Foundation Issue Found - should I buy it???

Question

Hi everyone,I just opened escrow for a single family home (two story, split level) in San Diego and during inspections yesterday some serious issues with the raised foundation were found, the house is partially on a slab partially raised. Below are more details from the inspection report concerning the main issues (the first two listed are the main ones). My question for you is, if the sellers credits us and these issues get fixed by a certified foundation contractor and we buy the house, do you think I would have any issues reselling this property in a couple years based on the fact that prospect buyers might be skeptical regarding a previous issue? Thank you! Page 8 Item: 2 FoundationPerimeter• There has been additional concrete installed at the base ofthe home (concrete curb). This may indicate settling and ormovement in the stem wall and recommend you consult withthe seller regarding this condition. We recommend the overcondition of this concrete curb and stem wall behind this curbinspected by a licensed foundation contractor for signs ofsettling. Location: Rear of the home.• The concrete flat work is installed high on the stucco at therear of the home. Additional flashing and sealant was installedat the flatwork to foundation intersection. We recommend thethis are evaluated by a licensed foundation contractor. Duringthe inspection of this area, we recommend the living roomslab inspected for signs of settling as high and or unevensections are present on the tiled surface. Note: Thehomeowners personal belongings may need to be removed inthe living room. Page 10 Item: 4 Raised foundationexterior walls• There are signs of water efflorescence (white powder on thefoundation walls) under the house foundation. We are unableto determine the exact cause and recommend a licensedfoundation contractor evaluate this condition. The potentialhomeowner has been advised of this condition at the time ofthe inspection. Note: A Water line is installed is the curb at therear of the home which appears to be leaking and should beevaluated and repaired during the inspection of thefoundation.• There are horizontal settling lines present on the stemswalls. Due to the size, we recommend a licensed foundationcontractor evaluate this condition. Location: Throughout theperimeter of the home.• The concrete wood plate bolts show signs of rusting whichwe recommend you have evaluated by a licensed foundationcontractor. Location: Throughout the foundation.Page 13 Item: 5 Floor framing • The original post and pier framing remains throughout theproperty. Current standards do require steel attachments(seismic retrofitting) at the post and pier connections;although, this type of floor framing was common during theconstruction era of this property. Note: A high spot is presentin the sub-flooring of the living room and a settling line in theceiling directly above. This may indicate settling in the piersand or the foundation. We recommend a licensed foundationcontractor evaluate this condition.• Moisture is present in the soil under the raised foundation.Due to the amount, we recommend all the post and pierinspected for signs of settling.Page 14 Item: 7 FoundationPlumbing• Plumbing- Main drain line. We attempt to evaluate drainpipes by flushing every drain that has an active fixture whileobserving its draw and watching for blockages or slow drains,but this is not a conclusive test and only a video-scan of themain line would confirm its actual condition. Due to the age ofthe home, we recommend you have a video-scan of the maindrain line performed, to ensure there are no damagedsections of the cast iron piping and or A.B.S. plumbing.Page 14 Item: 8 Dryness/Drainage • There is evidence that moisture has migrated under orthrough the stem walls of the raised foundation. We areunable to determine the cause of this condition. Werecommend you consult with a specialist regarding thiscondition as prolonged excess watering may cause futuredamage to the foundation walls. The potential homeowner hasbeen notified of this condition at the time of the inspection.Note: The are signs of settling (horizontal settling lines in thestem walls)

Maxwell Ventura · Answer

@Rachel (Raquel) HartPrior to listing a home in Del Cerro last year we had 35k of foundation work completed. It was by a reputable contractor that provided a 100 year warranty and permits were pulled w/ an engineer stamp of approval for the work. We had no issues selling for market value at our original list price whatsoever. I think we were on market for maybe 10 days.

Rachel (Raquel) Hart · Answer

@Matthew Irish-Jones thank you for your reply Matthew, we have scheduled a structural engineer to come on site to give us a report. But like you said, we don't know the level of the problem, and that's concerning.

Matthew Irish-Jones · Answer

@Rachel (Raquel) Hart it’s not always as simple as fixing the foundation. The entire structure may have moved. You may need a structural engineer involved. Sometimes if one foundation wall is compromised it can cause other walls to move and be compromised. I’m addition to that you should know what’s causing it, is it grading on the property, drainage, etc...I usually always walk from foundational issues because it’s tough to know the extent of the problem sometimes. If I am unsure of the extent I would want a structural engineer to sign off on the stability of the structure and to write up a plan for stabilizing.

Rachel (Raquel) Hart · Answer

@Dan Heuschele - Hi Dan! Thanks for your reply. Good to know about the sand as infill, this property is in Encinitas, so sounds like that there is a chance this might be a common issue in that area. It's also good to know an average cost to fix a foundation issue in SD. I have a licensed contractor checking out the foundation on Monday so we will know how much it will be. Thank you for your inputs!

Dan H. · Answer

My first suggestion is you get the foundation evaluated by a foundation contractor.Some items about San Diego:There are entire areas of the city that were built long ago that used beach sand as infill. The beach sand is very hard on the concrete and these areas either need new foundations or regular repairs. In North Park and South Park this is an issue if the Foundation has not been replaced (typically pillars will be on concrete mini foundations if the foundation has been replaced).In this market, it is unlikely the seller will give you a full credit for the repair costs associated with the foundation. Foundation repairs in San Diego are perhaps the most expensive repair there is. You will need to evaluate what sort of credit makes sense for you to proceed with the purchase.We purchased a Property with a $32K foundation issue and did the bare minimum repairs (a few thousand). It has been 9 years. To fix the issue completely (and to current code) likely is more than $32K today. We will likely continue to do just the minimum repairs required, as needed. If it is safe, it is likely good enough for our tenants.Good luck

Rachel (Raquel) Hart · Answer

@Patrick Drury - thank you for your input, it makes sense!

Patrick Drury · Answer

@Rachel (Raquel) Hart If the seller credits you for the foundation repairs and you buy, I don't think it would become a problem as long as the foundation expert fixes it and does it right. Like for example, nobody doesn't buy a house because they are skeptical the roof used to leak into the house and had holes everywhere, but since fixed it's not leaked. They are probably going to want to look though they could be skeptical, but that's a solid bonus for a new/newer high-ticket item that shouldn't need to be replaced for a while for an investor or buyer. I know a roof and Foundation are different, but the roof is a more common example. It shouldn't affect your ability to sell a property, though.