Do Water Leaks & Mold Remediation Affect The Value Of A Home?

A homeowner contacted us last week with the following question. They are concerned about the value of their home if it has had water leaks fixed and mold remediation in the past.

My wife and I purchased a new build home last year that has been having issues that are concerning to me, but not the builder. We have had both interior and exterior leaks that have led to mold remediation, and I am really concerned about the future value of the home.

Being an expert in the area, would you say home values are impacted by prior mold damages that have been remediated?

Answer

It would be very difficult to determine a loss in value if the leaks have been repaired and the mold has been fully remediated. The MLS would not disclose a prior mold issue and therefore there would not be any data to determine if an adjustment is warranted.

However, if the leaks have not been repaired or the mold is present when a home is sold, it would likely be an issue that a buyer would require to be repaired prior to purchase of the home.

It is the sellers responsibility to disclose any prior mold issues per Arizona law. It is also required to disclose if the mold was found to be identified as toxic mold (most are not) and if mitigation has been completed.

I have completed thousands of appraisals and have not seen one that had active or past mold issues that were disclosed in the sale contract. I have seen homes with minor mold issues around showers, under sinks, etc. but have not noted a significant difference in value from similar homes with no mold noted. I do believe that it would turn away some buyers, but most would not be concerned as long as the leaks were repaired and the mold had been mitigated.

If you have a question for "Ask The Appraiser" send us an email at: steve@masterappraisalservices.com

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