The Power Line Effect
Over the years I’ve sold homes in Steamboat that are within varying proximity to power lines. With some properties this has a larger impact than others, it is something that’s subjective to each buyer. Here I am going to refer to an interesting article on the impact of power lines to real estate:
Keep in mind, this article is about individual lots and not the aggregate of a lot, home and landscaping. This study states the ratio of land / home values to be around 20% / 80%. “The researchers say land typically represents 20 percent of a home’s overall value. Therefore, the 45 percent decrease in land value would translate to a drop in total property value of around 9 percent, according to the study.”
As the saying goes, location has a lot to do with real estate values and land values in Steamboat Springs are elevated far above national averages. Thus, the ratio of land / home values is more like 40%-45% (Land) / 60%-55% (Home). This means that the impact of power lines and other depreciating influences has a greater effect.
When we spoke to one of the The Routt County Assessors office appraisers, they commented that they are seeing the power lines as less of an influence on property values in current years. Lower home and land availability means that buyers are increasingly accepting the nearby power lines in exchange for living in established, in town neighborhoods.
It’s a personal decision and not one to be taken lightly. If the market dips and we see prices decrease and increased inventory, properties closer to the power lines will no doubt see a greater drop in value.
Check out our recent video blog on the top 4 objections that we see here in Steamboat Springs.