mold stigma for residential re-sale

[andcat]

I have been retained by an attorney to appraise a property in Northeastern Utah
that was flooded by a neighboring farm. The basement was flooded and the abatement cost was 25K. They have installed two sump pumps, so as far as future flooding, not a concern. However, they want to know how much stigma (market value) will be acquired if and when they decide to sell the home since it will be necessary to disclose the home did have a mold issue. Can anyone advise me on how to research this issue or better, experience completing a report with this issue. Any advice or help would be greatly appreciated.

 

[hastalavista]

IMO, anyone who takes on this kind of assignment (stigma or something like that) should read Read Real Estate Damages: An Analysis of Detrimental Conditions by Randall Bell (published by the AI).
Not a hard read, and very helpful in the general process of analyzing stigmas.

While it won't give you a specific dollar amount answer for your assignment (and there may be no impact at all), it will outline the process that you can use to solve a problem like this with confidence and competence.

Good luck!

 

[CANative]

I think Bell's bottom line notion is that time heals all wounds.

Is there a stigma because there was mold at one time but is now cleaned up? Or is there a stigma about being flooded by a nearby farm? Or is there a stigma about having to have sump pumps which assumes this will keep happening?

 

[hastalavista]

I think Bell's bottom line notion is that time heals all wounds.

That's it for most of the issues (unless the stigma has a half-life of 500,000 years :laugh.

 

[andcat]

Since this area is a drier climate we do not typically deal with mold issues. I know there are other appraisers, especially in the eastern area, who may deal with this considerably. From the reply threads, I have apparently asked a stupid question. Simply put, every homeowner needs to fill out a disclosure when they put their property up for sale. They will have to disclose it did have a mold problem, it was abated, will this affect their value in the future? I assumed there have been homes that have sold before having not had a mold problem and re-sold after having a mold problem. Assuming there has not been any considerable economic changes, did it affect the resale value. I am only asking if anyone has ever had to deal with this and how did they approach it.

 

[Terrel L. Shields]

How long did it sit before being rehabbed? I mean if it was flooded by a nearby property, then was it some transient flood or did it sit in a puddle of juice for days?

I doubt there is any stigma attached to it. But if it reappears, it might be very stigmatized as an on-going problem. I had roof damage in a storm and water came in. All I could do was spray a biocide on the insulation. I've never had an issue since.

 

[mark hurlock]

A lot of mold experts say EVERY home has mold and that the real problem is moister. A home with a moister problem allows mold to grow and that can become a problem. So once the moister problem is solved and existing growth is adequately removed, mold should no longer be an issue.

They say adequate removal of mold may include replacement of structural and finish materials, plywood, sheathing, drywall, insulation, etc.

I would think existing mold would be a problem but a home that had documented effective remediation would not. I see many sales in the foreclosure market with mold problems because they were left vacant.

Also, I would not consider mold a stigma. I would consider it an environmental issue/physical defect that requires correction.

JMO.

 

[residentialguy]

A lot of mold experts say EVERY home has mold .......

Also, I would not consider mold a stigma. I would consider it an environmental issue/physical defect that requires correction.
.

Great....don't let Mark appraise your house. Every house has mold which is what he considers to be an environmental issue/physical defect that requires correction.

 

[JSmith43]

Some mold is more equal than others.

 

[Randolph Kinney]

From the CDC on mold:

Stachybotrys chartarum (also known by its synonym Stachybotrys atra) is a greenish-black mold. It can grow on material with a high cellulose and low nitrogen content, such as fiberboard, gypsum board, paper, dust, and lint. Growth occurs when there is moisture from water damage, excessive humidity, water leaks, condensation, water infiltration, or flooding. Constant moisture is required for its growth. It is not necessary, however, to determine what type of mold you may have. All molds should be treated the same with respect to potential health risks and removal.