Before a home is sold, the property should be thoroughly inspected and appraised to determine its exact market value. Any problems that may affect the property must be disclosed according to federal and state laws. While there are many different kinds of issues that may end up in a seller’s disclosure, mold is one of the most common matters that occur during residential real estate transactions. Whether you’re looking to buy or sell property, here are a few possible outcomes you can expect if mold is found during a home appraisal.    

3 Possible Ways Mold Can Impact Your Home Sale

1. Lowered Property Value

Mold presents a variety of risks that can negatively affect a home’s property value. Most notably, being exposed to this invasive fungus can result in a variety of health problems—such as skin allergies and compromised respiratory function. If the growth is extensive enough, it may also impair the structural integrity of the building.

If the issue is not corrected, buyers can usually negotiate for a reduced price. If the issue is not properly disclosed, the new owners may have an opportunity to file a lawsuit for damages in the future.

2. Closer Look at Water Issues

Although mold is found everywhere both indoors and outdoors, it will become concentrated in areas that present ideal growing conditions like moisture, lack of light, and warmth.

When mold problems are found, property appraisers must identify the cause and determine if intervention is necessary. In many cases, mold problems are linked back to leaks—such as those impacting the plumbing or roof. If additional water problems are found, home appraisers may reduce the property value even further unless the issue is corrected.   

3. Required Remediation

Small examples of mold growth—such as those found in crawlspaces or the attic—may not always be considered a safety or property value risk. However, if the growth is considerable or is related to structural damage, the sellers may be responsible for fixing the problem.

Typical remediation involves the thorough removal of mold and compromised materials. Once the growth is eliminated, repairs must be made to restore the integrity of the home, as well as prevent future mold infestations from occurring.

When you need to take a closer look at property value and real estate defects, turn to the experts at Caddell Appraisals, Inc. Supporting buyers, sellers, and mortgage lenders in Estes Park, CO, this team is recognized for their detailed assessments and advice. If problems are found during an inspection, these property appraisers will not only adjust valuation accurately but also offer recommendations on how to remedy the concerns. To learn more about these services, visit this local home appraisal company online or call (970) 577-9545.