What would you do if a section of house may have a structure issue?

Question

Hi Bigger Pockets,

I am a new investor, trying to purchase a SFH to as an investment. This is a ranch built in 1952, we loved the location, and it is very reasonably priced (Bank appraisal came at the asking price). The previous homeowners (not the current seller) added a new 1 car garage section to the property. I checked the Google Maps images and the last image from 2011 showed this section there. So I think this structure is at least 10 years old.

We are currently under contract getting done through the inspections. During the inspection, our structural inspector found that the load bearing trusses of the garage were not done right. It had a sag in the beam that was repaired (unsure when) as a result of heavy snow adding the weight from the roof. I asked the inspector for a rough order quote for fixing it right, he mentioned that it is ~$5k to get it fixed. We're still under the grace period, to make the decision and could back out if needed.

I'm at the cross roads at this moment

1. Buy the property as is and stomach the expense to fix it.

2. Risk losing the property if the seller disagree and disqualify our offer and wait for a nice listing and a potential increase of mortgage rates (we're quoted 6.125% for a 30-year fixed)

What would you do in this case? I understand it is hard to provide an opinion without looking at it, and I shouldn't use stranger's to advise making investment decisions, but I'm interested in learning about your thought process. Are we getting too emotionally attached to it, because we liked this one after almost 4 months of searching?

Best regards,

Prabh

Wale Lawal · Answer

@Prabh Virk

Structural defects in a building are commonly a result of improper construction and poor design. Cracks on walls and floors, water seepage and chipping plaster walls are some of the frequently seen structural problems that can adversely affect the value of your property. It is, therefore, essential to undertake home inspection on a regular basis, to address the issue at an early stage.

Weak foundation: Foundation is the root of any house. What make a house structurally sound are a compact structure of the foundation framing and the roof. The signs of poor foundation in a building can be spotted if you are unable to close windows and doors, there is inadequate draining from the foundation, the concrete is crumbling or flaking, there are ruptures or gaps, and if there is sloping, sagging or buckling of the foundation floors or walls. The presence of trees near a building can also destabilise its foundation and drains.

Cracks on the walls: Variations in moisture and temperature cause frequent expansion and shrinkage of the concrete, causing cracks. Some minor cracks are static, undetectable and harmless. However, it can be a cause for concern if the hairline crack continues to widen over a period of time and damages the foundation. Multiple cracks in several rooms is an indication of a major structural problem, for which an expert intervention should be sought.

Faulty plumbing: Defects in the plumbing system happen due to old or incompatible piping material used, as well as faulty fixtures and waste lines. Incorrect installation of fixtures may lead to clogged drains, shower pan leaks or toilet leaks. These also lead to mould contamination. You should ask the engineer to look for deterioration in the condition of the pipe, as well as evaluate water leaks using a moisture meter.

Improper electrical wiring: Improper electrical wiring in a house often lead to insufficient power, lack of overload protection and quite often dangerous wiring connections. Hire an inspection engineer who can carry an audit to scan for burnt cables, over-fused circuits, etc.

Non-functional heating and air-conditioning systems: A defect in the air conditioning and heating systems in a building means inadequate cooling or heating.

Defects in flooring: Grout not holding the tile to the floor, water seeping from under the foundation or exterior, buckling of hardwood floor, widening of the crack of the tile – all of these hint at improper floor framework.

All the best!

Bruce Woodruff · Answer

A sagging garage ridge beam is not a huge deal, those are pretty common in most areas. I would personally not worry about the $5 k repair costs if you like the location and the house that much, it isn't like you have to fix it tomorrow. But I would definitely get a general contractor out to give you a real assessment and price.

January Johnson · Answer

I don't know if insurance on homes built in the 50s is an issue in your area, but it is in mine (hurricane country).  Just thought I'd throw that out there.  Older homes can also be more expensive to insure (in addition to other issues noted here).

Wale Lawal · Answer

My pleasure!

Always happy to share my knowledge and information.

Good luck!

Prabh Virk · Answer

@Wale Lawal

Thank you very much for your time to draft this detailed response. It is really helpful.

Prabh Virk · Answer

@Jonathan R McLaughlin

Thank you for the response. I'll surely try to negotiate with the seller to get a workable solution for both of us.

What is the best way to obtain an answer from the city in such cases? I don't see a permit issued for it on the county assessor website for it.

Prabh Virk · Answer

@Henry Lazerow

Thank you for the response.

Our realtor is knowledgeable usually and pointed out a lot of potential mishaps on other properties however it seems this may be something she isn't fully aware of it.

I will talk to her to see and a contractor to see how much impact is it going to have on future sales.

Jonathan R McLaughlin · Answer

check to make sure it was permitted properly according to local laws. 5K isn't much if the problem can actually be fixed, especially if the seller kicks in something. You might have an insurance issue in the future if you don't address.

Location to me trumps 5K of a permanent fix.

Henry Lazerow · Answer

Good agents will point these out BEFORE you go under contract so you don't waste your (and your agents) time or money on inspection. A lot of cheaper houses in my area have structural issues. A little settling is acceptable here but some have major issues especially the cheap 2-4 units.

I would terminate. Even if you fix it for $5k it will usually just make it "not get worse" and still affect future buyers opinions.

Chris Davidson · Answer

@Prabh Virk ask you agent if you are using them. However if it was me I would approach the seller and let them know the issue. If it has been fixed in the past they likely could know about the issue. Either look for a repair or a credit. If you can't get either decide if you want 5k to hold up the deal for you.

Also If you have time work on getting an actual contractor in there to bid the work as it may be more or less to it than the inspector thought.

Best of luck you got it!

What would you do if a section of house may have a structure issue?

Most Popular Reply