Depending on your financing, your lender may not even let you buy the home. You could look into renovation financing and roll repairs into your mortgage.
Personally, I'd probably just find another home.
The conclusion was that both myself and the seller would split the costs. However, split the cost at closing. The seller paid it in full seeing how it was his home, and if there were any issues I would not be stuck with a bill if the home never closed on.
The seller should pay for it, if he will not ask to split the cost at closing if he or she will agree.
If you cannot agree on that you can always walk.
Firstly, if there is toxic mold (the kind banks make agents and buyers sign release forms for on bank owned homes) I would look at a professional remediation team. They do amazing things. The big point here is that homes with mold should be the cheapest thing in the area.
With that said, hopefully you're still in your inspection period and can make an issue out of it. If you're buying a bank owned home, they probably won't do the remediation but it never hurts to ask. They may agree to a lower price though since they know they'll have to deal with it regardless of who they sell to.
If you're dealing with a traditional seller and you're still in the inspection period, you have a lot of power and should use it to your advantage. If you're past the inspection period or didn't submit an offer with that contingency, you really need to consider your options. How bad is the mold? What will it cost you to do a full remediation? How much earnest money is at stake here? Answers to these questions will help you determine the best path.
I work with many investors so I have a great mold remediation team if you're interested. Feel free to email me at email@example.com or call at 612-849-9079.
If this is a bank owned or show sale property, you can ask them to remediate the mold or escrow funds to make repairs after closing. However these kinds of homes are sold 'as is' and it's unlikely they will be willing to make repairs.
There is some incentive for homeowners to fix a problem (assuming it's a real problem) because once a defect has been brought to their attention they will now have disclose that defect on their sellers disclosure form - which is read and signed off by everyone else who will want to buy their home. So if you walk away, they will have to tell everyone else they have a defect in their home.
Talk to your agent regarding the options you have at this point in your purchase process.
For more buying and selling tips, please visit http://www.RochesterHomeLocator.com
Salafia Sold Team
An inspection that identifies a serious health concern and recommends the type and extent of remediation may prove helpful but as previously stated, in the end it's up to the seller where they want to go with this.
Our best recommendation, it to build a case for yourself and plant the seed that this recent discovery should be disclosed to future buyers and that any other buyer will likely want this matter resolved as well.
Mark Atteberry, Expert Louisville Realtor
If the seller is unwilling to remediate the problem, negotiate to have your own choice of a mold remediation specialist go in and get an estimate for you. Then you can submit the bid for the remediation to the seller and ask for a price reduction to get the repairs done.