There is one property next to fire station in California. As such, the same kind of property in the neighbourhood is around $600K (as per recently sold properties).

The obvious problem are
- having fire station next to the property.
- noise because of fire extinguisher truck.

I heard, there is a law not to turn on the alarm untill the truck is on main street.

Now my question is:
- How much effect does it have on the property valuation?
- Any other concern?

This is a residencial property.

Look for similar and/or historical comps with and without a fire station and see what the percentage difefrence is. For example see what this property last sold for and when, then see what other similar but not by fire stations sold for in the same time period, then compute the % difefrence.

Example: maybe this property last sold 10 years ago for $360K while other properties sold for an average of $400K 10 years ago. If so then this property is will likely bring 10% less than other properties without the fire station, and if other similar properties are going for $600K then yours will likely fetch $540K.

(I did the math in my head but you get the idea.)

If the house is right next door to a fire station how much difference do you think it will make if they turn on the siren when they pull out of the station or wait 5 seconds until they are in the street; you're still going to hear it very clearly.

On a brighter note being that close to a fire station should qualify you for an awesome homeowner's insurance rate for fire protection.. ;-)

On balance I believe the proximity to the fire station would have a minimal negative impact on the value of the house.

I cannot see it making that big of impact. Like stated before, whether the siren is hit right out of the fire house (usually reserved for when traffic is heavy in front of the station)or after driving a 100 yards, YOU will hear it. I myself don't see a big difference if any in home values. Neighbors up to a block away have to listen to the morning checks often blaring from the outside speakers. Some people have a love for firetrucks and enjoy living by the fire stations. I guess I am partial.

J
Realtor/IAFF Firefighter Rescue 5

Why speculate? Any Realtor worth his or her salt can do a CMA and see what the price adjustment will be if any. If there's one thing I've learned it's not to second-guess the general public.

I agree, I actually think it's not that great being next to a noisy fire-station. Although some people like the fact that help is nearby, many don't want to have their nice, relaxing evenings interrupted by the blare of a fire truck. I'd personally not want to purchase property within the next few blocks.

Honestly, it's probably hit or miss whether it would affect the property, but a CMA couldn't really hurt. I doubt it would really affect an appraisal much.

Being in CA myself, it's extremely hard to estimate what the negative effects of the Firestation will have. Seeing as though many homes are within a short stone's throw of "soon to be developed" commercial land in the major metro areas, this is always taken into consideration.

Coming from a Mortgage Broker / Realtor's point of view, faced with this dilema, I would inquire with several Appraisers.

Any appraiser worth his salt in CA will have faced these issues before and know how much of an adjustment would be required. The proximity of the firestation will have to be noted on any Freddie/Fannie appraisal form so there is no overlooking it.

Seeing as though the last two people in line in the transaction who will utimately decide fair market value are the appraiser and the lender's underwriter, an appraiser would be the best person to ask.

No matter what anyone says, if it isn't an all cash transaction, the local market and consumer may direct pricing, but the underwriter, with the input of the appraiser, has the final word on actual value. Sorry guys, I'm a Real Estate Agent as well and no, we don't have final say.

We all live and die by the underwriter and noone wants to go back to the seller and say the "appraisal came in low".

Ask a couple of local Residential Appraisers who follow USPAP. If you can't find one, look on:
http://www.orea.ca.gov/ .