A critical component for a new home buyer is a home inspection. When mold is found during these inspections, it can ignite concerns from potential homebuyers. It is essential to have a clear plan of action.
If a home inspector identifies mold or conditions that could harbor mold growth, the next step is to hire a specialized mold inspector and remediation expert to further assess the home. This specific assessment can determine the following if mold is found in a home inspection:
- The specific type of mold growing
- The extent of the mold growth
- The source of moisture supporting the mold growth
- A detailed report of the mold inspection
- A recommendation to remediate the mold if necessary
Once the mold inspector concludes their assessment, both the buyer and seller can move forward with an agreed-upon plan to address the issue. The discovery of mold can have a tremendous impact on the transaction of the real estate.
How do you know if mold found during a home inspection is serious?
The discovery of mold during a home inspection is concerning. Determining how serious the mold infestation is depends on several factors:
- The size and extent of the mold colony
- The location of the mold colony, both apparent and hidden
- The extent of moisture and water damage to the structure
- The type of mold that has colonized inside the home
A thorough inspection of the dwelling by a mold remediation specialist will be able to provide critical data to determine the seriousness of the presence of the mold.
What Are the Financial Implications of Mold Remediation?
The financial implications of mold found during a home inspection can vary greatly. For the new home buyer, when mold is found during home inspection, it is critical to have a clear understanding of all constituent costs for mold remediation. While the remediation costs will be heavily influenced by the location, type, and extent of the mold colony, new homeowners should be aware of other costs that could be lurking behind the walls, floors, or ceilings of their potential investment. Other costs associated with a mold infestation could include:
- Change in insurance premiums
- Increase in medical expenses
- Potential for legal ramifications
- Change in property value
Armed with such information, new home buyers can make better-informed choices to protect their potential investment and new home.
What Are the Health Risks Associated with Mold in a Home?
The presence of mold in the home can have a profound impact on the health of a new home buyer. Mold commonly poses a threat as an allergan. The length of exposure, the type of mold, and the particular sensitivities of the exposed individuals can create an unsafe and detrimental environment for those new buyers. The effects of mold can vary from individual to individual but are extremely dangerous to individuals with preexisting health conditions and weakened immune systems. Several species of mold are deemed toxic due to their ability to produce mycotoxins that can wreak havoc on the respiratory system.
Can I Back Out of the Purchase Agreement? What Are My Negotiation Options?
As a new home buyer, when mold is found during home inspection, it can significantly impact the transaction of sale. New home buyers may have the opportunity to back out of the purchase agreement if the purchase agreement included contingency clauses, the mold infestation is deemed as a material defect, or the seller failed to disclose the mold issue. It is essential for new home buyers to carefully read and review the purchase agreement.
In many instances of mold found during home inspection, new home buyers may have the opportunity to negotiate. In these cases, new home buyers have several bargaining points, including:
- Asking the seller to cover a professional remediation.
- Negotiate a lower selling price to offset the costs of a professional mold remediator.
- Leverage an escrow holdback until the mold remediation process is completed.
- Receive, from the seller, a credit at closing to cover the costs of professional mold remediation.
It is critical that if mold is found during your home inspection, new home buyers are familiar with the purchase agreement, state and local laws and are able to seek professional advice.
How Does Mold Impact Homeowners Insurance?
Mold found during home inspection can have a significant impact on homeowner insurance policies. Understanding how mold is represented in a homeowner’s general insurance policy can be a complex labyrinth to navigate. If the mold is deemed as a “covered peril,” meaning it originated from a sudden or accidental event such as a water heater rupture, broken pipe, or water damage from a fire, the mold is normally covered. However, in instances where the presence of mold is found to be the result of a lack of maintenance, the mold is often excluded from coverage. It is important for new home buyers to familiarize themselves with their insurance policy limits along with causes for mold growth.
What Ongoing Moisture Control Measures Should You Take?
For new home buyers, it is vital to monitor and proactively address moisture issues within the home for the prevention of mold colonization. Enlisting the assistance of professional mold remediations, like the experts at MSR, can guide the myriad of challenges when mold found during home inspection. Contact us today to learn how MSR can assist you in remediating harmful mold in your new home and create a safe and healthy environment for you and your family.
