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Should I Buy a House with Foundation Problems

By
Real Estate Broker/Owner with West Realty@Metro Brokers ER40027814

Should I Buy A House with Foundation Problems?

 

Sure, you want your dream home. One that checks everything off on the list. But let’s face it: finding a dream home is as difficult as finding a dream partner. You’ll have to compromise – at least a little.

The home might not fall within your budget. It may also not be close enough to your kids’ school. It may also not have the basement that you really wished for.

In the end, however, you may need to overlook these shortcomings because the home may just be enough of what you want and need to make it worthwhile.

One thing that many homebuyers are never in the mood to overlook, however, is a home with foundation problems. After all, foundation issues often mean costly repairs. The last thing any homebuyer wants is to spend more on a house than initially intended.

But, does this mean that homes with foundation problems are all deal breakers? Of course not! It’s still possible to buy a house with foundation issues. It only depends on the circumstances.

In this article, Onsite Properties shares with you 5 things you need to know before buying a home with foundation issues.

1.   Understand the foundation problems.

 

Foundation problems come in all different types and levels of severity. While performing the initial inspection, you want to check for the following signs of foundation damage.

  •        Cracks on the foundation, walls or floor. This is perhaps the most common telltale sign of foundation issues. A broken chimney and wall fissures may also mean trouble.
  •        One side of the house is lower than the other. If you notice this problem, chances are the house is experiencing differential settlement. Foundation settlement is a serious issue that sometimes can require the entire replacement of the foundation.
  •        Small bumps on the surface of the floor. You may also notice that the garage door is pushed upwards as well. This problem usually occurs as a result of foundation upheaval.
  •        Sticky doors and windows. This is also another common sign that there is something wrong with the home’s foundation.
  •        Sagging or uneven floors. Uneven floors are usually a sign that foundation movement has occurred. In addition to having it be an eyesore, floors that are sagging or uneven could become a safety hazard to kids and the elderly.
  •        Gaps around exterior doors or window frames. What’s more, doorframes may become crooked and impair all types of doors from normal functioning. This could mean that the foundation has shifted.

These are all common signs of foundation issues. If you notice any or a combination of these problems, call a foundation expert immediately.

2.   Understand the repair costs involved.

 

The repair expert will examine the problems and offer you a report. The report will tell you whether the problem is worth fixing or not.

Minor foundation repairs may include bolting on steel braces, injecting foundations with epoxy, and replacing and fixing gutters. If this is the case, and you really like the house, then by all means; fix the issues.

It goes without saying that major foundation repairs can be costly to fix. A good example is repairing foundation damage resulting from serious soil movement. The cost of repairing the damage could run in the tens of thousands of dollars.

In such a case, walking away might be the best idea.

 

3. Securing financing for the home could be a problem.

Even when you want to continue with the purchase, getting a lender to finance your home could be a problem. This is because most conventional lenders often require that a home be structurally sound prior to financing it.

On the upside, though, you could use this as a bargaining chip to get a better pricing of the home.

You could also try your luck with federally-backed rehabilitation mortgages such as FHA-insured 203(k) and Fannie Home Style mortgages.

4.   Include the appropriate contingency clauses. 

 

To help you cover all your bases, ensure you have a contingency clause. For this purpose, you may need to hire a qualified agent. A contingency clause can help you wiggle out of the deal in the event certain conditions aren’t met.

5.   Know when to walk away.

As much as you love the house, you should know when to walk away. Don’t let emotions get the best of you. If you do, you could end up not only with a broken heart; but also financial loss.

So, if it’s going to be costly to fix the problems, then it may be in your best interest to just walk away.

So, should you buy a house with foundation problems? Yes and no! If the problems are minor and you really love the home; then by all means, go for it. On the other hand, if the problems run deep and the seller isn’t willing to reduce the price of the home accordingly, then simply walk away.

 

 

Comments (1)

Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

Foundation issues are scarey to most all buyers.  A structurial engineer is required on any foundations that may be in question if there is a loan involved.  In the event it is as is or cash sale then buyer should really think about what they are getting into.

Jun 20, 2019 09:51 AM