Forever Chemicals: How PFAS Impacts Property Value

Posted inHomeowners, Realtors

Do you live near a Superfund site contaminated with Forever Chemicals that’s been “cleaned-up”?

This post is all about how pfas / forever chemicals impacts the value of your home.

forever chemicals

When you hear that forever chemicals may be in your water it freaks you out, right?

If you are like me, it does. I found out that we moved into a home near a Superfund site and Greg and I immediately stopped drinking the water.

Unfortunately, those sites are hard to avoid, so I will tell you what I learned about them so that you can be better informed.

This post is all about how pfas / forever chemicals impacts the value of your home.

Forever Chemicals: How PFAS Impacts Property Value

Unique property appraisal is our wheelhouse, and has been for many years now.

So, when the opportunity arose to appraise a property that has been severely contaminated with PFAS, also known as Forever Chemicals, I was intrigued.

In speaking with the homeowner, my heart went out to him and his family.

As appraisers, we are not advocates… but we are human.

I immediately wanted to figure out what his property was worth so that he could make an informed decision about how to move forward.

But, also, when it comes to real estate, every decision we make greatly impacts our life, so it’s important to obtain an estimate of value from a reliable source.

Reliable sources, such as qualified real estate appraisers, are those who are familiar with the what, why and how to determine the market value of a complex property.

What is PFAS / Forever Chemicals?

PFAS are synthetic chemicals which have been produced in our country since the 1940’s.

They can be found in everyday items and many manufacturers are now making changes to avoid using these chemicals due to the health risks to consumers.

Health risks include cancer, pregnancy complications, childhood obesity, and hypothyroidism.

These PFAS are called “Forever Chemicals” for their ability to last in the environment.

One place where these forever chemicals have been used for many years is firefighting foam.

The chemicals cycle through the environment via the air, soil, water and can eventually accumulate in wildlife and humans.

This includes both public water and private well water.

So, if you live near an airfield, military base or a firefighting training area then it would be a good idea to learn more about the impact on your property and your personal health.

Forever Chemicals in Horsham

The Willow Grove Naval Air and Air Reserve Station is an Active Superfund Site.

According to the EPA the groundwater contamination, and the migration of contaminated groundwater is not stabilized, nor is it under control.

Many of the properties surrounding this base have been severely affected.

This contamination is reported to be under investigation since 2014 and many homeowners switched from private well to public water in hopes of “curing” the situation.

Unfortunately, the chemicals are also in the soil.

Which means, do not plant a garden and eat the vegetables grown in that garden.

Below is a map that was published and then later deleted from the same website as above.

Luckily, I saved it before it was deleted.

This is another Superfund Site in Warminster

How does this Forever Chemical affect the value of my home?

In order to determine the answer to this question Bev and I researched….. A LOT.

Here are just a few questions that we asked ourselves when looking for the answer:

  • What year did this contamination become public knowledge?
  • Which homes were affected?
  • What are the median sale prices in the county, township, immediate area of contamination before the public was notified? What are they today?
  • How would a potential buyer react in today’s market since there is such a shortage of homes for sale?

What we discovered was surprising

When deciding which sales are comparable to our subject we do our best to have a conversation with the realtors involved in the sales.

Most realtors are willing to talk with us and we are always grateful for their insight.

What surprised us was that the realtors reported there was no market resistance to the homes located within the contaminated areas.

And…. very interesting… none of the Sellers Disclosures mentioned the contamination.

This lack of disclosure was disturbing… but also intriguing because all realtors know how important it is to be transparent.

So why did no one mention it?

After more research we figured out why…..

Because the knowledge of forever chemicals is not widely known or understood.

It’s also not at the top of the news headlines and information is not easy to find.

I confess, I didn’t know this much about it either until we starting digging deep into research for this particular assignment.

The common misconception is that the contamination can be “cleaned-up”.

However, from what we have found, the pfas are called “forever chemicals” for a reason.

And, unfortunately, from what we have learned, the soil has soaked in these chemicals, the well is indefinitely contaminated and the installation of public water is no guarantee of a cure.

Digging deeper into the market reaction to forever chemicals

After speaking with the realtors and learning more about the impact of pfas we needed real numbers.

Our statistical research rooted in multiple listings showed us the median sale prices of the homes immediately affected by the pfas did sell for less than the rest of the township.

They sold for less.

But, they still sold.

People are still willing to buy these homes.

No judgement here….. just information that you should know.

PS: We also took a survey of our email list / market participants asking for their opinion.

Here are the results:

Resources

Below are resources you may find helpful if you would like to learn more about pfas / forever chemicals:

This post is all about how pfas / forever chemicals impacts the value of your home.
Last updated on April 28, 2023