How do I formally ask the seller to pay for or credit repairs?

Question

I just received my inspection report today a few hours after the inspection and am within my inspection contingency time period. Unfortunately, I was surprised to learn of potentially expensive issues with the foundation shifting. My inspector threw out a ballpark guess that it could be roughly 10k to repair it. This property is not listed on the MLS so I am not working with an agent. Now my question is how do I go about formally asking the seller to make the repair? The wording of the contract says "OFFER TO RENEGOTIATE with SELLER by notifying SELLER on the Resolution of Unacceptable Conditions within the Inspection Period." This is my first property purchase so I am unsure if there is a specific type of form that is usually filled out or if this can be asked in a less formal way. Any advice on this (or foundation issues in general) would be greatly appreciated. I honestly don't know much about foundation issues other than that they typically are expensive. Thanks!

Joe Norman · Answer

I suggest having the "foundation issue" inspected by a GC or a Structural Engineer. A home inspector is always going to give you a worst-case scenario opinion of things, since they need to cover their asses. Often times "foundation issues" are just settlement cracks that aren't a big deal.

(also your inspector shouldn't be estimating renovation costs)

Bret Kingcade · Answer

@Caleb Heimsoth Lol yeah, I think you are right. I'm very analytical and sometimes I overthink things. Thanks for the replies. You have been very helpful. I ended up reaching out to the seller and said I was good to stay at the original asking price contingent on him repairing the foundation as outlined in the inspection report prior to closing. He replied back that he'll send it to his contractor for a repair cost and will get back to me. So now I'm just waiting to hear back on his decision. If he ends up saying no then I'll just have to walk. I was clear to him that I had a lot of other things I'll have to pay to fix soon so anything less than him paying to repair it would make the investment no longer meet my minimum standards for ROI.

@Patrick Fraire No, he didn't mention it in the seller's disclosure. To my knowledge, you wouldn't be able to use that item as an unacceptable condition to back out of the contract and get your earnest money back if it had been clearly listed. You could still cite something else though of course. Obviously, it kind of sucks for us to discover foundation issues but a smart seller I would imagine realizes that he is just going to have to deal with this issue coming up again with the next buyer if he ends up sending you away so I am trying to hold my ground while being reasonable.

Bret Kingcade · Answer

@Joe Norman He really only threw out a number guess because I asked him to. The pics below are what is shown in the report. I honestly have no idea what the level of severity is at this point.

@Caleb Heimsoth That's a good question... I haven't had my appraisal yet. The FHA guidelines do mention the foundation has to be "safe" but it is pretty vague about it. If this is a big item like I worry, I'd probably have to ask him to make the repairs before closing. If he says no, I'd have to just walk away at that point.

Steve Bracero · Answer

@Joe Norman

Yes, at least in Mass- inspectors can't give ballpark or quotes for how much things cost to fix

Caleb Heimsoth · Answer

@Bret Kingcade you said you don’t have an agent does the seller have an agent? I’m assuming no. If that’s true then yeah just reach out to them directly.  If they have an agent go through the agent.

Knowing FHA is usually more stringent then conventional does this issue make it not qualify for fha?  I’m going through a conventional loan right now and they made the seller remove security bars so a foundation issue may make it not financAble.  That’ll be in your appraisal report if that’s the case.

I’m this case the seller credit will likely be limited so you’re best bet may just be to ask them to know it off the purchase price.  They may say no or go for it.

Patrick Fraire · Answer

Check the disclosures the seller gave you. Did he disclose this issue?

Patrick Fraire · Answer

So I am in an almost Identical situation except I do have an agent that is sort of a mediator between the seller and I. I just had my inspection and we found similar issues possibly more sever than yours. My inspector gave me a ballpark of 7500-10,000 in foundation repair. He advised me that a lot of contractors won't warranty their work unless they basically brace or modify the entire foundation. That is why it could be up to 10,000. Anyways...my agent said the seller knew of the foundation issue and is willing to give a credit for the repair. The agent has scheduled a foundation specialist to come out and give an estimate and the seller and I will negotiate from there.

How do I formally ask the seller to pay for or credit repairs?

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