We are under contract on a new deal 3/1 for $115k in south St Pete and just had our inspections today. We knew it was a fixer upper that needed major work but the inspectors found more termite damage than anticipated and even evidence of a previous fire. Structural repairs will have to be made in the attic and crawl space. We planned to put about 30-40k into it to open up walls, remodel the kitchen and bathroom and possibly even add a bath. If we have to spend $15-20k on structural repairs, there isn’t much left for the ‘value add’ items that will bring up the appraisal. Should we walk away or will an appraisal pickup structural repairs?

If the house appraises for 'X' amount from sales comps, Will would not be valued for 'X' + 15k of structural rehab above that.

A real appraisal is just $400-500. Order one for the after repair value. (rather than the as is value) It will tell you if it is worth it.  Keep end mind appraisals can swing + or - 10%

Call my friends at Heavenly Foundations if you think its major structural repairs. Ask for Justin Jones the owner and tell him I sent you. Also, you could consider a second opinion from Beryl Engineering. Any report from these two would help you re-negotiate with the homeowner. We've used them both to do so and make extra profits.

If repairs are more than initially estimated, renegotiate the purchase price accordingly.