Is Your Town Toxic?

(page 2 of 2)

Toxic Spill in Greenpoint

Residents of the area around Greenpoint, a neighborhood in Brooklyn, N.Y., may have reason to worry. A 1950 ExxonMobil (XOM) oil spill has led to the accumulation of gasoline, solvents, and other hazardous substances in a vast underground lake. The spill was first discovered in 1978 and has been estimated to contain as much as 30 million gallons of oil and other chemicals, according to a September, 2007 report from the Environmental Protection Agency. At the current clean-up rate, the EPA says it will take 25 years to remove 70% of the oil. According to the EPA, there are four primary dangers associated with petroleum spills: toxic vapors; contaminated drinking water; contaminated food; and toxic skin contact.

Residents can take action to preserve their health and homes. In Danvers, residents have formed a volunteer organization called SAFE (www.safeareaforeveryone.com) as a result of last year's plant explosion. SAFE works with town, state, and federal agencies to identify potential environmental hazards and solve existing problems.

Neighborhood environmental reports from companies like EDR are also available through home inspectors for residents or homebuyers concerned about contamination—though you may not always hear about it from your broker. "I see a resistance in real estate agents to getting the reports," says John Zito, a home inspector with Deep Dale Atlantic Home Inspection in Long Island, N.Y. "I've had a real estate lady say to me, if you offer that service and you kill the deal you'll never hear from the real estate company again."

Environmental reports usually cost between $100 and $150 and will highlight environmental sites with known contamination in the vicinity of your home, as well as the type or types of contamination. This information can be vital in making a decision on a home. Zito recalls one client who uncovered an abandoned factory in the backyard and a commercial laundry on the other side of the road. They decided not to buy.

"The information is available for anyone who wants to get into it," Zito says. "If you're investing a lot of money in a house, you want to know that it's safe."

Click here to see a list of the metro areas with the most contaminated sites per capita.

Roney is Real Estate writer for BusinessWeek.com.