Valuing Property With Transmission Line Easement

[Timbo813]

I am appraising two sites. One is privately owned, but has a transmission line easement with the huge powerline structures and power lines. The other is a similar site, but owned by the power company and has no easement. The H&B use of both sites is the same, residential development (assuming there was no power lines). I have good comps of residential sites with and without powerline easement, so I have a good indication of the value impact from the easement. But I'm struggling with the power company site. Shouldn't the sites be valued about the same if they are both being used for the same purpose? I can't make an easement adjustment on the powerline owned piece, as it has no easement. Just seems weird to appraiser two identically sized, located, used sites for different values. Thanks in advance for your help.

 

[Mr Rex]

They are not the same, one has a power line easement and existing power line.

 

[nstanbru]

Wouldn't a sale of the site owned by the power company entail the buyer providing the company with an easement?

 

[leasedfee]

The Appraisal Journal is replete with studies and analysis of this topic. Also look-up Before-take and After-take.

 

[Terrel L. Shields]

The H&B use of both sites is the same, residential development (assuming there was no power lines).

as if vacant, not as is. The impacted area is green space akin to surplus land.

 

[DREA Dean]

Wouldn't a sale of the site owned by the power company entail the buyer providing the company with an easement?

This is my thought, as well. There is no easement because it is owned by the power company. If they sell the property, they will create an easement for the power lines. It seems logical to assume that an easement will be created if the property is sold. Or are you suggesting a hypothetical assumption that there are no power lines?