For most individuals, buying a home is one of the biggest investments you’ll make. But what if your dream home has foundation problems? For most buyers, they would hesitate at the thought of the costly repairs, but a home with foundation issues isn’t always a problem. In some cases, it can be an opportunity to get a home at a lower price. In this blog, we aim to help guide your purchasing decision of when you should and should not buy a home that needs home foundation repair.
How Do You Know When You Need Foundation Repair?
What Causes of Foundation Damage
Foundation issues can pop up for several reasons. In areas like Fort Worth, Texas a common reason is soil expansion from soil transitioning from dry to moist conditions. Another reason is poor drainage, water can pool during the dry season and may cause soil to expand and contract, causing your foundation to move. Tree roots can also interfere with the foundation, drawing moisture away from the soil and causing uneven settling or the soil to become dryer because of the vegetation.
Signs of Foundation Issues
Before thinking of purchasing a home, you should be able to recognize the signs of foundation problems. For example, cracks in walls, floors, or ceilings are easy indicators that movement has occurred. When inspecting the home, attempt to use all the doors and windows. If you notice that they stick or you have trouble closing them properly, this could be a sign of shifting. Another giveaway is that you notice uneven or sloping floors. In a place like Fort Worth, Texas, always look beneath the door frames. If the bottom of the door is not parallel to the floor, this is a sign that the home has foundation issues. Lastly, look for gaps between walls and ceilings.
The Cost of Foundation Repair
Foundation repair costs vary depending on the severity of the damage. For minor structural repairs it can run you anywhere from a few thousand dollars, but if a home has major foundation issues, it can be $10,000 or more. There are several factors that influence the cost of repairs, including the extent of the damage, the type of foundation, soil conditions, and the repair method necessary. For example, some foundation repair techniques needed to secure your home’s foundation like piering, slab jacking, and waterproofing to prevent future problems.
Should You Buy a Home With Foundation Issues?
When It’s a Good Idea
Buying a home with foundation issues may not always be a deal breaker. It can sometimes be a smart investment under the right circumstances. If the home’s value reflects the cost of repairs, it may still make it an excellent deal for the right price. In some home sales, the seller may agree to fix the foundation before closing, saving the buyer from bearing the cost. When the damage is minor and a foundation repair expert diagnoses the repair, purchasing the home may not pose significant risks. However, it’s crucial to have a foundation repair specialist assess the property to ensure that the damage is not extensive to save yourself a headache in the future.
When to Walk Away
There are situations where purchasing a home with foundation damage may not be worth the risk. If a home has major structural damage needing extensive repairs, it can lead to unexpected costs during your home ownership and require ongoing maintenance. If the home has multiple problems beyond the foundation, such as needing plumbing or electrical repair, it may not be a worthwhile investment for you. If a home inspector, foundation repair expert, or a structural engineer advises against the purchase, it’s wise to follow their recommendation. They have years of experience and know when it’s a bad idea to do foundation repair. Additionally, another hurdle home owners need to consider is securing funding for your home. At Maestro’s Foundation Repair, we proved financing options to do the foundation repair.
Negotiating a Home Purchase With Foundation Issues
If you decide to move forward with buying a home that has foundation damage, taking the right steps can help protect your investment. First, hire a professional foundation repair expert to evaluate the problem and provide an estimate for repairs. Understanding the full scope of the damage will let you make an informed decision.
Once you have repair estimates, negotiate with the seller. Many home sellers are willing to lower the asking price or cover the cost of repairs to make sure the sale goes through. Remember to include contingencies in the contract if you proceed with buying the home. Do an inspection contingency, it can provide an opportunity to back out of the deal if the repairs start to happen and it turns out to be worse than you thought.
Financing and Insurance Considerations
Securing A Mortgage
Securing a mortgage for a home that has foundation damage is challenging. Bank lenders typically require the property to be in a safe and livable condition for the sale to go through. If the damage is severe, financing for a mortgage may be limited. However, there are specialized loans available, such as FHA 203(k) loans, which provide funding for both the purchase and necessary repairs. Some conventional loans may also allow repair escrows, where a portion of the loan is set aside to cover the cost of repairs before closing. Speak with a qualified professional for more information.
Home Insurance and Foundation Problems
Many standard home insurance policies do not cover foundation repairs. But there are special exceptions like if the damage was caused by a natural event such as earthquakes or flooding. Securing home insurance for your home may be more difficult. If you plan on purchasing a home with foundation issues, remember to ask for warranties on the work to help get insurance for your home. This coverage also covers you in the future if anything were to happen. It’s also important to confirm whether the foundation repairs come with a transferable warranty, which could provide added peace of mind for you and the next homeowner.
The Role of a Foundation Repair Specialist
A foundation repair specialist, like Maestros Foundation Repair, plays a crucial role in evaluating the extent of foundation repair that is needed. When they inspect a home they look at the severity of the issue, then look at the right repair solution to stop or prevent the problem from getting worse. Some repairs they may do is installing foundation piers to provide additional structural support, or improving drainage to prevent moisture related issues. Foundation repair is costly, so it is of the utmost importance, make sure you are working with a reputable and professional repair specialist. Always confirm that you are working with a licensed professional that offers a warranty for their work.
Contact Maestros Foundation Repair
Buying a home with foundation issues can be a smart investment or a costly mistake, depending on the circumstances. Understanding the extent of the damage, obtaining professional assessments, and negotiating repairs or pricing adjustments are all essential steps in making an informed decision. If the repairs are manageable and the home is priced accordingly, it may be worth considering. However, if the damage is severe, ongoing maintenance costs are high, or financing becomes an issue, walking away might be the best choice. If you are looking to get your foundation repair inspected, contact us today by filling out our form.