This Is A First!.....property In Air Flight Path

[BlueDog007]

I appraised a property under contract a few months ago. It is one of the largest homes in the neighborhood, and is situated on one of the largest lots in the subdivision as well (over one acre). The buyer was a real estate agent. The seller was a real estate agent.

The buyer called me on Friday to discuss the fact the property is located in an Air Flight Path Zone and is very upset after the fact that she now owns the property. The seller did not disclose this fact and the buyer was unaware of the situation. Furthermore, at my appraisal inspection, I did not hear or see any airplanes fly directly over the home or even nearby on that particular day. However, I am aware of airplanes that do fly over this neighborhood in general, but not right on top of the homes. The airport is located approximately 4-5 miles northeast of the neighborhood.

The buyer's question is........does the air flight path negatively effect the property value? Her direct neighbors explained that she would get "use to it" and not to worry. I have never had this situation arise after 13 years of experience and would like some input from the forum. I will offer my opinion after hearing what the forum has to say! Thanks in advance!

 

[Ed Woodruff SRA]

We have a couple of international airports here in Houston, and both are completely surrounded by residential developments. Builders keep building houses around the big one - Bush International. I appraise houses in those areas all the time. In my reports I stress the location of the airport, and the fact that jets fly overhead all day and all night taking off and landing, and all my compared sales are also in the flight paths.

However, Bush International did just complete a new landing strip, and the locals are raising all kinds of hell about it - I think they have restricted the hours of use for that strip. Nevertheless, people keep buying houses in that area, and builders are building all around it like crazy. All you can do is write in the report about the airport - at least that's all I know to do. I did have a loan officer request that I remove it from a report a while back, but I said "no", and have not heard anything about it since. I guess the deal closed - I don't know.

 

[Otis Key]

I can't be of much help Ric. Most of the houses around our airport/AFB are older, lower priced, lesser desired houses, except on the east end of the runway. In that area, there is so much political power and money, that the planes depart and immediately turn north or south and then come in from that same approach aspect.

I do believe that you should have done the research prior to completing the report about the potential to external obsolescence from that factor. However, 4 to 5 miles away is a long enough distance, IMHO, to not be of a significant factor. Most investors want to know about the ones that are within the "2 Mile Airport Clearance" Radius. Those tend to be the most complained about and have the most noise. I'm 6 miles from the airport and hear the planes more here than when I lived at the east end of the runway which was less than 2 miles from the airport. My street actually lined up directly with the east/west runway.

For future work reference, you might want to keep it in mind. Could keep you out of court.

BTW - did she see the appraisal prior to closing? She purchased the house after her own inspection, observation and decision making. Your appraisal should have been for lending purposes only and not for her, unless you did it to advise her. I, personally, wouldn't go much past just stating that the report was intended for the lender and that you did not have any data to indicate a market reaction or concern to that location, much the same way she did not seem to be concerned with it when she offered to buy it.

 

[Pamela Crowley (Florida)]

Were the sales you used as comps in the same or very close proximity to that flight path? 4 - 5 miles seems like just about far enough to not have too much affect.

 

[JSmith43]

I bet your nearby comps had the same plusses and minuses. Possible plus: Located near the airport. Possible minus: Located near the airport

 

[Ray Miller]

I have found in a few case where the title will note the air space above the subject property has an easement for a flight path.

This would be considered vertical interests and may need to be cosidered separately in sales, leases, mortgages. Air rights are a fractional interests in a fee simple estate. They represent the property as a three-dimensional entity. That would be surface, below surface (water, minerals, etc) and above (air rights).

Air rights can be sold in fee, wtih the seller retaining one or more easements fro a specialized use. Air rights can also be transferred in various ways as well. They can also be transfered to another parcel.

This should have showed up in your research of zoning and on the title docs as well.

Have done a few of these around rural airports. Thats part of the reason I don't get twenty-four hour turn times.

My question to the form is; is this too much research?

 

[Webbed Feet]

Mr. Biggers,

Answering that question can end up a trap of your own making. It's time to smell the trouble brewing and pull your horns in. The best advice so far is to state your client was the lender, your assignment was for loan risk analysis, not for purchasing advice. Beyond that you need a release to discuss the appraisal analysis with anyone other than the client. I'm sorry, thank you for calling.

Your buyer who is a "real estate professional" is looking for a way out of that sale or someone to sue. It's not a good time to let her buyer's remorse become your financial liablity by answering that question. Your answer could quickly turn into discoverable testimony.

Barry Dayton

 

[larryhaskell]

Barry is right on. B4 you can provide an answer you would have to do an analysis if you haven't already done so for the report you completed. You should be paid a fee for answering this question. The bigger question is why should the buyer have to ask you. How can he/she view themselves as competent to do their job if they don't know the impact that the airport might have for this development.

 

[Carnivore]

RC

I agree with Barry. The buyer, a real estate agent, is not going to have a lot of luck getting anything(the buyer has the knowledge and ability to caveat emptor) Claiming that she/he was not aware of the flight path will not carry much weight in court(assuming defense attorney points it out). None the less the cost to defend yourself and prove your innocence is going to be expensive. If your E& O carrier rolls over, very likely, then there go your premiums!

Mums is the word.

 

[Charles Witt]

I am curious what the noise level is when airplanes go the subject area. Does the county or city have maps showing noise levels using particular runways? I had to explore this once for an FHA case. Merely advised the underwriter about the ACUZ zone with a map of noise levels at various distances and let them make the decision. The level in my case was above the 85 decibels on all takeoffs and landings. Underwriter went ahead and the loan was funded.