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Sub Station

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Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Went by a property that I am going to do an apprisal on for a firend. It has an electrical sub station next to it. About 400 feet from the house. check for comps in the area to day and did not find any with a sub-station close to it.

Is a sub station considered a problelm. :?
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Yes, No, Maybe. I'm not being 'smart', that's the answer. There is the non-supported bias against electric fields that electric companies and science have pretty much knocked out but the public still perceives as a problem. There is the 'ugly' item, that is, 'I sure wouldn't want to look at that ugly sucker every day' issue. Either of these issues can affect value. From the 'ugly' point, look at a home that has a similarly affected view, such as a garage or retail building. These are similarly ugly as compared to the substation. As to the electromagnetic field issue, look at a high-line and homes near these. The issues are similar.

If you don't find any comps for any of these, just back up and look at the situation from the point of a buyer. Would you want this home, and would you discount it if you bought it. Also, call a real estate agent you know and ask them what they would do - they see some weird properties too.

Good luck.
Roger
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
You might try getting a list of substation locations from the utility. Maybe a problem in light of 9/11. Armed with that list you might research on the MLS back two or three years for other near by sales. Don't work much about the physical similarity of these sales to your subject. The object is to measure the markets reaction to the substation. If you find these other sales check to see if there is value impact which can be extracted from these other sales. Also see if there is a impact on marketing time for these other sales. You may not find a measureable impact on sale prices by you may not a longer marketing time which would translate in to increased holding costs for the seller.

Another possiblity is to check with the county appraiser and see if they have done a study, most of the ones around my part of the world are very proud of their work and are more than happy to share their findings.
 

Mountain Man

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Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Two good post, can't add much more. Dig for a sale (go back in time a couple of years if need be) for a comp/sale with another type of "ugly problem". Look at the marketing time of the other "ugly problem" homes. You may see an extended marketing period, as well as a bit of a discount, as the home owner tries to get as much $$$ possible.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Since there are no current sales close to your substation, you can do a couple of things.

1. If your MLS has a good archive section you can use sales from as long as the MLS keeps records. It will be time consuming but good experience. Research your community for sub station sites. Then list all the streets adjacent to those stations. Pull sales on those streets and see if properties close to the substation sold for less that other properties in the same general vicinity. What you are looking for is market reaction to the location. My guess is you won't find much of a difference.

2. Contact the Appraisal Institute and see if they have any data for this type of obsolscence. Your utilities department might also be able to assist you. Is the property you are appraising a sale? If so, how does the offer compare to the listing? Ask the owner of the property what their reaction was to the substation when they purchased the property.

I hope this was helpful. Good luck.
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
I just noticed the distance, 400' is far enough that there may not be any impact. Don't drive yourself nuts looking for ghosts that may not be there.
 
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