How does water damage and mold affect the appraisal value of a home?
I am interested in a home that has flood/mold damage. I have received estimates on repair costs, and believe that purchasing the house is still possible. Ideally, I would like to use cash to purchase the house and then take out a home equity line of credit (heloc) to fund the repair costs of arounf $150,000. The homes list price is 250,000, and other comparable homes in the area are selling for between 560,000 and 750,000. My problem is that I only have the cash to cover the intitial cost of the house and not the renovations. I am wondering how the flood/mold damage will affect the appraised value fo the home, and in turn my ability to extract the equity.
