Date of Award

1991

Document Type

Thesis

Degree Name

Master of Valuation Sciences

First Advisor

Arlene Taich

Second Advisor

Ernest A. Demba

Third Advisor

Virgil O'Connor

Abstract

For thirty years researchers warned of potential danger,3 oi electromagnetic fields ( EXF) near electrical power lines and substations. The Environmental Protection Agency is presently reviewing the research to date to see if a substantial health hazard from EMFs threaten public health.

The Appraiser studied two subdivisions built 1985- 87 in Brentwood, Tennessee to see if EMF publicity stigmatized 6 homes adjoining TVA transmission lines right of way (AT) by decreasing expected s ales price compared to 44 homes not adjoining right of way (NAT).

In this small sample of convenience (6 AT subjects), two sold before 1989 at a gain of value. Three sold in 1989 and one in 1991 at a loss of value from their previous sale. One NAT close to the lines but not adjoining sold in 1989 at a loss from previous sale. Five properties had a mean loss of 20% of expected value or $50,000.

A comparison of means for ATs and NATs showed an - 18.45% loss/ difference for ATs, indicative of probable stigma. NAT comparables mean price/ square foot (P/SF) was $72.18. AT subjects P/ SF was $58.86.

Of Ninety NATs in the same neighborhood sold more than once since construction, only one lost value from previous sale. Forty-four NAT comparables mean annual appreciation was +3.779 prior to 1989 and +2.74'% since 1989.

The year 1989 marked an increased public awareness of research on EMF negative health effects . AT homes in the subject neighborhood increased in value prior to 1989 but lost value on sale in 1989 and thereafter compared to the general appreciation experienced between s ales by neighborhood NAT homes.

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