mold home--value $0.00?

[Anonymous]

vacant ranch springs a leak. custodian turns off water and notifies owner who notifies ins. co. ins co says don't do anything, wait for adjuster. so they wait, from may to august. by the time the adjuster comes, the place is covered on all wet surfaces with black mold. house unlivable, major remediation job. Remediation done over winter.

Visited subject this past week, home completely gutted to studs. all moldy surfaces have been bleached out (or whatever the stuff is they use to kill mold), from floor to sub roofing.

Asked to do report as of xx august 01 to settle the estate. (death was not due to mold!!) according to documentation, house was unlivable due to contamination Cost to cure so far >15,000.00

I am leaning towards just an improved lot value, as there are NO
comps with a similar situation.

suggestions?

 

[jtrotta]

Back up ten yards and punt :lol:

have no idea, have not run across anything like that so far.

8)

 

[Farm Gal]

You won't get paid enough, but it will be a learning experience!

I may get hung for this one, BUT I understand that several folks at the Appriasasal Instiute are developing some nationwide 'stigma of mold' data /detrimental conditions, you may want to start some inquiry there... can't recall who to point you at specificcally, but I will check my class notes I think I jotted the players names down...

You will need to also research what if any local hullabaloo had occurred in your local papers/media prior to Aug 1, as it is YOUR market that is being appraised. My market had taken a big-Ho-Hum attitude until several nearby houses were vacated and decontammed all at the same time, awareness is now up...

As of Aug 1 I do not believe that the insurors had started playing hardball: we WON"T insure it if it EVER had mold... so that would not have been a concern...

How many folks there in PA get the Sunday NY Times? They had put out some pretty interesting articles on the subject (Ballard case)....

Good luck! Better thee than meee!

 

[Anonymous]

This is the third mold house I've dealt with. First one, you could smell the mold as soon as you got in the house. I put on my mask that I had in the car--coincidence--as I was going to bondo one of my cars. I went back in. the house had standing water in basement, I took about 20 pictures and the report was contingent on sucessful mold remediation. Lender made the loan.

Second case, guy bought home with mold present on drywall in basement and has left it there for last 5 years!! this was a refi contacted LO, they were CLUELESS on mold issue--go figure--again report based on successful mold remediation. many pictures taken. told homeowner that mold removal was necesary as a "knowledgeable buyer" would not touch the place without some kind of cure.

Also did a motel with mold in crawl space--boy that was a beauty!!

To the comment that one should drop back and punt, hell, these jobs are the ones you cut your teeth on!!!.

 

[Farm Gal]

Frank:

Agreed that it is 'doable' did we also mention 'difficult?' :lol:

Be careful to run with 'your market' as of the effective date of the appraisal: Your comment about the lender is relevent... Lenders ARE in the bisness and hadn't a clue ditto many (and maybe MOST) buyers. If you are establishing a retroactive value on the place, be carefull that you don't trip over your OWN present knowlege.