14-2 Property Values

In the May 17, 2016 Report, MaRous & Company stated that none of the real estate brokers interviewed believe that proximity to a power plant adversely affected the value of residential properties with which they were involved. Please identify the na

RESPONSE 14-2:

None of the brokers interviewed were located in Rhode Island. Efforts to discuss the market impact with local brokers were unsuccessful because either they were not comfortable expressing an opinion, or said they had no opinion to provide. One broker located in Maryland expressed the opinion cited in the report concerning employment in the area, but did not agree to have a name included in the report.

  All broker interviews (regardless of their location or the project) follow the same basic format:

  1. Introduction of person doing the interview, the nature of the assignment being undertaken by MaRous & Company, and the willingness of the broker to talk further.
  2. Questions concerning the broker’s familiarity with the area in which the project is located.
  3. Questions concerning the condition of the residential market including:
  • How are market conditions in general?
  • What factors impact the selling prices of houses in the area? (i.e. Sale price, house size, lot size, proximity to schools.)
  • If it is not mentioned previously, the broker is asked if proximity to the project affect either property values or marketing times.    
    1. If the broker is being contacted concerning a specific property, the details of the that transaction are discussed.
    2. If the broker’s firm has been involved with any recent transactions in the area, the details of those transactions are discussed and/or the other broker may be contacted.

       

RESPONDENT:

Mike Marous, MAI, CRE, MaRous & Company

DATE:      

 

August 18, 2016