Railroad Tracks

[zpbkitten]

I have a house on 1 acre in Macon, GA. Built in 2004 with approx. 3,200 sq. ft. There are operational railroad tracks across the street from the house. There is at least half an acre betwwen the house and railroad tracks. I have been appraising for almost five years and yet, thhis is my first time encountering a house near railroad tracks (lucky me!) and I have no clue how to explain if it affects marketability and what kind of adjustment to make (if any).

There are no comparable sales that i could find that would help me do a paired sales analysis. Most homes on that road are grossly inferior with regards to age, GLA and quality of construction. What do I do?

 

[DB]

You may have to go back farther to check for NH sales .. chances are the marketing time will be significantly increased in some instances. If you talk to people who live around there, you will likely find that, after a while, they do not notice the train, at all. To them, it is no different than living in a flyway, or in the middle of a 1000 acre field .... but to potential new buyers (the market) it may make a difference upfront. Look for sales on all sides (both sides) as far back as 5 years ... see what difference that made, then apply your average market appreciation to whatever difference you come up with (if any) and see what your adjustment may (or may not) be. Also look at the marketing times for those same sales, in conjunction with similar homes, away from the tracks and see what the marketing time different is and report it accordingly. Your market may or may not react to the tracks at all. I have seen it both ways, and either case had more impact on marketing time, than value. Hope this helps... and welcome to the forum!!

 

[Ray Miller]

Your market may or may not react to the tracks at all. I have seen it both ways, and either case had more impact on marketing time, than value.

Same here. Makes little difference if its a main line, a double main line, service line or a siding.

About the only ones that have a problem with it is the LOs, they fail to understand that you are going to have these things in rural area.

I like the ones that tell me to shoot the house so the Grain storage bins and the tracks don't show.

 

[airphoto]

Sherry,

"A nominal adjustment of 5% of market value was taken to account for the perception of external obsolescence due to the nearby railroad tracks. Appropriate sales of similarly disadvantaged properties was not available to provide for a more precise adjustment, but reason dictates some adverse market effect, if only a significant increase in the marketing period."

 

[zpbkitten]

thank you air....that is perfect!!!!

 

[Liz Mura]

You may have already taken care of this, but one more suggestion. If you can't find any similar homes with the railroad track influence, see if you can find similar homes with another kind of external obsolescence, such as close proximity to a primary road with traffic noise, or airport flight zone, or maybe backing to a commercial use. I realize some of those ideas are not feasible if you are in a rural area, but just an idea.

 

[Artemis Fowl]

You could pull sets of sales from other market areas and see if you can determine a discount rate. Ex: set of similar sales vs. set of similar sales on tracks.

 

[Charlotte Dixon]

In my opinion, this external obsolescence will have to be proven to make that adjustment.

I live in a small town and an active railroad links together many other small towns throughout the state. There's no way to get away from the view of railroad tracks or sounds of the train in these towns. Even those homes facing the tracks right on are selling for tremendous amounts of money. So, in my market, I mention the train and tracks, but have many comps proving the train, tracks and whistles have no effect on market value.

 

[Tim Hicks (Texas)]

Does the house shake when the train goes by like when Lucy and cousin Ernie (Tennesse Ernie Ford) stayed next to the railroad tracks?


I think that many factors should be considered. Is the railroad very active. How close are the railroad tracks? Does the next house down the road have the same noise factor? Can it be argued that all the homes in this area have the same noise factor? You make the call.

 

[Charlotte Dixon]

Originally posted by Tim Hicks (Texas)@Nov 21 2005, 03:51 PM
Does the house shake when the train goes by like when Lucy and cousin Ernie (Tennesse Ernie Ford) stayed next to the railroad tracks?

That's one of the beauties of living in a quaint old town 2 blocks from the tracks.....My 100 year old house quivers slightly when the train passes through, which is usually 3 a.m.