Water damage and mold are two things that appraisers will be looking closely for. So, you'll want to hire a mold remediation company that repairs any water damage and mildew left behind.
So, the market in general is going to expect that any toxic mold be removed. The impact on market value could be very large, depending on the situation. I have appraised homes in which the mold was so extensive, that the cost to remediate the mold exceeded the market value of the home.
Decreased Home Resale Value
There's no getting around it: The impact of mold on home value isn't a good one. According to the same study, researchers found that home resale value dropped an average of 20% to 37% for both minor and major mold problems. The bigger the issue, the larger the loss was likely to be.
Home inspectors are not looking outright for mold when going over a property. Yet, if the history of the home includes water damage, more than likely an inspector will make it part of their inspection.
Mold is a red flag to buyers, and may cause them to reconsider purchasing your home. Even if you don't plan on selling your home in the near future, the presence of mold can be harmful to you and your family.
Indoor mold growth can and should be prevented or controlled by controlling moisture indoors. If there is mold growth in your home, you must clean up the mold and fix the water problem. If you clean up the mold, but don't fix the water problem, then, most likely, the mold problem will come back.
An FHA appraiser examines the property to determine its condition. They will look at the structure, major systems, and foundation. They will also check for hazards like mold, pests, and any leaks. You have to fix these problems to meet FHA home loan requirements.
No matter what type of mold is present, it should be removed. Exposure to damp and moldy environments may cause a variety of health effects, or none at all. For people that are sensitive to molds, it can cause stuffy nose, throat irritation, coughing or wheezing, eye irritation, or skin irritation.
During an inspection, the inspector will check for visible signs of mold and any areas that may be prone to future growth. They will also use various tools, such as moisture meters and infrared cameras, to detect moisture levels in your home.
If you can prove that a home inspector was negligent when performing their home inspection, you could have legal grounds to sue. But this is generally only the case if you can prove your home inspector didn't follow SOPs and/or did not adhere to a pre-inspection agreement you signed.
If the mold damage is located in your living room, kitchen or the bathroom, the experts will recommend you to find alternative lodging for the time being. Also, if you have infants and elderly people at home or have family members with a weak immune system, you should probably leave your home for a while.
Mold remediation costs $2,365 on average, but it can cost between $375 and $7,000, depending on location, type, and size of infestation. Mold removal often requires replacing or significantly renovating your home's materials, making the costs tricky to calculate.
A 2022 report from the National Institute for Occupational Safety and Health Centers for Disease Control and Prevention estimated that around 47% of all homes in the United States have some mold or dampness. Seeing mold is a clear sign, but sometimes you can smell mold.
An appraiser should always explain the search parameters and why the comparable sales were chosen. Generic, boilerplate statements such as, “The best and most similar sales were selected and utilized,” should not be used.
Some lenders, including those offering FHA loans, might not approve your request for a mortgage if the home you're buying has serious mold issues. You might have to shop around for a lender if the home you're buying has significant mold issues. That could make buying the home even more stressful.
In his California market, the cost can range from $275 for a simple visit to $2,900 for a complex inspection. For homes under 4,000 square feet, Angi estimates the average cost is generally between $300 and $400, whereas larger homes may see prices between $700 and $1,000.
Your sense of smell is the first line of defense against mold. You can often smell mold before you can see it. If you notice a musty smell in your home, there's a good chance you have mold. If you think you have a mold problem, get on your hands and knees and smell the electrical outlets.
It is OK to have some mold indoors, according to the United States Environmental Protection Agency. However, mold in the home can negatively affect a person's health if it lands on damp or wet areas, as this is the ideal environment for growth.
The only effective way to permanently get rid of mould problems is by reducing the build-up of moisture in your home. This can only be achieved through better ventilation.
If there is a covered condition that the homeowner's insurance policy covers that causes mold, then the insurance company will cover mold remediation. Excess water from a natural cause like a roof leaking after a rain storm is usually covered by a homeowners insurance policy.
Lenders are concerned about mold because it can indicate structural deterioration and future financial obligations, which can impact a property's appraisal and loan terms.
Major structural issues that are common FHA red flags include cracked or crumbling foundations, deteriorating roofs, and water damage. Other red flags that appraisers look for include: Missing handrails. Cracked windows.
Mold issues that are older could signal that the home is now in good shape if the mold remediation was done properly and the sellers have continued to maintain a clean and dry indoor environment to minimize the risk of mold returning to the structure.