Would you avoid a home that requires piers on a basement wall?

3 Replies

I have had my eyes on this cherry deal for a while now.  The first opportunity passed me by as I was outbid on the sale.  The property has now come back up for sale with some new information:

A basement wall requires piers to correct the foundation.  Also a notice for changing landscape grade in an area.

Would a seasoned investor walk the deal as this repair is likely costly and will negatively impact potential gains on the resale?  The property (even at the previous accepted bid) is still valued at least $30,000 below all neighboring properties in a nice quiet neighborhood.

I'm new.  I've never purchased previously.  How would you suggest I proceed?

Thanks!

This is a opportunity to make a potential killing. I would make a conditional offer allowing you to back out without cause. Hire a contractor to assess the situation and give an estimate for the cost. With that info I would make a offer so low the seller would be insulted. If you have the skill you then negotiate a killer deal or walk.

Buying real estate is about what you pay going and not about everyone being a winner. Only you have to win. You do not care about the seller beyond convincing him to sell at your price. When the seller accepts your offer he has exactly what he wants. Deal closed.

This property is HUD. My realtor suggests the repair would cost $3500 or less. I have reading horror stories online about these repairs costing $20,000 or more. Just trying to gather some advice before going all in.

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@Account Closed - won't comment on the property itself, sight unseen, but since it's a HUD property, submit your bid ultra-low... well below the bid that won previously. If your bid isn't accepted (and no one else's is either), keep submitting your bid and don't raise your price. Your number is your number.

Oh, and unless they have particular knowledge of construction costs, I'd be skeptical of a realtor's cost estimate.