How do gas wells affect my property value?

Question

We learned that starting in December we are going to have new neighbors -- gas wells. Our property backs up to a golf course so of course when we purchased two years ago, it was a premium to have a "golf course lot." Now, there will be 3-18 gas wells starting at approx. 625-650 feet from our house. We do not have mineral rights. How much will this affect our property value? A friend said as much as 25%, is that true?

Answer 1

Property value will defiantly be affected by unwanted views.  25% is definatley possible, but beyond that it may be hard to attract a buyer willing to purchase the property - inspite of price.  Your only recourse would be to determine if the developer had plans to install the wells before you purchased the property.  You may also want to read the bylaws of the HOA - very closely.

If the developer intended to install the wells before your house was purchased - it was fraudulent not to disclose the fact to you.  When was gas discovered on the property?  Most gas finds are verified by test wells first.  What you have described is a partially developed field.  Partially meaning  - they know the gas is there 100%, and have allocated money to fully develop.

You probably would be able to get some, if not all of you money back, or a significant concession from the developer (nicley landscaped, and fenced facilites)

Answer 2

That is a very subjective figure.  It really depends on so many factors.  Do the wells ruin the view?  Is there noise or additional traffic associated with them?  Can you plant trees or do other things to diminish the impact.  Some buyers may not care at all about them while others may find them objectionable.  I doubt seriously it will have a 25% impact.  Probably at worst a 5 to 10% impact.