Foundation repairs to a home can be costly.
Buyers considering a property with foundation problems can sometimes feel nervous about making a purchase of that magnitude with such an obvious defect. However, purchasing a property with foundation problems can be much simpler than a buyer might initially realize. Does this Spark an idea?
Independent Inspection
Getting an independent inspection of any property is crucial and even more important when foundation problems are evident. If a seller has disclosed previous foundation problems in writing, a buyer should consider hiring a structural engineer to get a thorough picture of the spectrum of the damage. This is important whether the damage is repaired or even if it is not. If foundation problems are uncovered during the inspection process, at that point a buyer should immediately contact a structural engineer. The cost of a structural engineer will range from $300 to $500.
Repaired or Unrepaired
Properties that have had foundation repairs completed should have a foundation repair report in addition to a warranty from the contractor that performed the repairs. This will justify a seller's asking price. Properties that have uncovered foundation problems should account for that in the asking price, and be less than comparable nearby properties without foundation problems. Buyers can offer to finance a higher asking price if the contract is written in such a way that allows the buyer to receive compensation for foundation repairs at closing, providing that sales price is commensurate with the appraised value.
Offer Strategies
Any property defect can have an effect on perceived value. When making an offer on a property that has either had foundation repair or is in need of foundation repair, the buyer should make certain that all of the contract language is in his favor if the property has additional damage or is not repaired prior to closing. This can be accomplished with the assistance of a professional real estate agent and a real estate attorney.
Tags: foundation problems, asking price, buyer should, foundation repair, structural engineer
