appraisal; house has drywall damage

[SmartMoney]

How long have you been in your home? That's where the seasoning issue lies, with the home being financed........is that the home just purchased? And if so, when? With 50% equity, I assumed you've had it for a long time. However, if you bought it well below market, you very well may have become your own worse comp (and the neighborhood's too). But yes, there's seasoning requirements......which can be worked around, but only to the extent that can be documented what you put into it......not just invoices, but proof you paid for it.

[Karen59]

Originally Posted by SmartMoney

How long have you been in your home? That's where the seasoning issue lies, with the home being financed........is that the home just purchased? And if so, when? With 50% equity, I assumed you've had it for a long time. However, if you bought it well below market, you very well may have become your own worse comp (and the neighborhood's too). But yes, there's seasoning requirements......which can be worked around, but only to the extent that can be documented what you put into it......not just invoices, but proof you paid for it.

I bought it below market and I am my own worst comp! (if you hit 'recently sold' for my town, there I am, the lowest one, ha ah.) I have been here since June, purchased the house in March.

BTW, would other people's appraisals be lowered? No, they wouldn't be, right? my house could not be lived in for months while I did such things as remove a century worth of hand rigged knob and tube wiring, repair a gaping hole in the garage roof (sun and rain streaming in) add a sidewalk, fix falling down porches and siding, etc, etc.

BTW, for those who might find themselves in this position, it was very nerve wracking, because my insurance company (which was Utica, but I think any insurance company would do the same) sent notice to cancel my insurance --because I didn't get a certificate of occupancy in time. I'd be in a special high risk pool for three years. I pushed like crazy to get the work done, then, one of the township inspectors broke his foot! and all inspections were pushed back. With days to go, I got the C of O, and kept my insurrance!

Considering that I am a completely novice at buying an old house (I'd read about buying old houses for years, and my sister and I watch house shows on TV, but this was my first time doing it), things have not gone so bad. I made mistakes I would not make again, but it was fun and a sort of dream of mine.


I bought it with cash, by the way, that's why I don't have a mortgage. I'm single, so I could save up a little cash.

Thank you for your reply.

[yousah]

Redoing a drywall ceiling and some trim should be a quick job. Why not just complete those repairs?

The appraiser will listen to the lender's requirements for the appraisal as to whether they are supposed to appraise it as-is or as-repaired.

The market value has no such limitions of not going above your purchase price but there are some seasoning guidelines with some loan programs that do place a limit on how much you can borrow.

But overall, it seems like the way to go is to just fix the ceiling. With some 30 minute taping compound it could be completed in a day or two.

[TimtheGuy]

If possible, you will definitely want to finish the job before the appraisal. I would say your loan will not be able to close until the work is finished. You could have it done now and the appraisal will be valued based on "subject to completion". Will probably add $100 to your costs for the "final inspection". Could also open up a 'can of worms' as to "is there further water damage/mold?"