Is it hard to sell a house with spray foam insulation?

Author: Miss Jordane Huel  |  Last update: Thursday, July 24, 2025

Spray foam insulation is a selling feature that appeals to some buyers and not to others. Spray foam won't make a difference in your resale value, but it could attract buyers who have experience with spray foam and are interested in a spray foamed house.

Why do lenders reject spray foam insulation?

The issue stemmed from older homes being retrofitted with spray foam insulation in the roof line, leading to moisture buildup and potential rot issues. The lack of a vapor barrier and inadequate insulation thickness contributed to the problem.

Does spray foam add value to a home?

Many homeowners find themselves asking "can spray foam insulation help increase the value of my home?". While each market is different, the short answer is almost always yes.

Is spray foam insulation in high demand?

The global spray foam insulation market is experiencing robust growth as increasing demand for energy-efficient building solutions and stringent environmental regulations drive adoption across residential, commercial, and industrial applications.

Why is spray foam a red flag for lenders?

Spray foam insulation is one of those many factors that can throw up a red flag to a mortgage lender. For a lender, your insulation matters because it affects crucial metrics such as the home's saleable value and energy efficiency rating.

Spray Foam Insulation — The Ugly Truth?

Why is it hard to sell a house with spray foam insulation?

Some Buyers May Be Uncertain Of Spray Foam Insulation.

If they don't know the contractor who installed it, they may worry that the foam was installed by people who didn't know what they were doing. Other buyers have heard negative stories about spray foam insulation.

Can I remove spray foam insulation myself?

Can I remove the roof foam insulation myself? It's a job best left to a professional. If you try to do it yourself, not only could you damage tiles, electrics and other materials, but some kinds of spray foam are toxic to touch or breathe in.

What are the negatives of spray foam?

Spray foam insulation is a good insulator in terms of keeping a room warm or cool. But its many downsides outweigh the benefits. These include, making it more difficult getting a mortgage, potential health issues, environmental damage, ventilation issues and a lower home valuation.

Do I need a permit for spray foam insulation?

When building a new structure, obtaining a building permit for insulation is almost always necessary. This is part of a broader requirement where permits are needed for various aspects of construction, including excavation, foundation, framing, electrical, plumbing, and finishing.

How much should spray foam insulation cost?

Spray foam insulation costs an average of $1.25 to $1.50 per square foot, though it can range as high as $4.50. Prices can increase based on the following factors: Type: Various types of spray foams are used in residential construction, and they each have different costs. Area size: Larger areas cost more to insulate.

Where should you not use spray foam?

Directly against electrical wiring or fixtures: Spray foam insulation should not be applied directly against electrical wiring, fixtures, or recessed lighting unless they are rated for contact with insulation. Contact with insulation can cause overheating and pose a fire hazard.

Does homeowners insurance cover insulation?

Insurance Coverage: Homeowners insurance may cover insulation damage if it's tied to a covered peril, such as a sudden water leak or storm damage. Alternative Solutions: Specialized insurance policies, energy efficiency programs, or direct rebates may help defray insulation-related costs.

How long does spray foam last in a house?

Spray foam insulation lasts for 80 years to 100 years, but closed-cell spray foam will last a little longer than open-cell spray foam. For many homeowners, this lifespan will extend beyond the entire time they own their house. Closed-cell spray foam lasts longer than open-cell spray foam due to its rigid structure.

Is spray foam a bad investment?

Spray foam insulation is expensive but can be an excellent investment for residential and commercial properties.

Does spray foam insulation rot your roof?

Water won't sit between the roof and the spray foam insulation because if it did, this would cause rot. It's important the spray foam insulation used in roofs is breathable, as timber needs to breathe and this will ensure no problems such as rot occur.

What is better than spray foam insulation?

While both types of insulation are great choices for home insulation, fiberglass insulation is generally considered to be safer than spray foam insulation. This is because spray foam contains a special type of chemical called isocyanate, which is toxic when inhaled.

Why can't you sell a house with spray foam insulation?

Independent chartered building surveyor, Geoff Hunt said due to government initiatives open cell spray foam has gained popularity in recent years. But he called for 'caution and refusals on higher-risk applications' as mortgage lenders struggle to assess spray foam.

How profitable is a spray foam insulation business?

How Profitable Is a Spray Foam Insulation Business? The short answer is that you can make a lot of money and build a solid career in the spray foam insulation business. Established contractors can work with gross margins of about 50% and net margins of 25%.

Do you have to be certified to spray foam?

“Do you have to be certified to spray foam insulation?” We get this question all the time from new contractors. The answer is legally no, but we recommend you should be.

Can mold grow behind spray foam insulation?

Mold and mildew can begin growing behind the insulation which can go unnoticed until it's already become a huge problem. This often happens when the spray foam isn't installed correctly and space is left between the insulation and the wall, which allows moisture in and gives mold the perfect place to grow, unfettered.

Does spray foam insulation decrease home value?

Spray foam insulation provides an excellent air seal, reducing the workload on the HVAC system by minimizing air leaks. This not only extends the lifespan of the HVAC system but also improves comfort and energy efficiency, qualities that can boost a home's marketability and resale value.

What is the best insulation for exterior walls?

Foam Board or Rigid Foam

Foam boards -- rigid panels of insulation -- can be used to insulate almost any part of your home, from the roof down to the foundation. They are very effective in exterior wall sheathing, interior sheathing for basement walls, and special applications such as attic hatches.

How much does it cost to get spray foam removed?

Average Cost in 2024 of Insulation Removal:

On average, homeowners and property managers can expect the cost of spray foam insulation removal to range from £20 to £50 per square meter in 2024. However, prices can vary widely based on the above factors and the project's complexity.

How much does it cost to spray foam insulation?

On average, spray foam insulation costs range from $1 to $4.5 per square foot, with larger projects amounting to around $6,000. The estimates in this article are based on data from trusted industry sources such as HomeAdvisor, HomeGuide, Sprayman, and other insulation cost resources.

Can a homeowner do spray foam insulation?

DIY Spray Foam Pros

The small areas around doors and windows are great small projects for DIY foam insulation. The experienced homeowner could avoid a contractor's minimum charge by doing these small spaces themselves. You can buy the kit at your local home improvement store and get the job done on your own time.

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