How Environmental Issues Affect NJ Real Estate Transactions

nj real estate

When you think of NJ real estate, or buying or selling a property, your first thought probably doesn’t connect to the environment. We don’t realize it, but environmental issues play a role in almost every real estate transaction, whether in the internal or external surroundings of a building or property. In some situations, it may be the building itself that is affecting the environment, and in other cases, the environment can have an impact on the building or its inhabitants. When assessing the value of a property, environmental issues play a large role, especially because home buyers naturally want to be assured that they will be able to maintain a high-quality of life.

In general, the biggest issue with environmental problems isn’t fixing them; it’s identifying them. An absence of spotting and handling these issues can result in accruing unknown, substantial liabilities for all parties involved in a real estate transaction. Failure to pinpoint environmental problems could not only lead to financial and legal difficulties, but also health complications for any exposed individuals. Essentially, the impact of environmental factors on the real estate market is more sizable than you may think.

Since most people desire an aesthetic view, the appeal of a property’s scenery is essential. Not only does the scenery determine the aesthetic value, but it’s also an ample factor in formulating the price of the property. In addition to the role that a property’s scenic features contribute to the price, so do the presence of spatial features. These include greenery, forests, water sources, and the layout of the features, all which influence the property value and buyer’s attitudes.

Another environmental factor that can affect any real estate transaction is land contamination. Obviously, contaminated land is a real concern for any potential home buyer. No one wants the land of their property contaminated with trash, dirty water, or other varieties of pollution. This contamination may be caused by negligence of past or present owners’ or may stem from on-site or off-site activities. It’s crucial to locate the source of the contamination because that will determine liability. Once the source has been identified, responsibility can be apportioned and potential risk can be defined. In the case of drinking water supply wells on or near the property, liability, risk, and responsibility can become even more complicated.

A home issue that you’re probably more familiar with is mold contamination. Moisture is mold’s best friend, so you can probably conclude that mold thrives in moist and inadequately ventilated areas. Buildings that are poorly constructed tend to propagate mold within their walls and air circulation systems. The most common breeding ground for mold is in the walls of a structure. There’s no doubt that mold is toxic to the human body, but it also weakens a building’s structure. Mold contamination is one of the major causes for substantial liability claims, especially if an individual’s health is affected. It’s crucial that landlords and homeowners take care of mold issues before they worsen. Homeowners, whether selling or new owners, should research possible insurance coverage for these liabilities.

If you’re a daily TV-watcher, you’ve probably seen a commercial about asbestos. Most commonly used as an insulator in boiler rooms and pipes, roofing, and flooring, asbestos typically appears in older residential properties. That’s not to say that a new home can’t have the same issue. It also tends to be a problem in industrial and commercial properties. Unfortunately, asbestos can cause a variety of health complications, and you may not be aware that asbestos is even in your home or building. The cost to eliminate asbestos is substantial, so it’s key to identify the issue right away.

No questions asked, any of these problems listed above will affect the real estate value of any property. It not only influences the price, but also the desire of potential owners to purchase the property, especially if the new owner is going to have to deal with the problem. The key to handling any of these issues is early identification. In most real estate transactions, some sort of environmental assessment will take place. If one isn’t scheduled for your upcoming NJ real estate purchase, make sure one is completed. Addressing the issues can take a bit of work, but obtaining dependable information about the property and efficiently managing the problems are absolutely essential to your health and happiness in your new home.

 

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