What You Should Know About Foundation Repair

Real estate investment is one of the most profitable choices you can make at this time. Not only does it bring long-term benefits, but it is also one of the safest decisions you can make. However, one of the biggest mistakes you can make when buying or selling a house is overlooking the foundation. A solid foundation is an essential part of your property, and can provide you with the assurance that your property will last a long time.

Damage to a property’s foundation is a fairly common occurrence. One study conducted by the National Association of Builders showed that as much one quarter of homes in the U.S. have existing structural issues. So before you buy and sell a property, make sure you are well-versed in foundation repairs.

Check for Signs of Damage

Before signing a check and making a down payment, you have to do a thorough inspection of the property you intend to buy. The interior of the home may be the selling point, but it pays to conduct a more in-depth check by looking for potential signs of foundation damage. You wouldn’t want to buy a property that could cost you in repairs. If you suspect foundation damage, look for cabinets and counters that are separate from the wall, sagging floors, and window frames and exterior doors with gaps due to the foundation’s movement. Drywall cracks can be signs of foundation issues, as well.

Consult a Foundation Repair Expert

Some of the signs of foundation damage may not be obvious to the untrained eye. Professionals have developed a sense for these signs with all the years they’ve spent working on foundation repairs. If you feel that the property has issues, they can tell you the extent of damage you are dealing with and can advise you whether it would be a worthy investment or not.

To Repair or Not to Repair?

Once you’ve got an assessment, you can decide on your next action. Would you be willing to buy the house and have it repaired before selling? If the assessment says that your foundation repair is beyond serious, it would be best to simply walk away from that property and wait for another worthy opportunity to get a better return of investment (ROI). However, if these foundation issues are minor and you can have it repaired without much investment on your part, go for it. In fact, you can use this as leverage when trying to negotiate the price. If you can, you may even add a contingency clause to your agreement.

Selling a House With Foundation Issues

Yes, it is possible to sell a house with foundation issues, and there are two ways to go about it. You can resell it as is, with your target market being the flippers who would buy a worn-down property, have it repaired, and sell it for a profit. Another way is to have the issues repaired and sell it, but there’s a caveat to be aware of; You have to disclose this to your potential buyers, as others would not be too comfortable buying a property with a repaired foundation problem.

Final Thoughts: Return of Investment

One thing is certain when you sell a home with foundation issues – even when you have them repaired, it may not sell for a high price. A foundation issue always pulls the price down. That said, it would be a wise decision to do a thorough inspection of the property that you plan to buy. If better options are waiting for you, with minimal difference in the price point, it would be best to look towards that direction instead.

 

Posted in: Personal Finance

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