Buying a House with Mold: Important Considerations for Buyers

Key takeaways: 

• Buying a house with mold comes with risks, including health concerns and costs of remediation.
• Extensive mold growth is a sign of a bigger problem with the home, and could even mean structural damage.
• As a buyer, you can negotiate a lower sale price to account for cost of remediation and get a better deal on a home.
• Taking steps to reduce moisture buildup and quickly repair leaks will prevent future mold growth.

Buying a house with mold might sound like a deal breaker, but it doesn’t always mean you have to walk away. Mold can raise concerns about your health, the home’s condition, and future resale value. But it can also give buyers more negotiating power and lower the price of an otherwise great property.

Depending on the type and extent of the mold, there may be safe and manageable solutions. So if you’ve found the perfect property on Redfin—great location, within budget, it checks all the boxes, and then the inspection reveals mold in the basement—don’t panic just yet. 

Let’s go over the risks of buying a home with mold, how to identify it, and when it might make sense to purchase a house despite its presence.

Identifying mold in a house 

During the home buying process, a home inspection will help you identify whether mold has formed. It is essential to get professional mold testing when it is detected so you know what type of mold it is and learn the expenses and processes for getting it fixed. 

In the right environment, mold can form in as little as one day. That’s why it’s important to quickly address common causes like floods, leaks, and poor ventilation. You might spot mold yourself by sight or smell, but a professional inspection will give you a better understanding of the mold type and how easily it can be removed. 

Risks of buying a house with mold

Depending on the severity, the risks of mold can easily outweigh the benefits of a new home. It’s important to evaluate your situation carefully. Here are some of the major issues you might encounter when buying a house with mold: 

1. Health risks

Mold exposure can trigger a variety of health risks. Allergic reactions, respiratory issues, and worsening asthma are just a few symptoms of prolonged exposure, and can be even more severe in people with weakened immune systems. 

If you are buying a house with mold, have a professional remediation company assess the situation. Some mold, like black mold, must be treated and removed before you can move in.

2. Property damage

While some mold can be treated and eliminated, its presence may signal a bigger issue. When buying a house with mold, it’s essential to investigate the cause. Mold can hide in places like HVAC systems, air ducts, and carpeting. If it spreads through the ducts, it can affect the entire home and pose health risks.  

Mold can also be costly, both in immediate repairs and long-term impact on property value. You may be prepared to fix a leaky pipe, but mold from untreated flood damage or a leaking roof can lead to far more expensive problems.

Severe mold can leave stubborn black, green, or brown stains that hurt property value. With gloves, small areas may be cleaned with vinegar or bleach, but if it covers more than 10 square feet or is hidden, hire a professional.

3. Costs of remediation 

Depending on how much mold needs to be removed, remediation can be a costly process. Much of the cost comes from health risks, type of mold, and where it’s growing. 

For example, mold  removal for hard-to-reach places, like the attic or in the HVAC system, requires more time and material to remove. An average estimate for remediation ranges between $1,222 and $3,751. 

4. Ongoing costs and maintenance

Getting the mold remediated is the first step, but regular upkeep is essential to keeping it at bay. This could mean anything from mold-resistant wall paint to installing a new HVAC system to keep your house properly ventilated. 

If you’re looking at homes in some of the rainiest cities in the US, preventing moisture buildup will be a constant battle. Buying a house with mold that’s already present can signal a recurring problem that needs consistent attention to prevent it from getting out of hand. 

Signs it’s time to walk away 

It’s extremely common for houses to have traces of mold, and it doesn’t always mean you should back out of buying. Many mold issues are treatable, or the result of a fixable problem. However, there are cases walking away might be the safer choice: 

• The growth is extensive: When a home inspection reveals extensive mold growth, this often signals significant underlying issues, like severe water damage. Beyond costly remediation and repairs, it can also complicate financing, as some lenders won’t approve loans for houses with mold.
• The mold is difficult to remove: The cost of remediation only increases when removing mold from hard-to-reach places, or the mold is highly toxic, like black mold.  
• The seller didn’t disclose the mold problem: There are no federal laws that require mold to be part of a seller’s disclosure, but some state laws do. Know which state you are in to do your due diligence, especially if other issues like leaks and flood damage are disclosed. 
• The seller won’t pay for remediation: If you’re buying a house with mold, the seller should be responsible for the costs of remediation. However, they can refuse to pay it. In that case, walking away from the sale might be better than draining your savings on fixing it. 
• The mold was caused by severe water damage: Don’t forget about the potential cost of repairs on top of mold remediation. Damage from moisture buildup or flooding can cause more problems than just mold. Repairs for serious structural damage might not be worth the cost. 
• The house fails inspection: If the house fails inspection due to mold, this could mean there is severe structural damage. Fixing it will be costly, and you might find less stress and more savings by moving on. 

When buying a house with mold could be a good opportunity

It may seem counterintuitive to knowingly buy a house with mold, but certain scenarios can be advantageous. 

• Lower sale price: If the seller doesn’t have time to fix the mold themselves, you can negotiate a lower sale price to account for the cost of remediation. This will not only allow you the freedom to hire a professional you trust, but also save you money on closing costs. 
• Starting from scratch: If you’re buying a fixer upper, you might be planning to start from scratch anyway. A few mold stains or the cost of removal isn’t a deal breaker when you’re remodeling the whole house. 
• Perfect fit: Maybe everything else – location, size, style – is otherwise perfect for you. Instead of walking away from the sale, it’s worth it to attempt to come to an agreement with the seller. Getting the mold dealt with one way or another could result in owning your dream home. 

What to do when you buy a house with mold

Immediate remediation is key when buying a house with mold. Dealing with mold before you officially move in will reduce potential health risks. If you find mold after you move in, calling a professional to test the mold and decide the best route forward is essential.

Once the mold has been eliminated, prevention becomes your top priority. Here are some ways to prevent mold buildup in your home:

• Use a dehumidifier: A dehumidifier will remove moisture from the air and reduce the relative humidity in your home. 
• Open windows: Regularly opening doors and windows will ensure your house has proper air exchange. 
• Fix leaks promptly: Whether it’s a pipe, an appliance, or your roof, fixing leaks as soon as you find them will prevent the ideal environments for mold growth. 
• Run exhaust fans: Using exhaust fans while showering or cooking will reduce moisture buildup in prime spots for mold to grow. 

Bottom line: Buying a house with mold is a risky decision

Mold is a scary sight to come across in any situation, and buying a house with mold comes with significant risks to weigh. If you do find mold during a home inspection, consider the type, amount, and cause before deciding whether to proceed with the sale. While you could be able to negotiate a lower price, mold could be a sign of costlier problems with the home. 

FAQs about buying a house with mold

Who is responsible for the cost of removal when buying a house with mold? 

Who pays for remediation is largely dependent on the situation. If the seller is unaware of the mold or doesn’t have time to remediate themselves, a lower sale cost for the house can be arranged so the buyer can hire a professional. 

What types of mold are most dangerous? 

There are many different types of mold that you might find in your home, but the most dangerous is black mold. Black mold can cause an array of health problems, so it’s important to deal with it quickly. Contact a professional if you suspect black mold is growing in your home so they can help you with a remediation plan. 

Does homeowners insurance cover mold? 

No, homeowners insurance generally does not cover mold, especially if it is due to long term issues. Be sure to check your policy for specifics around water damage to learn more about what scenarios are covered. 

Will a lender approve my loan if I’m buying a house with mold? 

A lender may be less likely to approve your loan for a house with mold. This is largely due to concerns about structural issues and future financial problems that could arise from mold or water damage. You may need to remediate the mold before your loan can be approved. 

Can a house be condemned due to mold? 

Yes, if the infestation is severe enough, a house can be condemned due to mold. Extensive black mold infestations can be hazardous and nearly impossible to remediate. Proper home maintenance and moisture control is essential for preventing growth. 

What are the signs of mold sickness?

The most common symptoms of mold exposure are sneezing, coughing, nasal congestion, and itchy red eyes. It can also worsen asthma symptoms like wheezing or shortness of breath. If you notice these symptoms and find that they subside when you leave the house, you may want to contact a professional to test for mold.

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