ADVISORY OPINIONS
This communication by the Appraisal Standards Board (ASB) does not establish new standards or interpret existing standards. Advisory Opinions are issued to illustrate the applicability of appraisal standards in specific situations and to offer advice from the ASB for the resolution of appraisal issues and problems.
SUBJECT: The Appraisal of Real Property That May Be Impacted by Environmental Contamination
THE ISSUE:
Appraisals of contaminated properties, or properties suspected of being contaminated, are sometimes developed using either a hypothetical condition or an extraordinary assumption that the property is free of the contamination. While this is acceptable practice under certain conditions and for certain intended uses, there are assignments that require an appraisal of the “as-is” condition of the property, with full consideration of the effects of environmental contamination. In these assignments, the appraiser is asked to analyze the effects of known environmental contamination on the value of the subject property.
How does an appraiser comply with USPAP when appraising properties that may be impacted by environmental contamination?
ADVICE FROM THE ASB ON THE ISSUE:
Relevant USPAP & Advisory References
Specialised Terms and Definitions
Relevant Property Characteristics
Valuation Issues - As If Unimpaired
Valuation Issues - As Impaired
USPAP 2008–2009 Edition
©The Appraisal Foundation