| Roanoke Times 1998 A Question of Power Part III Realtors: High voltage lines lower property values by LESLIE BROWN |
High-voltage power lines lower residential property values, all but two of 54 real estate
agents and appraisers in the Roanoke and New River valleys said in a survey conducted
by The Roanoke Times.
A power line, like the one proposed by American Electric Power, would have the greatest
impact on Montgomery County, those surveyed said. AEP's preferred corridor for the line
would run through the rural Norris Run, Poverty Creek and Craig Creek communities in
Montgomery. Homes located near high-voltage power lines are usually much harder to
sell and sometimes lose part of their value, according to most brokers and appraisers.
They also are harder to resell.
"When the 765-kv line went through Floyd County in the mid-'80s, there was a
diminishment of value in land because there was a lower use to the land near the line,"
said Jeff Bain, an appraiser.
"Power lines like the one AEP wants to build can negatively affect the value because it
places a restriction on the use of that piece of land. Once the line is there, you have lost
part of the land because you can't build underneath it," said Rod Lawrence, an appraiser
for Appraisal Institute. However, Wayne Goodman, an agent with Barker Realty Co.,
Roanoke, said he hasn't seen any decrease in prices. "Since publicity has increased,
perceptions have been created that don't have a factual basis," Goodman said. "I haven't
noticed any adverse effects on selling."
According to a federal mandate, residents are not allowed to build within 100 feet of a
transmission tower. For most buyers then, the pre-eminent concern is the proximity of the
power line to their house, Lawrence said.
"A huge power line next to a nice house can drop the price by as much as $25,000 easily.
Not only do they detract from the property, aesthetically speaking, they're also an eyesore,"
said Amy Hudson, an agent with the Owens & Co. Realtors office in Blacksburg. Hudson
watches the market and compares sales of property located near power lines to identical
pieces of property that are not near power lines. Homes that seem to be influenced the
most are those that cost the most, she concluded.
"Cheaper property won't be affected as much but homes in exclusive areas will lose
value," said William Ward, owner of Biltmore Realty in Roanoke.
"People who can afford to pay $200,000 for a house are not going to want to pay that much
for a house near a power line. Therefore it drives the price down," Ward said.
Although scientifically unproven, health risks associated with power lines have also
generated concern. "People are scared of the electromagnetic field around them and the
possible radiation they emit. They definitely sell for less," said Justin Thomas, an
independent real estate agent in Roanoke.
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