Property Valuation
When appraising a Pennsylvania contaminated property under Act 2 cleanup, an appraiser may use a 'stigma' adjustment to account for:
AThe cost of required cleanup only
BResidual buyer reluctance to pay full price even after cleanup, reflecting a market perception of lingering risk✓ Correct
CPADEP's environmental liability assessment
DFuture environmental compliance costs
Explanation
Even after environmental cleanup under Act 2, buyers may be reluctant to pay the same price as for a comparable unaffected property. This residual value impairment due to perception of risk — beyond direct cleanup costs — is called stigma.
Related Pennsylvania Property Valuation Questions
- When making an adjustment in the sales comparison approach, if the comparable sale has a feature the subject lacks, the appraiser:
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