Here Is Our Story

[Brandon Mason2]

Hello all, and thank you in advance!!!

Just recently my wife and I fell in love with an old farm house situated on 57 acres in rural Wv. Roughly 2400 sq ft. sitting on a cut stone foundation. Right now, land is at $2000 per acre in our area and the purchase price will be 80,000. The price for just the property alone is a no brainer. This property also comes with two tractors, farm implements, and all contents of the structures including tons of antiques. Also, the mineral rights are included with the sale. Here is where my concern comes in: Really this is too good to be true and we are worried that the appraisal/inspection won't come back good because of the condition of the house. The bones are in good shape, but it would need a complete overhaul. Windows, drywall, electrical, etc. The bank told us that we needed to put 20% down on it because the mortgage insurance company only insures a house and 5 acres which lowers the borrowed price to $64,000. Will the appraisal/inspection include the rest of the acreage or just what the mortgage insurance will back? The house as it stands and 5 acres would not warrant the loan as it would if all the property and its assets were taken into consideration. Luck like this never comes our way and we would really hate to miss out. If anybody can give us any input, it would be greatly apprecitated.

[Ken Rowe]

Home inspectors have nothing to do with appraisals. This is a home inspector forum. I don't remember seeing any appraisers on here.

[Garry Sorrells]

Brandon,
Not an appraiser, long ago did investment valuations.
The appraisal should be on the entire purchase, land and structure.
The appraisal should provide a separate appraisal for both land structure.
You should speak with a different lender to find their loan specifics, shop around a little.
Lenders have gotten very skid-dish as of late.

[Sindi Sargent]

Appraisers are different from home inspectors. While you are getting the property appraised, look at your entire expense comprehensively (repairs, fixtures, etc) and the re-sale value after you’ve made all the repairs, etc and then see whether it’s truly worth it. You should also check out the kind of insurance rates you would have to pay on your home once it’s all done. We were able to save quite a bundle by buying AARP home and auto insurance (http://aarp.thehartford.com/) through the Hartford.

[Matt Fellman]

From an inspection standpoint, look/think about things as the banks do - Pest/dry rot inspections are the most important. Nothing can ruin on condem a house like wood eating insects or rot. This is why, historically, banks look at this aspect. Realistically, I also put electrical and HVAC stuff maybe even above the bugs and rot because of the potential danger.

If nothing else make sure you have GFI outlets, smoke detectors and carbon monoxide detectors in the necessary places. Of course, there's MUCH more to a house than that. I'm just speaking bare minimum stuff here.

[wayne soper]

Funny how these friggin idiots want all their questions answered and then never even take the time to follow up on the post.:(

[Garry Sorrells]

Wayne,
I look at this way.
I am usually willing to help most anyone with almost anything.
If I wanted to be rewarded for helping someone I would send them a bill, else I expect nothing in return.

At times it would be interesting how things turn out. By the time a person gets to this forum they are grasping for straws and wrapped up in their problems. They have a hard time looking back on all that they have done along the way.

[Garry Blankenship]

The place sounds awesome. I assume you're looking for some objective input because your heart is way ahead of your pocket book. So my just the facts Mam input is ~ the reliability of your power and water sources are important. You're probably on a well which should be checked for reliability and water quality ~ no power, no water; back-up generator ?, a cut stone foundation can be a problem and should be examined by somebody w/ direct knowledge ~ that much real estate comes w/ a lot of maintenence ~ pests, wildlife, unwanted plant growth, invasive species, tilling, cultivating, harvesting, mowing, trimming and maybe road maintenence ~ assuming you are correct about "the bones", it is the rest where the dollars really pile up ~ septic system renovation can be very costly ~ energy costs and insulation values are a painful delta. All that said it sounds beautiful and life is short.

[wayne soper]

I sent him a bill! still no reply

[Raymond Wand]

Also make sure there are no abandoned/functioning underground fuel storage tanks on the property.

[Jerry Peck]

I ma be a little late to the party, but ...

57 acres
land is at $2000 per acre in our area and the purchase price will be 80,000.
The price for just the property alone is a no brainer.
This property also comes with two tractors,
farm implements,
and all contents of the structures including tons of antiques.
the mineral rights are included with the sale.


Here is where my concern comes in: Really this is too good to be true and we are worried that the appraisal/inspection won't come back good because of the condition of the house.

Did I miss something or did you say that the land + two tractor + farm implement + tons of antiques + mineral right ... makes "just the property alone is a no brainer"?

And you are concerned about the ratty old structure?

Sell the other goodies you are getting free and build a new house where the old house sets. :)

(Oh, before you sell the tractor, use it to knock the old house down. :D )