How does one appraise a brownfield property? – Scott S., affordable housing developer
Placing a value on a brownfield site is a complicated matter. Often, the valuation method is influenced by the purpose and timing of the appraisal, and the location of the site. Appraisers may provide an “impaired” or “unimpaired” valuation. For example, a site can be valued “as-clean” with qualifiers on factors which may reduce the valuation. Ideally, a Phase I Environmental Site Assessment is conducted simultaneous to an appraisal so that any factors which impair the value can be disclosed. In addition, if it is possible to conduct Phase II sampling, an environmental engineer and the regulatory agency may be able to provide estimates regarding probable clean up costs.