I'm attempting to install a new kitchen faucet, but I'm having trouble removing my old faucet. Based on the attached pictures, is it obvious what I'm supposed to unscrew?
Also, is it a concern that it looks really ugly up there?
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While the picture sure makes it look bad, chances are the sink is ok. You won't know for sure until you get the faucet off, but once you do, just make sure the metal is still solid. It should be. If the rust doesn't clean up, and the basin has seen better days it might give you some joy to put a new sink basin in. Anywhoo....
Loosen the single inner small nut, that should relieve tension on the outer "bell" housing.
That's about it.
To get into the bell housing:
By the way, the name brand is "Moen" - but its a totally funny way to spell it, especially because it describes the feeling you have right now having to change it out.
Once you get it off, clean it up good, make sure you have plumbers putty, or a good gasket that comes with the new one. Keeping moisture out is what will keep the metal from looking like that in the future. Look for high quality faucets with decent warranties (some even carry "lifetime" on most parts), they cost a bit more, but it pays for itself.
Also keep any tools it comes with for future use.