Appraisals are an essential element of any real estate transaction, particularly when dealing with unique properties such as airparks. Unlike conventional residential or commercial properties, airpark properties carries intrinsic value tied to its runway access. Yet, identifying and quantifying that value can often prove challenging, as demonstrated by a recent experience in Florida during the COVID-era housing boom.
The Intrinsic Value of Runways
For airpark properties, the runway is the crown jewel, akin to waterfront access for coastal homes. This unique amenity elevates the property’s worth and appeals to a niche market of aviation enthusiasts. “According to an analysis by the Realtor.com® economic research team, home listings that included keywords associated with airparks were priced at a 30% premium to other listings, after controlling for other variables such as home size and location.” This statistic underscores the importance of accurately capturing the value of the runway during the appraisal process.
The Challenge of Finding Comparable Properties
Airpark properties present another hurdle for appraisers: finding comparable sales. Unlike typical suburban homes, which often have an abundance of comps within a few miles, airparks are fewer and farther between. It’s not unusual for comps to come from 20 to 40 miles away—or even farther. Real estate agents specializing in airpark properties must stay attuned to transactions in neighboring airparks to provide appraisers with the data needed to determine an accurate valuation.
A Tale of Two Appraisals
During the housing boom in Florida, I encountered firsthand the complexities of airpark property appraisals. A bank sent an appraiser to my home who, despite being experienced, lacked knowledge of airpark properties. This appraiser evaluated my home at or below what I had paid for it, failing to recognize the premium value tied to the runway.
Recognizing the discrepancy, I insisted the bank send a second appraiser familiar with airpark properties. The difference was night and day. The second appraiser, drawing comps from similar airpark properties up to 40 miles away, valued my home at nearly double the original purchase price. This result not only reflected the housing market’s COVID-era boom but also captured the intrinsic value of the airpark amenity.
Aviation Real Estate Specialist Going the Extra Mile
On another occasion, I took a proactive approach by meeting the appraiser at one of my listings to discuss its unique features. As one of the larger lots in the airpark, this listing offered benefits that were not immediately apparent. Furthermore, I provided the appraiser with comparables from surrounding airparks, carefully selected to reflect similar features. This collaboration resulted in a record-setting sale price for the airpark. These experiences highlight the critical role of real estate agents specializing in aviation properties: understanding the nuances of the niche market and going the extra mile to assist customers in maximizing their investment.
Lessons for Buyers, Sellers, and Agents
This case study highlights the critical importance of using appraisers who understand the nuances of airpark properties. For buyers and sellers, this ensures that the transaction reflects the true value of the asset. For real estate agents, keeping a pulse on sales across surrounding airparks and working closely with appraisers can make a significant difference in achieving the correct valuation.
The Bottom Line
Airpark properties are more than homes—they are gateways to a lifestyle. Just as a waterfront property commands a premium for its access to water, airpark properties derive significant value from their runways. Properly appraising these unique homes requires expertise, comparable sales data, and an appreciation for the intrinsic value these properties offer.
When it comes to airpark real estate, ensuring that appraisers truly understand the niche market is not just important—it’s imperative. See more information about how we market Aviation Real Estate Properties.
