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I don't think I am a mold inspector, am I?

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Danica Ketover

Thread Starter
Freshman Member
Joined
Mar 28, 2005
Professional Status
Licensed Appraiser
State
Wisconsin
Hi all,

Here's the story - 3-4 weeks ago I did an exterior-only inspection for a purchase. The realtor told me the finished basement was 50% mold. The lender told me that the home inspector said it was actually 75% and that the main level carpet probably contained mold spores, and that no one should enter the property without a respirator.

Today, the lender says the mold removal is complete and that this afternoon a substance is being applied to the studs to prevent regrowth. (This application is not required by the underwriter and the lender is saying I don't need to wait until its completed or mention it in the report). The lender is asking me to inspect the interior today and say that the mold has been removed, convert the report to a 1004, and provide an updated opinion of market value. They are not asking for new comps and the purchase price has decreased by $12,000.

No documentation regarding the removal will be available until Friday, which of course, is the closing date. Since we are appraisers and not mold inspectors, I feel they are asking me to go out on a limb. Am I qualified to say that mold that was reportedly present is not now? Especially since I never saw it in the first place. Do I need to comment on the substance applied to the studs?

Thanks for your anticipated advice!
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
Another shining example of the limits of a drive-by assignment. Suppose these people would not have shared their info about the interior of the house. The lender could have taken a huge loss in an effort to save a few bucks.

No problem with doing a new appraisal, but they can not tell you what comps to use, what if better, more recent data has become available since the original report. What happens if the interior inspection reveals other items whether positive or negative. And the report still should be "subject to" a qualified professional signing off on all mold issues. Don't touch that "as is" box with that famous ten foot pole. Be clear with the client on the SOW of the second assignment before proceeding becausing they are requesting several things that you can not do.
 

wickedness1

Senior Member
Joined
Jul 12, 2007
Professional Status
Certified Residential Appraiser
State
Ohio
Wow..If I was in this position, NOBODY would get any reports from me saying it was cleaned up until I had absolute proof. The proof I would require would be an INTERIOR inspection of the subject along with all the documentation of the professional who removed the mold (mold report).

The lender not having the appraisal by Friday to close the loan is not your problem. What is your problem and will remain your problem for many years is what you state on your appraisal report regarding the mold.

I definately would not even consider updating a report until I had proof to back up my workfile as to when the mold was remediated, etc, along with my own pictures that the work was done. Until then, the lender would be up sh*tcreek without a paddle.

Just my 2 cents :Eyecrazy:
 

chad hampton

Senior Member
Joined
Nov 10, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
would seem to me that if they wanted to be sure, they'd have the inspector go out there again and give his expert opinion on whether or not the mold is gone.

all you can do is say that from a limited visual inspection, there does not appear to be any mold. but since you are not a mold inspector, I don't see why that holds any water.

Lenders always ask appraisers for everything. I guess that's because we are the cheapest person they can hire to send anywhere. Far cheaper than any trade.
 

dobie

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
New Jersey
Lenders always ask appraisers for everything. I guess that's because we are the cheapest person they can hire to send anywhere. Far cheaper than any trade.

Also, because some appraisers have a track record of doing this type of thing. We have trained the lenders to expect this
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
Wow..If I was in this position, NOBODY would get any reports from me saying it was cleaned up until I had absolute proof. The proof I would require would be an INTERIOR inspection of the subject along with all the documentation of the professional who removed the mold (mold report).

The lender not having the appraisal by Friday to close the loan is not your problem. What is your problem and will remain your problem for many years is what you state on your appraisal report regarding the mold.

I definately would not even consider updating a report until I had proof to back up my workfile as to when the mold was remediated, etc, along with my own pictures that the work was done. Until then, the lender would be up sh*tcreek without a paddle.

Just my 2 cents :Eyecrazy:

I still would not mark "as is", even if I had the mold inspectors report in my hands. That determination is beyond our expertise, let the professional who is qualified make the final call and have him submit the report to the UW for the UW's approval, not ours.
 

wickedness1

Senior Member
Joined
Jul 12, 2007
Professional Status
Certified Residential Appraiser
State
Ohio
I still would not mark "as is", even if I had the mold inspectors report in my hands. That determination is beyond our expertise, let the professional who is qualified make the final call and have him submit the report to the UW for the UW's approval, not ours.


I agree 110% ....I smell something rotten with this assignment
:rof: :rof: :rof: :rof:


(maybe its the mold, lol)
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
I wonder if the lender knew about the mold before ordering a drive-by :)

Wait a minute, my mistake, the OP stated the lender told her about the problem. If the lender is "co-operating", they should have no problems doing it the "correct" way, just make sure they know what that is :)
 
Last edited:

Lost Cause

Senior Member
Joined
Sep 17, 2004
Professional Status
Certified General Appraiser
State
New York
Danger, Will Robinson

Forget saying anything prior to documentation. Even with all the documentation in the world stating that the mold remediation was complete, my only comment would be that I am not qualified to have an opinion concerning mold. Stay away from areas where you have no expertise!
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
You are not a mold inspector .. but you can call for a mold inspection.
 
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