If you’re a homeowner, you probably should be concerned about Mold.
Mold (Moulds) are fungi microorganisms found in our natural environment, acting as nature’s recycling machine.
They can break down building materials causing structural damage.
As a homeowner, you won’t be happy to know that a mold infestation can lower the value of your property, delay selling your home, lead to high repair costs, and it can cause serious structural damage to your home.
As if that wasn’t enough, if mold infests your home, it can cause allergic reactions and health concerns in some cases.
It Affects Appraisal Issues, Home Inspection and you must disclose the issue which makes it harder to sell
A mold infestation can affect your properties value and cause concerns for both buyer and seller.
Not to mention it can cause the sale of a property to stop quickly.
Not only that, sometimes it can cancel the sale of a home that was already under contract.
How can mold cause issues when selling your home?
1. Home Inspection (True Story)
To give you an example, I was contacted by a friend of mine who was selling his home in Maryland.
During the inspection process, the home inspector noted in his inspection report that there was microbial growth in the basement area that affected the baseboards and the main door leading to a room in the basement.
The buyer ordered a full mold assessment of the home as a result of the inspectors’ findings.
When the assessment was completed, they discovered that the basement area had water damage that affected one of the exterior walls.
On closer examination, they determined that several areas in the basement were affected by mold growth.
When the buyer learned of the issue, they decided not to continue with purchasing the home.
Who could blame the buyer?
No potential buyer wants to walk into a home that has been infested with mold.
2. Home Appraisal
Another thing to keep in mind when buying or selling a home is home appraisal.
We all know how critical this process is and anything that comes up on the appraiser’s report must be addressed for the loan to get approved.
The Fannie Mae appraisal Form 1004 requires that appraisers inspect and identify any physical issues or adverse conditions that could affect the ability of the home to be habitable.
Also, the appraiser is required to report on any condition that can affect the structural soundness of the home.
Now, if you are in the process of buying a home, and the appraiser should find an area that has a mold problem similar to the picture below:
In most cases, it will be a condition that has to be addressed before the loan can be approved. This will delay the closing of the property.