If you’re a potential homeowner considering purchasing a home that smells damp or musty, hidden water damage may be the culprit. Water damage can be hazardous to your health, so homeowners should have an inspector carefully check for leaks and moisture issues before purchasing a home. 

    Based on my decades of experience working with homeowners, hiring a professional home inspector to examine the house for potential water damage issues is a must. Water damage restoration can be a very costly and inconvenient experience for any homeowner, but this article can help you spot it and figure out how to fix it.


    Causes of Water Damage in a Home

    When you detect a moldy or musty smell, it usually signals excess moisture and potential water damage. Several common causes of water damage include:

    • Roof damage from attic leaks, and plumbing leaks
    • Flood damage from water leaks in the home, foundation, or crawlspace
    • High indoor humidity
    • Condensation in walls from missing vapor barriers
    • Sagging, cracked, or loose gutters 
    • Home erosion or cracks in the foundation

    How To Check for Water Damage

    While you can’t inspect behind finished walls, here are tips to thoroughly check for water damage to find the source of the leak: 

    • Inspect the attic for wet insulation, moisture stains, mold, or rot, which can indicate roof leaks (more on that below).
    • Check under floors for dampness and mold on joists and subfloor.
    • Look for water stains and discoloration inside cabinets, closets, and along baseboards to find affected areas.
    • Use a moisture meter on walls and wood to identify excess moisture and water damage.
    • Test indoor humidity with a hygrometer. High levels may mean condensation and mold growth.

    Signs of Water Damage in the Attic

    The attic is a spot that homeowners don’t frequently visit and may harbor hidden signs of water damage. This is why it’s essential to carefully inspect the attic space.

    Here’s what you should be looking for — these are the most common signs of attic water damage:

    • Discolored, warped, or water stains on rafters
    • Wet insulation
    • Mold growth on wood and attic insulation
    • Peeling or missing shingles
    • Moisture buildup near vents

    So, What Should You Do if You Find Water Damage?

    I recommend getting a professional home inspection in order to identify any water leaks, potential hidden water damage, or expensive moisture issues before finalizing a home purchase. I also suggest getting a roof inspection from a roofing contractor. If you have any doubts about signs of water damage, investing in a professional inspection now can provide peace of mind and avoid unpleasant and expensive surprises after a home purchase.

    If an inspection reveals leaks, flooding, mold, or high humidity, consider asking the seller to repair these issues before closing. You may have to ask sellers to replace water-damaged attic insulation or discover the root causes of water damage, like ice dams or drainage issues, to prevent future leaks and structural damage. 

    For minor problems, consider requesting a repair credit so that you can have them repaired after closing. However, it’s best to have a water damage restoration company repair any major moisture damage or extensive mold before closing. I recommend you compare water damage restoration companies before hiring one and get estimates before deciding how to proceed. Thoroughly fixing water damage and humidity problems before you move in prevents persistent issues that could affect your indoor air quality and the value of your home. 

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    FAQs About Identifying Water Damage During Inspection

    Where should I look for signs of water damage?

    Look for clues of water damage in the attic, under floors, along the foundation, and inside cabinets and closets. Keep an eye out for stains, mold, moisture, and bubbling paint.


    What tools help identify hidden water damage?

    A moisture meter and hygrometer are useful. However, some of the most useful signs are your eyes — you can also look for obvious visual signs like mold and stains.


    What causes the musty odor in a water-damaged home?

    Excess moisture encourages mold growth and mildew that create a musty, earthy smell.


    Should you ensure all water damage is fixed before buying?Should you ensure all water damage is fixed before buying?

    You should ensure the seller repairs any major issues like leaks, flooding, and mold before the purchase. For minor problems, you could request a repair credit. Educating yourself on ways to prevent and remove mold may be helpful in keeping your home safe from moisture damage in the future. Carefully checking for water damage and humidity issues avoids expensive problems down the road. I recommend a thorough inspection for leaks and moisture as part of your home buying due diligence.


    Editorial Contributors
    avatar for Laurie Engle

    Laurie Engle

    Expert Writer & Reviewer

    Laurie Engle is a freelance writer who provides insights to homeowners on topics such as the home warranty industry, relocation issues, and real estate trends. As a licensed Realtor since 2001 Laurie has acquired extensive expertise in dealing with home warranty companies and navigating the intricacies of the real estate market. In addition to her commitment to helping clients with their home buying and selling needs, she maintains a sharp awareness of market dynamics, including property values, interest rates, and local regulations.

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    Lori Zaino

    Lori Zaino is a freelance writer and editor based in Madrid, Spain. With nearly two decades of editorial experience, she’s written and edited for publications like Forbes, CNN, Insider, NBC, Newsweek, The Points Guy, The Infatuation, and many others. Having just completed her first home renovation, she’s more interested in home improvements than ever, dedicated to bringing you fresh and accurate content to help you update your living spaces.

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