Would you buy this house? (Dallas, Howe: credit, how much, houses)

[gsoy]

We fell in love with a house in Far North Dallas. The house is around 20 years old and very nicely updated with high end finishes. The asking price was above the neighborhood average (per sq ft) but it was justifiable given the updates/finishes. There were 5 offers within a couple of days and we were finally picked after offering around $10K above listing price and another buyer backing out. The house inspector recommended a structural engineer look at the house and the structural engineer found issues with the foundation. The recommendation is to put in several piers and an estimated cost of $5K. We are now having second thoughts for two reasons. One, potential drop in the value of the house due to foundation issues/repair. Not sure if we can sell it without a loss if we needed to sell after we lived in it for a while. Second, what if the initial foundation fix (that we can negotiate) doesn't work and we face more issues down the road. What would you do? Would you still buy this house? Would you negotiate the selling price on top of the cost of repairs? Or, would you move on given that it is one of the highest priced properties in the neighborhood?

[Katana49]

5 piers is nothing for a house. When my parents sold their home, they needed 12-16 piers to correct a foundation issue. The new buyer negotiated that with them and my parents paid for about 75% of the cost of the repair. It is to be expected that a home may develop some foundation issues after 15 years or more, really just depends on how well the homeowners were able to keep their foundation/yard watered.



My parents home was 30 years old when they sold it and it needed foundation work, for comparison.

[ChristieP]

Your last sentence is the key. That would make it a NO for me.

[justsomeguy]

Sounds like it is Pier and Beam vs slab foundation which is good/easier to repair.

I would have your agent negotiate the repairs that are needed. If they won't budge then it gets tougher. But as others have mentioned, apparently expect many homes in Dallas to need foundation repair. You may also search out a 2nd opinion as far as cost/repairs needed.

[gsoy]

It is a slab foundation and will need 8 piers. I am sure the owners will pay the repairs but it is an expensive house and we are afraid we will be taking a big risk in terms of resale value and issues down the road.

[panacea1982]

For example, if that house is the only 800K house while other houses in the neighborhood are 500K, then yes it is a big risk to take in terms of resale value. if it is only 600k vs 500K, it should be all right.

[UnfairPark]

Minor foundation repair is not a make or break issue. On the other hand, buying most expensive house on the block is rarely a good idea.

[Chloe333]

Talk to the foundation specialist and get the facts before you make the decision. Ask them if the seller repairs the problem, what further issues are you looking at in the future. That information will help you make a sound decision. It sounds like foundation issues in North Texas are common and so you don't want to get too spooked quite yet. I definitely would have the sellers fix it or credit you at closing, and if they refuse, walk away.

Also, could you purchase some kind of warranty to cover foundational issues? Might be worth it if you love the house!

[AquaSeas]

After a series of unfortunate events, we had 63 piers placed underneath our 9yo home. If there is anything that I never wish to endure again, it’s the guessing and stress prior to piering. Frankly, I live with total peace now, knowing that my home is going nowhere unless a tornado blows it away. It was a total gamble knowing how much water to water around the foundation. And it was a hassle laying soaker hoses, constantly unscrewing garden hoses, screwing in the soakers, going back out to turn them all off, and wondering all the while whether this was doing any good.

I too have heard that adding piers would lower the value of my home, though I cannot understand the logic. My entire home is on piers. To me, that is invaluable.

[mSooner]

The fact that it needs foundation work wouldn't phase me--it's pretty darn common around here. However, at that price point I wouldn't be willing to pay for it as a buyer. I'd also want the work done and inspected by an engineer prior to closing vs them handing you cash.