How Much Does Mold Devalue a Home?

Learn about mold’s effect on home value and what to do about it.

If you have mold in your house and are wondering of it’s affect on your home’s value and the ability to sell, this is the article you want to read.

As someone who’s been in the mold remediation business since 1997, I had the opportunity to see firsthand how mold can impact not just the health of residents but also their property values.

Let me tell you—mold can be really problematic if you’re planning to sell, not just because of its affect on the asking price but also on how many people might even be interested in the first place.

This article is based on a study by The Appraisal Journal, which contains some great information on the topic, combined with our actionable tips on what to do about mold.

By How Much Does Mold Exactly Devalue a Home?

So, what do studies say?

Mold has led to a 20–37% reduction in property value.

They also show that many potential buyers (about 42% to be exact) won’t even consider bidding on a home that’s had mold issues, even after they’ve been fixed.

As you can see, the numbers get scary fast. There were some cases where the damage was so extensive that the only option was demolition.

An apartment complex in Seattle had to demolish the entire building due to toxic mold, resulting in losses of over 60%. And that’s not even counting the additional costs of demolition and the hit to the owner’s credit if there’s a mortgage involved.

But how does this even happen?

Why Does Mold Devalue a Home?

First off, there’s the immediate cost of remediation. When we go into a home with mold, it’s not just about wiping down some walls.

We often have to open up walls, replace drywall, and sometimes even deal with structural issues. This isn’t cheap, and smart buyers know this.

But the bigger issue? Anxiety. Buyers worry about hidden problems, potential health issues, or the mold coming back.

Insurance is another huge factor. There are cases where insurance companies have cancelled policies just because mold was found, even if it was dealt with properly.

Can You Sell a House With Mold?

Yes, you can sell a house with mold, but it’s not going to be easy or profitable.

The best approach is to address the mold problem before putting the house on the market.

First, get a professional assessment. At our company, we always start with a thorough inspection to understand the extent of the problem.

Then, have the mold properly remediated by certified professionals. This isn’t just about cleaning visible mold; it’s about addressing the underlying moisture issues that caused the problem in the first place.

Once the remediation is complete, document everything. In our business, we provide detailed reports and clearance testing results.

This documentation can be invaluable when it comes to reassuring potential buyers.

And lastly, be upfront about previous mold issues. In most states, you’re legally required to disclose this anyway.

But beyond that, honesty, combined with documentation showing proper remediation, often helps buyers feel more confident about making an offer.

Does Insurance Cover Mold Remediation?

Insurance can be complicated when it comes to mold.

In my experience dealing with many homeowners and their insurance companies, coverage for mold damage varies wildly.

Some policies flat-out exclude it, while others might cover it if it’s a result of a covered peril like a burst pipe.

But here’s what most people don’t realize: even if your policy does cover mold, there’s usually a cap on how much they’ll pay.

Some insurance companies have not only denied claims but actually cancelled policies after discovering mold. Remember that Seattle apartment complex I mentioned?

Their insurance company dropped them within 45 days of finding out about the mold and even cancelled policies on the owner’s other properties that didn’t have mold issues.

This is why it’s crucial to understand your coverage and act quickly if you suspect mold.

How Long Does It Take to Remove Mold?

That study says that the average time from reporting a mold problem to getting final clearance was about 8.4 months.

But don’t let that number scare you—a lot of that time involves paperwork, inspections, and dealing with various authorities.

The actual remediation work? Well, that depends on the extent of the problem. A small, localized issue might only take a few days.

But when we’re dealing with extensive mold growth, especially if it’s gotten into the walls or HVAC system, it could take several weeks.

And if we’re talking about a situation where major reconstruction is needed, you’re looking at even longer.

What I always tell my clients is this: it’s better to do it right than to do it fast. Rushing the job often leads to the mold coming back, and trust me, that’s the last thing you want when you’re trying to sell a home.

Wrapping Up

Remember, while mold can significantly impact your home’s value, it doesn’t have to be a deal-breaker. With proper mold remediation and documentation, you can minimize the financial impact and still successfully sell your home.

Just make sure you’re working with experienced professionals who know what they’re doing—your home’s value can depend on it.