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Offering on a House with Foundation Issues I Want to Fix

2,181 Views | 10 Replies | Last: 3 yr ago by flown-the-coop
mAgnoliAg
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AG
I work for a structural engineering firm and have a report formed (not released yet as courtesy to seller). I am going to send the report with our offer. Our offer is quite a bit lower than asking. The sellers know of some of the things that need to be done but don't seem to want to do them. I would rather take care of them myself as I have a foundation crew that can take care of the work and I can handle the other things necessary.

Problem is our lender's appraiser will most likely catch the issues and need them fixed before closing. Also home insurance will probably require them, although it's not like the house is falling apart around us.

Long story short, I want to take care of the issues because I trust my crew and I would monitor it all, but I am not sure what needs to be done if the issues need to be taken care of before closing.
Braxton.Sherrill
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Lots of drive by/ desktop appraisals being done right now due to covid concerns.

Diggity
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how visible are these foundation issues that you think they'll get flagged by the appraiser/insurance company?
mAgnoliAg
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Diggity said:

how visible are these foundation issues that you think they'll get flagged by the appraiser/insurance company?

Brick separation between garage wall and kitchen wall maybe 1/2" but not all the way ceiling to floor. Also a little bit of frieze board separation there. Other than that (very surprisingly) no more cosmetic signs or doors not closing. I say very surprisingly because I've taken floor elevations and they aren't great. No patchwork either.
mAgnoliAg
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But we sent in an offer today and they "will not entertain that offer." They're in denial. The house has been on the market forever and nobody is gonna go near their asking price without the issues fixed. For sure now they won't with the engineers report (that is if they disclose it).
Diggity
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Doesn't sound like something that would get flagged from what you're describing.

They're hoping for someone to not notice oracle ignore the issues apparently.
Bob_Ag
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It depends. If its obvious enough, the appraiser can make it subject to an inspection by a qualified professional. They are not a structural engineer. They may also appraise the property using an extraordinary assumption the foundation is ok, but could still make it subject to inspection.

It more depends on the lender. If the cost to cure is being taken out of the purchase price, they may sign off on it. It all depends on them since the lender is the one who has to sign off on the loan on a home that may have foundation issues.

As mentioned, if its an exterior only inspection due to the state of things, it wouldn't even get noticed unless there is verbiage around it in the contract.
Diggity
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I just noticed that you submitted an engineering report on the foundation?

Did they actually let you inspect the place before you had a contract? I can't imagine allowing that as the seller.
mAgnoliAg
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Diggity said:

I just noticed that you submitted an engineering report on the foundation?

Did they actually let you inspect the place before you had a contract? I can't imagine allowing that as the seller.

Yes. Listing agent was on site the whole time. They are desperate and we were/are showing interest in the house. Well I say they're desperate but apparently not desperate enough.
Diggity
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Don't lose hope yet. They aren't likely to get much traffic in the near future so you might hear back.
GrimesCoAg95
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Wait a couple of weeks and resubmit the same offer.
flown-the-coop
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Others may no better, but if you sent them the engineering report they should have to update the SD with that information. You've effectively boxed them in. To the point above, they should not have allowed you to do that but that's in them, not you.

Just basing my view on what happened with our recent sale. After inspection rather than sending us list of repairs they sent us the damn report. We would have certainly had to redo the SD if the sale fell through. It factored heavily from our position in to what I was willing to give for repairs. On. 20+ yo house the report was lengthy and combined with the inspector being part dumbarse and also friends with the buyer,
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