Foundation repair in valuation?

Question

I'm going to look at my first house on Monday, and per the seller (the daughter of the homeowner, who is deceased) the house has foundation issues. How do I assess how much it will require in repairs related to the foundation? Is there a ballpark figure other investors use? The rest of the house has been updated recently enough that I'm fairly confident the house won't need many more repairs (paint and carpet at the most) but I want to make sure I don't underestimate (or overestimate) repairs by too much. Thanks in advance for all your help!

Mark Freeman · Answer

I just spent over $14,000 on a foundation lift and fix and know an agent that spent about $32,000 on a fix in a similar area. Like Ben said this gets expensive fast and could be a nightmare on a first deal! Make sure and get estimates and realize that a lot of flippers avoid these types of houses due to unknowns and all the time and money it can take to fix them properly.

Ben Leybovich · Answer

If you're digging up, straightening walls, running new tile, digging sump pit - you are looking at $15,000 - $30,000.  This stuff gets expensive in a hurry...

Kyle Critchnau · Answer

@Nate Garrett thanks for the recommendation. I'll give him a call Monday.

Nate Garrett · Answer

@Kyle Critchnau

I would recommend you get a licensed engineer to conduct a structural evaluation. It will cost you around $300, but it's money well spent, trust me. I've seen structural bids over $30,000. I've also seen houses in the Tulsa area that are literally falling apart because the foundation wasn't repaired.

We have had Joe Ramey do all of our structural reports for years, he's a stand up guy. You can check out his website or give his office a call at 918-836-0021.

Kyle Critchnau · Answer

@Jared Benson I'm in Tulsa, and it's a pier and beam I know that much. I plan to wholesale it by assigning the contract.

@Ben Leybovich It's about 1600 sq. ft.

@Kirk R. I'll give the estimates to any prospective end buyers.

@Troy Young The price I'm thinking for the house (and have already told the seller of the ballpark) is low enough that I could conceivably have up to $25,000 in repairs and still be under 75% of ARV. I just want to see the extent of any damage and see the rest of the house.

Thanks to all of you for your advice.

Troy Young · Answer

Foundation issues are one of the main things that I try to avoid. Some foundation repairs can be a easy cheap fix and others are a nightmare and fortune. If the foundation is messed up there can be a good chance that their has been some leaks which could easily mean some mold. I just spent about $4,000 fixing a foundation that had some mold starting to spread through the house and making the tenants sick. Earlier this year I spent over $6,000 sealing the basement and adding a sump pump. Neither one of those projects needed the outside dug up or the foundation to be rebuild so some issues may cost a lot more than what I paid for mine. Also, If you are jacking up the house or replacing parts of the foundation watch out for other damage like cracks in the walls or windows breaking etc. from the shifting. Those things shouldn't happen but if you try it with a couple buddies and it's pretty bad it's possible. I would get a professional opinion or just stay away from it.

Kirk R. · Answer

I feel a little obligated if I get some quotes to give them some business.  Although I've noticed the people I've paid in the past respond much more quickly.

Ben Leybovich · Answer

How big is the house?

Kyle Critchnau · Answer

I thought about that, but don't know if I need to have it under contract before calling anyone.

Foundation repair in valuation?

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