unknown blackish substance

I don’t know about you, but there are two reasons why I don’t let my kids play under the kitchen sink: 1) There are too many chemicals, so it’s an obvious safety issue; and 2) I honestly can’t stand to work under the sink, so I don’t want my kids to mess anything up, which might cause me to have to spend time there. After installing a new kitchen faucet recently, I vigorously stand by this point.

In truth, after inspecting thousands of homes, I can safely say the space under the kitchen sink can often be dark, cluttered and even dank. Other than checking for a garbage disposal, I always look in this area because it can be a hot spot for issues that need to be resolved (often quick and easy repairs).

Under the kitchen sink - photo by Sacramento Appraisal Blog

It’s okay if things are not tidy under your sink. But when I do see an “unknown blackish substance,” it’s something I need to disclose in the appraisal report. I never say “mold” as an appraiser because I’m not a mold specialist, but when I do see something like the photo above, I require the issue to be cured. It’s probably a very quick fix and a sincerely minor issue, but I can never make that assumption. The photos above are before & after shots from an FHA loan, and I simply disclosed there was an “unknown blackish substance” under the kitchen sink, and it needed to be cured. I was careful not to call the substance mold, fungus or even say it was growing. I did recommend further inspection by a qualified professional, and I included a standard disclaimer about reserving the right to change the appraised value in light of new information.

In the example above, the issue was easily cured (probably by using some basic products from Home Depot) and the loan closed without a problem. This is not usually an enormous red flag issue that buyers and sellers need to freak out about, but it is something that should be resolved.

Four Quick Recommendations:

If you are a buyer, look under the sink to know what is there.
If you are an agent, look under the sink to know what is there.
If you are an appraiser, look under the sink to know what is there.
If you are a seller, be aware the appraiser might call for repairs if seeing something like the photo above. It might be worth curing the problem before the appraiser comes (I’m not saying you should hide the issue if you know you have a mold problem).

Question: Do your kids play under the sink?

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If it looks like a duck, quacks like a duck and walks like a duck, it’s a….. If only it were that easy when identifying mold. Since appraisers are usually not mold specialists, we need to be careful when calling something mold or not. This is because sometimes excessive moisture issues can be easily cured, but other times it can be a toxic situation and expensive to handle properly. Since appraisers really aren’t qualified to analyze the difference, it’s best to handle the situation carefully.

Would this laundry room and bedroom scare you off from making a purchase?

Mold photo in Laundry Room - photo from an appraiser friend

Mold photo in Bedroom - photo from an appraiser friend

What about this damage from a leaking roof? No biggie or big deal?

Damage in Garage - Mold or Not - That is the question

What do appraisers say in appraisal reports for properties like this? First off, we ought not call something “mold” until we get clarification from a licensed mold professional, so appraisers often describe something like this as “an unknown blackish-greenish substance”. Once we do find out what the substance is, then we can better analyze the impact on value depending on cost-to-cure and the reaction in the marketplace to such a substance. After all, there is a huge difference between needing to spend a few hundred dollars to cure a moisture problem and dealing with toxic mold (see Wikipedia: Mold Health Issues).

Can’t the appraiser simply ignore the issue? The Fannie Mae appraisal report form (1004) asks appraisers to identify any physical deficiencies or adverse conditions that might affect the livability, soundness or structural integrity of a property. The blackish-greenish substance in the photos above might potentially impact livability, so the appraiser should absolutely make note of that (especially for the first two photos). But the appraiser can just not take photos, right? Even if the appraiser doesn’t take photos, the appraiser should describe the issue in the report. A lack of photos doesn’t make the problem go away.

Here is an example of what I might say about the third photo above:

“There is an unknown blackish-greenish substance on the ceiling of the garage (see photo). The Listing Agent states there was a roof leak in the garage. It is not known to the appraiser what this substance is since inspecting this substance is outside of the scope of the appraiser’s expertise. The appraiser recommends an inspection by a qualified professional and reserves the right to adapt the opinion of value based upon new information.”

It’s not my job to assume: A statement like this highlights the issue and calls for further investigation by my client. Honestly, it looks like a minor issue to me, but you’ll notice I don’t assume it is “no biggie.” I don’t identify the cause of the problem or the exact remedy either. My job is to simply explain what I saw and then leave the diagnosis and remedy to other qualified professionals. When I encounter an “unknown blackish substance” I make the appraised value in the report “subject to” further inspection. That way when the inspection report comes back, I can make an informed decision on how to proceed. It could be a quick fix for a few hundred dollars or there could be a much bigger issue if the unknown substance is actually the “bad stuff”.

NOTE: If the substance situation was more extensive like the first two photos, after buying a space suit to inspect the property (kidding… sort of), I’d ask my client for a mold inspection and contractor’s bid for a cost-to-cure before completing the appraisal.

Have how you seen mold impact your real estate sales or loans? What sort of mold issues have you seen before?

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Twitter, subscribe to posts by email or “like” my page on Facebook