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 â€“ not just the impacted area - been â€œsniffedâ€ 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 leadâ€¦..for the most part the drama overshadows the issue. The difference is that some people, especially kids, can have allergy issues so even the â€œnormalâ€ mold in higher levels can cause issues.
I have seen horror show remediation jobs â€“ especially in foreclosures. Paint is often the answer and these homes are sold â€œas is-where isâ€. As an active appraiser, if I see evidence of past or present mold I mention it in my report. If itâ€™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 itâ€™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 â€“ at that point the underwriters will decide what to do.
But â€“ as things always will â€“ it comes down to closed comparable sales.
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.
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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...
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.
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.
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