Correction request three months after effective date for mold discovered

[tuckApp]

I completed an assignment in a rural area of a home vacated for months, was in foreclosure and winterized with all utilities off. Long story short, there was an inspection recommend for potentially excess moisture in attic and crawl space. Three very wet months later, client comes back with home inspection report that shows hazardous levels of molds in the attic, the home and the crawl space. Now, the client wants a "correction" completed on the report to reflect the issues discovered during the home inspection, their affect on the subjects marketability, and essentially wants a liquidation value (but won't call it a liquidation value). How would you handle this being that three months have gone by and it is possible that the extent of the mold situation may not have existed as of the effective date, extensive re-write of the report including new comps will be required and, that they want this done for no additional fee? I don't mind doing the work, just not too sure the best way to go about it (ie: on the same report with a ton of commentary as to changes made which modified the report or maybe a new assignment or a new retrospective assignment or maybe an update? Thanks for any input

 

[Charles West]

I completed an assignment in a rural area of a home vacated for months, was in foreclosure and winterized with all utilities off. Long story short, there was an inspection recommend for potentially excess moisture in attic and crawl space. Three very wet months later, client comes back with home inspection report that shows hazardous levels of molds in the attic, the home and the crawl space. Now, the client wants a "correction" completed on the report to reflect the issues discovered during the home inspection, their affect on the subjects marketability, and essentially wants a liquidation value (but won't call it a liquidation value). How would you handle this being that three months have gone by and it is possible that the extent of the mold situation may not have existed as of the effective date, extensive re-write of the report including new comps will be required and, that they want this done for no additional fee? I don't mind doing the work, just not too sure the best way to go about it (ie: on the same report with a ton of commentary as to changes made which modified the report or maybe a new assignment or a new retrospective assignment or maybe an update? Thanks for any input

Sounds like they want a new assignment. The mold was very likely there when you inspected because it doesn't get that bad that fast. If your value reflected what an investor would pay the mold remediation may almost zero the value of the improvements down and I have no idea how you remove a level 4 contamination from a subfloor area other than removing the subfloor. If it is in these areas, it is also in the HVAC system. I had a level 2 situation in an attic and the guy removed it with dry ice and cleaned the attic thoroughly and monitored the air quality for a number of weeks. Tell them to get you a professional estimate and this will be a new assignment based upon the new information.

 

[tuckApp]

Hey Charles, I appreciate the feed back. I was thinking about throwing it back in the lenders lap for them to provide me with an estimate for the mold removal. The only reason I say that the mold situation may not have been as extensive is because the home inspector pointed out moisture damage to flooring which wasn't there on the effective date and we got hit hard with rain and snow (here in northern CA) throughout the entire period between the effective date and home inspection. But, bottom line, I agree that this should be a new assignment. Thanks again

 

[J Grant]

I completed an assignment in a rural area of a home vacated for months, was in foreclosure and winterized with all utilities off. Long story short, there was an inspection recommend for potentially excess moisture in attic and crawl space. Three very wet months later, client comes back with home inspection report that shows hazardous levels of molds in the attic, the home and the crawl space. Now, the client wants a "correction" completed on the report to reflect the issues discovered during the home inspection, their affect on the subjects marketability, and essentially wants a liquidation value (but won't call it a liquidation value). How would you handle this being that three months have gone by and it is possible that the extent of the mold situation may not have existed as of the effective date, extensive re-write of the report including new comps will be required and, that they want this done for no additional fee? I don't mind doing the work, just not too sure the best way to go about it (ie: on the same report with a ton of commentary as to changes made which modified the report or maybe a new assignment or a new retrospective assignment or maybe an update? Thanks for any input

this is a new assignment with significant conditions new information that will affect the value - information that was not known or available at the former eff date

 

[Overimprovement]

Sounds like they want a new assignment. The mold was very likely there when you inspected because it doesn't get that bad that fast.

Depending on temp and humidity, a house can get literally ruined in 3 months, if completely exposed and with adequate moisture. I have seen a home in FL (yes perhaps the worst conditions in the country) get mold so bad the framing had to be replaced. I think they just razed the home.

Given the time of year it is now, this seems unlikely to happen even in CA, but it is possible.

As far as what to do, it is definitely a new assignment, especially if the actual inspection is fairly recent. What OP charges is a business decision, but if the client is pushing for free, they don't sound like a great client.

 

[sputnam]

No correction is needed. Your appraisal was as of the effective date. At that time, you reported what you found. It seems that you recommended an inspection, you didn't make the appraisal subject to an inspection. What the Client is asking for constitutes a new assignment. Your fee can be as much or as little as you can negotiate. That's a business decision.

My understanding is that mold is everywhere.... always. It needs moisture to become a problem.

 

[Kitarkus]

Given your post....it seems that you did not observe any obvious or significant mold problems at the Property as of the effective date of that Report.....and this is aside from the fact that you are not an environmental expert.

Regardless....that 90 day old Report is valid as of its effective date. If some mold has arisen or has been discovered since that effective date then it would require a new report for you to credibly discuss that issue within a Report.

Your Client is likely aware of all of this....and is likely attempting to get you to revise an old/paid Report rather than paying you to complete a new Report. Regardless of your Client's intentions....you cannot ethically modify/revise that old Report with a new mold disclosure. Your new Report is unlikely to have an accurate remediation cost-to-cure (unless you are more knowledgeable than I am) which leaves that Report's value opinion hypothetical (or at least ambiguous).

Tell the Client that you are sorry, however, you will be required to re-inspect and re-type a new Report. Oh.....and this time you should probably bring a face mask to the inspection.

Good luck!

 

[Tom D]

you sure need a mold removal company cost to cure. just a thought, if the mold is removed would your value change. i don't think so, so the question is the current 'as is' mold affected value. you could use the same comps with a new inspection & signature dates. maybe give them a fee discount. then just take into account the mold and stigma, and total affect on 'as is'. mold sales are hard to find, but depending on the amount it might be just a cleaning, or a lot of new work. but that can only be based on a cost to cure by a mold removal company.

 

[J Grant]

I am not a mold expert and do not play one on TV, but being a Florida resident I have learned a thing or two about it. Mold is an unseen problem and unless it becomes visible as green or black growth on a surface, there is not way for an appraiser to know if it is present ( or present at a damaging level, there is always a low level present indoors and out )

Closed-up houses with no circulation where the air becomes trapped and the build-up of mold toxic and or moisture and dampness is what sees mold grow and spread and become a problem. It becomes a severe problem when mold becomes airborne, I have been in a few houses with that and you smell it as soon as you walk in and sometimes can literally see the particles in the air. I wore a mask and goggles in those and was still gagging and eyes tearing. Taht level of mold is cleaned up by a team wearing hazmat suits

If mold is suspected a mold inspection is the only way to verify the extent and there are different levels of inspection with some of them almost worthless. They have to physically cut holes in walls or surfaces to see if mold is behind or infesting the pipes etc and the cheap superficial mold inspection does not go that far, After an inspection, a mold remediation and repair estimate is needed to asses the damage and repair which could be anything from a few thousand 4 to having to take the house down to the studs.

 

[Terrel L. Shields]

Hey Charles, I appreciate the feed back. I was thinking about throwing it back in the lenders lap for them to provide me with an estimate for the mold removal.

At a minimum. B - clearly, if the condition was not apparent in winter, then your value stands. So if they want an "updated" appraisal, then the value date and report date needed updated in addition to the inclusion of the findings of the inspection since that condition was not apparent or visible when originally inspected. And then you need to report that you have performed a prior service blah blah blah.