EnvironmentalIntermediateDelaware Exam

What is 'environmental stigma' in Delaware real estate valuation?

AThe embarrassment of owning a contaminated property
BThe diminution in value of a property due to the fear, uncertainty, and negative perception associated with environmental contamination, even after cleanupCorrect
CThe negative zoning reputation of industrial areas
DSimply the reduction in property value caused only by new environmental regulations placed on future development, as is typically expected in this situation

Why The diminution in value of a property due to the fear, uncertainty, and negative perception associated with environmental contamination, even after cleanup Is Correct

Answer B: The diminution in value of a property due to the fear, uncertainty, and negative perception associated with environmental contamination, even after cleanup

Environmental stigma is the residual loss in property value attributable to buyer and tenant fear and uncertainty about a formerly contaminated site, even after remediation meets regulatory standards. Stigma may persist for years and is a recognized appraisal concept.

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

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