I’m looking to put an offer in on a fsbo house. I think the house is worth about 380k but….
It was used as a rental and needs some work, all cosmetic. They owner stripped out 90% of the carpet. There us just subfloor and carpet tack strips left. Walls are in rough shape, looks like a kid took a marker to several rooms, nothing paint won’t fix. A few other cosmetic things as well but normal wear and tear.
The seller is willing to sell at 350k and give me 20k cash back at closing to cover paint and flooring. Will lenders be ok with this as long the house appraises fine as is? Will bare subflooring cause the appraiser to say it’s uninhabitable? (Using a conventional loan)
If need be, I can drop the price 20k and take no cash back at closing but would prefer to have it.
Ultimately I think the house would appraise fine (value) without carpet at either price (with or without the cash back) just want to see if no Carpet and bad paint could make the appraiser squash the deal entirely or the high cashback would stop the underwriters.
I spoke to the lender about the option of doing an escrow hold back but would prefer not to go this route as I think I could do the work cheaper myself.