Should I Buy a House With a Foundation Repair?

What causes foundation issues on a house?

Several factors can contribute to foundation problems, each varying in severity and impact. Understanding these can help you evaluate the risks and potential remedies involved in buying a home with foundation repairs:

• Tree and shrub roots: Large roots can grow underneath the foundation, causing displacement or cracks.
• Settling and sinking: Natural settling of the soil over time can lead to uneven foundation sinking.
• Poor workmanship: Inadequate construction techniques or materials can result in a weak foundation prone to issues.
• Water damage: Improper drainage or water flow around the home can erode or weaken the foundation. In many areas, drainage is the No. 1 cause of foundation issues.

What red flags indicate a home has a foundation issue?

To identify potential undisclosed foundation issues before purchasing a home, look for red flags during your visit. Being aware of these issues and their causes can empower you as a buyer to make informed decisions and negotiate repairs or adjustments in the purchase process.

• Cracks in walls: Noticeable wall cracks, either interior or exterior, can indicate foundation shifting.
• Floors that lift or compress: Uneven or warped floors suggest underlying foundation problems.
• Drywall that bends or pops nails: These can be signs of the house settling unevenly.
• Leaning structures: Porches, chimneys, or decks that appear to be leaning could point to foundation issues.
• Sticking windows and doors: Difficulty opening or closing them may be due to foundation shifts.
• Unexplained water, mold, or mildew: These can indicate leaks or poor drainage around the foundation.
• Tiles falling off: This could be a sign of shifting or uneven floors affecting the walls.

Are foundation repairs something to fear?

According to one survey by Groundworks, the nation’s leading foundation repair company, 78% of homeowners say they worry about foundation damage to their homes. However, research suggests that only 5%–7% of homeowners will actually face a foundation issue.

And while the thought of a foundation repair initially sounds expensive and frightening, the survey found that the breakdown of repair costs wasn’t as significant for most homeowners. Here is an example of how the repair costs panned out in the Groundworks survey:

• $100–$1,000: 47%
• $1,001–$5,000: 35%
• $5,001–$10,000: 13%
• $10,000 and higher: 5%

When asked if they would rather sell their home or fix the foundation issue, respondents answered like this:

• Not sure: 16%
• Sell my house: 24%
• Fix the foundation issue: 60%

Types of foundation issues homeowners experience

»Learn more: How to Tackle Home Foundation Repairs

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How long do home foundations typically last?

One of the most common types of foundations in the U.S. is the poured concrete slab foundation. According to the International Association of Certified Home Inspectors, if properly built, foundations will typically last a lifetime. Here is what most homeowners can expect:

Source: International Association of Certified Home Inspectors

»Learn more: You can read more about these and other foundations in this Forbes post.

Should I buy a house with foundation repair?

Deciding whether to buy a house with foundation repair hinges on the complexity of the past repairs and whether the root causes have been effectively addressed. To guide you, we’ve divided potential repairs into two categories: “No-worry” repairs, which generally pose less threat, and “Worth additional investigation” repairs, which could signal deeper issues.

‘No-worry’ repairs

These repairs typically address minor issues that, once fixed, should not cause ongoing concern:

• Minor cracks: Small, non-structural cracks resulting from natural settling can often be sealed without much hassle.
• Moisture issues: Solutions like improved drainage and waterproofing can resolve these problems effectively.
• Localized repairs: Areas that have been fixed to address specific issues, such as patching small cracks or fixing minor leaks, usually don’t indicate larger problems.

‘Worth additional investigation’ repairs

Some repairs suggest the house might have had, or still has, more significant foundation problems. These include:

• Significant sinking or settlement: If the house has undergone procedures to correct extensive sinking or settling, this could indicate unstable soil or other serious concerns.
• Deterioration requiring extensive work: Extensive deterioration that has required significant repairs, such as pouring new footings, may suggest ongoing issues.
• Slab jacking: This process, used to lift a sunken concrete slab, indicates that there was substantial uneven settling.
• Full block or brick replacement: Replacing large sections of the foundation could mean there were severe structural issues.

Specialized inspections and solutions

If you’re considering a home that has undergone “Worth additional investigation” repairs, it’s wise to take additional steps to ensure you’re making a sound investment:

• Specialized inspections: Hire a structural engineer to conduct a thorough inspection of the foundation. This can provide an unbiased assessment of the repairs and any ongoing risks.
• Review repair documentation: Request detailed records of the repairs, including what work was done, who performed it, and any warranties that may still be in effect.
• Consider future monitoring: Technologies such as soil moisture levels monitoring can help prevent future issues by ensuring the ground around the foundation remains stable.
• Insurance and warranties: Investigate whether foundation repair work is covered under your home insurance policy or if there are any transferrable warranties on the repairs.

Buying a house with foundation repair doesn’t automatically mean you should walk away. By understanding the nature of the repairs and ensuring any significant issues have been resolved, you can make an informed decision about whether such a property is right for you.

FAQs about buying a house with foundation repair

When is it best to walk away from a foundation repair home?

Deciding to walk away from a home with foundation repairs depends on several factors. If an inspection reveals that the underlying cause of the foundation issues hasn’t been addressed, or if extensive and costly repairs are still needed, it might be prudent to reconsider the purchase. Additionally, if you’re not comfortable with the level of risk involved, or if the cost of potential future repairs could significantly impact your financial stability, it’s wise to explore other options. Trust your instincts and the advice of professionals like structural engineers and real estate advisors.

How do lenders feel about foundation repairs?

Lenders are generally cautious about financing homes with foundation issues due to the potential risk to the property’s value and structural integrity. Before approving a mortgage, most lenders will require a thorough inspection and possibly a certification from a structural engineer confirming that any foundation repairs have been completed satisfactorily. Homes with unresolved foundation problems may be deemed too risky to finance. However, a home with well-documented and properly addressed foundation repairs can often secure financing.

What if the foundation issue gets worse after closing?

If the foundation issue worsens after closing, it’s important to address the problem as soon as possible to prevent further damage. First, review any warranties or guarantees provided by the company that performed the original repairs, as you may be covered for additional work. If not, hiring a reputable structural engineer to assess the situation and recommend solutions is crucial. Homeowner’s insurance may cover certain types of foundation damage, so review your policy closely. Lastly, consider legal recourse if you believe the seller knowingly withheld information about the foundation’s condition.

A top agent can guide you through foundation concerns

Navigating the complexities of buying a home with foundation repairs can be unsettling, but you don’t have to do it alone. Partnering with a knowledgeable and experienced real estate agent can make all the difference.

A top agent understands the intricacies of foundation issues and can provide valuable guidance, from identifying potential problems during the home search to negotiating repairs and adjustments in the buying process.

Whether you’re weighing the pros and cons of a home with foundation repairs or you’re ready to find a property that fits your needs perfectly, HomeLight can connect you with top-rated agents in your buying area.

Header Image Source: (Roger Starnes Sr / Unsplash)