Sorry for the late reply! Here's some more pictures. I'm just a DIY guy. This project is more than likely going to need a plumber. I'm just trying to get a good idea of what I'm looking at. I've replaced pex lines, faucets, ect but nothing to this degree.Yes, the valve obviously needs to be replaced. And you have galvanized water pipe that is suspect. As this is a new home for you, a survey of your water supply piping might be a good idea to see what other issues you may be facing in the future. More pictures upstream would help in providing additional guidance/suggestions.
There are several electrical wiring concerns in those pictures as well that you may want to look at a little closer.
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