Can You Sell a House With Mold? Yes—Here's How
A practical guide to your options when selling a mold-impacted property in Florida.
Key Takeaways
- 1 Yes, you can sell a house with mold—but your buyer pool shrinks dramatically. Most financed buyers can't purchase until mold is remediated.
- 2 Florida law requires disclosure of known mold under Johnson v. Davis. Hiding mold is fraud and can result in lawsuits.
- 3 FHA and VA loans won't fund on homes with visible mold. This eliminates roughly 60% of the buyer market.
- 4 Remediation costs $15,000–$30,000+ in Florida, and you still face the "stigma discount" on resale.
- 5 Cash buyers purchase as-is—no remediation, no clearance tests, no lender requirements. Close in 7-14 days.
Written by Max Cohen, State Certified General Contractor (CGC1534000) and founder of FL Home Buyers. Max has purchased 100+ Florida homes in every condition, including properties with significant mold damage.
Last reviewed: January 2026 • 10 min read
The Short Answer
Yes, you can sell a house with mold. However, traditional buyers using mortgages usually can't complete the purchase until mold is professionally remediated. Selling to a cash buyer who purchases "as-is" is often the fastest, simplest path to closing.
In This Guide
Why Mold Kills Traditional Sales
Discovering mold in your home feels like a death sentence for your sale. And in many ways, for the traditional market, it is. Here's why mold is such a deal-killer:
Why Buyers Walk Away
- • Health fears — Mold triggers allergies, asthma, and concerns about "toxic mold"
- • Unknown costs — Remediation can range from $5,000 to $50,000+
- • Banks won't lend — Most mortgages require mold-free properties
- • Insurance issues — Insurers may deny coverage or require remediation proof
Why Cash Buyers Don't Care
- ✓ No lender approval needed — We set our own standards
- ✓ We know the real costs — Not inflated contractor estimates
- ✓ We have remediation crews — Volume pricing saves money
- ✓ Speed matters — We close before mold spreads
The fundamental problem is simple: most home buyers use financing. When a lender sees mold, they won't fund the loan until it's fixed. The buyer can't pay for remediation on a house they don't own yet. And the seller often can't afford to fix it either. The deal dies.
Florida Disclosure Requirements
Some sellers wonder: "What if I just don't mention the mold?" This is the single most dangerous thing you can do. Florida law is clear on this.
The Johnson v. Davis Rule
Under the 1985 Florida Supreme Court ruling in Johnson v. Davis, sellers must disclose any known facts that materially affect the property's value and are not readily observable to the buyer.
Mold is unquestionably a material defect. If you know about it and don't disclose it, you can be sued for fraud—even if you sold "as-is."
The "As-Is" Misconception
Selling "as-is" does not protect you from fraud. The "as-is" clause means you won't make repairs. It does not mean you can hide defects. If you paint over mold and a buyer later discovers it, you can be held liable for:
- Full remediation costs — What it takes to fix properly
- Diminished property value — The stigma of mold history
- Attorney's fees — The prevailing party in Florida real estate lawsuits typically recovers legal costs
The Safe Way to Sell As-Is
When you sell to a professional cash buyer like FL Home Buyers, we sign a release acknowledging the condition. We're sophisticated buyers who know exactly what we're purchasing. This protects you from future claims because we've explicitly accepted the mold risk.
What Lenders Require: The FHA/VA/Conventional Wall
Even if you're fully transparent about mold, selling to a financed buyer is nearly impossible. Here's why:
FHA Loans (About 20% of Buyers)
The Federal Housing Administration requires properties to be "safe, sound, and secure." FHA appraisers are trained to look for mold. If they spot "visual organic growth," the appraisal becomes "subject to" remediation. The loan cannot fund until:
- A licensed mold assessor writes a remediation protocol
- A separate licensed remediator performs the cleanup
- A post-remediation verification test proves the air is clean
VA Loans (About 10% of Buyers)
The VA is even stricter. Their guidelines explicitly require properties to be free of "fungus and dry rot." Any visible mold freezes the loan until remediation and testing are complete.
Conventional Loans (About 35% of Buyers)
While conventional lenders have slightly more flexibility, most appraisers will still flag visible mold. The underwriter will require remediation before closing.
Result: ~65% of the buyer market is locked out.
The only buyers left are cash buyers and investors who don't need lender approval.
Mold Remediation Costs in Florida (2026)
Florida's mold laws (Statute § 468.8419) require two separate companies for mold work. This doubles the cost compared to other states.
| Item | Cost |
|---|---|
| Mold Assessment (required first step) | $500–$1,000 |
| Remediation (separate company) | $15–$30 / sq. ft. |
| Post-Remediation Verification | $300–$500 |
| HVAC Duct Cleaning | $1,500–$3,000 |
| Reconstruction (drywall, paint) | $25+ / sq. ft. |
| Typical Total | $15,000–$30,000+ |
The hidden cost: Even after spending $30,000 on remediation, your home's CLUE report (the insurance industry's "Carfax" for homes) will show the mold claim for 5-7 years. Savvy buyers negotiate 10-15% off for this "stigma."
Your Options Compared
When you have a house with mold, you really have three paths:
| Option | Timeline | Your Cost | Hassle |
|---|---|---|---|
| Remediate, then list | 90-180 days | $15K-$30K+ out of pocket | High |
| List as-is at discount | 60-120 days | 20-30% price reduction | Medium |
| Sell to cash buyer | 7-14 days | $0 out of pocket | Low |
No Liability
We sign a release waiving future claims. You get a clean break with no risk of lawsuits.
No Upfront Costs
We buy with the mold as-is. You don't spend $15K-$30K on remediation hoping to recoup it.
Close in 7-14 Days
Mold spreads fast in Florida's heat. We close before the problem gets worse and costs more.
Ready to Sell Your House With Mold?
Get a fair cash offer. No remediation. No clearance tests. No lender hurdles. Close when you're ready.
Frequently Asked Questions
Can you sell a house with mold?
Yes. You can sell a house with mold in Florida. Cash buyers like FL Home Buyers purchase properties with mold damage as-is. Florida law requires you to disclose known mold issues, but disclosure doesn't prevent a sale—it just means the buyer knows what they're getting.
Do I have to fix mold before selling?
No—but if your buyer needs financing, their lender will require it. FHA, VA, and most conventional loans won't fund on homes with visible mold. Cash buyers have no such requirement.
Do I have to disclose mold when selling in Florida?
Yes. Under the Johnson v. Davis ruling, Florida sellers must disclose any known material defects affecting property value. Hiding mold is fraud and can result in lawsuits for repairs plus attorney's fees.
How much does mold reduce home value?
Mold typically reduces a home's retail value by 10-25% depending on severity. Additionally, the presence of mold means most financed buyers can't purchase at all, dramatically shrinking your buyer pool.
Can I sell my house with black mold?
Yes—to a cash buyer. Stachybotrys chartarum (black mold) is the most feared type, but it doesn't legally prevent a sale. Traditional buyers can't get financing on homes with any visible mold. We buy properties with black mold as-is.
How much does mold remediation cost in Florida?
Florida mold remediation typically costs $15–$30 per square foot, plus $500–$1,000 for assessment, $300–$500 for post-remediation testing, and $25+ per square foot for reconstruction. Total: $15,000–$30,000+ for a typical home.
Will insurance cover mold remediation?
Usually not fully. Most Florida policies cap mold coverage at $10,000 and exclude damage from "constant or repeated seepage" over 14 days. Since visible mold growth indicates prolonged moisture, insurers often deny claims entirely.
How fast can I sell a house with mold?
To a cash buyer like FL Home Buyers, you can close in 7-14 days. The retail route with remediation and traditional marketing typically takes 90+ days—and that's if you find a cash buyer willing to deal with the disclosed mold.
Disclaimer: This guide is for informational purposes only and does not constitute legal or financial advice. Mold laws and insurance policies vary. Consult with a qualified attorney regarding your specific situation.