LandInvestors.com Forums **Ask A Question** Gas Pipeline running through property

  • Creator
    Topic
  • #21005
    Johnny Newsom
    Participant
    Post count: 9

    I’m the process of closing a deal (my first deal actually) and figured out that there is a natural gas pipeline running straight through the eastern part of the property. First noticed this in google earth, looks like another road or something running for miles. This is a 5.5 acre parcel with a purchase agreement of $7,000.00 in Hickman county Tennessee. Most properties in the area, as well as this one, have assessed values around 3-4K per acre, comps support this; but with the gas pipeline running through the property I’m a little worried this would be of major concern to a potential buyer once I go to sell.

    Has anyone bought and sold a property successfully with this issue in the past? Was the value of the property affected by this? Is this something to be genuinely concerned about, or am I being over cautious?

    Thanks in advance for any feedback. It is greatly appreciated.

Viewing 4 replies - 1 through 4 (of 4 total)
  • Author
    Replies
  • Joe Martin
    Participant
    Post count: 55

    Hi Johnny,
    This is one of the few times where I’d get a broker’s opinion of value. I’d find the best vacant land listing in the area and call that agent, or just pick the largest firm like KW. Certainly they or someone in their office will have dealt with a similar property in the past. I also see it as an opportunity to renegotiate the deal or a potential option. With the option, you’ll rest easier at night knowing you didn’t spend ~$8k on an unmarketable property.

    Joe Martin

    Johnny Newsom
    Participant
    Post count: 9
    Pro

    Thanks for the great advice Joe, definitely gonna look into getting a few broker opinions.

    Mike Marshall
    Participant
    Post count: 42
    Advanced

    Johnny,

    I have bought and sold property with this circumstance. It all depends on how much of the property is impacted by the gas line easement. For example, if the gas line is running parallel to the lot line for the entire depth of the property then there may be little impact to the future use of the property and therefore value as well. If the gas line easement bisects right through the middle of the property then you may have a larger issue. Remember too that it all depends on who your buyer is. If it’s a builder then the above certainly applies. If it’s someone that doesn’t intend to ever build then maybe it doesn’t matter as much. I understand the desire to get a BPO but remember that not all agents/brokers are created equal. Try to find someone who works with vacant land or development deals.

    Good Luck,

    Mike

    Johnny Newsom
    Participant
    Post count: 9
    Pro

    Thank you Mike, confirmed what I suspected that it depends in large part on the end buyer. Been reading up on hunting grounds and gas pipelines and apparently hunters like them lol so I don’t know maybe it’s a plus for a small hunting parcel. For this one I’m definitely gonna negotiate the price down or worse case do an option. The topography was already a little bit of a concern and this kind of pushed it over the edge for me. Thanks again to both of you guys for the feedback.

Viewing 4 replies - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.