More and more sellers and buyers are using home inspection services to check out a house before listing and/or before buying. This is a wise decision. Few people can inspect a house having background in all the facets of a house from the roof to the foundation. Home inspectors are trained to know about the whole home.
Regarding foundations, the inspector may see cracks. He may see cracks and settlement; he may see drywall cracks, racked doors or windows, sloping floors, tipping chimneys, or other tell tale signs of foundation issues. What do you do?
This depends on who "you" are. As a seller with this information, many states require revealing all negative information regarding a house you want to sell. You probably will find the best way to lose a prospect is to tell them of a foundation problem. To most buyers, that's major and they can't find the door fast enough. Even if you have lived in your home for many years and it's never been a problem, it's bad news to the buyer.
The more you know about the problem--its magnitude and its repair--you have a fighting chance to convince the buyer that, with proper repairs, the house will serve them very well. Without that, you may be at the mercy of a merciless market and accept a "lowball" price or you can fix the problem. Usually foundation repair comes at a lesser cost than the mark down of a lowball offer. The other option is to have a repair quote ready to negotiate with the prospect. Should that work and the buyers want the foundation repaired, they will often pay the long price and, with some of the proceeds, escrow the amount of the repairs until the work is done. There are many options.
Now if the "you" are the buyer, the view is different. How much do you like the house? If it's a "sort of" interest, just go down the road. It's not worth the time and there are a lot more houses to look at in this economy. But if it hits the spot, you need to start negotiating. You know that foundations can be repaired. Perhaps you get a price from a reputable installer of helical piers. Armed with that and any other blemishes of significance, you can demand the home be fixed before you buy. Or you can negotiate a lower price to allow for the repairs (and some extra as a buffer). You can pay the agreed upon price, assuming repairs are being made, but escrow the money for the repairs until the house is in shape.
Today's real estate market is very interesting and challenging. Armed with more knowledge, with an aggressive real estate agent, and with your strong efforts, you can realize your goals. You'll be able to recognize value, faults, and benefits of any potential house, which will determine your buying strategy. Whether you're a buyer or a seller, good luck and be smart!
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