Shed/outbuilding

[Clarke221]

We are going from a real estate contract to VA financing. Our mortgage broker has not been very helpful in preparing us for the appraisal process, to say the least. We live in a rural area, on 5 acres, and have inherited a rather shabby shed with the property.

The house is in wonderful condition, new paint on all trim, and from what I can tell it should pass the appraisal with flying colors. The shed on the other hand, I’m not so sure of. I called the regional VA loan center in AZ and was told it won’t add value and therefore won’t be taken into consideration. The lady I spoke with also said it’s up to the appraiser.

It’s about 16x50, no foundation, and has electrical just for lights. It acts only as shelter for horses, and we plan to tear it down eventually and put a nice shelter up. It’s all wood, mostly plywood at that. The paint isn’t in great shape but it was also built well after the 70’s, as the house was built in 05. I don’t see any termite damage, and the house has passed termite inspection. Then again, I’m not an expert.

Can you all offer any advice? A local real estate agent said to paint the shed inside and out and leave it at that. I don’t want to waste the time and money doing that if it will be excluded from the appraisal. I also don’t want to waste anyone’s time in having the appraiser come back out because he/she has to order it repaired. I’ve also seen people talk of a waiver we could sign to hold the VA harmless, is this a possibility? Is it wrong to talk to the appraiser before they come out and ask what they would prefer?

I’ve attached photos, and appreciate any help!

 

[sandpiperapp]

First off, Thank You for your service.
I am a VA appraiser, but I do not work in your area and the metro NY area is a bit different than New Mexico, so I can only answer in generalities.
The appraiser will determine if the shed/outbuilding effects value based on past market reaction. Whether value is attributed or not, the shed still has to meet certain Minimum Property Requirements which have to do with safety, soundness, and security of the structure. So if the shed/outbuildings is in such poor condition or has peeling paint that it is a safety or health issue, it will have to be repaired. I cannot tell from your picture if I would consider it a MPR. I am sure the appraiser will have to eyeball it to make a final determination.

 

[Clarke221]

Thank you.

I didn’t realize how small the picture ended up. There is peeling paint, or rather just worn paint. The trim below the roof used to be white. Also, the inside of the shed is just bare wood. Do we need to paint inside and out to bring it up to MPR?

Maybe these photos will be easier to see.

 

[sandpiperapp]

Thank you.

I didn’t realize how small the picture ended up. There is peeling paint, or rather just worn paint. The trim below the roof used to be white. Also, the inside of the shed is just bare wood. Do we need to paint inside and out to bring it up to MPR?

Maybe these photos will be easier to see.

Interior bare wood does not need to be painted. If it is already painted and peeling, then yes it must be scraped and painted.

Outside wood exposed to the elements needs to be protected, so no bare outside wood. Peeling paint on the exterior also needs to be scraped and painted with all debris removed.

 

[Tru Red]

Yep. No bare exposed wood. All defective paint interior/exterior (chipping, cracking, scaling, etc) must be corrected. Does it add value? Possibly, if the person buying it has horses. It might be less expensive and make more economic sense to simply tear it down. In the marketplace I service, it might add $1,000 or so. Just my 2 cents.

 

[residentialguy]

First off, Thank You for your service.
I am a VA appraiser, but I do not work in your area and the metro NY area is a bit different than New Mexico, so I can only answer in generalities.
The appraiser will determine if the shed/outbuilding effects value based on past market reaction. Whether value is attributed or not, the shed still has to meet certain Minimum Property Requirements which have to do with safety, soundness, and security of the structure. So if the shed/outbuildings is in such poor condition or has peeling paint that it is a safety or health issue, it will have to be repaired. I cannot tell from your picture if I would consider it a MPR. I am sure the appraiser will have to eyeball it to make a final determination.

Bravo Piper!
Also, in lieu of repairing, you have the option to tear it down.

 

[Clarke221]

Thank you all. I would tear it down but we don’t have time to get a replacement before the appraisal, and horses need somewhere to go. Off to Home Depot I go.

Guessing I need to paint the fence posts that hold the electric fence too?

Man I wish my lender was more well informed. I’m thankful I found this forum. Thank you again!

 

[Mike Garrett RAA]

Actually a very good reason VA loans aren't the best for rural properties.

 

[Terrel L. Shields]

Most VA appraisers here would not consider a worthless outbuilding as part of safe and sound MPRs. It would only be a threat to the actual dwelling if so close as to present a fire hazard. I am not a VA appraiser, but worked with some years ago. So VA appraisers will be more reliable. I'd take my chances. No use painting it or tearing down before rejected. It wouldn't take more than a day to demolish with a front end loader on a tractor or Bobcat.

 

[Fritz in NY]

Don't do anything yet....no one has called for any repairs/demo. The Appraiser has his own opinion, If it's worthless and given no value and is not a hazard, it's mentioned and photographed as a shed on the property, that's it. If the UW wants to say something, call for a repair, so be it, but again they have the call. So don't waste your time and money yet. You will always have time to "Fix" the problem prior to settlement. Hey, it might cost you $ 125, for a re-inspection to verify what has been called for is complete but that's it. A lot less than scrape and painting. BTW, I do think that "Covering the exposed" area
is what is now called for not "Scraping" anymore, think Primer or siding. IMO