Foundation settling issues with previous piers recommendation on sellers disclosure (Irving: real estate, renting)

[Cinap]

Going to look at a beautiful house today that had these issues, but that with using different watering techniques which improved the soil around the house, was later deemed ok by a structural engineer according to the sd.

I understand this is completely normal in DFW, but if I am a first time homeowner and only looking to stay 3-4 years, is this a house you any of you seasoned vets would say "no big deal" on? Or am I setting myself up for a year of hassle and money when I am looking for ease of move in and living and already under contract for a different house that I don't love as much as this one?

Thanks for helping make my major life decision for me good people of city-data

[WorldKlas]

If you want the house, you'll need to get another inspection by your own structural engineer. If the house is in a desirable location, and it clears inspection, that's fine! When you go to sell it, location will determine how easily it will sell. That said, historically the DFW market has not had real estate growth in strong enough numbers to justify only owning a place for 3-4 years. Typically, you will be spending money on cosmetic and maintenance/repairs all the time you live there and then have all the fees associated with selling it. You might consider renting instead of purchasing a home.

[Cinap]

Originally Posted by WorldKlas

If you want the house, you'll need to get another inspection by your own structural engineer. If the house is in a desirable location, and it clears inspection, that's fine! When you go to sell it, location will determine how easily it will sell. That said, historically the DFW market has not had real estate growth in strong enough numbers to justify only owning a place for 3-4 years. Typically, you will be spending money on cosmetic and maintenance/repairs all the time you live there and then have all the fees associated with selling it. You might consider renting instead of purchasing a home.

Thanks. This place is in Colleyville. The house we are under contract in is in Coppell. With 20% down and 5 year I/O payments, it makes it a lot less than renting per month. So assuming me get even 10% over 3 years appreciation and break even on fees, I'll be satisfied with the lower monthly "rent".

[BigDGeek]

Originally Posted by Cinap

Thanks. This place is in Colleyville. The house we are under contract in is in Coppell. With 20% down and 5 year I/O payments, it makes it a lot less than renting per month. So assuming me get even 10% over 3 years appreciation and break even on fees, I'll be satisfied with the lower monthly "rent".

Have you budgeted in your property taxes and money for repairs? Hope so.

[4Movingeast]

I think I know the house you are talking about. have you done an in-person drive by?

[TurtleCreek80]

Originally Posted by Cinap

Thanks. This place is in Colleyville. The house we are under contract in is in Coppell. With 20% down and 5 year I/O payments, it makes it a lot less than renting per month. So assuming me get even 10% over 3 years appreciation and break even on fees, I'll be satisfied with the lower monthly "rent".

Banks are offering 5 year interest only loans again?! Really?!?!?! Holy hell, the housing market may actually be in a bubble again where people count on appreciation to build equity and not actually paying down the loan balance.

[ChristieP]

Originally Posted by TurtleCreek80

Banks are offering 5 year interest only loans again?! Really?!?!?! Holy hell, the housing market may actually be in a bubble again where people count on appreciation to build equity and not actually paying down the loan balance.

Good grief. Didn't we learn anything the last time the housing market collapsed?!?

There's no way the OP is going to make enough money on equity in 5 years to sell the house without having to bring money to closing!

[I Luv Las Colinas]

Originally Posted by ChristieP

Good grief. Didn't we learn anything the last time the housing market collapsed?!?

There's no way the OP is going to make enough money on equity in 5 years to sell the house without having to bring money to closing!

I would not be so sure about that. I just sold a house in Las Colinas (the Irving ISD part, not Farmer's Branch ISD part) for which I had an interest only mortgage for 5 years and made about 7% profit on what I paid, even after 6% realtor commission and closing costs.

Coppell is a much better school district and will probably have better price appreciation than I did.

Even 2% price appreciation would allow a small profit after fees/commission on a 400k zero down, interest only mortgage after 5 years.

[ChristieP]

You aren't taking into account the high property taxes in Coppell. They are about $3500 per year in Coppell. That alone will make them lose money vs renting. There's no guarantee that the market in Coppell will continue to stay as high as it is now.

[escanlan]

Originally Posted by Cinap

Going to look at a beautiful house today that had these issues, but that with using different watering techniques which improved the soil around the house, was later deemed ok by a structural engineer according to the sd.

I understand this is completely normal in DFW, but if I am a first time homeowner and only looking to stay 3-4 years, is this a house you any of you seasoned vets would say "no big deal" on? Or am I setting myself up for a year of hassle and money when I am looking for ease of move in and living and already under contract for a different house that I don't love as much as this one?

Thanks for helping make my major life decision for me good people of city-data

Foundation movement is unfortunately common but not normal to the point where signs of foundation distress are present. I would also recommend that you do have the seller provide all previous reports for any foundation inspection, insurance claims (if any made), as well as any other available historical information regarding the foundation and its known issues. You should review these and as already been suggested I would highly recommend that you do have the foundation, and all previous reports and documentation on its condition, reviewed/inspected by a licensed Professional Engineer who is well trained and experienced with foundation construction and issues in our area.

Foundation issues can be simple to correct such as the change in watering as described to you. However there is the other side of the situation where they can also be expensive to correct depending on their severity. In some cases a foundation might display movement and never move again. In other cases the foundation can continue to move and cause further signs of distress. It's now up to you and your due diligence to ensure that you are well aware of where this foundation stands and having a PE inspect it is part of that due diligence.