Land Subsidence (Phoenix, Prescott: relocation company, lender, house)

[Arizonan Kamaaina]

Dear all,
we recently relocated to Phoenix and are now looking for a house.
We are considering one particular property at the moment and are doing some research also in the recorded documents.
We found the following info:

"this development is in an area of possible land subsidence"

What does this mean exactly? Is it a potential problem? The subdivision has been established in the late 80ties, if that is of any help.
We are not super familiar with the area yet, hence would like some input from the locals in the know.

Thanks in advance
Arizonan Kamaaina

[rickca]

Here is a link about subsidence: Subsidence - Wikipedia, the free encyclopedia

It looks like its certainly not a good thing

[Arizonan Kamaaina]

Thanks for your answer. I did google it, have come across Wikipedia and found other good explanations as well, this is where my worries arose...
But I was more hoping for some local insight.
Maybe of someone living in a subdivision that has the same info on the GIS Map or someone having some experience with it locally...
Kind Regards
Arizonan Kamaaina

[Gretchen B]

There is quite a bit of expansive soil in the area, requiring that a builder adequately backfill the building site and use post-tension slab to avoid any cracking of the foundation.

[Arizonan Kamaaina]

Gretchen,
thanks.
I should have probably mentioned the house was a resale. Built in the late 80tis, so I cannot hold the builder liable anymore....but are you saying I should the home inspector watch for cracks etc?

Also is there a special inspection in AZ that I could get for this?

[Gretchen B]

That is one nice thing about buying an older home - any settling, etc, should have already shown up so you know what you've got. Be sure to read over the Buyer's Advisory that your agent will give you. If you haven't made an offer yet and are just starting your house hunting, go ahead and ask for that now - it's not tied to any specific contract. The Buyer's Advisory has many phone numbers and website addresses for various AZ agencies that you can contact to request information about various issues that may be of concern to you (such as soil issues).

Most certified home inspectors do look for signs of cracking and settling foundations. However some inspectors are better than others. You could have a structural engineer inspect the foundation if you're really concerned or spot some foundation cracks that look suspicious. Also, most home inspectors will recommend that additional inspections by a qualified expert if they suspect their may be a problem.

[Arizonan Kamaaina]

Thanks Gretchen, very good advise.
I realtor did give us the advisory document. I checked those links of the buyer advisory that worked, with no particular results that concerned us.
The hubby also says not to worry, as if it had to settle, it would have in the last 20 years.
However a few weeks ago I read in AZ Republic about the fissure not far away from here and that got me worried to.
Its just such a huge investment and I don't want to risk the place falling apart right after we move in.
The home is an REO and I am pretty much waving everything...I'm scared.

[Gretchen B]

I don't know much about fissures as we have not had to deal with those up here in the Prescott area. I'm not sure who you could ask to get accurate information about that. The City or County maybe? Ask your agent about that.

I hope you're not waiving having a home inspection as those are even more important when purchasing an "As Is" REO property. I'm assuming this is a lender owned property (vs a property owned by a relocation company) - if that's the case then the lender will not do any repairs unless it has to do with a "livability" issue and even then sometimes they won't. So that means you want a REALLY good home inspection to show up any repair issues. You don't want any expensive surprises you weren't expecting to show up after you buy the house. If the home inspection would show up some expensive repair item that was more than you anticipated you can still cancel the contract within the inspection period. If you waive your right to an inspection, then you waive your right to cancel the contract even if there turned out to be something major wrong with the house.