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Mold and Your Property Value
By Jim Brown
Like most property owners who have experienced some type of contamination such as mold, you have probably asked yourself some of the following questions: How will this issue affect my property value? Will my property value decrease due to the contamination? Do I really have to report an old mold problem that is now fixed?
Answering these questions is not a simple task since, in many cases, the answers depend on the buyer's perception of the condition. In addition, the extent or amount of contamination may also be a factor influencing the buyer's perception of a particular type of contamination.
When your property has been contaminated, the stigma is generally a negative factor and its impact on value often reflects that. The prices negotiated for contaminated real estate are often lower than prices offered for a non-contaminated property of the same standards and conditions.
Education is the Answer
The best way to change the stigma and its impact is through education. In order to change the negative impact of a contaminated property, the buyer's perception must be changed. If the buyer is properly educated, he is more likely to address the issue based on facts and knowledge rather than judging it by an emotional feeling.
Here are the main aspects of mold contamination that a buyer needs to consider and understand as he or she makes a decision in regards to a property that is currently contaminated or that has been contaminated in the past:
- Structural and health hazards that may result from mold. (Learn more)
- Different factors involved in testing for mold type and quantity. (Learn more)
- Process of mold remediation and decontamination. (Learn more)
- Post remediation clearance test for air quality. (Learn more)
- Importance of humidity and moisture control as a preventative technique. (Learn more)
As the buyer becomes educated about topics like mold contamination, his/her perception of the condition will most likely change leading to a change in the impact of the stigma.
Another Property Value Issue
Another mold-related aspect that may affect your property's value and marketability is the appraisal. Appraisers need to learn the topic of mold carefully to assure that their perception of mold contamination does not unfairly lead to a lowered appraisal.