Home Buying in Atlanta>Question Details

Erika Jones, Home Owner in Atlanta, GA

How much does a $300,000 homes value drop after a home has been remediated of $25,000 of mold?

Asked by Erika Jones, Atlanta, GA Wed Oct 31, 2012

Is there a typical stigma percentage range that my home would be devalued?

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Answers

8
Let’s define “remediated”…

Has the condition been corrected per the recognized standards of the industry? Has the HVAC system duct work and air exchangers been scrubbed? Have all levels – not just the impacted area - been “sniffed” for spore levels? Has this been completed regularly over a period of time to ensure eradication? Have bore holes been taken to check for activity in wall cavities? Has the type of mold been identified? Has the initial cause been identified and corrected?

Also keep in mind that you are required to disclose this moving forward. Once corrected, it may not impact an appraisal but I have had buyers that will not touch a home that has had a mold situation. That stigma has a 100% adverse impact on them and the seller.

Mold has become the next asbestos which became the next lead…..for the most part the drama overshadows the issue. The difference is that some people, especially kids, can have allergy issues so even the “normal” mold in higher levels can cause issues.

I have seen horror show remediation jobs – especially in foreclosures. Paint is often the answer and these homes are sold “as is-where is”. As an active appraiser, if I see evidence of past or present mold I mention it in my report. If it’s active, I will often recommend inspection by a professional firm.

The short answer to your question (assuming a proper remediation) is that as a refi, there is probably no impact. On a sale, assuming it’s disclosed as required; I would likely mention it and state that according to the seller the problem has been corrected. I would also clearly state that I am no expert – at that point the underwriters will decide what to do.

But – as things always will – it comes down to closed comparable sales.

Hank
Web Reference: http://www.hmtatlanta.com
1 vote Thank Flag Link Thu Nov 1, 2012
If the problem has been correctly fixed it shouldn't effect the value of the home.
0 votes Thank Flag Link Fri Nov 9, 2012
Hi Ericka,
If the mold has been remediated then the value should not drop. Remediation would mean that the mold had been removed and all issues had been remedied.
The remedicaiton would have to be disclosed. Keep all contracts/ documents/papers involved with the mold issue and disclose everything.
Good luck
Thanks
Janet McCarthy
Professional Realtor
Connect Realty
jmccarthyhomes@gmail.com
0 votes Thank Flag Link Fri Nov 9, 2012
If the mold is now gone, I am not sure why there would be any drop in value. Mold is not realyl that much different that a water leak or any other repair if it is correctly addressed and removed.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Thu Nov 1, 2012
All good answers. Great answer, Levi.

I've seen "stigma" percentage charts over the years, and they only offer general guidance.

As Michael suggested, get an appraisal.

If you want to sell it right now, then call one of us and we'll discuss top dollar sales pricing...
Web Reference: Http://intowninsider.com
0 votes Thank Flag Link Thu Nov 1, 2012
If it has been totally remediated and cured, Erika, that in and of itself should not have a major effect on the value. The only way to tell for sure is to have an appraisal performed in comparison to other properties in the area. Please call, text or email if we can provide further assistance. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com

http://www.SellsRealty.org

http://www.city-data.com/

http://www.greatschools.org/
0 votes Thank Flag Link Thu Nov 1, 2012
If the house has been properly remediated, then you should not see any price drop since the value would have increased with the remediation.

The reality is that mold is everywhere. With the right conditions, you can have a major mold issue within 72 hours in any house, whether it had mold previously or not. Of course, the concern from buyers is always about improper remediation which can increase the probability for future mold. So, you just have to make sure you use a reputable company.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Wed Oct 31, 2012
Erika,

There is no typical percentage for something like this. In fact, mold remediation could INCREASE the value of your home if done correctly!

For example, if you had a home with a mold problem that is worth 300,000 and the mold was removed by a REPUTABLE, ESTABLISHED & PROFESSIONAL company that offers a long term warranty on their work, then the home should now be worth MORE than it was with the mold problem.

Another major aspect of this is whether the source of the mold was also repaired? If the home has a leaky foundation, did you have a REPUTABLE, ESTABLISHED & PROFESSIONAL company repair the leaky foundation so that the mold will not come back? Remember, you can spend all the money in the world removing mold and have the best warranty, but it does you little good if you still have the moisture problem that caused the mold in the first place.

I hope this helps! Let me know if I can be of any more assistance.


Best,
Levi Afrah
Realtor
Chapman Hall Realtors Premier
404-805-5384-cell
I am proud to be a Dekalb Association of Realtors Pinnacle Award Life Member!
0 votes Thank Flag Link Wed Oct 31, 2012
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