Buying a house means compromising — at least a little. You might not find a house with the basement you really wanted, or close enough to your kids’ school, or at your budgeted price point. Ultimately, though, you might overlook any of those things because the house is just enough of what you want and need to make it worthwhile.
One feature you might not be in the mood to compromise, however, is buying a house with foundation issues. After all, foundation problems typically mean serious repair work is needed. No homebuyer wants to get stuck spending more on a house than he or she expected or wanted. If you’re in the market for a new home, there are some signs you should be aware of regarding potential foundation problems before you buy.
It’s possible that — depending on the circumstances — signs of foundation problems in a house won’t be a reason to give up on a home that’s otherwise perfect for you and your family.
Things You Need to Do
There are several factors that you will have to consider, these include the following:
Check It Out
It’s imperative that potential homebuyers visually inspect a home’s foundation before deciding to purchase. How do you tell if you have a foundation problem? Most homes typically have small cracks in the foundation caused by the normal settling of the house. You probably shouldn’t worry about any cracks that are smaller than a quarter of an inch. Larger cracks, however, are indications that the foundation’s condition may be more serious. Additionally, pay attention to any other signs of foundation problems around the house.
Get a Professional Opinion
If you come across any signs of more serious foundation damage when visually inspecting a home, it’s important to hire a structural engineer to assess the extent of the damage. A typical home inspector won’t be able to tell you as much about foundation damage as an engineer. Although this will cost more money, it’s worth it in the long run to know exactly what you’re getting into, before buying the home.
Get It Fixed
If the engineer comes back with bad news about the home’s foundation, it’s not necessarily a deal-breaker, but you will need to make a decision. You’ll likely need to take action right away to repair the damage, so you should negotiate with the seller and ask for a lower price. Homes with foundation problems tend to sell for about 20 to 25 percent lower on average, whereas the cost to repair typically is around 10 percent of the home’s value, so the math works out in your favor.
Fixing the problems with the home’s foundation also means correcting any of the home’s issues that might have been causes of the foundation damage. That involves a bit of expense, as well. However, the good news is that many of the causes of foundation problems can be fixed so they don’t continue being a problem after moving into your home.
Know What You’re Getting Into
Buying a home with foundation problems may seem like a risky proposition, but as long as you know exactly what you’re getting into, it’s possible to have those issues resolved. You may even end up spending less than expected. Even better, working with a qualified foundation repair contractor will provide you with a home you love without having to compromise because of those foundation issues.
What are foundation issues?
You’re in the final stages of buying your home, and you hit a bump in the road: Your dream house has foundation issues. A moment ago, you imagined your life in your new home, and now you’re asking yourself if you should go through with the sale or walk away.
Buying a house with foundation problems can be daunting, but not all foundation issues need to be deal-breakers. Here’s how to tell if you should buy a house that needs foundation repairs.
A home’s foundation is a vital part of the structure. It provides a level and stable ground for the house to rest on and serves as the load-bearing center of the home. It also provides insulation from fluctuating temperatures and groundwater.
Foundation issues are just that: problems with this essential component of a home, (quite literally) the bedrock on which it is built. Common foundation issues include:
- Cracks
- Leaks
- House settling and sinking
- Bowing basement walls
Signs of foundation problems and how to spot them
As such an important part of the home, you’ll want to keep an eye out for potential foundation issues. Here are some common signs to look out for:
- Large, zig-zag cracks on exterior walls
- Zig-zag cracks on interior walls
- Damp crawl space
- Uneven floors
- Sagging or rotted floors
- Mold or pests, which indicate moisture
- Unsquare doors
- Door or window frame separation from walls
- Exterior walls pulling away from interior walls
Identifying foundation problems early is key to ensuring that they don’t become bigger problems down the road. Take the time to regularly scan your home’s interior and exterior for cracks, dampness, and other signs that your foundation may need repairs.
When you’re buying a house, a professional home inspection can reveal any issues with the property, including a bad foundation.
When to walk away from foundation issues
A house with severe foundation problems isn’t just costly to repair: It’s also a safety risk. If left unaddressed, a badly damaged foundation puts the house at risk of collapsing. You may be tempted to walk away with so much on the line. And if you can’t come to an agreement with the sellers to cover the costs, and the damage is too expensive to fix on your budget, walking away may be your only choice.
If your contract included a home inspection or home appraisal contingency, then you may be able to walk away without losing your earnest money deposit. But if you made a non-contingent offer, you could lose your deposit unless you can prove that the seller was aware of the problems and did not disclose them to you.
What to do if the inspection reveals foundation issues
Foundation issues may delay officially closing on your new home, but it doesn’t have to end the deal entirely. Follow these simple steps to cover your bases:
- Contact your real estate agent: Your real estate agent about your options going forward — they can be a valuable resource in navigating potential outcomes and also connecting you with reputable contractors to help.
- Notify your lender: It’s important that your lender is looped in early so they are aware of the situation — remember, you may have been pre-approved for your mortgage but its final issuance is contingent on the house meeting your lender’s criteria. Your loan officer will also be able to give you more insight on how this might impact your financing or ability to close.
- Hire a structural engineer: These experts will be able to assess the damage much more closely to give you an idea of the damage’s extent and the needed repairs.
- Negotiate: Now that you have all of the information, you’re in a good position to negotiate with the seller. Strategize with your real estate agent about whether to ask the seller to cover repairs as a part of a seller’s concession or if they will agree to complete the repairs before closing.
When you buy a house with Orchard, you’ll have a local agent with years of experience on your side.
How much do foundation repairs cost?
Foundation repair costs will depend on the type of damage. The average foundation repair comes in at around $5,000, but smaller fixes, like repairing small cracks, costs just $250 to $800. Once you’ve diagnosed the damage, a local contractor should be able to give you an accurate quote.
Buying a house with foundation issues
You’ve decided to buy a house with foundation issues, and now you have to address them. Here are some tips to help you:
- Hire a professional: Foundation repairs require the expertise of highly trained professionals and structural engineers. As much as you may want to DIY these repairs, you’ll need to outsource this to the professionals. Bonus: As you shop for contractors, seek out those who guarantee their work. That way, if you have future issues, they may be covered by their warranty.
- Be budget conscious: Foundation repairs can add up fast, with major repairs like stabilizing costing as much as $12,000. Factor these costs into your homebuying budget so it doesn’t feel like a hidden cost.
- Realize this may mean your house isn’t quite move-in ready: An overwhelming majority of homeowners prefer a house that is move-in ready vs a fixer-upper. A house that needs foundation repairs will need ample attention that could delay your plans to get fully settled, but luckily, not by much. The average time to complete a basic foundation repair is 1 to 3 days, with more intensive repairs taking longer.
Will foundation issues affect my financing?
A house with significant foundation issues might be a deal-breaker if you’re applying for a government-backed loan, like a Federal Housing Administration (FHA) or Veterans Affairs (VA) loan. These loans have strict structural requirements for homes and specify that a house must have an undamaged exterior, roof, and foundation.
If your home appraisal reveals foundation damage, it will need to be fixed before the loan can be approved. If you’re unable to work out a deal with your lender and the sellers, you might have to walk away.
Wrap Up
FoundationRepair.com works with many engineers throughout Texas who can point you in the right direction if you suspect there are foundation issues in the home you are buying. Give us a call at +1 (800) 745-4647 and we will refer you to an engineer and help get the problem fixed sooner rather than later.
