Property Value and Mold

Like most property owners who have experienced some type of contamination such as mold, you have probably asked yourself some of the following questions: How will this issue affect my property value? Will my property value decrease due to the contamination? Do I really have to report an old mold problem that is now fixed?

Answering these questions is not a simple task since, in many cases, the answers depend on the buyer's perception of the condition. In addition, the extent or amount of contamination may also be a factor influencing the buyer's perception of a particular type of contamination.

When your property has been contaminated, the stigma is generally a negative factor and its impact on value often reflects that. The prices negotiated for contaminated real estate are often lower than prices offered for a non-contaminated property of the same standards and conditions.

Another mold-related aspect that may affect your property's value and marketability is the appraisal. Appraisers need to learn the topic of mold carefully to assure that their perception of mold contamination does not unfairly lead to a lowered appraisal.

Purchasing a Mold Infected Home

Never even think of purchasing a home that is infected with mold unless you receive a price reduction that will more than cover mold remediation by qualified professionals. Even then, ask the seller to pay an independent appraiser for a proper valuation of the home and to allow you to obtain quotes from mold remediation firms. Contact your insurance agent to make sure the home is insurable, and contact your mortgage agent to make sure you can get any necessary mortgage before you are able to move in.

If the perspective  home is infested with mold, contact a mold abatement specialist and have it cleaned thoroughly. Especially if you are ready to buy, have a plumber or other expert contractor deal with the source of the mold, which can be leaky pipes, old drywall, improperly waterproofed exterior structures or a combination of factors. Make sure to have all abatement procedures and repairs documented so that the seller can show you the buyer that any and all issues you may have had have been properly dealt with.