According to AWA Environmental, Mold is a serious concern when buying and selling a house, apartment, or a condominium. While it is a natural phenomenon in nature, the real estate world doesn’t just want this to happen when they are putting a house on listing as this could either drive potential buyers away or use it to negotiate for a lower listing price due to this mold circumstance.
The negative stigma of mold in a property is true and has been affecting decisions for buyers and sellers in the valuation of their own property (i.e. house, rental spaces, etc.), and it can have serious ramifications on the seller or the realtor that placed the property in the market. However, it can’t all be that bad, and this problem can be fixed to ensure the sale of the property at its desired price.
In order for you to find ways on how to fix the mold issue, it is best to know first the effects of mold in its property value:
Molds can surely put property value down or place the property to a risk sale. The fact that molds have been one of the major causes of respiratory health problems can put you and your realtor (if you have signed up for one) to a legal risk. Also, the disclosure of mold in a property has different processes in every state, but the stigma remains and could even put a house value down in order to have it sold in the market.
Health effects of mold can drive buyers away. Even if this can be a leverage to negotiate for a lower price, not all potential buyers have the knowledge of real estate. To them, mold is a health risk and can make them decide against buying the property, even when it has already been lowered. No one wants to buy a cheap house and maintain it at a costly price or risk being hospitalized because of mold.
Mold extraction can be costly. Some buyers offer to buy the house but request for compensation over their plans and efforts to have the mold removed. This could put the sale at a negative profit as the seller or the realtor may need to compensate them for the work, which is supposedly their task before putting the house on sale. However, doing the cleaning yourself or hiring mold extractors can also be costly and would still put the sale to a negative value.
Mold problems are linked to water problems. If there are molds in the house, it could be because of plumbing problems. Damp surfaces are the most favorable spot to grow molds. This can mean that there is also a need to fix the pipes before selling the house, which is another expense to add.
Legal problems. Even if the house was sold, if the buyer decides on suing the seller or realtor for these problems, it can be heard by the court of your state. Legal concerns are costly concerns and must be avoided at all cost.
Again, mold problems are natural problems, but it can be a factor for property values to go down in order to sell it. The best thing to do with this is to coordinate with the seller (or do it yourself if you are selling this under For Sale Buyer Owner) and have it cleaned first before putting the house in the market. That is the best way to maintain property value and not incurring extra costs after selling your place.