I couldn't believe it when I saw this study referenced recently. 

The authors note that researchers and appraisers may mistakenly attribute a negative price impact to proximity, while the true impact is associated with the transmission line easement.

"The professional literature cited, combined with the results reported here, support the position that a presumption of material negative effects of HVTLs (high-voltage transmission lines) on property values is not warranted," the article states.

My limited observations of buyers and power lines tells me that power lines are a big negative and I would really have to believe that it's reflected in the price. 

My rough guesstimate would be that power lines reduce the price of a home by around 10-15% depending on exactly how close they are and how bad they look.  Many buyers won't even look at a home backing up to power lines. 

What is your opinion? 

 
Posted by Tim Maitski "Video Agent Guy" on 09/03/2009 12:59 PM   Comments (7)  

7 Comments on Scientific Study Finds That Power Lines Don't Affect Home Prices. Do You Agree?

SEP
03
238,675 Points 8 Featured Posts Localism Sponsor Outside Blog

Not sure if they affect the price or not - but they definately affect the desirability of the home and or neighborhood
1:05pm • #1
Outside Blog

I just sold one that had to get an exception due to being to close to a major transmission line. It was practically under the pole and lines. This NEW home sold for 20% less than 11 other exact NEW construction homes built by the same builder. However, I would agree that the easment does pose the largest issues. Fencing,landscaping,privacy, etc are all concerns.

I advised the buyers that while they were getting a great deal on new construction that when they call me in 5 years to sell and buy a different home that they will have to be aggressive in pricing thier home. The pool of buyers that want that location is drastically smaller than other locations.
1:06pm • #2

If you affect the desirability of a house or neighborhood then you by default affect the price. 
1:16pm • #3
6 Featured Posts

I know that when my sister-in-law bought her practically brand new home in a neighborhood full of practically brand new homes, she paid quite a bit less because of the power lines just on the other side of her lot line. 
1:32pm • #4
190,420 Points 7 Featured Posts Localism Sponsor Outside Blog Hit Router

Tim, I have to agree.  Power lines tend to be viewed by my buyers as negative.  I've had buyers not buy homes because of the power lines.
8:54pm • #5
SEP
04
175,290 Points 10 Featured Posts Localism Sponsor Outside Blog

I think that a buyer concerned about power lines isn't going to buy at any price but for those who will consider it the price is definitely effected just not sure by how much.
4:46am • #6
SEP
22
166,414 Points 1 Featured Post Outside Blog

Tim, I had this conversation with a buyer just the other day. I think it does affect property value because there are less people who want to live near power lines.
7:33pm • #7

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Tim Maitski "Video Agent Guy"

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