Just got awarded a contract for a house to later get a call from the listing agent saying that the house had sinkhole remediation work done to it a few years back. I am not concerned about my ability to walk out of the contract since I have all possible proof that the information was only made available to me after the contract was awarded.
My question is more on going forward. I have a report(sent by the agent) that there was an underpinning work done to the house and a certification from a third party company validating the work, all back from 2010. I also have a more recent email sent by another engineer to the seller saying that to his knowledge the house was underpinned but not grouted and that he considers the sinkhole not repaired.
The contract price for the house gives me some average spread as per ARV. Now that this shows up I have a few questions:
- I assume that the fact that the house had a sinkhole repair done will affect the ARV (whether correctly repaired or not), an I correct?
- For those of you who had dealt with this before, how hard would it be to complete what is required to get this sinkhole dealt with?...and how expensive. The house is from 2008 and 1500 sqft.
A caveat to the situation, the house is located at aprox 3hrs drive from where I live.
Thank you all in advance
No idea, but I'm commenting to get this boosted so others can see it. Good luck!
Just one more piece on information. I just spoke with the engineer that sent the email and the estimate to grout the house is aprox $60K. This effectively kills the deal at the original price but may be an opportunity if I can negotiate the price substantially down.
I am still interested in getting opinions.
These can be financed if a full remediation has been completed with the engineers report and insurance coverage can be bound.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.