You’ve been looking at houses for a while and you finally found . . . THE ONE. It’s in a great location, the neighborhood is lovely, it’s everything on your list. You’re ready to put in an offer, and then . . . record scratch . . . concerns come up about the foundation. Perfect-home fantasy bubble, popped.
There’s no need to bail on your deal just yet. At Anchor Foundation Repair, we’ve been assessing and repairing foundations in the Bryan-College Station area for 40+ years. We’ve seen thousands of homes with foundation issues in the Brazos Valley, and the truth is, some need repair and some don’t.
In this article, we’ll walk through the key questions on your mind so you can make the best decision for you and your maybe-new home. The goal is simple: help you feel good about whatever you ultimately decide, whether that’s buying the house or letting it go.
The Big Foundation Questions on Your Mind Right Now
We know you’ve got a lot to think about, so let’s get to it. Here are the questions we’ll tackle, and each one links to its section so you can jump ahead to what you need:
- How do I know for sure that foundation repair is needed?
- Can I buy a home that has or needs foundation repair?
- Do I have to get the foundation repaired or not?
- How much would foundation repair cost anyway?
- How can we negotiate the sale with repairs in mind?
- Should I even buy a home that needs foundation repair?
Wondering how these problems even come to light during a sale? Here’s how home foundation problems get uncovered. Then let’s start with the one keeping you up at night.
1. How Do I Know for Sure That Foundation Repair Is Needed?
You or your real estate professional noted a few “flaws” during the walk-through. Are they foundation-related, or just the normal wear of a home that’s been lived in? If you already know what you’re dealing with, feel free to skip ahead to the buying questions below.
If you’d like a quick review of the reliable signs and symptoms, here are the most common true indicators of a slab foundation problem, in no particular order:
- Diagonal cracks on interior walls
- Exterior stair-step brick cracks
- Doors sticking or not latching
- Gapping or separation of exterior trim
- Movement of wood trim and inside fixtures, like built-ins or cabinetry
Foundation problems tend to show up in combinations, so it’s rarely “just one thing.” Before you rethink the whole deal, make sure the signs you saw are really a cause for concern. This guide to real and false problem signs will help you sort that out.
Here’s the thing to remember: foundation repair is usually a performance issue, not a cosmetic one. Settlement can cause cosmetic issues that don’t really hurt anybody. It’s when the movement affects how the home performs, like a door that won’t latch or a gap letting in air, water, or pests, that it’s worth pricing into your offer.
General Inspections vs. Repair Quotes vs. Engineer Reports
Who determines if you’ve got a true problem anyway? Well, it’s inspectors, contractors, and engineers . . oh my!
Think of a general home inspector like your family doctor, who knows a little about everything. A foundation repair contractor is the specialist in that one area, and a structural engineer is the top-level research scientist. You likely don’t need all three to confirm a foundation issue for you.
The general inspection. During your option period, this is a snapshot of the home’s current condition, but a mention on the report isn’t a diagnosis. Inspectors err on the side of caution, and lots of what they flag is cheap or DIY-level. There’s no “official foundation inspector” license, so they’ll usually point you to a foundation company or engineer for a closer look.
The repair quote. For a specific plan and price, a foundation repair company does an in-home assessment. Since real estate moves fast, Anchor also offers a free phone estimate. Send a few photos, spend 15 to 20 minutes with us on a video or phone call, and you’ll have a ballpark to negotiate from. The full in-home assessment runs $300 with a detailed plan, but it takes longer to book, so it’s usually a step to save for after the option period.
The engineer report. A structural engineer is the priciest option, roughly $600 to $800. You get exact measurements when you want hard proof. They might not move fast enough for a home sale either, but you can try if it’s important enough to you.
2. Can I Buy a Home That Has or Needs Foundation Repair?
You can most certainly buy a home that has had foundation repair. If the work is already done, nothing’s stopping you from a financial standpoint. You can still get financing on a home with past foundation repair.
As for a home that still needs repair, the answer is also yes. There may be some negotiating or seller compensation involved (which we’ll get to), but it can be worked out.
Consider that thousands of homes in our area have been affected by foundation settlement. It’s a very common issue that gets worked around, and homes are bought and sold with it all the time. For the why behind it, here’s what causes foundation settlement around here.
“I have been in the area long enough to know that any home can be sold with the right terms. Seldom do I see a home that absolutely cannot sell because of foundation settlement. I do know that it will make a certain set of buyers uneasy and the price may need to be altered or concessions made to account for the potential for foundation repairs.”
Craig Tripp – Anchor Foundation Repair Owner, CEO, El Presidente, and Foundation Repair Extraordinaire
Your Loan Type Is a Factor in Whether Repairs Get Done
Depending on the type of financing you’re using, you may or may not have a choice about whether the repairs get done. A (rare) all-cash deal? You can handle it however you like. A conventional loan often leaves you some room too.
But some loans, lenders, or financing arrangements require repairs before closing. VA (Veteran’s Affairs) loans and FHA (Federal Housing Administration) loans have stricter rules about a home’s condition, and individual lenders can add policies of their own.
Talk to your lender and ask whether foundation repairs are required to get the loan. In some cases you can move from a more restrictive loan or lender to a less restrictive one to get the deal done, depending on your financial situation.
3. Do I Have to Get the Foundation Repaired or Not?
Unless your financing or lender requires it, no, you don’t have to get the foundation repaired right away. If the symptoms you’re seeing don’t bother you much, it might not be time to act.
If they grow over time, you can save up and repair the foundation when you’re ready. There are legitimate reasons to wait on foundation repair, so it isn’t a clock somebody else set.
Is It Safe to Live in a Home That Needs Foundation Repair?
Yes, you can live safely in a home that needs foundation repair. This isn’t the kind of “safety issue” where your house falls over on top of you. Slab foundation problems develop slowly over many years, not suddenly, and they don’t result in earthquake-like damage. We’re talking about standard one or two story slab homes in Texas, not high rise metropolitan apartment buildings.
“There is rarely such a thing as a catastrophic loss in the business of home foundations. Most homes in the Bryan, College Station, and greater Brazos Valley area that are properly built according to code will not suffer a total failure and be ready for tear down any time soon or during the time it takes you to act on your foundation repair needs,” according to Tripp.
One safety issue worth an early look is a door that won’t lock or latch. If it’s an exterior door, there are easy temporary workarounds to keep your home secure while you decide whether to move forward with repair down the line.
What If the Home Has Recently Been Remodeled?
It’s best to have foundation work done before remodeling, because the repair process can damage new finishes if they were placed on an unlevel home. If the home hasn’t been remodeled yet and you plan to, you’ll probably want to negotiate to get the foundation work done first.
“It makes sense to me that if a home has been remodeled or flipped before putting it on the market, then it also makes sense to not do anything to correct or stabilize the foundation until enough history in the home has been established to know whether it’s a good investment or not,” says Craig.
So if the home’s already been remodeled, decide what matters more: risking damage to new work by repairing now, or holding off until you’ve got some history in the home. If it hasn’t been remodeled yet, there’s no risk in repairing now or later.
4. How Much Would Foundation Repair Cost Anyway?
The question on everyone’s mind is always, “how much is this going to cost?” Price is a huge factor in any repair decision, and doubly so during a real estate transaction. The honest answer: it depends on the repair method that is used. Let’s break it down.
There Are Two Repair Methods Available in This Area
Foundation repair companies around here tend to specialize in one method, so in a smaller community like ours, choosing a contractor often means choosing a method.
The two methods available are the pressed pile system and the bell-bottom pier method. In the most bare-bones terms: pressed piles are cheaper and faster, while bell-bottom piers are higher quality and longer lasting.
It’s worth thinking about which method the seller would choose versus which you’d want as the buyer, and how much control you want over that. It comes back into play when you negotiate.
How the Pricing Differs Between the Two Methods
For a typical job of 15 to 20 support points, here’s the rough comparison. These ranges account for differences between companies, home locations, and where the supports go.
Pressed piles, 15 to 20 piles, run about $7,500 to $14,000. A bell-bottom pier project of the same size, 15 to 20 piers, runs about $9,750 to $18,000. Exact pricing comes from getting bids from the companies you’re comparing.
We’ve got a cost calculator for bell-bottom piers and here’s one we found for pressed pilings.
5. How Can We Negotiate the Sale With Repairs in Mind?
If you have some estimated numbers to work with, your Realtor® can help you negotiate for repairs in a few ways. Most deals come together with terms both sides can live with, as long as everyone gives and takes a bit. Negotiating means you might not get everything you want, but don’t be afraid to ask.
It might take more time, and it might cost the seller a bit more than they hoped. But contracts can be amended for more time or different compensation to make the deal happen.
Ask for a Price Reduction
Some buyers simply ask for a lower price and save on their monthly payments. This works if you don’t see a need to repair right now but want compensation for the future repairs in the form of a discounted price.
Ask for a Seller’s Contribution to Closing Costs
This is a roundabout way for the seller to cover part of the repair cost. When writing the contract, a buyer can ask the seller to pay a certain amount of the closing costs. It’s kind of like the cashback incentive when you buy a car or truck.
There’s a limit on how much can go toward closing costs, so ask your lender for the figure. Don’t expect a $20K repair to be fully covered this way, but partial help is real help.
When the seller puts money toward your closing costs, it frees up the cash you’d have spent there for repairs later. And since you’re paying for the work, you control which contractor and method get used, and how you finance it.
Just know that outside repair financing can carry a steeper rate than a standard home loan, so read the fine print.
Ask the Seller to Pay for the Repairs
Sellers can agree to pay for or complete the repairs as part of the contract, usually before closing per lender requirements. The trade-off: if the seller foots the whole bill, you may have less say over which contractor or method is used, since they’ll want to keep their own costs down.
A seller doesn’t have to say yes to your preferred contractor, but asking is part of negotiating. If you have a company in mind, get a written bid and attach it to the amended contract for the seller to approve.
Mind the timeline too. Contracts average 45 days from the end of the option period to closing, though option periods can be extended when everyone agrees.
6. Should I Even Buy a Home That Needs Foundation Repair?
It makes me think of that line from Jurassic Park, where they were so busy wondering if they could that they never stopped to ask if they should. Good news: buying a home that needs foundation repair is nowhere near that monumental. It comes down to one thing: do you love this home?
If you love it and want it to be yours, go for it. If you’re still on the fence, here are a few if-then statements to help you land on the right choice:
- If this is all too much to handle, then move on to a more move-in-ready home, but be prepared to possibly increase your budget.
- If your financing requires repairs before closing, then ask the seller to pay for the cost as part of the contract.
- If the home has recently been remodeled, then buy now and wait until you have more history in the home before deciding on repairs.
- If you’re not that bothered by the symptoms, then buy the home “as-is” and ask for a reduced price to save on your monthly payments.
- If you want the repair done and don’t care who does it, then ask the seller to pay for it through the contract.
- If you want the repair done your way, then ask for a seller’s contribution to closing costs so you stay in control. It helps to run your own numbers first.
- If you still can’t decide, then lean on your experienced Realtor®, who has surely handled this before.
- If you love the home, then above all, be willing to negotiate to make it yours. That means some give and take from both sides.
Your real estate agent represents you and your interests. Tell them what matters most so they can help you buy the home in question, or find you something else you’re comfortable with.
Buyers and sellers come in every personality type, and a good Realtor® works to mesh them into a deal that fits you. Focus on the ultimate goal: getting the home your heart desires.
Deciding Whether a Home With Foundation Problems Is For You
So, should you buy a home with foundation problems? You certainly can. It comes down to a few things you now know how to weigh:
- The signs that matter are the ones affecting how the home performs.
- You’re not forced to repair right away, unless your loan requires it.
- The cost tracks the repair method you choose.
- There’s more than one way to fold repairs into the deal.
Work through those pieces and you’ll make the call with clear eyes, whether that means buying the home with confidence or walking away without a second thought.
Curious what the seller is weighing on the other side of the table? Peek at their side in our guide to selling a home with foundation problems, then reach out whenever you’d like a real number to work with. A foundation problem doesn’t have to cost you the home your heart is set on.
