Jameswedel, Home Buyer in Far North Dallas, Da...

how much less is a house worth next to High Voltage Overhead Transmission Line in an otherwise nice neighborhood ($200K---$250K)?

Asked by Jameswedel, Far North Dallas, Dallas, TX Sat Feb 13, 2010

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Mary Beth Harrison’s answer
There is no right or wrong answer here. I usually deduct around 10% for a similar home in the neighborhood. It also depends if you look out on one of the poles or the whole station as apposed to just the greenbelt containing the high voltage poles.

I have many clients who love having the greenbelt behind them that the voltage wires allow. You will notice that someone lives in every house along this greenbelt as well as all the others in Dallas. Only you can decide if you like the house and the location well enough to get over it.

Mary Beth Harrison
The Harrison Group
Keller Williams Realty
214-365-6500
mbh@DallasNative.com
Web Reference: http://www.DallasNative.com
1 vote Thank Flag Link Sat Feb 13, 2010
As others have said, it depends on many factors. The proximity of the lines to the home, the size of the lines and the poles or towers, is there also an unsightly power station there?

In any event, a home close to power lines will cost less to buy, but will also fetch less when sold. Some buyers may not mid th lines at all and be thrilled by the discount, knowing that they will have to discount when they do sell.

My most memorable personal experience in selling such a home came at the bottom of the housing crisis a couple of years ago. A beautiful Drees home in north Plano, which I am sure would have otherwise gone for $350,000 was finally sold after a lengthy listing for $300,000. I don't believe the discount would be as steep in 2010. The house was immediately adjacent to a greenway with huge power poles.
0 votes Thank Flag Link Tue Mar 30, 2010
An objection is an objection - could be the high voltage lines, could be a drainage ditch, could be a busy road behind or beside the house. You have to weigh the homes in your tour against a number of factors. This home would definitely take a hit on 'location'. And, what is the number one rule of real estate? Location.

These homes typically take longer to sell, and in my experience, have had to put through multiple price reductions. Sometimes, the builders would have put up spec homes in these locations, with nicer amenities thrown in. So, I have a hard time accepting a hard-and-fast percentage for pricing these homes. You still have to view each one at face value, keeping in mind that this objection is real, and will impact time on market.
0 votes Thank Flag Link Sun Feb 14, 2010
The fact that you are asking the question in the first place should answer your question. Right now, you're debating whether or not to buy this house. Correct? If you were selling a house, would you prefer to sell a house that would require debate about whether you can live with a particular stigma or not?

There are plenty of houses in DFW, why settle for one that has any noticeable stigma to overcome when you try to sell it?

Find a house that you don't have to justify buying.
Web Reference: http://www.agentharvest.com
0 votes Thank Flag Link Sun Feb 14, 2010
Dan makes a good point (as usual). It's not just the lower values, but the fact that you're narrowing your market, perhaps significantly. A lot of people just won't live in such properties regardless of price. Others, though, won't mind. In areas near me (and I concede that all real estate is local, so the numbers might well be different where you are), there's probably a 10%-15% price difference . . . which really is pretty much in line with what Mary Beth suggests.

Still, if the power lines don't bother you and you're getting a good deal (based on comps for similar homes--especially those backing up to power lines) and you plan on living there for maybe 6 or more years, go for it. If other homes in the area appreciate, yours will too. And while your price might be 15% lower when you sell, you'll have bought for 15%+ so that should be a wash. Just remember that not as many folks will be interested in such a property, so it could take longer to sell.

Hope that helps.
0 votes Thank Flag Link Sat Feb 13, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
The real question is how many buyers does that cost a seller?

Unless you plan on living there for the rest of your life you are looking at a resale with some very strong objections built in. It is likely to take a lot longer to sell and always sell for less. Many people looking at those electric wires out back will leave before looking through the house.

That could easily lead to a lot longer selling time than you would like and maybe only one or two interested buyers then.
0 votes Thank Flag Link Sat Feb 13, 2010
All good answers. My software, which was developed for the DFW area and uses "suggested adjustment guidelines" shows $15-$20K based on this price range - that's just an average and each property will be somewhat different based on everything it takes to price a property correctly. The best way to look at it is that if you purchase this home then there are many things you might do to improve it's value - but you won't be able to change or improve the power line/station situation. That will follow the home with every subsequent sale and will have to be accomodated in every subsequent sale. But, what Mary Beth says is true - people do buy and do live in those homes, so there is obviously a market for them. It's simply important to go in with your eyes open and realize that when its your turn to sell this home the power line situation will still merit a price reduction - you simply cannot change it. I advise my customers and clients that if they can't buy these homes AT THE RIGHT PRICE then they need pass on them - always.
0 votes Thank Flag Link Sat Feb 13, 2010
I don't think there is any one number. It would probably have to be a lot for me. I don't like them....but obviously it is not that big a deal for lots of people as there are plenty of people who will buy the house. Same with highways.....I can't imagine for example buying a home right on 635...but there are many people who have and not by accident, and perhaps even paid a premium to be right on the highway????

It's probably more of the value to you...and what you value.
Web Reference: http://www.dfwSnapshot.com
0 votes Thank Flag Link Sat Feb 13, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Are you talking about off Inwood area?

Your buyers agent can comp the location, no one can render an opinion unless entire review takes place.

Many factors come into play determine true value of a home

Lynn911
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Feb 13, 2010
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