Another foundation question (Austin: credit, house, buyers) - Texas (TX) - City-Data Forum

MissATX · 08-03-2018, 05:31 PM

We're selling our house in East Austin. We had a buyer lined up, but during the inspection, a foundation issue was uncovered (ouch). Buyer had a foundation company out who told her the foundation was failing. She backed out. We hired a structural engineer, and he told us that the structure is sound, it does not need to be leveled, the foundation is performing as expected--but one corner of a room that was an addition needs repair (it has visible cracks outside). It's a slab foundation, and it appears the foundation for the addition was just poured concrete, 4 inches thick, no rebar or footing.

The engineer had a fix for us (adding a footing at the front perimeter) and sent us his official, stamped report. We're totally good with doing this repair or crediting a buyer. Unfortunately, a second buyer backed out because an independent foundation inspector (NOT a foundation company, but not a structural engineer either) told them that's just a fix to the current problem and that the entire slab for that room needs to be removed and replaced.

This is all obviously distressing. None of this was expected; we'd had our foundation looked at a year ago when we noticed that same crack outside, and that foundation company told us our foundation was fine.

Do we repair and hope we find a buyer who understands a structural engineer is an expert and this was his recommendation? Do we replace because other foundation companies have disagreed and buyers have been scared off? Do we do nothing and drop the price drastically?

Any suggestions? Similar experiences?

Copymutt · 08-03-2018, 06:15 PM

Explore any recourse w/ previous owner or the original builder.

MissATX · 08-03-2018, 06:23 PM

We bought 6 years ago so pretty sure we can’t do anything re: the previous owner. Our inspector and the foundation company we had out before we bought both missed it (and yes, unfortunately that was the same company we had out last year).

Trainwreck20 · 08-03-2018, 06:28 PM

Well, if the contractor failed to build to city code or ASTM code or whatever, there may be a civil case. Not generally recommended, but depending on the $$$ amount, may be worth at least looking into, I suppose.

MissATX · 08-03-2018, 07:43 PM

The addition was built in the 70s or 80s—we’re not sure exactly. We really just want to figure out how to sell the house now and aren’t sure of the best path forward.

MacInTx · 08-03-2018, 07:59 PM

Quote:

Originally Posted by MissATX

The engineer had a fix for us (adding a footing at the front perimeter) and sent us his official, stamped report. We're totally good with doing this repair or crediting a buyer.

Pay for the fix. Have the work done. If a new buyer has the issue show up in an inspection, furnish the engineer's report and the invoice for the repair.

MissATX · 08-03-2018, 08:42 PM

Thanks. That’s what I’m leaning toward. I’m just nervous a potential buyer will have one of the same foundation companies out, who will say, “We told them already that’s not good enough.” Ugh.

JT-3 · 08-03-2018, 10:50 PM

Sell as is at whatever price. Still a hot market. Foundation repair is a racket.

I get it though, I walked away from our first house over 17k in "needed" foundation repair.

MissATX · 08-03-2018, 11:46 PM

Thanks. I would love to just throw money at the problem and make it go away, but I'm afraid if we simply disclose and lower the price, we'll only get lowball offers, even with it being a hot market and our house being in a fantastic area. Plus, looking at it from the buyer's point of view, I want a place that's ready to go, not a place we know we have to fix, so that's eliminating folks like me.

Gemini1963 · 08-04-2018, 04:06 PM

Quote:

Originally Posted by MissATX

Thanks. I would love to just throw money at the problem and make it go away, but I'm afraid if we simply disclose and lower the price, we'll only get lowball offers, even with it being a hot market and our house being in a fantastic area. Plus, looking at it from the buyer's point of view, I want a place that's ready to go, not a place we know we have to fix, so that's eliminating folks like me.

Sorry that I am not offering help, but I am writing to say I can really sympathize. We sold our Allandale house in 2011 and we went through something somewhat similar. Our house was off-level by one inch corner to (diagonal) corner. The buyers' inspection and then engineer insisted it was a problem. We and "our team" (I can't even remember who-all came out) insisted it was not. In the end, we dropped the price around $15,000 (maybe a bit more?) to account for the problem, and closed. We have learned from neighbors there that the buyers got different experts out later, and learned - guess what! - no repair needed! (So no repair has been done, and won't be.) The whole thing still stings when I think about it - so I try not to.