Most appraisers can agree on four key points about valuing brownfields:
- Contamination poses an issue that must be considered in the appraisal process.
- Proximate contamination significantly impairs property values.
- Multiple impairment mechanisms are at work, including actual cost-to-cure, increased ongoing maintenance costs, and stigma.
- The valuation process is complex, often requiring advanced valuation approaches such as perceived diminution, contingent valuation, and conjoint analysis to complement traditional approaches.
Authors: Bill Mundy, Dave McLean, and John Kilpatrick
Originally published in Valuation Insights & Perspectives, Vol. 4, No. 1 (1999)