Even after treatment, mold could cost you Some estimates show that even a properly treated home can see its value drop by 3%, meaning your best bet is to stay alert and fix any mold issues as soon as they are discovered. Both the case study conducted by the Johnson team, Welcome and the research by Frank and Schoppa point out that some homebuyers will not consider buying even properly treated homes with a history of mold at full price. Schioppa estimates that homes that have undergone proper and documented treatment for mold lose about 3 percent of their value. The house covered by the equipment still lost 50 percent of its value even after proper treatment.
However, attitudes towards mold are changing, according to Patrick Barta of the Wall Street Journal, so the figure presented by Schoppa seems more realistic. However, if you notice the growth of a mold-like substance on the walls, ceilings, or floors of a house in areas that should be dry, this may be indicative of an area where mold growth may occur. Whenever major mold repair is necessary, there will be a negative impact on market value. As already mentioned, proper mold removal is very expensive.
Therefore, this type of situation is likely to have a big impact on market value. In certain situations, excess moisture in a confined area can lay the foundation for toxic mold growth. The only thing you don't want to do, if you are a homeowner, is to put your property on the market without revealing the nature of mold problems and trying to mask the situation. Although it may seem that finding toxic mold would be easy, it is not always easy to differentiate it from its harmless counterpart.
Even if mold is removed, the property value of your home can drop significantly if left untreated. The presence of mold can not only affect the perception of the advertised property, but there is a high probability that it can cause a potential buyer's fear of harmful health effects. Even a relatively small area could end up costing many hundreds of dollars, just for spore testing, not to mention the tedious work of removing mold. If you are a buyer, you can take advantage of an existing mold problem and negotiate with the seller the selling price or closing fees.
The house can be traded at a lower value and scare away other potential buyers due to negative perceptions about mold. Still, ask the seller to pay an independent appraiser for a proper home valuation and allow you to get quotes from mold remediation companies. According to the same study, researchers found that home resale value dropped an average of 20 to 37% for minor and major mold problems. Be sure to thoroughly check the home for mold and water damage to avoid declining property values and potential legal issues that could result from your state's disclosure laws.
According to the Environmental Protection Agency (EPA), in some cases you may be able to remove mold yourself. Many states require home sellers to disclose any known cases of mold and mildew growth to potential buyers. Regular house cleaning and water damage inspections will help you stay on top of the problem, but if mold continues to grow and you need professional assistance, remember to consult several professionals and ask for quotes from each, so you don't reduce your net profit too much once you sell your home. Most likely, if there is mold growth in your attic, there are likely other problems as well, from a leaky roof to improper ventilation.
According to the Environmental Protection Agency (EPA), in some cases you may even be able to remove mold yourself. .