Buying home with foundation problem (Plano, Parker: foreclosure, loan, how much)

[planohockey]

I have a contract for a foreclosure property. There are some sign of foundation issues (crack on sheet rock). I had a foundation company do an inspection and he estimated $6000 to put in 15 piers along the back end of the house.

Should I go ahead with the buy? Will I have problem selling the house with foundation issue later? Is foundation problem common in Plano?

[Pfhtex]

I don't know that you can get a loan until you have an Engineer's Report showing that it is repaired. You might be paying cash. If you are, and you want to pay for the foundation repair, and the interior, and see profitability, go for it.

My friend Chad Hennings is just baffled by gimmicky interlocking claims, when that just isn't a problem here.

[nsumner]

Are you getting the home at a really good deal after you have done the repairs? If so, then I wouldn't worry about it. If you are still during the option period, negotiate with the bank to drop the price by an additional 6K. If you share that report with the listing agent, they will be required to share it with any future buyer as a part of full disclosure rules.

Some parts of Plano around Custer and Parker has a few pockets where most homes have experienced foundation movement. But it's not very common. I don't think you will have a problem selling the house. It would simply be a question of how much that is why the purchase price now is key.

Naima

[loves2read]

I think that foundation problems are something that some buyers have a real issue with---some people won't buy a house that has foundation issues repaired or not...
DFW because of the type of soil and the construction oversight being what it is--foundation problems crop up more than in other parts of the county...
around here, it just depends on the kind of house and the reason

my worry about foundation problem is that if it is a newer home with that significant of a problem
(15 piers IS a pretty significant # to be added) then what else might be wrong...
did the engineer have a reason for why there was a problem--
sometimes there are extenuating circumstances that develop after the home is built...like a fault slipping which can effect any house on the fault
sometimes it is due to a slab leak or erosion from slope of land/lot

did the engineer say what guarantee is that other piers won't be needed after several years in different area

your buying price should indicate the failed foundation--I don't know if it does--you would have to check the comps--
it sounds like you don't have a realtor--that is like the maps that used to say "beyond here be monsters"
buying without full information about comps in the area is just buying a pig in a poke...

someone at the July 4 party I was at today has started working for company that buys homes that are foreclosed or where buyers are in stressed situations and need to sell...
he says that they basically check the tax appraisal, check comps for the area and then offer at least 65% of actual value---if the home needs significant repairs like foundation problems or HVAC or plumbing/roofing--then they dip even more

is this house 65% of comps value in area
how far from the appraised value is the price set
if it is within 10-15 % of appraised value it is too high IMO

[escanlan]

Yes, 15 piers just on one side of a house is a significant number. Generally piers are placed at the corners, at each corner of any section of wall line that juts out and then, at most, every 6 feet.

On the other side of the coin it is interesting that the company did not quote piers around the entire home. Not that it would be needed but this is a common practice among some of the repair companies in the area.

I've spoken with several noted Engineers in this and other areas of Texas with foundation issues due to this expansive clay soil. These are Engineers who specialize in foundation analysis. There is a common saying among Engineers here. "It is not a question of if your foundation will move. It is a question of when and how much?". If the home is properly constructed and the ground properly prepared then the movement will be negligible and no damage will result.

As pointed out it is quite possible your financing might require an Engineering survey and repairs. As for resale potential most of those I dealt with did purchase their homes knowing that foundation repairs were accomplished. Many times a home that has been properly piered is actually better than one waiting for foundation movement to occur! Regardless of these two items I would highly recommend that you employ an independent Licensed Engineer to perform a Level "B" foundation analysis and prepare a written remediation plan for a foundation company to follow for repairs.

By "independent" I mean an Engineer that has no ties to a foundation repair company. Any reputable foundation repair company is not going to just repair your foundation without an Engineering report and plan. They will use either their Engineer's plan or your "independent" Engineers plan. Either way you will be charged a fee for the Engineer's work. An independent Engineer might recommend the same as the foundation company or might have an entirely different view of what is required.

A Level "B" foundation analysis will include not only a visual inspection of the foundation and structure to determine movement issues but will also include an "elevation survey". The importance of having this performed prior to any repairs, and also after the repairs by the same independent Engineer, is you will have a baseline measurement to use in the future if you suspect further movements. Additionally a full Engineering report (Level "B") can be provided to a buyer in the future to help demonstrate the work was properly performed.

Good luck on buying the home!

[$DFW8$]

Originally Posted by planohockey

I have a contract for a foreclosure property. There are some sign of foundation issues (crack on sheet rock). I had a foundation company do an inspection and he estimated $6000 to put in 15 piers along the back end of the house.

Should I go ahead with the buy? Will I have problem selling the house with foundation issue later? Is foundation problem common in Plano?

I hope you are getting a good deal on the house because foundation issues are major flaws. 15 piers is a lot to add to the house, so I am guessing that the foundation issues are pretty serious. I would call and see if I could get the house price dropped by another 6K, because who wants to pay for foundation issues that happened before you even found the house? I know I wouldn't! Plus, having foundation issues, even after you have the 15 piers installed, is going to be a turn off to potential buyers when and if you decide to sell eventually. After having the 15 piers installed, I would have another inspection done(full analysis) just to make sure there isn't any other problems. As far as foundation problems being common in Plano, I would say no. I know of a few that have some issues, but that is it. You are lucky though, I have heard of situations in the past where buyers were not told of the foundation problems, and found out about a year later after they were already in the house.