Flooring question

[Stacey Lastovica]

Help!!

I am trying to buy a condo that is currently completely without floor coverings. It's just the bare foundation. I've been told I will have trouble with the appraisal and will not be able to close on the loan since the floor is concrete. How can I get around this without putting a lot of money into the place before closing? (the owner wants to raise the price $11,000 if they complete the floor - with what they want - and isn't open to negotiating).

I was also told painting or staining the concrete wouldn't work,but I have seen enough house-flipping shows on TV to not buy it. I know a lot of new homes have painted or stained concrete floors also, so I'm not seeing the problem. Can I go in and paint or stain the foundation and say it's a finished floor so I can close on the loan?

 

[Lobo Fan]

You don't have to paint or stain. The appraisal can be completed with a cost-to-cure for replacement floor coverings. If bare concrete floors are common in your marketplace then the adjustment might be small. If your market expects carpet or tile or wood or whatever, then the adjustment may be larger.

Why were they torn out? If it was due to flooding you may have bigger problems. It had to have been a significant reason. Most people don't tear out servicable carpet just prior to a sale. If it were just gross and ugly a carpet allowance would have covered it. Hmmm a mystery.

 

[Stacey Lastovica]

The carpet was torn out because it was at least 14 years old they were going to replace it (and then up the price $11,000). I found the place before the carpet was installed and can get it cheaper if I put in the flooring (which I would prefer because I'd pull the carpet out anyway).

What is a cost-to-cure? I need to do some research.

 

[DB]

Ask them if they can have the appraisal completed "Subject to completion of repairs" ... might cost you $100 or so more for the 442, but at least you could close and then buy the carpet YOU want ...

 

[Liz Mura]

Most Lenders (in my experince, none) will lend on a property without the floors finished in some manner. Stained and sealed concrete does qualify as "finished". Not sure about "Painted" as I have never seen that. They usually will not lend on something unfinished becasue they have to view the property as if the Bank had to take the property back over due to florclosure, what would they have to do to make the property marketable and habitable? They would have to put floor covering in.

 

[Stacey Lastovica]

Thank you for all your help!!!! I got the answer I needed! Stained floors it is!

 

[DB]

Stacey ..... All of the answers you have received here are speculations on your situation. Before you fly in and stain and seal the floors, you better check with the underwriting department of your lender. Not only that, but if stained concrete floors are atypical of the neighborhood and market, your appraisal could come in somewhat lower due to this.

All I am saying is that these answers are NOT definitive.... If you decide to stain and seal the floors based on these few answers, be prepared to live with your decision.

 

[Stacey Lastovica]

Thanks for all the advice.

I checked with my lender and stained and sealed concrete floors qualify as finished. I don't want to spend a lot of money improving something that doesn't belong to me before closing. After closing, I'll install a real floor and I won't care what's underneath it.

 

[Mr Rex]

Stacey, you may still be missing the gist of some of the replies. Even if the lender is OK with sealed concrete floors, the appraisal may reflect that sealed concrete floors are not common and accepted to the buying public in your market and may result in a substantially lower value, not necessarily based on the cost of installing the flooring but "market reaction" to the headache of a typical buyer purchasing a house with sealed concrete floors when the market expects some type of floor covering, and having to get the flooring installed, or it might not. Remember that the appraisal is made based on the market perception of the concrete floors, with absolutely no consideration for your plans to install floor coverings later.

 

[wyecoyote]

You might see if they will do some kind of escrow hold back to finish the floor covering. They might. Also some of the different loan packages for buying such an item. They might get you into say a rehab loan (higher rate to start) then convert it after the floor covering is in to a conventional loan.

The stained floors might be ok for UW. But if like others say your market doesn't like em. Then that would be reflected in the appraisal.