in north Macon, new neighborhoods and houses built all round. The only problem I have ever heard of was when some smart guy decided to try and get free gas by tapping into a supply line with a garden hose. Thank God he was not a smoker.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Mell;
garden hose tap, 8O I like that, gives you the feeling of security right here at home donit; which space shuttle came by and dumped their brainless & confused :?: which ever one it was has left an awfull lot of debris here, scattered about :lol: :lol:
 
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