Environmental
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 cleanup✓ Correct
CThe negative zoning reputation of industrial areas
DThe reduction in value from environmental regulations on development
Explanation
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.
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Key Terms to Know
Zoning
Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
VarianceOfficial permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.
Math Concepts
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