I recently put in an offer on duplex but discovered a cracked foundation during the inspection. We've since pulled out of the deal, but I'm wondering if anyone has any advice (other than run the other direction) and/or experience with this type of reno.
Basically this side by side duplex is splitting down the middle. One side is obviously sinking and likely continuing to sink as we found a crack in a closet along the center wall. This place has been renovated within the last 6 years and the crack had obviously worsened since the reno. You can see the crack in the foundation along the back of the structure as well as feel the lean of one of the units. Very noticable. Windows and siding also showing signs of bowing.
We contacted a few contractors and had an engineering company have a look before we backed out on the deal. All basically said the same thing - It would require some digging to determine the cause and a plan for repair. No way to estimate the cost until the issue was exposed. Could be $5000 or $80,000 fix.
This is a hot market with multiple offers on any revenue properties, but we made our findings on this one public, and it has remained on the market for 2 additional months now. The owners want to get rid of it, but are not willing to fix the issues themselves. Perhaps ripe for a very undermarket offer and could be a great property.
Anyone have any advice on potential ways to procede or creative ways to structure an offer?
What’s the max foundation repair cost? Say it’s $80K. Get that in writing from the engineer (that it’s between 5 and 80$
Make an offer with an escrow of say $60K with the agreement that the seller escrow will pay 75% of foundation repair costs. You’ll pay the remaining 25%.
If it’s an 6K fix, everyone wins. If it’s hugely expensive, you’re covered.
Interesting idea. I like it, but the engineers were not able to give me any type of useful estimate. There's likely little chance of them putting anything in writing until things are dug up and a solution is identified.
How much would JUST the digging and estimating cost? Maybe something where you split that item with the seller once you go back in contract... during your inspection period... then counter based on the info you get. One around the corner from me, 800k homes... was a notorious foundation nightmare in a neighborhood full of them... depending on who you asked.... it was 10k or 200k to fix. Lady bought it for a song, and once it was dug up, it was like 10k to fix. she scored huge.