Foundation issues - fix first or try to sell first?

[lecach]

We had someone out today because we noticed a few doors not closing properly and our side stoop sinking. Some of the issues were due to an improper water system being installed (french drain and sump pump) and those problems will be fixed by the company that did them. But they noted some other foundation problems that have nothing to do with the water system (mainly due to the slope of the lot and the ground condition). They are recommending piers to stabilize the foundation. Part of me says go ahead and sell the house and negotiate the repairs with the new owners. But then I think we might have an easier time selling if we fix it first. And with the issues we've had I am just ready to cut our losses and sell it no matter what. Plus another house on our block is going up for sell and it always helps to have more than one on the market at once. We're going to talk to our realtor who we very much trust first. But I was just wondering if anyone else has experience with this.

For what its worth, we paid about $145,000 for our house 5 years ago and now houses comparable to it are selling in the high 180's and 190's. So we should make a profit no matter what. IF it sells that is.

 

[chrissyk]

I'd fix it first just to avoid issues in the future. Even with a full written disclosure, I'd be paranoid that it could come back to haunt me.

 

[mickeyboat]

How much will it cost to fix it?

If it is not debilitating to your finances, I would fix it. If I were buying your house, I would hesitate to buy something with a major structural problem. It would be worth it to me to spend a little more money and buy a similar house where I wouldn't have to worry about it. I'd have enough to do with moving and decorating without worrying about hiring someone (in a strange town, perhaps) to come work on my house. Kind of an "aggravation factor."

Denae

 

[The Mystery Machine]

You can go either way. Just make sure it is a reputable company that will warrenty the work to a new owner.

It will scare off buyers if you don't fix it, so keep that in mind.

 

[clh2]

It will scare off buyers if you don't fix it, so keep that in mind.

I totally agree. The price would really have to be good for me to take on a major structural problem.

 

[Cyndirella]

Fix it. Not many buyers would be willing to purchase it as is.

 

[lecach]

The thing is that the cracks are very very minor. And unless you're looking for a structural problem you'd most likely never notice it. If I was looking at a house and saw that they had stabilization piers I would be more worried. We've got our realtor coming over today to give his opinion. Honestly the guys that came yesterday sell these systems so of course they are going to give the worst case scenario.

 

[mickeyboat]

The thing is that the cracks are very very minor. And unless you're looking for a structural problem you'd most likely never notice it. If I was looking at a house and saw that they had stabilization piers I would be more worried. We've got our realtor coming over today to give his opinion. Honestly the guys that came yesterday sell these systems so of course they are going to give the worst case scenario.

But if a reputable home inspector comes on behalf of the buyers, he will notice it. He will also tell the buyers the worst case scenario. So conceivably, you could have a Purchase and Sale Agreement, interested buyers, a house that has been taken off the market in anticipation of the closing, and lose it all because of something you could have fixed well in advance.

Do the people who fix this type of problem offer any kind of certification or warranty that you could present to a potential buyer so they would not have to worry?

Denae

 

[lecach]

The thing is, we had someone come out because of a few doors not closing properly. We'll fix those doors. The cracks are teeny tiny. I dont know that an inspector would notice them - we were specifically looking for them. I think there might be a warranty on the fixes. But if it were me and I saw the piers I would be very worried. We looked at one house that had obviously fixed a basement issue and had repaired some water damage. Even though everything was fixed it scared us and we walked away.

 

[chrissyk]

The thing is that the cracks are very very minor. And unless you're looking for a structural problem you'd most likely never notice it. If I was looking at a house and saw that they had stabilization piers I would be more worried. We've got our realtor coming over today to give his opinion. Honestly the guys that came yesterday sell these systems so of course they are going to give the worst case scenario.

It doesn't matter if a buyer would notice it or not. You MUST disclose this because you are aware of it. Otherwise, it can come back to haunt you! Also, any decent home inspector will notice structural cracks. I would not be put off by stabilization piers. In fact, if your house had them and the surrounding competing houses didn't, I'd go for your house. The soil is the same, the drainage is the same, and I'd wonder when the other houses were going to need the stabilization piers installed (at my expense if I bought one of them).

Our first house had a water problem, corrected by installing a perimeter drain and a sump pump right before it was put on the market. We bought the house because the water problem was no longer an issue once this work was done. We weren't put off at all by this, and neither were the people that we sold it to 7 years later. BTW, I can't tell you how many of our neighbors had the perimeter drain/sump installed over the 7 years that we were in the house. Seeing a house that has the "fix" done already is an asset in my book.

 

[Tigger_Magic]

It doesn't matter if a buyer would notice it or not. You MUST disclose this because you are aware of it. Otherwise, it can come back to haunt you! Also, any decent home inspector will notice structural cracks.

If you don't fix it and don't disclose the problem, you might end up paying for more repairs in the future. Home inspectors look for the "little things" because they might be held liable for not finding problems with a home. There are really only 2 options: fix it or disclose it.

 

[Disneyrsh]

The thing is that the cracks are very very minor. And unless you're looking for a structural problem you'd most likely never notice it.

Hmm, I see, so are you hoping buyers won't notice that the house is sinking into the ground, or that their inspector won't catch it? That sounds incredibly dishonest and deceptive.

 

[caitycaity]

I'd fix it first just to avoid issues in the future. Even with a full written disclosure, I'd be paranoid that it could come back to haunt me.

i definitely agree with this. when i was in high school, my parents got sued by the people who bought our old house. we had disclosed everything, but because it was health related (radon), our lawyer told us we better settle even though they didn't have a case. at any rate, i would fix it before selling.

 

[pirateofthecarolinas]

Hire a structural engineer to assess the foundation. Find a co. that transfers the warranty to new homeowners. Disclose everything!

Lori