I was just curious, when a house is sold containing ‘mold problems’ what steps a taken to rehab the place(if it can at all). I noticed that some of the foreclosures contain mold and did not understand how a potential buyer down-the-road would be interested occupying the house that once contained mold problems.


I’ve made offers on mold houses, but never owned one. Not long ago, I partnered on one where we flipped it, but the end buyer had his own restoration business and the property didn’t have the stacchybatris (sp?), whatever the “bad mold” is.

On the offers I made, I always took a pretty serious discount for the mold. My thinking was that insuring it would be extremely difficult and that I would have to sell way below market to attract a retail buyer.

My personal opinion is that mold is way overrated. A little bleach goes a long way for most of it. However, there is the public opinion to consider and my belief is that most folks are scared of it.

It’s not that dissimilar to slab problems. A house that has been repaired for slab issues is generally going to be a better house than one that hasn’t, but people are still fearful. Once the mold is gone, it’s gone so it shouldn’t be a big issue, but perception is important.

my view…

Hi Bennie,

This is a good topic for discussion because it’s been on my mind also. I’ve seen tons of properties with mold issues for sale and wondered how it could be profitable buying these at deep discounts.


I can understand people purchasing a home and having concerns about any mold issues. However, do you think people that are renting a property would have the same concerns? Is there anything in writing that states I even have to disclose a previous mold problem to a tenant. I suspect somewhere along the line there will be. (i.e. lead based paint)
I have the same theory about mold as you, a little Bleach can do wonders! Heck, we probably all have had mold in our houses that we didn’t bother with until this issue got WAY out of hand. I’m certainly not interested in being dishonest with people if there is a potential health concern, but I can’t justify raising someone’s fears about mold simply because there was a little moldy sheetrock that’s been properly replaced.

Also, how did you know what type of mold you had and did you find out prior to purchasing the property? Am I right presuming a mold remediation company could tell me prior to purchasing the property? I’m in Round Rock also. Do you know of a company doing remediation (for a somewhat reasonable price!) in the area?

I have some awesome financing to rehab properties that I will hold as rentals so I’m looking at this angle. I’ve also talked to my insurance agent who assures me we can get it insured. The steps he talked about was buying builders risk insurance first. Documenting where the mold was, what construction was done to correct the problem, and having it certified by a mold remediation company that it is free and clear of mold. Then, convert it to a regular policy. I’m sure there would be some clause that would disallow any future mold claims (of course).

Any imput that anyone can give me concerning this issue would be greatly appreciated! :thumbsup

Kathy Mersiovsky

No, I don’t think mold disclosure is yet required for tenants, but my policy has been to treat rentals the same as sales. Disclose, disclose, disclose.

I don’t think it would be as big an issue for rentals and it wouldn’t be difficult to allay the tenant’s fears if the problem’s been eliminated.

As far as the one we flipped, the owner already had reports and repair estimates. In regards to the remediation company, my not-so-experienced advice would be to find a testing company that does NOT have a repair arm. In other words search for an objective opinion.

An independent agent can probably locate a company that will provide a policy, but it’s not going to be as easy as your agent implies. I get cancellation and non-renewal notices frequently on properties that DON’T have a mold history. Yes, it’s true that any future claims would be prohibited.

my two cents…