In many communities or homes the quality of the well water may be problematical. Approval of wells in most states only requires a test for bacteria not nitrate, toxic metals, or volatile organic compounds. If these were commercial or industrial properties, remediation and a discounted price would be required. Investors receive an annual return and remediation costs are viewed as an operating expense. The homeowner ' s return is received on sale and the proceeds are usually carried over to another home purchase.
Investors have, or can obtain funding, to remedy contaminated sites.
For homeowners their home is their largest asset, and the cost of removing contamination is overwhelming. Imposing hardship on this large population is not desirous or politically wise. Investors in commercial property are risk-oriented and losses are acceptable. Where undue contamination of well water has posed threats to homeowners health various measures have been adopted to mitigate costs. For commercial properties WI has a fund providing subsidies for remediation costs to owners of leaking underground storage tanks.