The Home I Want To Buy Has A Bad Foundation... What Are My Options?
Imagine finding the perfect home. It’s in a desirable neighborhood, it has more than enough space, and it even comes in under budget! After making an offer and the home is inspected, you find out that the foundation is crumbling and needs extensive work.
What does a buyer do in this situation? It can be a devastating experience to go through and might make one feel disheartened about finding another home to start over with, but there are options available that will allow you to handle the situation within a legal capacity.
Leaning On Contingencies
When it comes to navigating this specific situation, it helps to have an inspection contingency set in place, as it gives a buyer more options. In short, this type of contingency allows for a buyer to engage in negotiation instead of getting stuck buying the home as-is.
One of the more common avenues that buyers will exercise is talking to the seller to find out if they are willing to lower the asking price of the home. With this logic, the buyer would have to spend money to repair the foundation so it only makes sense that they pay less for the home to compensate for their other expenses.
Sometimes buyers will take the approach of asking the seller to make the repair themselves before the close of the sale. If the seller has enough capital to repair or replace the foundation, they might be willing to do so, as this issue will persist if another buyer comes into the mix.
Committing to the Purchase
An inspection contingency is important to protect the rights of the buyer but gives them additional power beyond pure negotiation with the seller. Depending on the specifics of the situation, sometimes trying to make arrangements isn’t enough.
For some home buyers, the damaged foundation may not be a deal-breaker. In such an event, the buyer may go through with the purchase of the property and either negotiate for a reduced selling price to cover the expenses of the home or go forward with the agreed-upon amount and assume repairs themselves upon completing the purchase of the home.
Foundation repair is a much greater investment of time and money, and it’s essential that a homeowner contact foundation professionals to repair the home and not attempt a DIY job. Reach out to several local experts to receive quotes on how much it will cost to repair the foundation before purchasing the home so you can go into the transaction with eyes wide open. This can help the buyer negotiate for a realistic reduced price and help to ascertain if the home is worth the investment.
Once the home has been purchased, begin repairs as soon as possible to ensure the continued structural stability of your new home.
Covering All The Bases
Most home buyers aren’t even aware of the idea of contingencies, so it’s important to work with your real estate professional to ensure that protections are put in place in the event of a bad foundation or any other type of major issue with a home.
Keeping expectations in check for your prospective Jupiter Bluffs home is key during this time, as it can be upsetting to find out the news about a potential new home. However, a bad foundation doesn’t have to mean the transaction is over - rather, the inspection contingency can act as a platform for negotiations.
In the end, it’s better to know what condition the home is in before signing on the dotted line and making sure there are ways to overcome this unique challenge.
Meta Description: Your dream home has a bad foundation, now what? We discuss how you can protect yourself and your purchase, and end up with a favorable transaction after all.
