A bad foundation, is it good for me?

[Robert Gunther]

I found a property that has a foundation issue.

At first, I was turned off and passed it over.

Doing some Google searching I see they also tried to sell this property in 2014 (at a higher price) but it did not sell.

It has been sitting on the market now for a few weeks.  The listing agent says they had an offer but the financing fell through.

I am wondering if financing this property with bank financing would be possible?  I doubt many conservative Canadian banks are lining up to lend on properties with foundation issues and that may be why the buyers financing fell through.

I am a cash buyer, so getting financing is not an issue.  I know the foundation is fixable for about $50k so obviously I will take that into consideration when making an offer.

I'm am just wondering how much of a disadvantage it is for the seller that people might not be able to get financing.

[Scott Jordan]

Robert Gunther it depends on your exit strategy. I love foundation issues and I currently looking at two properties for fix and flip with foundation issues. Here in the States, most conventional loans won't qualify since the house as is can't pass an inspection. I will get it fixed by a reputable repair company that offers a lifetime transferable warranty. The house then qualifies for conventional financing. My experience is a small portion of buyers 10% or so will be just turned off since it will be disclosed, another 10% or so will try to think since it was there you should accept a lower price, but the other 80% don't care since it's now fixed and they have the warranty.