Does water damage in a property automatically disqualify a home when looking to buy a new property?

[Tiesha M.]

Hello! Can someone tell me if water damage in a property should automatically disqualify a home when looking to buy a new property? I'm new to REI, so I'm not sure. Several properties I've seen online obviously have signs of water damage such as mold, water stains, on places where the ceiling has fallen in some or a lot. Would you still purchase a home with any of those conditions?

[Walt Payne]

@Tiesha M.  Would I buy them, yes. One good reason is that any sensible retail buyer will shy away from such properties if the mold and leakage are significant. So you have essentially established a reduced price.  If it is extensive, you will need to do a total gut to remove the mold. That might sound bad, but again you have eliminated more buyers, which will drop the price some more. 

The main thing is determining the cause and extent of the damage, and what it will take to fix it. That should include legitimate mold remediation, and repair. Without certified mold  remediation you may not be able to sell it. 

That said, I would not advise buying a property with that type of damage as your first purchase. Rehabbing contains enough risks for someone who is new to it, but no sense in buying a property that you know has added unknowns. Stick with basic wall repair, new kitchens, new bathrooms, etc. for your first few purchases.