In SA, how should a valuer approach the valuation of a property affected by contamination?
Correct Answer
B) Weigh remediation cost, market stigma, liability and any limits on permitted use under EPA requirements.
A valuer must assess contaminated land by considering estimated remediation costs, any residual stigma effect, potential ongoing liability, EPA requirements, and the impact on the property's permitted uses and development potential.
Why This Is the Correct Answer
Contamination affects value through the cost of remediation, lingering market stigma, possible liability and any limits on permitted use under EPA requirements. The valuer weighs each on the evidence rather than ignoring the contamination or applying a set discount.
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