So I own a property with my hopefully soon to me moving out ex.
We refinanced the house last fall after adding a solar panel array to the house and moved the HELOC debt into the new first mortgage. At the moment she is comparing our run down house with an identical house in the same neighborhood that has been updated with new double hung windows, new laminate flooring throughout the upstairs and lower level, new deck, new kitchen countertops… You get the drift.
On the other hand our house has the original 1985 single pane wood frame windows that are literally rotting from moisture damage, original carpet noticable wear and stains, cracked tile in the kitchen from damn subflooring, drywall that has been cut out from the basement, walls with crayon marks that have badly painted over without proper prep, spalling garage slab and front stoop and original asphalt driveway that is crumbling.
She has taken it upon herself to try to repair and freshen up the house while I have been away for business. This is the reason why there has been less than an amateur job done painting the walls. She had a new bargen AC installed and other minor repairs done.
First off my understanding is the appraisal for the refinance would of included the value of the solar panel array. Therefore there should not be any additional value added to the property due to the solar panels. Is this correct? My lawyer does not even know where to start on this subject as the issue is novel to him.
Second and more important is how much do the above issues detract from the value of the house? I’m interested in reaching a fair price to offer, but not anywhere near what she thinks it is worth based on this other property. My lender says that the property should be valued far less than this other house, but how does one figure these numbers out? Would it simply be a straightforward subtraction of the cost of new comparable windows, laminate flooring, drywall repair, finishing and painting? If I do have an appraisal done to the property, how closely are these things taken into account?
Thanks for any help!