Foundation Issues in Potential Property

[Zachary Yeger]

Hi BP,

I am a first time home buyer looking to house hack and add value to a single-family home in the Philadelphia area.

There is a row home that I am interested in, but it is evident that there are some challenges with the property. I have not had an inspection yet, but my untrained eye noticed that the roof above the porch is sloped towards one corner of the house. On the inside, you can notice a slope in the main floor running towards that same corner. On the second floor, you can notice that the floor is also sloped. In the basement, you can notice that there is a crack running the length of the house at the bottom of the wall opposite to bottom of the slope.

The seller is aware of foundation issues and said that they are willing to help out.

I do not know the cost of repair, but lets assume its $40k. Even if the seller took this amount off of the asking price, I would not have the cash to repair the issue after closing costs and down payment.

I see this property as a good opportunity to take a problem from somebody else (i.e. get a good deal) so I am not backing away yet.

How would you recommend approaching this challenge?

What type of person would you recommend to come diagnose and quote the repair?

Are there ways to finance the repair if the seller does not fix it themselves, yet credits me with the cost of repair?

I appreciate any support that you can provide me.

Best regards,

Zack

[Will Fraser]

HI @Zachary Yeger in this case I would ask the seller to FIX the foundation issue, which would be completely recouped at closing.  Specifically if he was a client of mine I would coach him up to "have a foundation company do the work and then bill it to closing so that it is not money you have to front."

If the numbers are too tight, then as a buyer I would be fine increasing the purchase price somewhat to compensate.  Again, it is not money directly out of the seller's pocket if it is billed to closing and cash conservation is the name of the game!