I am selling my home and found mold! Now what?
What to do about selling a house with mold is a question real estate agents get.
There is potential for mold to be found in almost every home. Where there is any amount of moisture, mold can and will grow.
However, the real estate community has become increasingly aware of severe mold issues that can significantly damage home sales.
Molds such as Stachybotrys Chartarum, or black mold, can cause serious health complications and substantial liability issues for the sellers of houses that contain black mold.
As a home seller, you cannot afford to mess around with mold growth. You can deal with mold in a responsible way that should help you sell your home for a fair price and clear you of any liability should the mold return after the sale – but you must deal with the problem directly.
In my experience as a Realtor, I have sold many homes where mold was discovered both before and after listing for sale. The key is dealing with it properly. It is in any homeowners best interest to remediate a mold problem. Before listing your house, it’s essentiial to know the mold disclosure laws in your state to ensure compliance and avoid legal issues. Awareness of the health risks of mold can help you understand the importance of dealing with mold issues before listing your property. Mold issues can significantly impact the market value of a property, making remediation a worthwhile investment.
Few things will scare a home buyer away from your property faster than mold issues!
What Does Black Mold Look Like?
Working as a real estate agent for thirty-eight years, there have been many times when a client asked what mold looks like.
Black mold, as the name suggests, typically appears dark in color. It can be identified by its dark green, dark brown, orange, and sometimes white circular spots. It is essential to be aware of and determine the presence of black mold so that proper steps can be taken for removal.
Black mold typically has a furry texture and is often found in greater concentrations as a black stain on walls, floors, or ceilings.
You’ll likely find that Black mold has a distinct, musty, and earthy odor. The smell can sometimes be comparable to that of rotting vegetables or plants.
When you smell a musty odor but don’t see any visible mold, you’ll need to look for areas where water penetration may have occurred. For mold to grow, there needs to be a water source.
It is quite possible you could have mold growth from a leaking pipe that is not visible.
How Does Mold Affect Home Sales
Selling a house with mold is not something you want to mess around with. Some buyers will bail out a home sale at the first mention of mold discovered in a property!
Everyone is familiar with common household mold, a fungus that grows in all kinds of moist environments. It grows on food left in the fridge for too long, for instance.
Unfortunately for homeowners, it also grows in attics, bathrooms, basements, and virtually any moist surface around your home.
For example, if you see black spots developing on a wall in a poorly ventilated room, you are probably noticing the beginning stages of a mold problem.
Mold is around you, generally in airborne spores, searching for an ideal place to land and develop. It is not a problem in small amounts, but when it finds a moist spot in your home and you fail to notice it, it can quickly develop into a severe problem.
What Are The Dangers When Found in a House?
Of the thousands of molds in your environment, a select few are harmful to humans due to their proximity.
These toxic molds, of which black mold is the most common, produce airborne byproducts that can damage your lungs and lead to general ill health.
Asthma sufferers and others with lung complications experience the most problems with toxic mold, but it is capable of making healthy people sick as well.
The most vulnerable populations to toxic mold are the elderly and infants.
In reality, serious health complications from indoor molds are pretty rare. Most people experience minor reactions from mold exposure, such as sneezing, runny nose, or coughing – if they experience any symptoms.
However, this argument will be of little weight to potential buyers if they discover black mold growing in your property.
Do Home Inspectors Check For It in a House?
Yes, you can expect the buyer’s home inspector to be looking for evidence of mold during the home inspection.
It is essential to note, however, that most home inspectors are not licensed to validate the presence of mold. A mold specialist must take tests to determine if you’re looking at mold.
Most of the time, you can expect it to be mold. If it walks and quacks like a duck – you know the rest.
What Happens if it is Found During a Home Inspection?
When a mold problem is discovered in a house, sellers usually offer to remediate it. It is then up to the buyer to decide whether this is acceptable or not. In some instances, buyers become paralyzed by the presence of mold. They fear that the remediation will not solve the problem and that they will be left with health issues.
I have never experienced this. Mold professionals do an excellent job removing the problem areas, so as a buyer, you should not fear mold staying around when the issues are rectified professionally.
Ventilation, moisture, and water issues are the two biggest factors in mold’s development. When these are addressed, mold doesn’t typically come back.
Mold Problems for Home Sellers
Why Buy a House With Mold?
No matter how slight the chances of developing severe complications from mold exposure are, home buyers have every right to be cautious when mold issues arise. This is probably one of the most significant purchases of their lives, and they could be planning to raise a family at home.
Also, there is no reason for them to pay for a home with mold as a home inspection problem when they could find an equally good deal on a house without such issues.
As a home seller, you must consider all of that. People with allergies that affect their respiratory tract are especially susceptible to mold.
If you aren’t willing to address the issue, the buyer can use the home inspection contingency to avoid the sale and get their earnest deposit back. Tru, to me, from experience, looking for a mold problem will be on a buyer’s home inspection checklist.
Lawsuits Are Possible
If a home buyer purchases your home and soon finds that there is a mold problem, there is a good chance they will sue you.
Whether you knew about the problem and failed to mention it or did not take the time and expense to determine if there was a problem before the sale, you may face some heavy consequences.
Again, selling a house with mold is not something you want to take lightly!
Understanding The Legal Implications
It is vital to grasp the legal requirements that govern a real estate transaction. Across the United States, the legal obligation to disclose mold issues to potential buyers varies significantly from state to state.
However, disclosure is common in most areas. Sellers are typically required to inform buyers of any known defects, including the presence of mold, that could influence the property’s value or the inhabitant’s health. Failure to disclose such information can lead to legal repercussions, including lawsuits for misrepresentation or fraud.
Understanding these obligations is not just about adhering to the law for sellers. It’s about fostering trust and transparency in the local real estate market. By disclosing mold issues upfront, sellers can mitigate the risk of future disputes.
From experience, it will also lead to a smoother sales process. Addressing mold problems before listing the property through remediation improves its appeal and potentially preserves its market value.
For buyers, disclosure of mold issues is critical to making an informed purchasing decision. It allows them to assess the extent of the mold problem, consider the remediation costs, and negotiate the sale terms accordingly.
Most of the time, buyers may request a reduction in the sale price or ask the seller to do mold remediation before closing the deal.
A Price Drop May Become Necessary
If the buyer’s home inspector discovers a mold problem in your home, you will have difficulty getting the price you want for the home. The price reduction will depend on the severity of the problem, but you have little hope of realizing your maximum asking price with a mold infestation.
Many times, the discovery is enough to drive off buyers altogether. Even if you agree to take care of the problem, the chances of a buyer backing out of the sale are relatively high. Right or wrong mold is one of those things that spooks home buyers.
From now on, your real estate agent will be required to disclose the presence of mold in the house.
The Impact on Market Value and Saleability
Mold in a property can significantly impact its value and saleability. Mold poses health risks and signals issues, such as leaks or poor ventilation, which can deter potential buyers. The extent, location, and associated remediation costs of mold infestations influence buyers’ decisions.
I recommend sellers address known mold issues before selling the property. Remediation efforts, done by professionals, can eliminate the problem. Mold removal isn’t cheap but it’s worth the expense. Sellers need to weigh these costs against the potential loss in property value if the mold issue is left unaddressed.
On the other hand, buyers should conduct thorough inspections to assess the extent of mold issues. Negotiating the sale price or requesting the seller to cover the mold removal costs is standard when buying a property with mold.
What You Can Do As A Seller
Address The Problem Before Listing For Sale
Ideally, you should address potential mold problems before selling your house.
Mold cleanup can take time, and you do not want buyers associating your home with ongoing mold remediation if you can help it.
Look Thoroughly For Evidence
Begin by looking at your home over as thoroughly as possible.
Are there any areas where moisture tends to accumulate? Are there any places you have overlooked, such as behind the water heater, in the basement, or in the attic? Have you had any water damage problems, such as a leaking roof or a flooded basement?
Examine your house from top to bottom for moisture penetration or accumulation. Not every home has a mold problem or is at particular risk of developing one.
While every property has the potential for mold in small quantities, not all homes encourage serious mold growth.
You should be able to determine where any prominent water infiltration has occurred, if any. You should be able to see any significant mold growth on exterior surfaces.
Make Repairs to Areas With Water Damage
Water damage is the leading cause of mold infestations. Repair any such problems now, and watch for mold while making your repairs.
When removing damaged materials, you may discover infestations behind walls or ceilings. If you find serious mold growth, stop work immediately and contact a mold cleanup professional.
Get an Inspection
If you think mold contamination is possible, it may be a good idea to bite the bullet and get an inspection done. The cost of an inspection is reasonable, and they can tell you whether there is a problem.
If there is, you can take care of it now. If not, you will have records demonstrating this fact to potential buyers.
The cost of a general home inspection before listing for sale is always worth it.
How to Professionally Remediate Mold
Numerous companies perform “mold remediation.” Typically, professional mold remediation will follow a specific process. Removal of the mold is the crucial step in proper remediation.
Professional mold companies get rid of mold in the following manner:
- Contain the affected portion of the house to prevent cross-contamination of unaffected areas.
- Cleaning the mold from non-porous or semi-porous materials or removing affected porous surfaces.
- Professionals use expensive equipment such as HEPA air scrubbers, HEPA vacuums, and commercial-strength dehumidifiers.
- Clean all surfaces within the containment chamber to remove microscopic contamination.
- After removing the mold from its source, the air should be cleaned of airborne mold spores using HEPA (High-Efficiency Particulate Air) air scrubbers and air exchange.
- Correct the moisture sources so the mold does not return.
- Use an antimicrobial chemical to clean any remaining mold and mold stains after the demo of the affected area.
- Use a sealer or encapsulate to make the treated areas more resistant to water damage and mold returning.
An excellent mold removal company typically offers a warranty for several years if the mold does not return to the home. The above steps are how a professional removes mold from a house. Scrubbing mold with bleach is not a professional solution to an extensive mold problem.
Most buyers who research a mold issue will want to know that it was done professionally following the guidance above. Choosing a reputable mold remediation company is crucial for effectively addressing mold issues and restoring your property’s condition.
What Does The Removal Cost in a House?
When mold is found in a house, one of the first questions that will be asked is how much mold removal costs. It is natural to want to know what kind of expense you’ll be dealing with.
The cost to remove mold varies quite a bit depending on where you’re located and the extent of the mold you have. When mold is isolated to one spot, it shouldn’t be too expensive to remedy.
However, if significant areas of a house are infested, it could be costly to remove. While selling homes over the years, most of the mold was found in the attic or the basement.
On average, removing mold costs between $800 and $1500. Some mold removal companies charge significantly more for the same job.
It is wise to get multiple bids from mold remediation companies when dealing with mold remediation. From experience, I’ve found that National mold removal companies are far more expensive than local firms.
For larger mold removal jobs where there are extreme infestations, you could spend upwards of ten thousand dollars or more.Click To TweetMold Removal Near Me
When you need to find a mold removal specialist ask your real estate agent. Mold removal is common in many homes. Real Estate agents deal with mold removal all the time.
If your home is not on the market or you don’t know anyone, you can do a Google search for mold removal or mold removal companies near me. There should be several references you can use to contact mold remediation companies.
Document Everything
Document all repairs you make and all testing results you receive. This is important for two reasons. First, you want to have these documents available to buyers with questions about mold to demonstrate that you have addressed the problem as thoroughly as possible.
Second, these documents will help protect you if the buyer pursues legal action after they purchase the home.
It is not unheard of for a buyer to go after a seller for problems that were not, in fact, the seller’s fault. Documentation will help protect you from this type of situation.
Get a Pre-listing Inspection
If you have problems with mold or severe water damage but have done the necessary repairs to fix the problem, you may want to get an official inspection done to prove that the situation has been resolved.
Having such documents available will make you look helpful to buyers and will quickly address any concerns they may have.
Assume Partial Removal Costs
There are situations where your home may be prone to infestations of mold.
Even if you have addressed the problem, made the necessary repairs, and hired a mold remediation expert, mold problems may still occur.
Testing may still show that some mold exists, even after your efforts. Levels may be low enough to be safe, but any mold could be enough to worry a potential buyer.
Don’t bury your head in the sand, thinking you will find a buyer who doesn’t care about mold. It’s highly unlikely to happen!
When in a situation like this, you must find out what is still causing the mold to return.
While a mold remediation company can get rid of the mold via their chemical treatments, if the underlying cause of the mold growth is not taken care of, the potential for mold to return will always exist.
In this situation, it would make sense to either address the suspected cause of the issue or, at the very least, give the buyer credit for dealing with it.
While you may not want to pay for repairs on a house that will no longer be yours, you may save yourself more significant expenses later. If the mold does come back, the buyer will have a tough time getting any more money from you than the amount agreed to.
Of course, you should consult with an attorney before signing any agreement. However, this could save you money in the long run on a problem property.
Face The Issue Head-On When Selling Your Property
Mold is a fact of home ownership for most people. Like all sellers, you want to sell your home for as much as possible as quickly as possible. However, failing to deal with mold issues is asking for trouble and could cause problems long after the sale is supposedly over.
Remember that if a buyer discovers mold in your home, they will most likely ask you for remediation.
Don’t be stubborn enough to think that if you decide not to deal with the problem, the next buyer will be okay with taking on a mold issue. That is highly unlikely, and your real estate agent will be required to disclose this issue to any future buyers.
Address your mold problems head-on, and enjoy peace of mind with a clean and guaranteed sale. Below is an excellent educational video about selling a home with mold.
It is well worth looking for those who flat-out decide they will not buy a house where mold has been discovered.
Deal With Mold When Selling a House Video
Dealing with mold is a good idea, but it is not the end of the world when purchasing a home. You can remediate mold as quickly as you fix any other home issue.
FAQs
Here are some frequently asked questions about selling with mold.
Will a Bank Finance a House With Mold?
It is possible that a percentage of mortgage lenders would finance a house with mold. It would likely depend on how severe the mold infestation is and the remedy used to cure it.
A real estate appraiser will likely flag a significant mold problem in their appraisal report, which can impact the home’s market value.
Can I Sue a Seller For Mold?
Lawsuits happen all the time in real estate sales. Whether or not a buyer can sue and win would depend on the state in which you’re located. Some states have Caveat Emptor laws or “let the buyer beware.”
In these states, sellers do not have to volunteer issues with their homes, including mold. However, if a buyer asked if mold was ever present and the seller lied, they could be held liable.
How Much Does The Problem Devalue a Home?
There is no certain dollar amount regarding mold’s impact on a property’s market value. It will depend on how bad the infestation is, the cost to remedy it, and the house’s price range.
There will be some influence, though, on the home’s value.
When Should You Walk Away From a House With Mold?
When to bail on a home sale with mold is a very subjective question. It could depend on several factors, including the extent of the mold, the cost of remedying it,t and any current health issues among family members.
If the seller is willing to remedy the mold professionally, there is no reason not to proceed.
Final Thoughts
Selling a house with mold is not the end of the world. However, it is not an issue to be taken lightly. Many buyers may not feel the same way you do. Address the problem head-on so that your sale price does not suffer.
Other Important Mold Resources: You can learn everything about mold via the Centers for Disease Control and Prevention.
- What are the symptoms of mold exposure, such as allergic reactions via Medicinenet.com?
- How to assess mold growth and remediation by Wikipedia.
Use these resources to assess further selling a home with mold and how to deal with the problem.
About the Author: Bill Gassett, a nationally recognized leader in his field, provided the above real estate information on what you need to know about mold when selling a house. Bill has expertise in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications in which he has been featured. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. For the past 38+ years, Bill has helped people move in and out of Metrowest towns.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge Massachusetts.
Excellent Info! Love the graphics too. Wherever there is moisture mold is soon to follow. Dealt with $100,000 plus damage recently when a pipe busted and the residents were away on vacation. It’s amazing how quickly mold will grow. There’s a write up about it in our blog if you’re interested. Do you think there are many homes on the market that simply won’t sell due to mold damage?
Thanks for your comments and compliments on my article about mold. I have not come across any homes that have not sold due to mold damage although I would imagine it certainly would be possible.
Thank you for such a well written, informative article! It is good to see more and more information come to light about the dangers of indoor mold. Our Company Rhinohide, LLC is dedicated to the treatment and prevention of indoor mold as well as educating the comunity. Thanks again and keep up the great articles.
Thanks Dawn. There is no doubt that mold is one the minds of many when purchasing a home.
I made an offer and the offer was accepted to purchase a house that was foreclosed on. The seller made it clear that it was an as is sale. Before going to contract, I had an inspection done and it was discovered that there was mold in the basement and the attic. My question is, can the house be legally sold with active mold growth in it or must the seller clean up the issue before the house can be legally put up for sale. Thank you.
Hi Ian – the seller is under no obligation to remove mold in a home. What comes into questions is whether you would be able to procure financing with the mold. If the appraiser notices the mold in the home they will surely let the lender know of it’s existence.
What if the real estate agent hired the inspector, could they be responsible?
Barbara – it depends on the laws in your state. I will tell you it is highly unusual for a real estate agent to “hire” a home inspector. A real estate agent generally may refer clients to home inspectors they feel do an excellent job but the client is the one who does the hiring. Did you find mold in your home shortly after an inspection was done?
A level 2 mold in crawl space was re-mediated. Even though two inspections reveal no mold, an air quality test is being performed by an environmental company. Results this next week. My question is: Does the “stigma” of a house previously labeled “had mold”, reduce its appraised or selling value? Are there any guidelines to follow concerning a loss of value?
Thank you for your insights.
Ned in my twenty eight years as a real estate agent I have never seen a home that had mold but was professionally taken care of lose any value or have a stigma. The vast majority of people just want to know that there is not a current issue. You of course should disclose that you previously had mold and was professionally treated.
I bought a house one month ago and it was never disclosed to me that mold was a significant issue. I walked into my basement the other night to see my entire ceiling COVERED in mold. Generally how long does it take to have mold show up? Do you have any suggestions on how to handle this situation? We’ve thought about going back to the sellers because we feel as though they knew of the issue. After initial discovery we found a pipe behind the wall that had been “fixed” with painters tape then wrapped in packing tape. We also found the hose from the dishwasher “fixed” with duct tape. The agent and sellers stated they never even tried the dishwasher- ever. The dishwasher seems to have been a source of the issue… suggestions??
Hannah my advice would be to speak to an attorney to find out your legal rights. In different states there are different laws about disclosure. Some states are known as “Caveat Emptor” states or let the buyer beware. This means that unless you ask a seller a direct question they do not have to voluntarily disclose anything about their home including the presence of mold. Some states however a seller has to disclose.
Did you have a home inspection? This is something that a home inspector would rarely ever miss.
We bought our home 8 months ago, and the kitchen drawers and cabinets around the sink area have always smelled like mold and it is getting worse. Is there any warranty for buying a home with mildew/mold?
Catherine I have not seen many home warranties that specifically addresses mold.
I am amazed at the callousness of some people. My Step-mom just purchased a home 15 days ago so that she can be closer to me, as my father passed away in May due to his exposure to black mold. Knowing this the Realtor and seller still failed to mention that the house has black mold.
I went over to the home to ensure that the rains we had last night didn’t cause any issues. I found a puddle in the middle of the room which led me to the water-drops from the ceiling. The rain was going down the inside of the wall and into adjacent utility room where hiding behind the spare tiling and some other items is a large nasty area thick with black mold.
We did not have an inspection for mold, however, the inspection I did led to beams under floor being replaced, piers being put in and house being leveled. Now, knowing the history we have with this nasty little fungus, and still failing to disclose this matter to us, do we have any recourse?
Brandon it depends on the disclosure laws in the state in which you are located. In some states problems with a home are required to be disclosed. In others they are not. Sorry to hear about your problem with the mold. I would consult with an attorney on your legal rights.
We just found out and had repaired today a bathtub faucet that had sprung a leak in the valve and now we can see some mold in the wall. I’m going to get it tested. I get it that if it’s Black Mold then we will have to have professional remediation.
But, what if its a harmless mold? Would we need to disclose of it then? What are the rules? Every homeowner encounters mold all the time whether it be on old foods, containers, plus various places in the bathroom like tile and such.
I don’t want to be worried about a lawsuit, but I don’t want to spend thousands on cleanup and certification if there’s no serious reason to do what.
What do you recommend?
Kirk there is mold in every home. This fact is something few people realize. Mold is everywhere. You should disclose if the mold is bad enough that it needs remediation or could affects someones health.
We are selling our home and believe there is some mold around the top of the shower…around the perimeter where the tile meets the ceiling. We have wiped it clean, but it comes back after a month or so. We have not had a mold inspection done. My question is if we are selling our home, “as is”, do we still need to disclose this? And, would you recommend we go ahead and have a mold inspection done? Thank you.
Cindi it is always wise to disclose the presence of mold in ones home. What you are describing, however, sounds like common household mold and not the variety that would cause serious health issues.
This all concerns mold inside the house. What are your thoughts on mold found outside the house? Exterior to the structure or on external structures?
Just wash it off. There are no health concerns with mold outside a home. The health issue comes from breathing in mold spores.
What percentage below full asking price would you expect a home to sell for that has a history of mold (remediated)?
Also, how many more days on the market would you expect for a home that has a history of mold (remediated)?
Michelle if a home has had mold professionally remediated, I see no difference at all in market value. There is also no difference in market time either.