THE EFFECT ON THE VALUATION OF A SINGLE-FAMILY RESIDENCE AFTER A RIGHT-OF-WAY ACQUISITION AND WIDENING OF AN ARTERIAL FROM TWO LANES TO FOUR LANES
A paired sales analysis was performed on single-family residences located on five arterials versus interior locations within the subdivision from 2002 through 2006.
In performing the analysis, residential sales were located on the arterials and then compared to single-family residences with interior locations within their neighborhoods that were similar in living area, bedrooms/baths, parking, year built, and land size. The sales were analyzed through Public Records, Multiple Listing Service (when available) and exterior inspection. Comparables that appeared to be non-arm’s length transactions, did not meet the Definition of Market Value, not similar in the land and improvement parameters discussed above, or in poor overall conditions were eliminated.
The comparable data sets indicated negative differences between the arterials versus interior locations. The comparable data sets were also analyzed by arterial design (center turn lane, median with and without landscaping), date of sale, the comparables’ average sale price versus the median value of a single-family residence in Sarasota County for that year, average daily traffic count and average distance from the arterial right-of-way. The date of sale, percentage of median price of the comparables versus the median value for Sarasota County, average daily traffic count, and average distance from the arterial right-of-way indicated inconclusive results in average difference between arterial versus interior comparables. The only conclusive parameter is location and arterial design. The roads with four lanes with a center turn lane in design having the highest average difference with two-lane arterials with a center turn lane being slightly higher than a four-lane arterial with medians.
The analysis concluded that there is a negative impact to the value of a single-family residence due to the widening of an arterial, and the location and arterial design of the new road has an impact on the difference.
