Environmental Impacts and Property Valuation
Who We Are
Independent Valuation Services for Properties Affected by Environmental Conditions
Real estate can be impacted by various environmental impacts and natural disasters. Wildfires, floods, and landslides are just some examples of environmental conditions impacting a property, and the question that arises is how market value is impacted. This type of damage may also extend to those caused by the property’s use such as contamination. Schneider Valuation Consultants, Inc. provides objective valuation services in matters involving environmental impact and the impact on property value.
Analysis focuses on how the presence of an environmental influence affects utility, saleability and/or the overall value of the property. Work product is structured to assist legal counsel, property owners, or public agencies in understanding value-related impacts.
Focus Area
Valuation assignments involving environmental impacts assess how contamination, cleanup obligations, and/or potential stigma caused by the event may influence property value. These services are often used in litigation, insurance review, or dispute resolution where clear, market-supported opinions are required.
Environmental Impacts on Value
Property values can be affected by environmental conditions in a variety of ways. Limitations to using the property, costs to cure, and potential stigma are some examples. In some cases, physical issues may be remediated, but there may be ongoing risk associated with the property that may impact value. The future use of a property may also be limited by restrictions tied to prior environmental issues, such as precluding certain uses due to contamination. Assignments are approached with applicable valuation methodology, support from relevant market data, and site-specific context. The valuation problem to solve not only deals with issues impacting the property, but the market reaction to such issues and its impact on value.
Typical Valuation Scenarios
Environmental valuation services are offered in matters involving litigation tied to contamination or other environmental issues, insurance claim assessment, regulatory compliance, or transactions affected by environmental issues. Some properties may face long-term limitations or reduced market appeal based on what extent of the environmental impact. Schneider Valuation Consultants develops independent opinions of value that reflect how the market responds to such environmental conditions. Our role is to measure how it influences market value based on market data and relevant legal influences.
Each appraisal is prepared in accordance with professional appraisal standards, applicable regulations, and relevant code and case law.
Who We Work With
Schneider Valuation Consultants works with attorneys, environmental professionals, public utilities, property owners, and others involved in valuation matters where environmental influence is a factor.
Legal Teams
Litigation support is provided for counsel involved in environmental damage claims, cost disputes, or diminution in value claims based on environmental impacts. Work product is prepared to ultimately assist the trier of fact.
Environmental Consultants
Coordination with environmental experts ensures that the analysis reflects any impacts to value, tested against costs to cure.
Insurance Providers
Valuation helps clarify whether market value has been affected by certain natural disasters or other events, which can includes items such as the cost of cleanup, residual value loss issues, or other impacts.
Property Stakeholders
Owners, lenders, and buyers seek valuation insights when environmental factors may influence pricing, utility, or highest and best use.
Valuation Considerations
Each assignment is based on site-specific conditions, intended use, and the legal setting in which work product will be used.
Market Reaction to Stigma
Even after remediation, the value of a property may be impacted by perceived risk of ownership and use. Market data is used to determine whether and how market participants respond to events such as wildfires, floods, landslides, contamination or other environmental issues
Influence on Highest and Best Use
Environmental conditions can limit use of a property, which includes items such as obtaining approvals, obtaining financing, development constraints, and differing uses of the property.These impacts are considered in the highest and best use analysis.
Market Data Analysis
Market data, including sales and leases of similarly affected properties, can be analyzed to determine the value impairment, if any, caused by environmental conditions.
Clear Communication
All findings are presented in a format that supports the intended use. Valuations that reflect environmental impacts can be complex, but the goal is to communicate value conclusions in a manner that is easily understood by the client, judge, or jury.
Environmental appraisal matters are handled with care, discretion, and an emphasis on objective, market-supported conclusions. Relevant work product is designed to clarify whether environmental influence has affected value and if so, to what extent.
Ready to work together?
or call us at 858.208.3175.
