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Home Buyer In…, Home Buyer in Piscataway, NJ

What is the effect on property value for a home adjacent to a buried petroleum pipeline?

Asked by Home Buyer In Nj, Piscataway, NJ Wed Jan 30, 2008

I am thinking of purchasing a home in Piscataway, NJ that is immediately adjacent to a buried petroleum pipeline. The edge of the property is marked with the yellow petroleum pipeline markers. They are within 40-50 feet of the house.

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7
Check the survey for an easement also. It may affect your use of the property. Also, if they have to repair it, they may have the right to dig up your yard. 40-50 feet is pretty close.

-Marc
Web Reference: http://www.marcpaolella.com
2 votes Thank Flag Link Wed Jan 30, 2008
Your question is also your answer. Obviously you think it has an effect on the value since you are questioning it before you make an offer.
Are there other properties on the street that have the same situation with the pipeline? Have any been sold? Have your agent get those comps and also comps for this house and you can then see what it does to the value of the house.
Good luck.
Web Reference: http://www.sharonkozinn.com
2 votes Thank Flag Link Wed Jan 30, 2008
Here is my question. When you pull up to the home does it bother you to see the yellow pipeline markers? Do you feel that they reduce the value of the home? Is it unsitely to you? If the answer is yes to you, it will be yes to other people if you ever decide to sell the home.
2 votes Thank Flag Link Wed Jan 30, 2008
If you understand the petroleum pipeline is not on the surface of a land, not even close, you know it is much better than, say, a gas pipeline. A better analog is that people working in NYC or even live there will get much too close to many pipeline but not aware of them. Are they ok?

On the other hand, it could be your great "reason" to negotiate the price if many real estate agents believe so. Say, if they are the listing agents of this property, and you like it so much, and you catch this "sort of problem, but not really a problem", you can point that out, and the seller's agent will be on your side and urge the seller to lower the price for you.

If the "sight" of the yellow marker bothers you, plant some nice trees to hide them like I put some nice bushes to hide my a/c and cable box ...etc, and some friends hide their heating oil tank, wow, right next to their house, 10 ft? Technically they won't hurt you because otherwise, the house would not have been permit to build at the first place.

On the other hand, there are so many nice houses available http://cnj.craigslist.org/search/rfs?query=piscataway&mi… you can take your time too. I would say, make an offer of this house "at your lowest price" that you feel compensated psychologically, and in the mean time, do not stop your housing hunting, continue going to open houses (do not go with your same realtor to see other houses as there may be interest conflict, your realtor making offer for this house may either want to wait for the result or want you not to get it altogether). If you can not find better, say, in terms of location, school, train, ...etc, or the seller accept the low offer that you feel great, you will be happy to get the house.

If you feel great with the below the market price to get the house, you know your future buyers will feel the same way. I have not seen any house can not be sold in Piscataway or any other town, but price is the key, so a few % lower would certainly help, now and later....

I used to buy a land that nobody wanted because of high tension tower, so I drove up to dozens of millionaire towns in NJ and found out many million dollar houses right under high tension towers. So, I told myself, if millionaires do not care about high tension towners, I would be fine. Years later, I found I was correct, the whole area now built million dollar homes, ironically, the one log right under the high tension town built the largest one over two millions.

I could never understood why then I finally realized one day, for middle class families, they will stay home for most of the year except weeks of vacation; however, this is NOT true for millionaires. e.g. my brother-in-law is General Dealer of many cruise lines to China, he only spend about 50 days a year in his $6 million dollar house in San Marino CA. When he came back with an open Christmas party with over hundreds of guests invited, live band, ...etc that was one of the good purpose to own house like that, but who can see high tension town at night? Besides, he is not around most of the time, even if high tension town may cause real problem which never confirmed, the real saving on real estate and tax ...etc is very real.

There is another type of property with "easement" like other experts mentioned. If you got something like that, it would be wonderful that you can charge money on it. My friend's land charged $100,000 to a company want to connect sewage thru his land.

Ah, I got a land that has a river passed thru that no body wanted because the thing called "conservation easement" that you can't do anything due to webland conservation. But, you know I wanted it, I wanted it badly. Why? you can deduct huge amont of tax. This is also true for historical building ...etc. However, most realtors, if not all, would not know this, not even many tax lawyers.

This house you described, I immediately would think of it can get a great bargain since many realtors already on your side. Hey! like you take some drivers to court, and their lawyers all on your side, so do not hesitate to sue for millions. Once your bargain down the price, you would go to tax court to appeal down the property tax, and they will all lose, if you bring in your realtor, and realtor said this property is overestimated because the above mention reason, hard to sell ...etc. I mean, this is the situation that you pay, say, 10% lower than your neighbor homes, and you got a proof.

As always, I do not suggest anyone to make decision base on my sharing of experience because I can only tell based on what you said. e.g. someone told me his condo is fantastic, the only problem is that there is noise of train once in a while. I said of course because you want to be able to walk to train in just a few minutes. So, you can always has a perfect home. If there is one, someone may have taken it already, or you may have to pay too much to get it...
1 vote Thank Flag Link Tue Feb 5, 2008
Just curious if that house sold yet?
0 votes Thank Flag Link Thu Feb 5, 2009
Hi,
If there are no recent EPA or pipeline problems, the impact will be slight. If there is a problem w/ a petroleum pipeline anywhere and it is highly publicized within a year two of when you might sell, the impact could be substantial.

Pipelines do have a storng safety record.
http://www.pipeline101.com/Introduction/nearyou.html

also, you can contact the nj epa dept for more info.

Deborah
0 votes Thank Flag Link Tue Mar 18, 2008
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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I agree! and I would like to add one after seeing this Crane Accident in NYC http://www.cbc.ca/world/story/2008/03/17/crane-death.html that I believe many New Yorkers going to move to New Jersey, especially, nice and safe towns here...
0 votes Thank Flag Link Mon Mar 17, 2008
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