how much is too much... - Posted by bob/texas

Real Estate Investing
#1

Posted by JPiper on October 26, 2000 at 24:16:58:

I think these types of issues from a selling standpoint don’t present that much of a problem. I have a house now that the floor needs to be jacked up. The way I have handled it is that I hired a structural engineer to come out and make a recommendation as to how to correctly support the floor (cost $125). This gives you two things…a track to run on as to the type of repair necessary. And second, once the repair is done the structural engineer can reinspect and issue a certified report with his stamp that says the structure is sound.

Some buyers might still have a problem…but many won’t if you handle this issue upfront with the reports that you have obtained.

I don’t think you can predict wall damage resulting from foundation repair. I think it’s obvious that it may occur, but how much is impossible to say. My opinion is that fixing walls though is a cosmetic repair.

Can’t answer your question on the Dallas market.

JPiper

#2

how much is too much… - Posted by bob/texas

Posted by bob/texas on October 25, 2000 at 23:47:07:

signed a contract "subject to " but concerened about foundation problem…i am having estimate tomorrow on foundation but i am concerened that even after repaired, that some people will be leary about purchasing home that has had extensive foundation work, also, i normally just do paint and carpet and wonder what costs i’ll incure after the leveling has been done, such as tape and bed for the cracks…ect… i also normally stick with properties in the 80k range…this property fixed up should sell in the 140k range…{comps} im in dallas…wonder if there is as much of a market for this higher priced home…and if it will take longer to sell?? anyone dealt with fixing walls after foundation repaired? any idea of what i may be facing?..thank you…bob/texas

#3

Re: how much is too much… - Posted by Kevin Roe (Dallas)

Posted by Kevin Roe (Dallas) on October 30, 2000 at 24:29:37:

Bob, not enough info to give a good answer but thought I’d put my 2 cents in. I’ve seen foundation repairs ranging from mud jacking ($1,500) to peir and beam over slab ($20K).
Your best bet is to get a structural engineer to look at it and give you a written report (opinion). It’s relatively cheap and an engineer is not invested in who you use to make the repair and will give you an objective, professional opinion of what is needed. You can then shop prices/reputations of foundation repair people.

I live in Dallas and am a Broker specializing in investment/rental properties. MANY of the properties in Dallas have had foundation repairs made. It’s part of home ownership in Dallas. If you make sure you back up repairs with an engineers report and a reputable foundation company, you shouldn’t have any trouble selling. After this last summer, the number of properties with foundations needing repairs is going to be incredible.
My experience with foundation repairs has been very good (interpreted as lucky). My biggest fear has been broken pipes in slabs but to date have not had any. Interior cracks, door alignment, etc., to me is cosmetic.

A couple situations I would stay clear of are heaving (where the clay has swelled cuasing rise in the middle of the home). I would also stay clear of homes if the brick exterior walls are to the point you can press on them and they move or if an exterior brick wall looks like it is about to fall away from the home.

There is more to pricing than just having good, recent, comps as you probably know. Drive by those that have sold, walk thru those for sale, look at days on market and get a good “feel” for the true value of the property. $140K is not much money here any more.

I hope this helps.
Kevin

#4

Re: how much is too much… - Posted by Donna

Posted by Donna on October 26, 2000 at 19:50:55:

Bob,I live in the DFW area too and we are leasing a house that has foundation problems. Our landlords told us they have already paid over $10,000 for foundation repairs and I can tell you it isn’t working here. The foundation patches are falling off and my 18-month old grandson is handing them to us as he sees them laying in the yard. Also had termites here and the exterminator came in and drilled and treated but won’t certify the work because of all the “faults” where termites can get into and just start somewhere else. Some of our doors don’t shut because of shifting and we have some pretty huge cracks in the walls in some areas because of the shifting. I’m paying close attention to water sources to make sure pipes don’t break because of a shift in the foundation. We’re here because we haven’t decided where in DFW we want to settle, but I wouldn’t touch this place no matter how cheap – and, of course, they can’t afford to sell it cheap anyway. Houses in Plano like this one should sell $135-150 NO WAY! We, and the landlord, knows that this isn’t the end of the problem and I doubt that they could pour enough money into it to fix it. Hope this helps. I also believe that anyone in this area who knows about the propensity for foundation problems because of dry earth will be wary of ANY place with a shaky foundation. Just my two cents worth. Let me know what you find out and what you decide to do. Could impact our future investing too. Thanks for the post. (PS in addition, I think the repairs have been made within the last couple of years, so…)

#5

Re: how much is too much… - Posted by David Alexander

Posted by David Alexander on October 26, 2000 at 10:57:53:

Bob, You will have some folks that will go “oh no” then alon will come the buyer that understands it’s been fixed, has a warranty and it’s that way everywhere in the Dallas Area.

You can always flip that property… :slight_smile:

David Alexander