Home Selling in 50703>Question Details

Joyce Sherbu…, Home Seller in Waterloo, IA

how much will my home value decrease for sale with mold and water damage?

Asked by Joyce Sherburne, Waterloo, IA Sat Nov 13, 2010

i have an offer on my home for 50,000 the assesed value is 64, 400 and the appraised value is 95,000 is 50,000 a fair offer

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11
Really depends on the scope of the mold and water damage. I have seen homes with extensive mold and water damage sell for only what the land is worth, as the house becomes worthless. I would be extremely careful and make sure everything is properly disclosed to the buyer.
1 vote Thank Flag Link Sat Nov 13, 2010
I agree, it all depends on how big the mold and water damage is. You can get it completely restored if you really need to. It may end up saving you a lot of money in the end. Good luck, and I hope that you're able to get this problem taken care of. http://www.rccsouth.com/services.html
Flag Fri Mar 27, 2015
what is the difference between assused andapprised value
0 votes Thank Flag Link Sat Jun 27, 2015
what is assesed value vureses appraised
0 votes Thank Flag Link Sat Jun 27, 2015
It depends on how severe your water damage is. If the buyer is aware of how much restoration they'll have to do, then that offer sounds fair to me. Water damage can really cut down on your value, unfortunately, so getting the full amount back is probably impossible. http://www.wetheringtonrestoration.com/insurance.html
0 votes Thank Flag Link Tue May 19, 2015
You will want to find someone who can do water removal and restoration for you. This will help so that your home's value doesn't decrease too much. It will also help make your home safer. http://longislandrestorationnow.com
0 votes Thank Flag Link Fri Dec 19, 2014
I agree that finding someone to do the restoration is a great idea. This will save you the trouble of trying to figure it out yourself and getting the proper tools and equipment for the task. Also, it can save you money in the long run if you have a professional restore your home after water damage, because future breakdowns will be eliminated.
http://www.thompsonvalleydisasterkleenup.ca/en/flood_water_damage.html
Flag Thu Jan 8, 2015
My parents were trying to sell their house a few years back. They had just had a big flood in their area and had lots of water damage. It decreased the value of their home drastically. It all depends on how much damage and mold there is.
0 votes Thank Flag Link Mon Jul 21, 2014
Hi Joyce,
Some of the answers below are great advise. Getting remediation can be accomplished and add some value but remember you will have to disclose "all" and this knowledge will still hold a decrease in value to most buyers. Another subject is that anyone purchasing in this condition will have to be a cash buyer because if they are getting any financing the lenders underwriters will pick up from the appraiser notes and require all mold to be remediated by professional contractor and tests with proof that all is clear prior to closing.
Feel free to call me for any other assistance
Rocky Smalley
Oakridge Realtors
0 votes Thank Flag Link Sun Nov 14, 2010
Joyce

To add to what Suzanne said, educate yourself on Mold. The EPA has a very good publication you can get at:
http://www.epa.gov/mold/moldguide.html
People often react to mold on an emotional level that is far beyond the real impact of the situation. In most cases if you eliminate the moisture that caused the mold to grow, properly remediate it and repair any damage you should be fine. If you get estimates on remediation make sure to check out at least 3 companies and get references on them all. I had mold remediation done on a house I rehabbed and the price estimates ranged from $5,000 to $12,500. The $12,500 guy was basically a scam artist and the $5,000 guy was the most knowledgeable and competent.
0 votes Thank Flag Link Sat Nov 13, 2010
Fixing mold problems is usually extremely expensive. In the current market in Iowa, I'm going to guess that if you have a 50,000 offer you are probably better off accepting the offer and moving on. I have recently relocated several couples to & from Waterloo & it appears that our markets have suffered similarly... In Des Moines we are off 50% year to date & we have learned that we probably would take at LEAST a 15,000 hit on a property with mold or similar issues. The information on remediation would be good to have, but if you risk loosing the buyer I don't think I'd take the time... The ultimate solution to mold is to completely remove everything potentially damaged, fix the actual problem (wherever the moisture is coming from) & then replace the interior fixtures... Drywall etc. It's expensive. And, even if you do the work, there's a stigma that's associated with properties that have had mold & you still are obligated to disclose that it has exisisted in the state of Iowa.
Good luck, and don't hesitate to ask if I can assist you further!
Beth
0 votes Thank Flag Link Sat Nov 13, 2010
Joyce, If $50,000 is what you want to accept then by all means accept it. However if your offer is subject to an inspection you could be facing inspection issues regarding the mold which could run into several thousand dollars. As far as the water damage the Buyer should of saw that and it shouldn't be too much of an issue given the fact that the price is much lower than the appraised value.

Make sure if you want to accept the offer that it is an "As is Sale" and Seller will make no repairs. Make sure your Buyer understands that their buying your Property which its's issues.

All the Very Best
Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Sat Nov 13, 2010
I would get an estimate from a mold remediation company. Then, if you can afford to pay for the remediation, do it. Mold exists everywhere. It is a living organism. It requires food (usually paper) and water to live. In order to get of the mold you will not only have to kill the organisms but also remove the source of food and water. There are many, many different types of mold and only a very few are toxic. However, for a person with a mold allergy, it is devastating.

I showed an REO home not long ago and the first floor was full of mold. The buyer (not mine unfortunately) required the bank to remediate the mold prior to closing. My understanding is it was done for about $10,000 by addressing the source of the moisture, removing the drywall, cleaning the surfaces underneath with a mixture of detergent and bleach, then installing new drywall. Problem solved and very cost effectively I might add.

Many buyers are terrified of mold because of all the bad publicity mold has gotten in recent years and they discount their offer drastically when there is a significant mold problem. There are ore than a few investors who LOVE mold because they know that it is often easily gotten rid of and remediated and they know they will get a HUGE discount on a home with mold. Often the cost of remediation is far less than the discounted offer. You would be doing yourself a favor to get a mold specialist in so you have the facts.

Here is an article from realtor.org on mold in the hoe that may help you.

http://www.realtor.org/realtororg.nsf/pages/moldfaq?OpenDocument

Good Luck!
0 votes Thank Flag Link Sat Nov 13, 2010
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