Article in The Appraisal Journal Says Power Line Impact on Sales Depends on Property
Transmission lines are more likely to have a negative impact on sales when a property has a residential use or small lot size, or when similar properties without transmission lines are available in the market, according to an article published in the current edition of The Appraisal Journal.
The Appraisal Journal is the quarterly technical and academic publication of the Appraisal Institute, the nation’s largest professional association of real estate appraisers. The materials presented in the publication represent the opinions and views of the authors and not necessarily those of the Appraisal Institute.
“High-Voltage Transmission Lines and Rural, Western Real Estate Values,” by James A. Chalmers, Ph.D., looks at the impact of transmission lines on sale prices and time on the market. It reports the findings of an 11-year study of property sales across 640 miles and 15 counties in Montana. The study includes sales of rural subdivisions and agricultural, recreational and mixed-use properties; prior transmission line studies have focused on densely populated urban areas.
The study offers a new perspective because it examines the impact of transmission lines on individual properties, unlike previous studies, which only report the average effect of transmission lines in an area.
The current study shows the impact of transmission lines on the property sales varies significantly depending on a property’s use, size and uniqueness.
In the study, sale prices of recreational and agricultural property were not affected by the presence of transmission lines, while some residential properties near transmission lines sold for 20 to 50 percent less than comparable residential properties.
The results show that if a property is unique because of its location, view, or other features, the property is less vulnerable to any negative effects from the presence of transmission lines.
Read High-Voltage Transmission Lines and Rural, Western Real Estate Values in the Winter 2012 issue of The Appraisal Journal.