Summer 2000, Vol 25, No 2

Abstract: The generally recognized method for appraising the market value of real property contaminated by hazardous materials is to deduct from the unimpaired value the cost of remediation, with a possible charge for “stigma.” However, the application of this apparently simple formula should be expanded to consider key factors that could mitigate, and even eliminate, the effect of the presence of contamination on value. This manuscript provides a brief discussion of the usual formula and an overview of many of the mitigating factors that should be considered when contaminated or formerly contaminated real property is being valued.