I’m in the process of buying a house, and we discovered some foundation issues. We had an engineer inspect it, and they said the structural damage is pretty severe—it’s going to cost between $25,000 and $30,000 to fix. We asked the seller to either fix it or give us some kind of compensation, but they said they can’t afford to do either. Now, I’m trying to decide whether to walk away or ask for a price reduction. The house isn’t stable, and I don’t want to end up with a money pit. Any advice on how to proceed?
Run away! Why would you want a house that’s unstable and will cost you $30k to fix?
Maverick said:
Run away! Why would you want a house that’s unstable and will cost you $30k to fix?
Yeah, I hear you, but it could be fine for a while, or it could need fixing in six months. The rest of the house is in great shape. I’m thinking about either asking for a $30k reduction in the price or walking away. The problem is, I’ve already sold my current house and there aren’t many options where I live.
@Kei
Honestly, I still think it’s not worth it, even with a price reduction. You could rent for a while until you find something better.
Maverick said:
@Kei
Honestly, I still think it’s not worth it, even with a price reduction. You could rent for a while until you find something better.
Unfortunately, there aren’t any affordable short-term rentals where we live. I’ve been looking for seven months.
Maverick said:
@Kei
Honestly, I still think it’s not worth it, even with a price reduction. You could rent for a while until you find something better.
I get that, but don’t let that be the reason you buy a house with major issues. You never know what other problems will come up once you start fixing the foundation. Buying this house because you’re out of options is not a good way to make a decision.
@Morgan
I know, but it’s complicated. We can afford a home, but there are no rentals we can manage on a fixed income. We’ve been approved for a loan, so we can buy, but renting isn’t feasible right now.
@Kei
I get it, but what if the repair costs more than estimated? Many people find themselves in a bind when unexpected repairs pop up. You’re not just buying a house; you’re taking on all the maintenance, and that can include more than just foundation work.
@Morgan
I hear you. I’m just asking what my options are besides walking away. It’s not really about the money—I’ve owned homes before and I’m used to handling repairs. I just need more space.
Kei said:
@Morgan
I hear you. I’m just asking what my options are besides walking away. It’s not really about the money—I’ve owned homes before and I’m used to handling repairs. I just need more space.
Even if the seller offered to do the work, you wouldn’t know the quality of the repairs. They’re saying they can’t afford to fix it or give you a credit. Honestly, I think the lack of options might be a blessing in disguise. You don’t want to get stuck with something this risky.
Kei said:
@Morgan
I hear you. I’m just asking what my options are besides walking away. It’s not really about the money—I’ve owned homes before and I’m used to handling repairs. I just need more space.
If the seller won’t reduce the price, you really only have one option: walk away. You can’t force them to fix it or lower the price.
@Vern
We haven’t asked for a price cut yet. We only asked them to fix it, but they said they can’t afford it. So, I guess we could ask for a $30k credit at closing or just walk away.
Kei said:
@Vern
We haven’t asked for a price cut yet. We only asked them to fix it, but they said they can’t afford it. So, I guess we could ask for a $30k credit at closing or just walk away.
I’d walk. Repairs tend to cost more than the estimates, and once they start working on the foundation, other issues could come up. It sounds like this house could turn into a money pit.
@Vern
Thank you, I appreciate your perspective.
They shouldn’t just reduce the price by $30k—they should give you a $30k credit at closing so you can fix the foundation right away.
A foundation issue this serious will devalue the house, cause headaches, and possibly be dangerous. Don’t move forward unless the seller shares the repair costs.
The estimate you got is probably just for the foundation. It might not cover secondary repairs or issues that were caused by the foundation problems. Here’s what you need to be prepared for if you go ahead:
- Plumbing issues or leaks
- Possible mold remediation
- Pest problems, like termites
- Drywall repairs
- Flooring damage
- Shower and waterproofing issues
- Drainage improvements around the foundation
- Gutter repairs
If you think fixing the foundation will make the house move-in ready, it probably won’t. Be prepared for more problems down the road.
@Hale
Thank you so much for this. It’s the most practical advice I’ve received so far.
@Hale
Thanks for explaining this so well to BOT!