Tony Wong, The Toronto Star, Monday September 12, 2011 Section B
Homes that were used for grow ops sell for an average of about 15 - 25 per cent less than other similar homes. These homes are difficult to sell and are stigmatized.
You can pick up a stigmatized property for much cheaper and it allows a buyer to get into desirable neighbourhoods. But, this could make the property more difficult to sell down the road if the market experiences a downturn.
Once a property has a negative factor which leads to stigma, every time it is listed for sale or lease that fact must be disclosed by the realtor," said Barry Lebow, Property Appraiser. Ontario Progressive Conservative Leader, Tim Hudak, announced over the summer that he would establish a registry of homes that have been formerly used as grow ops and meth labs.
"Meth labs and grow ops pose a serious danger to the health and safety of homebuyers and their families and they also threaten their pocketbook," said Hudak. "Often these homes receive cosmetic renovations to disguise their former criminal use before they are sold to an unsuspecting buyer."
Some properties require a total renovation, right down to the studs, because of mould and wiring problems. Health hazards from grow ops include mould and mildew due to the high level of humidity needed to grow the plants. The heavy chemicals used can also cause respiratory problems and allergies.
The wiring of the home may have been dramatically changed to tap into hydro lines to power high wattage lights. Some professional growers will use every square inch of the house including removing washrooms.
When buying a house which operated a grow operation, an environmental clearance certificate from an engineering inspection company, signing off that the home has a "clean bill of health," is highly recommended. These lab tests alone, however, can cost anywhere from $5,000 to $6,000.
Some properties require so much work, it's best to tear them down, and sell the lot alone.
Overall, when buying a grow house it really is Buyer Beware. Even though you may be saving 20% on the initial purchase it could cost considerably more to renovate the house and you may not make this money back down the road when it comes to sell.