foundation problems and repair (Austin: wood floors, for sale, renting)

[schoenfraun]

Looking at houses for sale here, we came across a lot of houses with serious, serious foundation problems. It didn't seem to matter whether they were east or west of 35, which, we were told, is the great division--"only houses east of 35 have foundation issues..."

Many friends have told us that it's no big deal around Austin, as "everyone" has them. Currently we're renting a house that's seriously wonky--it's like a funhouse.

We're just about ready to buy a house with some foundation issues, got an engineer's inspection and a repair company's estimate.... But is it really possible, and is it foolish to buy a house with known foundation problems? Here, it's not a cracked slab, but there is a differential of several inches from one end of the house to the other. It wasn't as perceptible to us as we walked it, so we were shocked to learn it was several inches.

Just curious. I understand the clay soils thing. But we're from the midwest, and we're not used to this "everyone" has foundation issues thing.

Truth? Or not so true? And who have folks used for repairs, and are they trustworthy?

[atxcio]

How much do you love the house?

It's not necessarily foolish, but be advised of a few things:

1) If you get an inspection/report that shows foundation problems, you will have to disclose it to a buyer when you sell it

2) If you make any foundation repairs, you also have to disclose that on the standard seller's disclosure.

So, even though it may be a common issue around here, I think it would be wrong to say it wouldn't affect resale value.

Also, you mentioned there was a differential of several inches but no cracked slab. Does that mean no cracks in the wall, door problems, evidence of movement, etc? Just an unlevel slab to begin with? If so, you may want to leave it be. You said you got an engineer's inspection, are you talking about an actual structural engineer or just a the standard home inspection? A standard home inspector will be obliged report things like an unlevel foundation, but may not be the best authority on how/whether it should be repaired. If you just did the standard home inspection then called a foundation company, you should talk to a structural engineer first. A foundation repair company WILL quote you repair work, of course. And they very well might get that slab leveled... but at what cost? Not just the repair. You may have walls that will crack as a result, tile/wood floors that will break, carpet that will need to be restretched or replaced, doors that will have problems, etc. Take those expenses into account.

If there IS evidence of movement, also consider the reasons -- have they been repaired? Tree root too close to the house? Drainage problem in the lot? Plumbing? Just bad soil?

So, in summation... There are costs that can easily exceed the foundation repair. It may affect resale value. If you really love the house, just take those things into account in your offer / negotiation.

[schoenfraun]

The structural engineer who came out--and did NOT give an estimate or try to sell me any repair services--said merely that the slab is tilting along with the grading of the site. The high point is in one corner of the backyard, and the the low point is in the opposite corner of the house at the front, which is how the lot slopes, too.

His analysis suggested the installation of some piers at the low corner of the house only, but it was just an analysis, not a design.

I know that Centex and other, more expensive foundation repair vendors have warranties on slab repair and leveling for the life of the structure/house, and that the warranty is transferrable to new owners. They're coming today to give a free estimate. My guess: 7000 to 14000.

Most houses in the area start at 20000 to 30000 more, and some have recently gone for 100000 more. So I think, even with the foundation, it's a good price. And we dig the house, too.

[atxcio]

Ok, just keep in mind the other potential expenses (and maybe ask Centex about that), and hopefully you can get the price lowered some more.

Also... and I know this sounds bad... but you may have the seller at a significant disadvantage now, if they have also received the inspection and engineers report. They will be required to disclose the report to a new buyer, so if you back out they may not get such a good initial price next time.
They may be more "motivated" now.

Finally, last bit of advice -- when you agree to get them to pay for the foundation repair expenses, whatever they are, be firm with your realtor that you want the sales price lowered by that amount. Don't accept "seller will pay 7K of closing costs." If you do, it will be like you are financing your repair work, paying a realtor commission on the repair work, and paying for it year after year in property taxes on an artifically high sales price!