Can You Sell a House with Mold? What You Need to Know

If you plan to sell your house in Memphis, TN, we’ve got good news: the number of home sales in the area has consistently increased over the past year. According to the Memphis Area Association of REALTORS (MAAR), home sales volume was 8% higher in May 2024 than in the same month of last year. The data also shows a 2.2% increase from April 2024.

Rising home sales often indicate more potential buyers for your home. However, the presence of mold in your property could change things quickly.

So, can you sell a house with mold in Memphis, or would you have to get it remediated first? How can mold even affect your property and its sale in the first place?

To answer those questions, our team of experts at We Buy Houses Memphis created this guide. So keep reading, as we’ve also provided insights on selling a moldy house.

How Can Molds Affect Your Property?

Molds can affect your property by damaging structural materials and compromising their integrity. As microscopic fungi, they can eat away at your home’s organic building materials, such as:

Anything wooden, including walls, floors, ceilings, posts, and furniture
Anything paper-based, such as wallpaper, sheathing paper, and floor-lining paper
Anything with cellulose (molds’ primary nutrient source), like particleboards and fiberboard

Molds can also affect health, especially for people with mold sensitivities or allergies. According to the National Institute of Environmental Health Sciences (NIEHS), they may cause the following health concerns:

Trigger asthma attacks
Stuffy or runny nose
Skin, eye, or throat irritation
Wheezing
Breathing difficulties
Skin infections

At the very least, molds can cause cosmetic flaws like stubborn surface stains.

Because of all those effects, mold’s impact on house value can be significant. According to GoodRx, mold remediation costs can range from $1,500 to $4,000. You’ll also have to account for the expenses associated with repairing or replacing your home’s mold-damaged parts and contents.

So, Can You Sell a House With Mold in Memphis?

The good news is that, yes, you certainly can. Real estate mold laws in Tennessee are mostly for rentals; for example, tenants can file complaints against their landlords who don’t fix mold issues. They can do so because landlords are responsible for providing renters with safe and habitable housing, per Tennessee Code Title 66. Property § 66-28-304.

However, as a home seller, you have a legal duty to inform potential buyers about known material defects with your property. Material defects are anything that can affect or compromise the safety and habitability of a building. According to the legal website Nolo, such defects include mold infestations.

How Do You Tell Buyers Your House Has Molds?

Before signing the deal, you must provide potential buyers with a house mold disclosure statement. Luckily, you don’t have to create one from scratch, as Tennessee statutes provide a sample model form. You can search “Tenn. Code § 66-5-210” online to find the form.

You can answer most questions in the disclosure statement with “Yes,” “No,” or “Unknown.” Your disclosure about molds falls under section B, which asks you (the seller) if you know of any defects in your home’s structural components. You have to answer yes to all items in the list where you saw molds growing, which may include the following:

Interior walls
Exterior walls
Ceilings
Floors
Windows (i.e., the frames)
Insulation

At the bottom of the list, you’ll then have to explain the defect, which, in this case, is the presence of mold.

What Happens if You Don’t Disclose Mold Information?

Remember: You only have to disclose information you know, and if you’re unsure, you can simply check “Unknown.”

However, you must be genuinely unaware or unsure and make all disclosures in good faith. If, after closing, the buyer discovers the mold problem and can prove that you were aware of the issue beforehand, they can sue you for damages. You can search Tennessee Code Ann. § 66-5-208 online to learn more about this law.

Are Mold Disclosures Always Necessary?

No, provided that buyers waive their right to obtain a full disclosure statement. Property buyers may choose to do this in the following situations:

They plan to demolish the entire home and build a new one
They plan to flip the house
The market is hot, resulting in more buyers and increased competition

If you find such a buyer, you no longer have to give them a disclosure, just a disclaimer statement. Here, you tell the buyer they’ll receive the property as-is, including all defects that may affect it. You’ll also inform them that you make “no representations or warranties as to the condition of the real property.”

You can refer to Tennessee Code § 66-5-202 for more information about the disclaimer statement law.

How Can You Successfully Sell a House With Mold?

Your first option is to clean up the mold or invest in mold remediation before selling. Alternatively, you can find a cash buyer or property investor and sell your house as is to these individuals or businesses.

Mold Clean-Up Before Selling

You may consider this approach if your primary goal is to sell your property for the highest possible amount. You may not even have to pay for professional remediation if the mold issue you know affects only a small area of your home (i.e., under 10 square feet). You can clean up the mold yourself by following these tips:

Wear protective gear, such as goggles, face mask, and gloves
Use diluted chlorine bleach or household bleach to destroy mold and treat stains on bleach-safe surfaces
Dry the treated areas as quickly as possible

Remember, though, that even if you eliminate existing molds, they can come back if the inside of your home remains very humid. High indoor humidity often results from unaddressed roofing/plumbing leaks and poor ventilation. So, if these are the culprits behind your mold issues, you must address them first or include them in your disclosure statement before selling your home.

Selling Your House as Is

Selling a house as is means selling it in its current condition, with all its problems and defects. After the sale, the buyer will be responsible for repairing or renovating the property. As mentioned above, they can also demolish the house and build a new one.

So, what are the benefits of selling your house as is?

First, there’s no need to find funds for repairs. As costly as mold remediation is, it’s often just a part of something even more expensive: water damage, which can be especially common in basements. If you sell your home the traditional way, you need considerable funds to address all these problems.

If you can’t or don’t want to spend thousands of dollars restoring your home, consider selling it as is.

You can also sell your house quickly. By selling your Memphis house as-is, you won’t have to spend time fixing all its problems. Instead, you can put it up for sale as soon as you want.

If you work with us at We Buy Houses Memphis, you can enjoy a smooth and quick home-selling experience. Here’s a quick overview of the steps involved in our process.

Make a Cash Offer Request

Fill out our short online form to request your cash offer. We only need a few details from you, including:

Your name
Email address
Phone number
Address, including your zip code

After submitting the online form, we’ll start our in-office process immediately. We’ll contact you within minutes to schedule a meet-up on your preferred date and time.

On the Meet-Up Day

We’ll discuss your home-selling needs and preferences and perform a physical property examination. Don’t worry; we won’t take up much of your time, as our walkthrough process is quick. We only need to check the following:

Your home’s overall condition
The neighborhood
The current state of your area’s housing market

Once we have all the information, we’ll give you a fair cash offer within 24 hours.

Decide What You Want to Do

If you like our offer, let us know, and we can work together to sell your property within the next week or two. We only need to visit the local title office, where you’ll sign over your property’s title to us. We’ll then give you your money, and that’s it: It’s a done deal!

If you can’t decide yet, that’s okay, too. We won’t push you to sell; our offer isn’t obligatory. If you want us to wait while you look for another place to live, we can do that, too.

Sell Your Moldy House for a Fair Price

So, can you sell a house with mold in Memphis, TN? Now you know the answer is yes. You just have to ensure you provide the buyer with a disclosure statement unless they waive their right to one.

If you want to sell your moldy house as soon as possible, We Buy Houses Memphis is happy to help. We’re your professional but friendly local real estate investment team ready to give you the fair cash offer you deserve. We have dozens of four and five-star Google reviews, which we believe are a testament to our high-quality, reliable services.

Reach out today to schedule our meet-up so you can get your non-obligatory cash offer as soon as possible!