REAL ESTATE

New Home Mold

As discussed in Chapter 7 of our publication When to Buy and When to Sell: Combining Easy Indicators, Charts, and Financial Astrology (available on Amazon), and several previous Real Estate blogs, the purchase of a home may be one of the biggest decisions, and investments, to make in one’s lifetime. Over the last few years, it has never been more difficult for young buyers, with rising inflation, property prices, and property taxes/insurance.

      Recently, a new issue has also arisen that buyers need to pay close attention to during the process of buying a newly-built home. Many areas of the country are now experiencing poorly built homes regarding mold and moisture. These can occur in new, or expanding sub-divisions, as well as in self-standing properties on single vacant lots. Although you may find, when first researching a property, that the water table passed town inspections, and/or there are no flood insurance requirements, that may only be the beginning.

      Without naming any homebuilding companies in particular, many leading builders are guilty of improperly insulating/ventilating attics, which can ultimately cause mold and moisture. In addition to this improper construction, these companies will attempt to defraud and deceive their customers in many ways.

      In the process of building, poor or faulty attic ventilation can cause water to creep down into walls, rather than escape through properly installed vents. The moisture can then combine with AC to create condensation around windows and doors, ceiling fixtures below the attic, and pool in dark areas. Other areas of concern occur around sinks, toilets, water heaters, and other plumbing locations around the home. If not properly sealed originally, or if a leak is not properly repaired, the same effect can cause further damage.

      This incompetence, or lack of attention to detail, can cause very unsafe conditions for the owner/resident, and even quickly create negative health conditions and sickness. Some of these homes have been deemed “uninhabitable,” as soon as just a few months after construction is completed. These issues can be very hard to detect, at first, and contracts can very difficult to reverse after closing.

      There are instances where these builders have offered to “fix everything,” and some have gone as far to blame the owner for not reporting the issue on time. Keep in mind that they often use their own inspectors throughout the building process, who may have lower standards than an outside/independent inspector. Many of these contractors/builders also have very low-quality customer service, who can be rude, unhelpful, and clearly on the side of the builder.

      To make matters worse, mold remediation is extremely expensive, and can easily reach $10,000-$30,000, plus damaged goods including appliances, clothing, and the very structure of the house. Often home warranties and insurance only cover portions of the needed repairs, and the nightmare doesn’t end there. More often than not, the re-sale value of the home will be significantly reduced, and the owner’s obligation to disclose the problem, even if fully fixed, will lessen the buyer pool (as some buyers will choose to not risk the issue repeating).

     When considering purchasing a newly constructed home, take some extra steps and beware of potential obstacles that one would not expect…

      Some items to watch for, or avoid, include;

      The original sign in sheet when first visiting a property (be sure to enter your realtor’s name). If the contractor knows you are working without a professional, you face a greater chance of deception.

      Never agree to use the builder’s own agents/subcontractors, for inspection’s, lending, or closing, etc., regardless of promised favorable terms or conditions (this is known as steering).

      Do not be rushed by pressure tactics, or additional promises for “signing up today,” or getting in before they are all sold out.

      Do not purchase the first home in any subdivision, as there is no history of that location, other current owners, land conditions, and/or prior issues. Check first with other site owners of more then a few months, nearby neighbors in other neighborhoods, town clerk records, and online reviews for the builder itself. If they cooperate, be sure to inquire about the quality of the construction and customer service (before and after the sale).

      In addition, do not be fooled by other homes in the sub-divisions possessing “under contract/pending” signs. These can be, and have been proven to be, fake, to create the illusion of surrounding homes or lots selling out quickly.

      Do not sign any agreements on the first visit. There may exist contracts/agreements for “arbitration conditions” that can restrict any future litigation, which of course is designed to benefit the builder.

      Finally, be sure to review recent sales comparisons (comps), to determine fair value of the property in question, if possible. Your agent should automatically provide this report when assisting you, the buyer.

      Please also review our Real Estate – Deception, blog, dated 9-15-24, for further details.      

      Please visit the website www.augustassociatesllc.com for home values, listings, and professional assistance.