How to Know When to Walk Away From Foundation Issues
Some problems aren't worth the headache
Buying a house can be an exciting experience, but while it’s easy to get caught up in the aesthetics, there are important criteria to consider in a new home. A home without a sound structure can cause major issues in the future, and the best way to avoid that is to be smart about evaluating your potential new home’s foundation. Read on for everything you need to know about a home's integral structure and find out when to walk away from foundation issues.
What Is a Foundation?
The foundation of a house is the most critical part of its structural integrity, supporting the weight of the entire building while keeping it dry and insulated from groundwater. It is the lowest load-bearing portion of the structure and acts as an anchor, securing it during natural disasters such as earthquakes, hurricanes, and tornadoes. As such, any problems with the foundation can cause severe structural issues for the house.
While there are different foundation systems, below are a few of the most common:
Basement: Basements are created by excavating beneath the ground level and incorporating walls and floors of reinforced concrete. With its considerable space, many homeowners utilize this area as additional living space.
Crawl Space: Foundations with crawl spaces are supported by masonry walls around the perimeter and multiple footings beneath, but there is no concrete flooring to complete the space. This type of foundation lifts a house from the ground by 1 to 4 feet, providing a gap to the house's plumbing and electrical components.
Slab: Slab foundations are basic concrete slabs that are 8 inches thick, while slab-on-grade foundations are constructed with footings along the border and beneath weight-bearing walls. Generally 4-6 inches in thickness, these single slabs provide a foundation for the home.
Other foundation types include pressure-treated wood, stone, and insulated concrete form (ICF).
Common Causes of Foundation Issues
Foundations are vulnerable to numerous different issues, which can result in cracks, deterioration, leaks, or sinking. Some of the most common problems include:
Inadequate drainage: Poor drainage can weaken a foundation when water doesn't run off, so professionals often suggest sloping the lawn, constructing a drain, or expanding downspouts.
Volatile soils: Expansive soils, triggered by the changing water volume, can lead to cracks that may invite more water-related problems.
Building errors: Incorrect building procedures may require considerable construction repairs.
Termite damage: Termite destruction, usually of properties with crawl spaces and beam foundations, requires extermination and possibly repairing damaged wood.
Signs of Foundation Damage
If a home has foundation problems, you may notice some visible signs of a more severe issue. While you may be able to spot these on your own, an experienced local home inspector can give insight on what to look out for.
Some common signs of foundation issues may include:
Bouncing floors
Cracks in floors or walls
Damp or wet basement
Gaps between walls and windows
Leaning structures such as a chimney or porch
Mold or mildew in the basement
Popping in drywall or tiles
Uneven floors
Warped ceilings
Tips for Buying a House with Foundation Issues
When buying a house, it's always worth paying for a home inspection—especially if you suspect foundation problems may exist. The inspection can give you insight into the root of the problem and can let you know if the house can be maintained in the long run. With an understanding of the extent of the issue and the costs associated with repairing it, you can make an educated decision about purchasing the property.
It may be possible to negotiate the purchase price of a home with issues, including foundation issues, to offset repair costs. You may also be able to add a stipulation about having the original homeowner take care of repairs before the sale goes through. If it's a buyer's market, you're much more likely to have a leg up in negotiations.
Your lender may require the home to be structurally sound. However, government-backed renovation loans such as FHA 203(k) or USDA rehab loans can provide you with the resources necessary to address the repairs.
Foundation issues don't have to be a deal-breaker. While it might sound like a complete hiccup in the home-buying process, there are still ways to proceed depending on the problem and its severity. Minor problems such as cracks and moisture can usually be fixed without much trouble, and financing isn't usually affected. Major issues such as significant settling or deterioration can be a roadblock.
Cost of Repairing Foundation Damage
The cost of repairing foundation damage will largely depend on what issues need addressing, the foundation type, house size, and other factors. On average, foundation repair cost ranges between $2,161 to $7,780.
Some foundation repair methods come with more extreme costs depending on the project. Lifting a foundation is one example. The overall cost of raising a foundation to its original height depends on its type, how much needs to be lifted, and which components require lifting. Generally, it is a major task ranging between $20,000 and $23,000.
Another expensive foundation project is underpinning basements, with the cost ranging from $1,000 to $3,000 per pier. This repair offers a lasting fix, preventing any potential problems in the future if the house were to move again and affording you lasting peace of mind.
When to Walk Away From Foundation Issues
Walking away from foundation problems in a house can be a sensible decision if the cost of repairs is higher than what the seller is offering in price reductions or if the extent of the damage and the associated fixes exceed your available resources or require too much time.
Getting the opinion of a foundation repair specialist is recommended to determine if the investment is worthwhile. Reasons for when to walk away from foundation issues may include:
The repair cost exceeds the seller's concession.
The duration of repair exceeds the desired timeline.
The repair must be completed to be eligible for government-backed financing.
The property might have drainage problems that cannot be resolved.
The area is prone to unstable soil, leading to possible recurring issues.
You could still consider the purchase if there are no significant warning signs, and you may even be able to get a deal if the seller is open to negotiation. Though small foundation flaws do not necessarily have to end the deal, you should also check that buying a house with this problem does not exceed your finances.
Frequently Asked Questions
There are numerous different points when a foundation should be replaced, such as large cracks, shifting, and crumbling. However, it’s best to consult with a structural engineer or a foundation inspector to determine whether your home’s foundation needs to be fully replaced or if it just needs repairs.
Yes, it’s possible for a house to collapse from foundation issues, but it’s very uncommon and unlikely. Most homeowners would be able to see signs indicating foundation issues well before the risk of collapse becomes noteworthy. If you’re concerned about your foundation, schedule a foundation inspection.
Around 25% of homes have foundation problems - it’s a very common issue. Foundation problems can range from very minor to severe and urgent. Call a foundation inspector to determine the severity of any potential issues you identify with your foundation.