cdbrown28, Home Buyer in Capitol Heights, MD

Is it ever a good idea to purchase a home with severe mold issues?

Asked by cdbrown28, Capitol Heights, MD Thu Feb 14, 2013

I've run across a house that looks like it has potential from the outside. In the notes it says SEVERE MOLD PRESENT, caution when entering. Can they sell a home with severe mold issues and isn't it very expensive to inspect, test and remove mold?

Help the community by answering this question:

Answers

9
John W. Chang, MBA’s answer
BEST ANSWER
Hello cdbrown28,
There is no need to panic when hear mold. What you should do this hire a independent remediation house contractor to see how much repair would be. Let the owner of the house see the estimate, than bargain from that.

Good Luck
0 votes Thank Flag Link Wed Feb 27, 2013
Hello Ms. Jones: It is only a good idea if the buyer wants the home and has the resources to remediate the mold and return the home to a habitable/liveable property. That is the criteria for determining if purchasing a home with severe mold issues is a good idea. My office is based out of Bowie, MD on Lake Arbor way, 2 minutes from MVA.As your realtor, I will give you the outstanding professional and customer service that you deserve. You should call or e-mail me today. look forward to hearing from you!

Thanks,
Aaron Brown
SELLSTATE Dominion Realty
10268 Lake Arbor Way
Bowie, MD, 20721
202-327-1385
abrown2362@aol.com
http://www.aaronbrown-realtor.com
0 votes Thank Flag Link Wed Feb 27, 2013
Hi cdbrown28, have the home inspected and receive consultation from a contractor experienced in mold remediation.
0 votes Thank Flag Link Fri Feb 22, 2013
Hi CDbrown28,

Investors say mold is gold! Put this usually comes with knowledge and experience of addressing it. Mold in a home can be expense to remedy as noted previously in other answers and difficult to finance. Some mold companies will come out and give you a scope of work and estimate for cost.

Good luck
0 votes Thank Flag Link Sun Feb 17, 2013
Hello cdbrown28. I know you have had many great answers here on Trulia. I would definitely say when looking at a home with Mold, know that it is a health risk. The Banks can sell it in its AS_IS condition. The banks will make you sign a waiver to not hold them liable for any health issues down the road. Even the mold remediation companies will not guarantee long term. So if you have concerns about the long term effect of Mold, I would say stay away. Yes, many lenders are even backing away from homes with mold. Thats why is a Attraction to Investors. Good Luck!
0 votes Thank Flag Link Fri Feb 15, 2013
Your first question is, can you sell a home with sever mold issues? The answer is yes. However if you are thinking of putting in a contract on that property I would certainly have a contingincy that you have a Certified Mold Inspection/Remediation company come in and tell you what the costs would be. The Seller MAY be in a position to help with the costs depending if it is Bank Owned or not.
0 votes Thank Flag Link Thu Feb 14, 2013
Hello cdbrown. Most homes with severe mold problems are bought buy investors because they usually gut the house out and renovate or they have the money ($10,000+) to remediate it. A small amount of mold is one thing. Severe is another. If you are a first time home buyer I would probably advise against it. There are to many other homes to choose from. As your first home you want to take the path of least resistance. What ever you buy you will probable have to do some upgrades and repairs but that's a bit much. If you would like me to take a look at the house for you, I can be reached at 301-440-1489 or parkerteam4@aol.com. Hope this helps.
0 votes Thank Flag Link Thu Feb 14, 2013
Thank you!
Flag Thu Feb 14, 2013
Hi, mold is a very serious issue. All lenders required that you bring in a mold certification company to come in and resolve the mold matter. Resolve the mold can be very expensive depending on the extent of the damage. If you like, I know of a few companies who are certified in resolving mold issues.
0 votes Thank Flag Link Thu Feb 14, 2013
Hello CD Brown,

For most loans, mold must be remediated before the lender will approve financing on the home. Mold remediation can be costly and sometimes the cost to remediate would be over and above the value of the home. Call a certified mold remediation company and find out what they would cost to estimate the damage.

Trying to sell a property with severe mold would be difficult as anyone coming in with government financing such as FHA, VA or USDA will not be able to qualify for the loan until the mold remediation has been completed...thus, this limits the bidders on your property to those with Conventional financing that does not require mold remediation to be completed or cash purchasers.

Renovation loans, such as the FHA 203k allow for mold remediation to be included in the new purchaser's financing, however, if the expense of repairing the property is greater than the value of the home after improvements, the loan will not go through. Many loans are killed because the damage to the property is so great that the cost to improve exceeds the marketable value of the home.

Sincerely,

Catherine Purcell
Senior Mortgage Loan Officer
Fairway Independent Mortgage Corporation
cell 202 573-6035
catherinep@fairwaymc.com

> MLO# 194172 FIMC NMLS# 2289
0 votes Thank Flag Link Thu Feb 14, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer