Should You Buy a Home That Needs Foundation Repair?
Buying a home comes with many emotions, from excitement and optimism to uncertainty and even dread. It’s a big deal, and you want to make sure you’re making the right decision.
One of the many factors to consider is the condition of the home’s foundation. The house needs to remain standing, sturdy, and safe for many years. How do you feel about foundation damage?
This article explores whether you should purchase a house that needs foundation repair and includes valuable insights and tips for your home-buying journey.
Survey Says: Would You Purchase a Home Requiring Foundation Repair?
When we asked homeowners, “Would you buy a home needing foundation repairs,” 683 out of 767 survey respondents (88%) said “no.” These results aren’t surprising. However, the 12% who said “yes” might be unexpected—unless they have a trusted foundation repair expert ready to address the repairs.
We also found that males may be more likely to purchase a home requiring foundation repair and that with age and experience, people are less inclined to invest in properties requiring repairs.
When examining regional differences, the “yes” responses varied: 8% in the South and Midwest, 14% in the West, and 23% in the Northeast.
Foundation Defects to Keep in Mind
As you can see from the data above, few are willing to consider buying a home with a faulty foundation. In another article, we compiled a list of the most common home foundation problems and causes. Here’s a quick overview:
- Sinking: Excess rainwater around a home’s foundation saturates the soil, causing sinking and cracks.
- Settling: Drought impacts the foundation by causing soil shrinkage, settling, and cracks.
- Tree Root Growth: In dry conditions, tree roots extract moisture, causing soil to settle. In rainy conditions, the resulting cracks fill with water, and soil expands, causing pooling that leads to basement or crawl space flooding.
- Foundation Heave: In freezing conditions, the upper soil layers may freeze, trapping moisture below. As the lower levels freeze and expand, they push the top soil layer upward, putting pressure on the foundation and causing cracks.
- Poor Craftsmanship: Improper ground leveling, an excessive water-to-cement ratio in the concrete mix, and other deficiencies during initial construction can result in significant foundation issues.
Signs of Foundation Problems
There are several warning signs signaling foundation problems, including:
- Wall and floor gaps or cracks
- Sticking doors or windows
- Cracked brick
- Sagging or uneven floors
- Leaning chimney
- Bowing basement walls
- Musty odors, mold, and wood rot
- Damp walls or water leaks
Look for problem signs while touring a potential home. It’s also a good idea to check for these issues in your current home and address them before they become significant hassles when you decide to sell.
What to Do When Foundation Issues Are Discovered
- Contact your real estate agent for advice.
- Inform your lender about the problem.
- Hire a structural engineer for a thorough assessment.
- Check for evidence of prior repairs, as they may be under warranty.
- Request the seller to pay for repairs or agree to a price reduction.
- Consider paying cash or increasing your down payment to cover repair costs.
- Explore rehabilitation loan options.
Purchasing a Foundation-Damaged Home: Brass Tacks
Consider the following before buying a house with foundation problems:
If you’re applying for government-backed loans (FHA, VA, or USDA), be aware that these programs have firm requirements about a home’s structural integrity. To secure final mortgage approval, the home appraisal must show that the roof and foundation are in good condition. Foundation issues may significantly delay or even prevent your purchase.
Regarding conventional mortgages, remember that private lenders focus on the home’s resale. If the seller agrees to make prompt foundation repairs, your closing might only be slightly delayed. In some cases of minor foundation problems, your lender may agree to an escrow holdback, allowing the closing to proceed while retaining a portion of the seller’s proceeds to cover repair costs.
When to Walk Away
Sometimes, walking away from a deal is the best option, especially if:
- The seller won’t make repairs
- The damage is too extensive
- You can’t wait for repairs to be completed
If your contract included inspection or appraisal contingencies, you should be able to reclaim your earnest money. Without these contingencies, you may forfeit your deposit.
If you discover undisclosed foundation problems after closing, you may have legal recourse against the seller or home inspector. Consult with a real estate attorney to explore your options.
Groundworks Can Help
Foundation issues are serious and shouldn’t be ignored, even if they appear minor. While it can be disappointing to walk away from a house you love, keep your mind open to available properties with solid foundations. If you need to restart your home search, consider getting your initial mortgage approval renewed before making your next offer.
Foundation repair preserves the value and curb appeal of your home. A free inspection from the country’s leading foundation repair experts helps you determine the necessary steps to secure and protect your current or future home.
Our service areas across the U.S. and Canada ensure you receive a thorough foundation evaluation and customized repair plan. We also provide flexible financing options and long-term warranties on all our work. Contact Groundworks today to learn more.
Foundation Repair FAQs
Yes, foundation issues can significantly decrease your home’s value and make it difficult to sell. Proper repair can restore value and ensure structural integrity.
In most cases, you can stay in your home during repairs. However, there might be some noise and temporary disruption depending on the extent of the work.
The duration of foundation repair depends on the extent of the damage and the type of repair needed, but most repairs can be completed within a few days to a couple of weeks.
