Sellers • April 3, 2025

Selling Your Home: Capital Gains Tax

by Don Koonce

When you sell your home, you stand to receive an influx of cash. Though there are several costs associated with a home sale, you can likely still bank on the fact that you’ll be depositing a lump sum in the near future. But before you start planning how you’ll use the money or start looking for a new home, you’ll want to understand whether you fall under the criteria of the capital gains tax. If so, the profit from your home sale could end up being smaller than you expected.

What is a capital gains tax?

A capital gains tax is a fee on the profits gained from the sale of an asset. This tax appears in transactions involving various assets—bonds, stocks, boats, cars, and real estate. In real estate, it’s common for homes to appreciate, often leading to a situation where the seller sells the property for more than they originally purchased it. The capital gains tax on the sale of a home is assessed on the difference between those two prices.

Avoiding Capital Gains Tax on a Home Sale

The 2-in-5 rule: If you have owned the home and it has been your primary residence for two of the five years leading up to the sale, you can exclude up to $250,000 of gains if you’re single, or $500,000 if you’re married and file a joint return. If the profit exceeds these amounts, then the excess is reported as a capital gain. The two years of living in the home don’t have to be consecutive, nor do they need to be the final two years leading up to the sale.
Two-year window: You can claim the $250k or $500k exclusion as long as you haven’t already claimed it on the sale of another home in the past two years.
Cost of repairs/improvements: In the context of the capital gains tax, the “cost basis” of your home includes the purchase price, certain legal fees, improvement costs, and more. Including the expenses incurred making repairs and improvements to the home will increase the home’s cost basis, thereby reducing the capital gains.

Paying Capital Gains Tax on a Home Sale

Sometimes, avoiding the capital gains tax may not be possible. If these criteria fit your situation, the gains from the sale of your home may be fully taxable:

The home you sold is not your primary residence
You owned the home or lived in it for less than two years in the five years leading up to the sale
You purchased the property through an investment exchange (known as a 1031 exchange)
You are subject to expatriate taxes
You sold another home within the previous two years and used the capital gains exclusion on that sale

Capital Gains Tax Rates

Capital gains tax rates break down into two basic categories: short- and long-term. Short-term capital gains tax rates apply if you owned the home for less than a year. The rate is usually the same as your ordinary income. For example; if you purchase a home, home values in your area go through the roof within the first few months, and you decide to sell right away to take advantage of the competitive market, you’ll be required to pay capital gains tax on the sale. Long-term capital gains tax rates apply if you own the home for longer than a year, and are taxed at 0%, 15%, and 20% thresholds.

For more information on the financial characteristics of a home sale, read A Guide to Understanding Escrow.

Buyers • Sellers • April 1, 2025

The Biggest Home Buying and Selling Mistakes (and How to Avoid Them)

by Don Koonce

There’s nothing more exciting, rewarding, and fulfilling than buying or selling a home. However, it’s a complex transaction, and there are several steps along the path that can confuse even the most seasoned buyers and sellers. How can you avoid potential selling pitfalls and common buying mistakes? Look to your real estate agent for advice and keep the following guidelines in mind.

Common Buying Mistakes

#1 Review Your Credit Reports Ahead of Time

Review your credit report a few months before you begin searching for homes. You’ll have time to ensure the facts are correct and be able to dispute mistakes before your mortgage lender checks your credit. Get a copy of your credit report from Experian, Equifax, and TransUnion. Why all three? Because, if the scores differ, the bank will typically use the lowest one. Alert the credit bureaus if you see any mistakes, fix any problems you discover, and don’t apply for any new credit until after your home loan closes.

10 Important People in the Home Buying Process

#2 Get Pre-Approved for a Mortgage

Before getting serious about your hunt for a new house, you’ll want to choose a lender and get pre-approved for a mortgage (not just pre-qualified—which is a cursory review of your finances—but pre-approved for a loan of a specific amount). Pre-approval lets sellers know you’re serious. Most importantly, pre-approval will help you determine exactly how much you can comfortably afford to spend.

#3 Know What You Want

You and your real estate agent should both be clear about the house you want to buy. Put it in writing. First, make a list of all the features and amenities you really want. Then, number each item and prioritize them. Now, divide the list into must-haves and nice-to-haves.

#4 Account for Hidden Costs

In addition to the purchase price of the home, there are additional costs you need to take into consideration, such as closing costs, appraisal fees, and escrow fees. Once you find a prospective home, you’ll want to:

Get estimates for any repairs or remodeling it may need
Estimate how much it will cost to maintain (gas, electricity, utilities, etc.)
Determine how much you’ll pay in taxes monthly and/or annually.
Learn whether there are any Homeowners Association (HOA) fees associated with the property.

#5 Get a Home Inspection

Buying a home is emotionally charged—which can make it difficult for buyers to see the house for what it truly is. That’s why you need impartial third parties who can help you logically analyze the condition of the property. Your agent is there to advise you, but you also need a home inspector to assess any hidden flaws, structural damage, or faulty systems.

Making the Most of a Home Inspection

#6 Research the Neighborhood and Location

When house hunting, it’s easy to get caught up in the details of the home itself—bedrooms, bathrooms, and amenities—while overlooking the subtleties of the surrounding neighborhood. Take time to explore the area at different times of the day, research school options, check crime reports, and visit nearby parks, shops, and restaurants. A great home in the wrong location can quickly become the wrong home.

Common Selling Mistakes

#1 Avoid Getting Too Emotional About the Sale

Once you decide to sell your house, it’s time to strip out the emotion and look at it as a commodity in a business transaction. If you start reminiscing about all the good times you had and the hard work you invested, it will only make it that much harder to price, prepare, and market the home successfully.

Preparing to Sell Your Home: A Complete Checklist

#2 Make Repairs or Price Accordingly

Homes with deferred maintenance and repair issues can take far longer to sell and can be subject to last-minute sale cancellations. These homes also often sell for less than their legitimate market value. If you simply can’t afford to address critical issues, be prepared to work with your agent to price and market your home accordingly.

#3 Don’t Overprice Your Home

Getting top dollar is the dream of every seller. But it’s essential that you let the market dictate that price, not your emotions or financial situation. Allow your agent to research and prepare a market analysis that factors in the value of similar homes in the area and trust those results. Overpricing your home often spells trouble and can leave significant money on the table.

#4 Use High Quality Photos

Most prospective buyers today search for homes online first. To make a good first impression, you need a wealth of high-quality photos showcasing your home and surrounding grounds. In today’s market, buyers also expect virtual home tours, drone photography, and 3d walkthroughs to get a more immersive look at the home before scheduling an in-person visit. Investing in these visual tools can help your home stand out in a competitive market and attract buyers faster. It’s also critical that you stage your home to generate maximum buyer interest.

The process of buying or selling a home can have plenty of twists and turns, but with some wise decision-making, you can avoid the most common mistakes and pitfalls. Lean on your agent for guidance throughout the process. Connect with a local Windermere agent to begin your buying or selling journey:

Events • March 27, 2025

FREE E-Waste Recycling & Paper Shredding Event

by Don Koonce

Go here for more details.

Real Estate News & Information • March 25, 2025

Local Market Update – March 2025

by Don Koonce

February typically brings a quiet real estate market, though this year, the balance between affordability and inventory shaped activity across the Puget Sound. While 30-year mortgage rates dipped slightly from January, rising home prices remained a challenge for buyers, potentially tempering demand. Despite a significant increase in active listings compared to last year, closed sales have not kept pace – and in some areas, they’ve declined year over year. As spring approaches, the interaction between inventory and pricing will be crucial in determining market momentum.

In February, King County’s median residential sold price remained relatively flat year over year, inching up from $914,500 to $915,000. However, prices rose 7% from January, indicating sustained short-term growth. Sellers seem to be preparing for the busier spring season, with active residential listings up 37% compared to last year and 9% from last month. Despite the increase in inventory, closed sales remained flat year over year – suggesting that affordability challenges may still be limiting buyer activity. In King County’s condo market, the median price rose 11% year over year to $612,500 from $550,000. Active condo listings surged 81% compared to the same time last year, following a similar trend as the residential market.

Seattle’s market showed solid price growth in February, with the median residential sold price reaching $965,000 – a 4% increase from last year and a 13% jump from January’s $927,450. Inventory grew as well, with active residential listings climbing 28% year over year and nearly 9% month over month, further boosting buyer choice. However, closed sales declined 7% from last year, hinting that rising prices may be impacting demand despite more inventory. Seattle’s condo market reflected the same trends, with the median sold price rising 12% year over year to $625,000, while active condo listings increased 55% from a year ago.

Across the Eastside, home prices continued their upward trajectory, with February’s median residential sold price hitting $1,685,000 – a 15% increase from $1,470,000 last year. Inventory levels expanded as active residential listings rose 62% year over year and 23% from January, likely due to sellers returning after the winter market slowdown. While closed sales remained essentially flat compared to last year, pending sales dropped 15%, suggesting that affordability may be hindering buyer activity. Eastside condos also saw notable growth, with the median sold price rising 18% from a year prior to $787,475, and active condo listings skyrocketing by 142%, dramatically increasing available options for buyers.

Snohomish County’s median residential sold price rose 5% year over year in February, reaching $785,000, up from $750,990 a year ago. Inventory growth was strong, with active residential listings climbing 66% compared to last year and growing nearly 7% from January, adding more options to the market. However, both pending and closed residential sales declined from 2024, down 10% and 3%, respectively. This suggests that rising prices and persistently high interest rates may be softening demand. Snohomish County’s condo market showed similar patterns, with median sold price increasing 5% from last year to $525,000, while active condo listings grew 64% during the same period.

With inventory continuing to build, competition among sellers is increasing, which could lead to price adjustments that stimulate buyer activity in the months ahead. However, inventory remains below balanced-market levels. Across our four Puget Sound regions, the average months of inventory sits at just 1.3 – still well below the 2 months considered balanced, suggesting that additional opportunities may emerge for buyers facing affordability concerns. Whether that inventory will materialize remains to be seen. In a fast-moving market, having an experienced real estate professional by your side is essential. Connect with a Windermere agent for personalized guidance and real-time market insights.

How to Prepare for an Open House

by Don Koonce

To successfully sell your home, you need to attract buyers. This is why open houses are an integral part of the selling process: they allow buyers to experience the property for themselves and envision what life will look like in their new home. To prepare for an open house, you’ll need to work closely with your agent. They can advise you on what buyers in your area are looking for to increase your chances of selling your home.

How to Prepare for an Open House

The earlier you can begin prepping your home for an open house, the better, since getting it in prime showing condition will take time. Start by decluttering and organizing room by room. To truly get your home sparkling clean, you can’t miss those hard-to-reach areas like the baseboards, under your furniture, and your appliances.

To best position your home to sell, consider hiring a professional stager. A well-staged home helps it appeal to the widest possible array of potential buyers, not only for in-person showings, but in online photos as well. Professional staging is equal parts science and art. Stagers are experts in depersonalizing a home while maintaining its stylistic qualities to give buyers the opportunity to imagine the space for their own use. It isn’t just about psychology, though. Staging is a high-ROI expenditure that can add real value to your home.

It may feel counterintuitive, but your absence can be your greatest asset in making your open houses successful. Buyers will often feel uneasy in the presence of the seller as they tour, which will limit their ability to envision their own lives in the home and get excited about the prospect of ownership. Accordingly, you may need to arrange for temporary accommodations during the times your home is being shown. It’s helpful to solidify these plans several weeks in advance to avoid an eleventh-hour scramble.

Working with Your Agent

Your agent will be your greatest asset in preparing for open houses. They are experts in understanding how to effectively market your home and how the local market conditions will impact their marketing plan. Once you know it’s time to sell, they’ll analyze data to accurately price the property and keep it competitive in the current market. They’ll also work with you to schedule open houses at the times when buyers are maximally available and actively searching for listings.

Your agent will also help you to stay safe while selling your home. The reality of open houses is that you’re opening your doors to an influx of unfamiliar faces, and it’s worth it to take a few safety precautions beforehand. Perform a thorough walkthrough of your home with your agent to make sure all valuable belongings, medications, family heirlooms, and other important items have been properly secured and/or removed. Once you’ve given your home a clean sweep, discuss your process for screening potential buyers.

For more resources on preparing to sell your home, Windermere’s Home Selling Guide has everything you need: selling tips, moving checklists, our Home Worth Calculator, and info on how an agent can help.

Seller Essentials – Home Selling Guide

Design • March 18, 2025

5 Design Projects to Improve Your Backyard

by Don Koonce

Your home’s façade and front yard play a role in its curb appeal, but the backyard is for you and your household to enjoy. Spending time making improvements to your backyard will help to maximize your enjoyment of your property and can increase its value. These backyard design projects will help to beautify your yard while creating opportunities for new ways of spending time in it.

5 Design Projects to Improve Your Backyard

1. Improve Your Deck

Just as the kitchen can often be the heart of a home’s interior, a deck is typically the central hub of the backyard. To maximize the seating capability of a deck with a smaller footprint, consider tiering your deck into multiple levels. By adding some separation vertically, you’ll make the most of its square footage.

Consider butting up your built-in seating to your deck’s banister or railing and wrapping it around the perimeter. This will help make your deck more welcoming while saving space that would be taken up by chairs. For an even more efficient space-saving strategy, keep the space underneath your built-in seating open or install a drawer system to store your backyard and/or outdoor kitchen items and tools. If a deck rebuild isn’t in the cards, try simpler improvement projects like restraining it or adding outdoor lighting.

2. Build a Tool Shed

Every backyard requires maintenance, and you typically need tools to keep it in tip-top shape. A useful DIY project for your backyard is to build a tool shed to house your garden tools and landscaping equipment. This will give them a safe, dry storage space, which helps to extend their useful life and avoids having to make unnecessary replacements. When in doubt, add extra shelving space, as you very well may build out your tool collection over time. Once your shed is complete and all your tools are in their right place, install a secure locking system to protect your equipment.

3. Create an Outdoor Cooking Area

Outfitting your backyard for a robust outdoor kitchen with all the bells and whistles can be expensive. Fortunately, you can create an outdoor cooking area without having to break the bank. Depending on your local climate, it may be wise to cover this area with some sort of roof structure. If so, be sure to leave ample room between your cooking equipment and the height of the roof to allow flames and fumes to safely escape.

Different types of barbecues can satisfy your outdoor kitchen needs, depending on how much room you have to work with. Charcoal grills are ideal for smaller spaces, while built-in barbecues can provide a more comprehensive grilling setup if you have the allotted square footage.

4. Give Your Flower Beds a Makeover

Flower beds have quite an impact on the overall aesthetic of your backyard. If your flower beds are overgrown, start by pulling out the weeds. Use a garden trowel; this will help to dig up the roots and decreases the chance of recurring weeds. Remove all the weeds and debris, then rake the soil to prepare it for composting. While you rake, keep an eye out for rocks and gravel and remove them from the flower bed.

Now you’re ready to add a new layer of compost. This does wonders for the health of the soil and encourages new plant growth. Sprinkle in two to three inches of compost and work it into the soil with a shovel. You can also experiment with adding other nutrient-rich ingredients or plant materials that are conducive to soil in your climate, such as peat or manure.

5. Build Your Ultimate Patio

For many homeowners, building a patio exists at the crossroads between a DIY project and one that requires a professional’s expertise. Whichever route you choose, executing a patio installation can take your backyard to the next level. Choosing your patio material is the first step. Concrete, flagstone, brick, terra-cotta, and pea gravel are all common patio materials that have their respective advantages and disadvantages. If having a patio that’s built to last is your top priority, then brick, flagstone, or concrete may be the way to go. These materials also complement a variety of house styles, as well. If you’re looking to create a more relaxed environment in your backyard, then pea gravel or clay may be more your style. These materials recall aspects of the beach and seaside living.

For more information on how you can take your yard to the next level, read Windermere’s blog post on seven ideas for creating a beautiful yard:

7 Ideas for Creating a Beautiful Yard

Sellers • March 13, 2025

Common Real Estate Contingencies

by Don Koonce

Contingencies help to spell out the specifics of a real estate transaction by dictating what must happen so the contract becomes legally binding. If certain conditions aren’t met, the applicable contingency gives the buyer and the seller the right to back out of the contract per their agreed-upon terms. When selling your home, a buyer may make their offer with contingencies attached. Here are some common contingencies you might see in a buyer’s offer and what they mean for you.

Common Real Estate Contingencies

Home Inspection Contingency

A home inspection contingency allows the buyer to have the home professionally inspected within a certain window of time. If the buyer finds outstanding repairs that need to be made, they can negotiate them into their offer. If the seller chooses not to make the repairs outlined in the buyer’s home inspection report, the buyer can cancel the contract.

As a seller, it’s important to be transparent in listing any issues with the home. This is why many sellers find a pre-listing inspection to be beneficial: it provides transparency about the home’s condition ahead of time and can help to streamline the buying process, which can be especially helpful when selling in competitive markets.

Financing Contingency

Also known as a “mortgage contingency,” a financing contingency gives the buyer a specified period of time to secure adequate financing to purchase the home. Even if a buyer is pre-approved for their mortgage, they may not be able to obtain the right loan for the home. If they are unable to finance the purchase, the buyer can back out of the contract and recover their earnest money, and the seller can re-list the home.

The seller won’t be on the hook if the buyer fails to cancel the contract. Even if the buyer is not able to secure financing by the agreed-upon date, they are still responsible for purchasing the home if they do not terminate the contract.

Appraisal Contingency

An appraisal contingency states that the home must appraise for, at minimum, the sales price. It protects the buyer in that it allows them to walk away from the deal if the property’s appraised value is lower than the sales price, and typically guarantees that their earnest money will be returned. This can be an issue in certain markets where demand is driving prices up to numbers that appraisals don’t reflect. Depending on the agreement you make with the buyer, you may be able to lower the price of your home to the appraised amount and sell it at that price. When selling your home, remember that there is a difference between appraised value and market value. An appraiser’s value of a property is based on several factors using comparative market analyses, whereas market value is what buyers are willing to pay for a home.

Home Sale Contingency

If a contract includes a home sale contingency, it means that the buyer is tying their purchase of a home to the sale of their existing one. Though it is common for homeowners to buy and sell a house at the same time, attaching a home sale contingency to an offer does create some added variability in a real estate transaction that sellers should be aware of before accepting such an offer. This contingency allows buyers to sell their current home and use the proceeds to finance the purchase of their new one. Although you will have the right to cancel the contract if your buyer’s home is not sold within a specified time, you’re still waiting on them for the deal to go through, which means you could potentially miss out on other offers while you wait.

Title Contingency

Before the sale of a home goes final, a search will be performed to ensure that any liens or judgements made against the property have been resolved. A title contingency allows a buyer to raise any issues they may have with the title status of the property and stipulates that the seller must clear these issues up before the transfer of title can be complete. If an unpaid lien or unpaid taxes turn up in the home’s title search, this contingency also allows the buyer to back out of the deal and look for another home. A majority of sellers will pull a pre-title report to provide transparency for a smooth transaction.

These are just some of the contingencies you may encounter in a buyer’s offer. Work closely with your agent to understand the terms of these contingencies and how they impact the sale of your home as you go about finding the right buyer. For more information on the process of selling your home, read my blog post on common mistakes to avoid:

10 Mistakes to Avoid When Selling a Home

Design • March 11, 2025

How to Find the Right Lighting for Your Home

by Don Koonce

The right lighting can give your home the quality and mood you’re looking to achieve. Knowing about the different temperatures of light, lighting types, and how to blend lighting elements will help you narrow down your choices and find the best fixtures for your home.

How to Find the Right Lighting for Your Home

Before taking a trip to the hardware or lighting store, it’s worth your time to understand the different types of lighting and how they complement each other to fill the large surface areas of your home while spotlighting the nooks and crannies. Ambient lighting, accent lighting, and task lighting are the three basic lighting types that cover the spectrum of illuminating a home.

Ambient Lighting

Ambient light is what fills a room. Also known as “general light,” this is the primary light source for the spaces in your home. When selecting your ambient lights, know that your choice in color will play a significant role in the atmosphere of that room, since this type of lighting is so widely distributed.

Accent Lighting

Accent lighting has a smaller footprint than ambient lighting. It is meant to direct focus and attention to a specific spot. By pulling the eye toward this spot lit area, it allows you to highlight décor and design pieces, such as picture frames and artwork, houseplants, or small sculptures.

Task Lighting

It’s all in the name when it comes to task lighting. This form of lighting exists to help you perform tasks. Whether it’s cooking, working on arts and crafts, tinkering away at a desk, or tending to your indoor garden, having task lighting in place will ensure that you’re able to see while you work. Feel free to experiment with closeup light sources when installing task lighting to provide the maximum attention to detail while you work. Task lighting fixtures can be as simple as a floor lamp or desk lamp.

Different Temperatures of Light

There are three basic light temperatures: warm, cool, and neutral. Warm light creates a cozy, comfortable feeling, and functions best in rooms where you plan to kick back and relax, such as the bedroom or the living room. Cold light encourages attention to detail, and therefore works well in places like the kitchen and bathroom. Neutral light sits between warm and cold light but functions like cold light in that it can help you focus on the task at hand in the rooms where it’s used. Places like the garage, home office, or bonus/utility rooms are all fitting homes for neutral light.

Different Lighting Fixtures

After you’ve researched the different types of lighting and decided which temperatures fit best throughout your home, it’s time to pick your fixtures.

Chandeliers

Chandeliers have been around for centuries and they are still popular today. Due to their formal nature, they can set the stage for dining rooms and foyers alike with traditional style. Chandeliers typically give off lots of light, making them perfect for filling larger spaces.

Surface Lights

Surface lights sit flush against the wall where they are installed. These lights are typically used in smaller areas such as hallways.

Pendant Lights

Pendant lights are commonly found in the kitchen or the dining room. Suspended from the ceiling, pendant lights come in a variety of styles, but often appear as a linear series of lights that run the length of a table or slab underneath them.

Recessed Lights

Recessed lights sits inside the wall and provide a level distribution of illumination. These lights are a popular choice for vaulted ceilings, where you’ll usually see them spaced evenly apart to fill the room with ambient light.

For more information and resources on putting together the home you envision, read my blog post on how to upgrade your dining room:

How to Upgrade Your Dining Room

Buyers • March 6, 2025

A Guide to Understanding Escrow

by Don Koonce

The process of buying a home is made up of several stages. After preliminary stages like getting pre-approved, searching for homes, and finding a buyer’s agent, various contracts and buyer-seller agreements will enter the fold as the purchase of a home is finalized. Escrow is a pivotal point in the buying process that will ultimately lead to you, the buyer, receiving the keys to your new home. Here is your guide to understanding escrow and how it works.

A Guide to Understanding Escrow

What is escrow?

Escrow is a vehicle for temporarily holding the funds in a real estate transaction and making sure they distribute properly when the deal goes through. The funds and documents are held by a third party “in escrow” until the terms of the agreement have been filled. Escrow accounts protect the buyer’s “good faith deposit” (also known as “earnest money”) to ensure it goes to the seller as outlined in the real estate contract. These funds show that the buyer is serious about staying true to their offer and does, in fact, intend to pay the seller.

The seller accepting your offer is your cue to begin the escrow process. Your first step is to open an escrow account. Then, you’ll go about securing a mortgage and obtaining insurance for the home. When the deal goes through, the funds in will go towards your down payment and closing costs. Sometimes, the escrow funds are held in the account after the sale of the home has been finalized. This is known as an “escrow holdback.” This situation can often arise if a buyer discovers an issue with the home in their final walkthrough that wasn’t present during an earlier inspection. If the home is in a worse condition than what shows in the contract, then the good faith deposit will go back to the buyer, and they are released from the contract.

How does escrow work?

Once all the I’s have been dotted and the t’s have been crossed, an escrow officer will issue a deed with you listed as the new property owner. Then, you’ll order a wire transfer for the funds to be allocated. Once closing is complete, the third party holding the escrow funds will distribute them per the terms of the agreement. This distribution of funds make up a part of the total closing costs for buyers, which include, among others, real estate agent commissions, title and insurance fees, and any HOA dues that may apply.

Escrow evolves after the purchase of a home. Once you’ve bought your new house, your lender will open a mortgage escrow account, through which you’ll pay for your property taxes and homeowners insurance. Held by your lender, the money in this account is added to your monthly mortgage payment.

To not get overwhelmed during the escrow process, it’s important to read your documents carefully and ask questions to make sure you understand them. When it comes time to close on the home, read through everything carefully to make sure you haven’t missed anything before the deal goes final. For more information on the required financing throughout the home buying process, read my blog post on the different types of home loans available to buyers:

The Different Types of Home Loans for Buyers

Living • March 4, 2025

How to Prevent and Deal with Mold

by Don Koonce

Whether you are buying or selling a home, mold is something to be mindful of. Health concerns and potential damage make mold a red flag for buyers. Even if you’re not planning to sell any time soon, taking care of mold problems now can prevent even larger and more costly issues in the future. Contrary to what some people think, mold is not a geographic problem—it can occur anywhere, no matter where you live. Here is some basic information about mold and how to deal with it.

What is mold?

Molds are microscopic organisms that are found virtually everywhere indoors and outdoors. There are thousands of different kinds of mold. Their natural function is to help break down dead materials such as stumps and leaves so the nutrients can be used by the environment. For molds to grow, they need two things: an organic food source—such as leaves, wood, paper, or dirt—and moisture.

Mold Causes Damage

Mother Nature uses mold to decompose plant material. Unfortunately, when present indoors, it can be equally destructive. Mold growth can damage furnishings, such as carpets, couches, and cabinets. If it goes undetected or neglected, it can also cause serious damage to walls and structural elements in your home.

Mold is present everywhere, and most people tolerate exposure with no adverse effects. If allowed to spread, however, it may cause problems. As molds grow, they release thousands of tiny spores that travel through the air. When inhaled in large enough amounts, these spores may increase the risk of adverse health effects in some people, particularly respiratory problems. A less-common strain of mold called “black mold” can be particularly troublesome to those who are especially sensitive.

Common Causes of Mold Growth in Homes

No matter your local climate, your home is vulnerable to mold. There are many sources of mold problems, from faulty air conditioners to poorly positioned sprinkler systems. Here are the most common sources of mold inside the home:

Flooding
Leaky roofs or damaged gutters
Heating or cooling system problems
Poor drainage next to foundation
Plumbing leaks from toilets, refrigerators, and dishwashers
Damp basement or crawl space
Leaking windows or doors
Steam from shower or cooking
Indoor exhaust from dryer

Detecting Mold in Your Home

If you can see or smell mold inside your home, it’s time to act. Any area that has sustained past or ongoing water damage should be thoroughly inspected—you may find hidden mold growth in water-damaged walls, floors, or ceilings. Walls and floors that are warping or discolored can also indicate moisture problems, as can condensation on windows or walls.

How to Prevent Mold in Your Home

Since mold is always present, there’s no way to eliminate it completely. You can control indoor mold growth, however, by controlling moisture.

Remove the source of moisture by fixing any leaks or other water problems.
Make sure your bathroom fans and dryers are properly vented to the outside. Always use the exhaust fan when cooking or showering.
Use a dehumidifier to reduce moisture levels in the air. Make sure your AC system is well maintained and is the correct size for your home. A faulty AC system can cool the air without removing the water vapor, creating high humidity.
Insulate your home well to prevent indoor condensation.
Have your heating, ventilation, and cooling systems professionally cleaned annually. Air-duct systems can easily become contaminated with mold.
Regularly clean moist areas such as the bathroom with products that treat mildew.
Dry clean your carpets (as opposed to wet cleaning them).
Avoid carpeting bathrooms and basements.
Clean any moldy surfaces as soon as you notice them.

How to Deal with Mold in Your Home

Mold can be a manageable problem. If you have a mold problem that is isolated to a small area—less than a square yard or so—you can try to resolve it yourself. However, if your mold problem is severe or if you have extensive water damage, it’s best to call a professional contractor who specializes in mold removal.

Porous items that are hard to clean, such as carpet and drapes, should be discarded. Moldy sheetrock and ceiling tiles can be removed and replaced. Hard, nonabsorbent surfaces such as glass, plastic and metal should be thoroughly cleaned with soap and water and allowed to dry completely. For solid items that are semi-porous, such as floors, cabinets, and wood furniture, scrub with an ammonia-free cleaner and hot water to remove the mold. Rinse with water and dry thoroughly. After cleaning, apply a mildewcide to kill mold and spores.

When cleaning mold, remember to wear gloves, a mask, and eye protection, and work in a well-ventilated area. Never mix cleaner containing bleach and ammonia; this can result in the release of a toxic gas. And be sure to throw away any sponges or rags that you use for cleaning. For more information on how maintaining your home can prevent damage, read our blog post on how to handle water damage.

How to Handle Water Damage in Your Home