Is there a fungus among us?....Mold in Real Estate

Until recently, mold rarely factored into real estate transactions. Thanks to a growing awareness of the different types of mold and how they can contribute to ill health, this has changed. Although mold occurs around us naturally, leaks, poor flooring and other structural issues have contributed to a growing awareness of mold in the home. As a result, it has begun to have a negative impact on real estate transactions.

Why is mold in the home a problem?

Mold in the home has the potential to cause health problems. It is usually the case that these issues are restricted to those who suffer from respiratory conditions, but certain types of mold have reputedly contributed to health complaints in individuals who are otherwise healthy. This has become a particularly big concern for parents, who worry that their children could suffer as a result of mold exposure in the home. The United States Environmental Protection Agency (EPA) has recognized these issues, and now provides advice to homeowners as a result.

How does mold impact real estate transactions?

Aside from the human health risks, mold is also an indication that a home may not be healthy. The EPA states that the key to mold control is moisture control, and appraisers are beginning to assume that the presence of mold means that a house is not well constructed. The most common source of mold is water problems, such as leaking pipes and poor ventilation in bathrooms, laundry rooms and kitchens. If mold continues to grow unchecked and gets out of control, it has the potential to cause damage to a house that can be expensive to repair.

As more buyers, lawyers, appraisers, and home inspectors are aware of the implications of mold, its presence has begun to impact sales transactions. Mold litigation is now on the rise, which means more people know that there are health risks associated with it. Buyers are also aware of the fact that mold in a new home could mean it is not as well-built as it looks, and they also know that they may have to shoulder the burden of cleaning it up when they move into their new home. These things combined mean that the presence of mold acts as a deterrent when it comes to purchasing a home. This problem has now grown to the extent that some realtors are requesting that home owners declare mold to potential buyers.

The key issue surrounding mold in real estate transactions is the way it will affect financing. If an appraiser or home inspector detects the presence of mold and declares it, a bank will not finance the purchase. This is to the detriment of the buyer as well as the seller, but will ultimately place more pressure on the person selling the home. A bank will only consider financing the house once the mold has been removed by a professional mold remediation company. In addition to this, the bank will want to know that the appraiser is satisfied that the moisture causing the mold has been addressed.
How can the mold issue be addressed?

To an extent, it is not possible to avoid the growth of mold. However, there are problem areas that could be addressed to make sure it does not impact a real estate transaction. If rooms that experience water flow and condensation are not well-ventilated, they are at risk of mold. Addressing ventilation issues with adequate systems and extractor fans can prevent mold from becoming endemic across the house. Clearing heating ducts and maintaining HVAC systems on a regular basis can also address mold issues. Getting to the root of mold sources while using products designed to remove it can help prevent it from impacting areal estate transaction.

Katie Jones
Broker/REALTOR®
Keller Williams Realty
Direct 910.650.9598
Email Katie.Jones01@yahoo.com
www.KatieJonesHomes.com

Jacksonville, NC real estate areas I specialize in: Carolina Plantations, Towne Point, Peyton’s Ridge Richlands & Jacksonville.