In Contract to Buy Home, but....

2 Replies

I'm currently in contract to purchase a home that is about $40,000 below it's appraisal value. The initial inspection found 2 areas of mold in the cabinet base under the sink in the hall bathroom and on the drywall behind the sink cabinet in the kitchen (possible plumbing issues). After doing a full mold inspection of the house it came back that the kitchen had Stachybotrys species mold in it and the bathroom had Brown spore type mold with minimal amounts.

Is this something I should worry about if I were to purchase the home (after the seller remediates the issue) and move in for 6 months at the least (FHA loan). As long as there is no mold present and the issue has been solved can I then resell the house for a profit and still abide by the law without having to mention the previous mold issue that was fixed?

My real estate agent also wants to sell the home to another investor and/or purchase the property for his own account if we sign the document to cancel the purchase agreement. I'm assuming this is just a sales tactic to get me to question my decision to not move forward, but he does make a good point there is possible profit here. I don't want to purchase the home, fix it up a little bit, and then be stuck with a house that "had" mold. Any comments/suggestions would be great. 

Mold is not uncommon. If the seller agrees to fix the problem by getting rid of it, or you can fix it without it costing you an arm in a leg (mold is, for the most part, inexpensive to get rid of) it should not be a problem. Ask your agent if it has to be disclosed.
In a sellers disclosure (what you would fill out when you sell) you have to list off any of the problems the house has that you know of. Now problems that have been fixed I would say no.

I am not giving legal advice, consult your agent/attorney before making final decision.

Thanks @Wil Reichard - makes sense. It's not as bad as I originally thought it was as well and should be an easy fix now that we know what was causing the issue. Worth the risk involved. The location of the property and deal will result in a good amount of equity from the start. Will post before and after pictures once complete. 

Moving forward to hit my 90 day challenge (been working on this for 6-7 months) - #90daychallenge #firstpurchase 

@Brandon Turner