How to Sell a Property with Spray Foam Insulation
Spray foam insulation is proving to be a popular way to insulate a home, but it’s also making it a little more difficult to sell a property after guidance recommended its removal, and some homeowners discovered poor-quality installations within their properties. As a result, some lenders are reluctant to lend against properties with it, and some buyers are unsure after the survey results are returned. Selling a home with spray foam insulation has got a little harder.
In this blog, we explain how to sell a property with spray foam insulation and explain the difficulties many buyers face.
What is spray foam insulation?
Spray foam insulation is a product sprayed into gaps and cavities in roofs, lofts, and flooring. With a simple application, it spreads across the desired space, providing a thick wall of insulation to keep the cold out and the warm in.
Its rise in popularity was quick. More traditional insulation types offered little to no mould resistance, only a moderate level of energy efficiency and tended to need replacing every few years. Spray foam insulation, on the other hand, delivers high energy efficiency, high levels of mould resistance and lasts a considerably long time.
Made from polyurethane and filled with bubbles of gas or air, it spreads into all the recesses that more traditional insulation cannot always reach.
However, despite its valued properties, it soon became a problem for homeowners.
Why is spray foam insulation a problem?
You’d think that with its benefits, property buyers would be keen to snap up a home with spray foam insulation, but unfortunately, it doesn’t seem to be the case. A 2021 document contained guidance recommending that spray foam insulation should be removed, whilst RICS (Royal Institute of Chartered Surveyors) reported that properties could be devalued if they had spray foam insulation in place.
Then, if you factor in that mortgage lenders and surveyors both consistently raise concerns about the quality of the foam installation and the potential structural damage it could cause, you suddenly find that many sellers are stuck with houses they can’t sell because buyers can’t get a mortgage or start to look elsewhere.
Problems caused by spray foam insulation
When installed correctly, spray foam insulation can be great, but for some lenders, the risks outweigh the benefits. Problems facing homeowners, and risks that lenders want to avoid include:
- Moisture damage
- Timber rot
- Structural damage
If the insulation is installed incorrectly, it becomes easy for moisture to get trapped behind it. This can then lead to the rotting of timber frames or the depleting of other parts of the structure. Furthermore, when the spray foam insulation is installed in roof spaces, it becomes impossible for the surveyor to assess the roof timbers. This then leads to them being unable to make a genuine and fair assessment of the property. Without a complete assessment of the property, a lender is likely to reconsider making a mortgage offer.
Will spray foam insulation devalue my house?
It can do. With the previous 2021 guidance and RICS suggesting properties be devalued, it quickly became common for properties to see their values drop. Lenders suddenly become reluctant to lend as surveyors deemed properties high risk. This then forces owners to reduce their price, or see buyers come in with an offer way below the expected value.
With such reluctance from mortgage lenders, sellers suddenly find themselves with a reduced pool of buyers. With a reduced pool of buyers comes an increased likelihood of low offers.
How can I sell a property with spray foam insulation?
Selling on the open market can be tough, but it is possible.
- Book an independent survey. Get a surveyor with experience in properties with spray foam insulation to conduct a survey. Their report indicating that there are no structural issues or moisture problems will help satisfy buyers and lenders.
- Ensure you have proof of certified installation. Provide all the certifications or documentation that proves your spray foam was installed professionally.
- Ensure you have an up-to-date EPC. If you can highlight the energy efficiency benefits to sellers, you may give them the added reassurance they need to make an offer.
- Highlight additional benefits of your insulation. There are two types of spray foam insulation, closed-cell, and open-cell. Closed-cell can improve the structure of a building as well as insulate it, whereas open-cell allows moisture through, reducing the risk of condensation.
- Offer to remove the insulation. If your home has been listed for a while with no offers or limited viewings, you could offer to cover the cost of removing the spray foam insulation. It might be enough to sway a buyer, but it comes at a cost, as removal tends to be more expensive than installation.
- Find the right estate agent or a cash buyer. Many estate agents will list your home. If they get their fees, they don’t mind how long your property sits on the market. With no guaranteed buyer, a reluctance from lenders, and a potentially eternal wait, you may never sell. In some cases, estate agents may not even want to list your home as it may be deemed unsellable. A solution is a cash house buyer, like Sell House Fast. Your home is guaranteed to sell, no waiting, no last-minute chain breaks, just a sale on your terms.
Can I remove spray foam insulation myself to help get a sale?
You could, but it is not easy, and it is not cheap. In fact, removing it yourself is not advised on both financial and health & safety levels. Instead, you should book a professional company to do the job. This will likely cost you more than it did to have it installed, but you’ll know that the entire installation has been removed. Don’t forget though, you’ll now need to insulate the areas again, and this won’t be free either. It would be advisable to get a quote for the removal of your spray foam and the installation of new insulation.
The quickest and easiest way to sell a home with spray foam insulation is through a cash house buyer. Where lenders, estate agents, and buyers may want proof of the insulation installation credibility, reports showing its effectiveness and other detailed information, cash house buyers don’t. In fact, we buy any house. Condition, insulation type, or location don’t matter. We’ll make you an offer, and if you accept, you’ll sell your house fast, on your terms. Need it all done in just seven days? Not a problem, need a little longer, we can wait. Why not get your no-obligation cash offer today so we can start the process?
