Toxic Mold

[John Heines]

:?:
I am looking for paired sales that may or may not indicate a discounted sale price of a property due to the stigma attached by the presence of a toxic mold.

Thank you.

John Heines
heines2@sbcglobal.net

 

[Ed Potrafke]

I don't have any paired sales to offer, but the few mold infested homes that I have ran accross while doing comp searches tended to sell for 10-20% less than the assesed value. In my area it's not unusual for a property to sell for as much as 25-30% more than the assesed value. I'd say that less than 10% sell for under the assesed value, and most of those are fixer uppers, and homes that have been owned by a single owner for many years.

 

[Travis McGee]

I'd say at this time the adjustment is going to be high. The public is just becoming aware of this mold issue and anxiety and panic will be at its highest. As more info becomes available and cheaper abatement procedures are discovered, the impact on value will decrease.

 

[The Bob]

Ran across this story today....


(BSNS WIRE) Real Estate Center Video Has Mold Covered
Real Estate Center Video Has Mold Covered


Business Editors

COLLEGE STATION, Texas--(BUSINESS WIRE)--Jan. 10, 2003--Despite a two-year media blitz, doctors agree that common mold is not harmful to the health of most people. However, mold insurance claims and the publicity surrounding them have created problems.

In a new 95-minute video, the Real Estate Center at Texas A&M
University interviews experts who confront questions and rumors daily
about the unpopular fungus.

In "The Video Book of Mold," Rudy R. Robinson, an appraiser,
delves into how the stigma associated with a mold infestation affects
a home's value. Robinson's case studies have found that even after a
home is fully remediated for mold damage, it carries a stigma that
reduces the home's value. He found that homes in the same neighborhood
as the once "moldy" house are also affected by the stigma.

Mold claims have caused homeowners insurance premiums to increase
dramatically and have also affected policy terms and availability.
Judon Fambrough, attorney with the Real Estate Center, explains recent
changes in Texas homeowners' policies that relate to mold and water
damage coverage. Some companies will not insure homes that have had a
mold claim in the last four years, he says.

Dr. Gailen Marshall, Jr., a noted immunologist, discusses health
risks. He says that for 99.9 percent of the population, mold is not a
problem.

The one-tenth of a percent who have an adverse reaction are those
with immune suppression conditions, such as AIDS patients or cancer
patients undergoing chemotherapy, and those who are allergic to
certain types of mold.

For homeowners who suspect mold, Dr. Mani Skaria, a professor of
plant pathology at the Texas A&M University-Kingsville Citrus Center,
shows how to do a simple inspection using a flashlight and a $35
moisture meter. Homeowners can eliminate the need to have the house
tested by professionals by looking for signs of water damage and using
the meter. Skaria gives several tips in the video on how to prevent
the growth of mold.

The video also includes a look at a full-house remediation by
specialists and a step-by-step demonstration of how homeowners can
remove a mold infestation from their homes on a smaller scale.

For easy use, the video is divided into five chapters and has an
index noting where each topic can be found on the tape.

To order, call 800/244-2144 and ask for "The Video Book of Mold."
It is $19.95.

--30--EB/ho*

CONTACT: Real Estate Center at Texas A&M University
David S. Jones, 979/845-2039
or
Ellissa Brewster, 979/845-2088

KEYWORD: TEXAS
INDUSTRY KEYWORD: EDUCATION REAL ESTATE PRODUCT
SOURCE: Real Estate Center at Texas A&M University

Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: http://www.businesswire.com




*** end of story ***

 

[Karl]

U being in Texas where the BIG SUITE (Not yet settled) you'll saee the mold issue more of a factor than an area that has yet to be hit with a Suite.

 

[John Heines]

I have viewed "The Video Book of Mold" from the Texas Real Estate Center. Chapter 4 relates to stigma resulting from mold. The appraiser presenting the data had four case studies, three of which indicated a stigma discount of 16-19% based on his interpretation of the data studied.

 

[Restrain]

John:

It depends on whether it is cleaned up or not.

By the by, nice to see you still out there.

Roger Strahan, SRA

 

[Farm Gal]

John:

It appears in MY area to largely depend on the extent of the problem, the degree of noticable odor, AND how recently there has been media frenzy on the subject. :roll:

I did not vote as it does NOT appear quantifiable by simple percentage adjustment, at least in my market.

We have had few sales of otherwise 'typical' condition homes with highly visible or odifactory evidence of mold.

REO or closed vacant homes typically have a whole other set of problems effecting value.

 

[Terrel L. Shields]

The question is if someone in that household got sick from mold. The stigma is likely 100% in that case. Only toxic molds are involved in illnesses usually and there are several common molds that do cause reactions of varying amount to a relatively high percentage of people (especially if breathed).

Testing is about 50 bucks. Recommend a home inspector if any mold is noticed. Shift the responsibility to someone else. And don't let a lender bully you into striking any remarks you make about mold.