Does Hoarding Decrease A Home's Value

Published on August 26th, 2022

Selling a property on the market can be difficult. If you're selling a hoarder's house, the task becomes even more difficult, if not impossible. Real estate professionals and prospective buyers research comparable houses recently sold on the market, while keeping other factors in mind, to evaluate the value of the house they want to purchase.

Properties on the market are typically re-faced and spotless, updated, or completely renovated, with professional photos emphasizing the most desirable features of the house. This is troubling for hoarder houses in complete disrepair because it is nearly impossible to find comparable properties sold on the market, resulting in a lower property value. Unfortunately, this is not the only hindrance to selling hoarder homes.

Guide to Selling Hoarder Houses

When selling a house, especially in hoarding situations, families have three choices: sell the hoarder house as is, sell the house to house flippers, or sell the hoarder house after a thorough hoarding cleanup.

Selling a Hoarder House as Is

It is difficult to sell hoarding houses without first passing through a thorough cleanup and restoration phase. Selling to traditional buyers is usually out of question if things are left unchanged. Even those in search of a fixer-upper will avoid a hoarder house.

Clutter, odours, and infestations usually discourage potential buyers from buying hoarded homes as is, and as the homeowner, you are unable to do much to present the house to make it sellable if you don't clean. These factors usually deter buyers and make it nearly impossible to sell the hoarder house as is.

Selling a Hoarder Home to House Flippers

Another option is to sell hoarding houses to house flippers, but this usually costs a lot of money.

Companies that flip houses, particularly in hoarding situations, are naturally looking to acquire the house at the lowest possible price, so you are unlikely to receive the cash offer you desire for the home. They will utilize every negative aspect of the hoarder house to reduce the sale price, and you may end up giving away the property for a fraction of the property value, causing you to lose money on the property.

Selling After a Cleanup

Given the increased sale price of houses, cleaning or renovating the home is possibly the best idea for a home seller. Hoarding can reduce the value of a home by a significant amount. In most cases, when you consider the typical price point for hoarding cleanup and the home's market value, cleaning the house first is almost always more profitable. After clearing personal items, the property can be properly staged and turned into a desirable purchase.

It is worthwhile to approach your neighbor and see if they require assistance. You could help them clear the clutter or prepare for a yard sale to rid them of the mess. It will be worthwhile as it will greatly improve their living and health conditions while creating a strong sense of community.

Hoarding disorder can not only affect property values, but severe cases can make living in such a cluttered mess a health concern for family members and neighbors alike.

A serious crime scene cleanup is necessary to protect homeowners from any serious illness involved in living in hoarding conditions. It is best to address hoarders and make them aware of the consequences such habits can lead to. Moreover, it is critical to inform real estate agents, future homeowners, or any real estate investor involved of the condition of the property before they sign a deal.