Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc.  - Denver Real Estate - 720-231-6373)

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Rainmaker
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Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Not really. If FHA or VA it would make more sense

Jan 21, 2023 09:35 AM
Rainmaker
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Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Oof, can o worms!

I've never had that HOWEVER I can't recall a fixer like that being financed.
We had an apartment building with bad water damage on 2 floors that required mold remediation, the seller claimed his insurance and the buyer closed once it was done - cash.

I suppose banks are getting tighter with such things . . . will be interested to see what others have experienced.

Jan 21, 2023 08:47 AM
Rainmaker
609,102
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I have not had that problem and would wonder how an appraiser could make a definitive mold diagnosis without testing it. 

Jan 21, 2023 09:41 AM
Rainmaker
5,489,966
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

This was a situation my lender was explaining to me yesterday, and was SHOCKED there were conditions with a CV loan.    I didn't ask how much down, maybe that would have made a difference.    Most of my investors are cash, and don't have to deal with these issues.

Jan 21, 2023 09:17 AM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I have not.  I also question the qualifications of an appraiser to determine if what they see is, in fact, "MOLD".  

I have not had that happen in 20+ years in the business. 

Jan 21, 2023 10:30 AM
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Anna Banana Kruchten Phoenix Broker
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

No I've never had that situation occur.  But I can totally understand why the appraiser is doing so for the bank. CYA.  We have dealt with quite a few mold issues over the years but it's been on the seller side and caught by the home inspector and remediated by the proper people before going on market. Good luck on this one Joan.

Jan 21, 2023 10:17 AM
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

as it should be.  The appraiser works for the bank.  Mold is a HUGE liability to the BANK.  It should be handled prior to the bank using house as collateral 

Jan 21, 2023 09:10 AM
Rainmaker
2,711,439
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

This "mold" is a deal killer and cities, sellers and buyers plus appraisers cannot escape from it. If it exists, it rules the land it lives in. KISS of DEATH until you SHOO it away! When I go to list a property, if I have any doubts, I just decide & insist on painting. The mold then, meets its match....ME!

Jan 21, 2023 11:22 AM
Rainmaker
603,557
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

I have not had this ever happen with a Conventional loan. 

Jan 21, 2023 11:07 AM
Rainmaker
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Jason E. Gordon
AmeriFirst Financial Inc, San Diego, CA - San Diego, CA
Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE

Regardless of the loan program, Appraisers will call out anything deemed to be a “health & safety risk” (mold, termites, roof damage, broken stairs, etc). With mold, it is merely a visual observation that the Appraiser notes with the disclaimer that he/she “is not a mold expert” but recommends a mold specialist to sign off on whether the mold poses a safety risk. Once an underwriter sees these comments, a “subject to - prior to funding” condition is added to get a mold report & clearance. Lenders will not ignore these risks, regardless of whether the property is sold “as is” and/or if the buyer is aware of the mold.

Jan 21, 2023 10:32 AM
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Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Not yet 

Jan 21, 2023 10:17 AM
Rainmaker
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Shayne Stone
HomeSmart - Fulshear, TX
"Your Rock Solid Choice Realtor"

Can't say I have Joan Cox but then again, myself and my investors mainly pay via CASH for our flips. Never had an Investor looking to purchase with a loan, except once in a while using Hard Money Loans!

 

Jan 21, 2023 11:40 AM
Rainmaker
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Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

No but he did the buyer a favor by having the seller fix it. 

Jan 21, 2023 11:26 AM
Rainmaker
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Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

No, only inspectors usually do that. I could see the bank requiring this of the appraiser since it is their collateral that may get reduced in value if there is a serious mold infestation. 

Jan 21, 2023 10:47 AM
Rainmaker
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Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I've never had mold called out shy two exceptions in 24 years and they were called out by myself and the buyer and confirmed by the inspector. Both were negotiated without appraiser involvement.

 

Jan 22, 2023 07:00 AM
Rainmaker
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Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

No. However, I haven't sold a property with mold that noticeable. 

Jan 22, 2023 05:58 AM
Rainmaker
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Only once and the appraiser was correct. Loan was denied. Buyer thanked the appraiser and paid cash! It was really a one off, since most borrowers can't pay cash!

Jan 22, 2023 04:13 AM
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Yes, I had this not too long ago. A house "AS IS" perfect for this buyer. It was priced right to fix it up. It was going to be gutted. Appraiser commented on everything that needed repair and then under-appraised it. The buyer switched lending companies, and we had a  new appraiser who saw the value of the home and the land. All's well that ends!

Jan 21, 2023 04:18 PM
Rainmaker
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John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

If it looks like mold, it is sort of like...walks like a duck, quacks like a duck, looks like a duck...I think it is a duck..or, in this case, mold. You don't have to be an expert to waive a flag and suggest that it be checked out.

Also, appraisers take photos of anything they suspect may be significant and include them in theirs appraisal report.

Jan 21, 2023 12:01 PM
Rainer
366,118
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Yes, often on a property that buyer thinks is easy rehab. It is very difficult state by state to counter that the mold was cleaned up. 

Colorado does not have specific laws as to landlord/seller duties or liability.

Colorado does ask that landlord start fixing the cause in 96 hours.

Contractor does not need any mold license to remove BUT HOWEVER you need a remediation certificate from licensed operator.

Fix the leaks which are the source, remove drywall with visible black or green, treat the studs and plumbing with appropriate treatment. I say appropriate because there are a thousand opinions on what works. 

Why does the seller have to pay for it all? Get bids and negotiate. 

There are thousands of types of mold. Some are harmful to humans and animals, some not. Mold is everywhere. Give me a call about your best steps. 

Jan 22, 2023 09:22 AM
Rainmaker
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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

This is a first for me.

Jan 22, 2023 08:13 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

No, I haven't, however the amount of professionals who make claims that they are not qualified to make is a long list. 

We see this in the AR Q&A all the time when someone posts an inspection photo.

Jan 22, 2023 04:53 AM
Rainmaker
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Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

I've only had mold called out by the home inspector.

Feb 02, 2023 08:18 AM
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

WOW! Talk about over-stepping his/her boundaries, Joan! I have seen that with VA & FHA loans but, never conventional. As you said, now, the sad part is, the lender knows about the defects and can require any or all of them be remedied. I'm sorry you're having to go through this!

Jan 22, 2023 07:23 PM