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Poor mold. People are trying to save the whales and bring back the Dodo Bird, but most everyone would be happy is mold were extinct. But it isn’t… Mold is alive and kicking, and more of a problem than ever. And it usually hangs out with some other unsavory characters, Rot and Termites (that are all followers of Moisture).
A couple of years ago I was involved with a moldy property and I learned a few things. I posted up some good information about Mold, where to find it and how big of an issue it can be. And it can be a REALLY BIG problem.
Of course, it wasn’t my first run in with the stuff. Back when I was a reasonably new real estate agent in Gwinnett County, GA, I worked with one of my investor clients on a property that had some pretty significant mold issues.
Real estate prices were crashing around it. The previous owner had custom built the house, and it was pretty obvious that either they really didn’t have “builder” experience (as opposed to “building” experience), or they ran out of money partway through the project. The whole “builder v building” experience thing is another post someday, though.
The homes was large and had wonderful high ceilings, a large garage, nice flow patterns and was well sited on the lot. But, in this luxury home in a subdivision that had homes worth as much as a million dollars, there were no crown mouldings, no granite counters and cabinets that looked like stockers from Home Depot (not knocking HD, but the house deserved at least semi-custom cabinetry).
But the basement was where our story was… It was nasty. The home had been unoccupied for at least 9 months and was loaded with mold. We knew that the HVAC was going to have to be changed… it would be cheaper than cleaning it out. But the basement was almost beyond salvation. The solution was to gut it and leave it unfinished. It had been finished, and was pretty well finished, but was going to have to be “unfinished” in order to remediate the mold problems. All of the drywall was junk… and we also knew that some of the structural wood would need to be replaced. Most importantly, we knew that it would need to spend a good long time with proper airflow.
The bank that repossessed the house had DESTROYED their collateral by turning off the power. Because the HVAC wasn’t running for those 9 months, the bank likely saved about $3000. But in saving that $3000, the value of the home likely dropped by $200,000. Not a good trade… The house should have been able to sell for $500,000, but instead barely managed to bring $300,000. Of course, the bank wasn’t real bright anyway… they turned down our offer at one point, and then lowered the price to our offer less than two weeks later.
