Do Meandering Dirt/Gravel Roads Impact Value?

03 Oct Do Meandering Dirt/Gravel Roads Impact Value?

In my foothill market area, some areas have long, meandering gravel/dirt roads. The roads can definitely vary in condition and appeal. Some are long and adequately maintained gravel and/or dirt. Some can be bumpy, fair to poor condition, have areas of rocks, etc. Either way, this can definitely impact the value and appeal of a property.  The likelihood increases for example if the road is over 1 mile and takes 10+ minutes driving slowing compared to 200ft of the same road.

One recent assignment was in the market area of Smartsville/Big Valley/Penn Valley. The subject property was on a paved road. However, there are many roads in this area (especially Smartsville) that are dirt/gravel and can extend for miles. In my analysis, these roads definitely impacted sale prices.  The 3 year graph above is for manufactured homes (my assignment).

As the graph indicates, most of the manufactured homes located on these roads sold at the low(er) end of sales range.  The sample size was smaller; however analyzing data a few different ways (median, avg, price per sf), a location adjustment was definitely supported. In my appraisal report, I explained in detail as to why I included a location adjustment for comps located on gravel/dirt roads. Further, the graph certainly provided a nice visual as well.

I think it’s important to analyze this case by case. If the subject property has prior sales history, take the time to analyze how the subject property sold historically to see what (if any) impact the road may have had. 

Bryan Lynch
Certified Real Estate Appraiser
Office: 530-878-1688
Bryanclynch@gmail.com
Roseville Office : Auburn Office
www.AdvantageAppraisalsCa.com

Disclaimer: All information deemed reliable but not guaranteed. The information is meant entirely for educational purposes and casual reading only and is NOT intended for any other use.  This information is NOT intended to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or other potential real estate or non real estate purpose. This appraiser is NOT a qualified home inspector and any tips are for informative purposes only. If you’d like to obtain and order an appraisal for your specific needs, please contact Bryan at 530-878-1688 for more information.