Most appraisers can agree on four key points about valuing brownfields:

  1. Contamination poses an issue that must be considered in the appraisal process.
  2. Proximate contamination significantly impairs property values.
  3. Multiple impairment mechanisms are at work, including actual cost-to-cure, increased ongoing maintenance costs, and stigma.
  4. 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)

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