The work that was done in the structure did help limit the amount of visible damage, and as a result, an unsuspecting agent and their home buyer were unaware that the water loss occurred. A couple of weeks ago, this home sold and I had the opportunity to meet my new neighbor.
It may be surprising to most people that the home buyer was totally unaware that the home had ever had a water loss. No information was provided from the listing agent and the buyer signed all the required “as is” addendums which are a part of the normal process for these bank owned properties. I find it unfortunate that the agent representing the bank is hiding behind the NRS-113 waiver for as-is transactions, even when they had information which should have been disclosed. This home was flooded on the listing agents watch and that information should have been given to the potential buyer.
An environmental investigation of the property found visible mold growth at several locations on the surface of building products. An intrusive investigation found mold growth behind most all the baseboards throughout the house. The site protocol for remediating the microbial impact to the property includes a complete demolition of the drywall from the floor to the two foot mark and the removal and discard of all cabinet products in the kitchen and bathrooms.
Potential buyers should be aware of the additional risk in the purchase of bank-owned homes. As this situation demonstrates, these homes may be sold to you without the necessary disclosures. In this situation, the additional cost to the new home owner will likely exceed twenty-thousand dollars.
Buyers should ensure that they are working with competent, qualified consultants throughout their due diligence period, to uncover any significant, undisclosed conditions.
For more on this or other home care subjects, contact Scott at www.scottsauer.com.