Properties with corrected structural issue worth consideration?

Question

We have been back and forth on this one, and I am really not comfortable making a decision on this without consult the community here at BP.

The subject property is a SFH built in year 1900 in a historical area of the town. The house is at a very good location, and the pricing is quite attractive based on our analysis. HOWEVER, the agent indicates there was settlement issue, and it has been corrected in the last 10 years and verified by structural engineer.

We can feel the settlement issue while checking out the house, especially in one room, the windows and doors are not aligned, and the floor is most certainly tilted. Our agent feels it is something we should get a structural engineer to check out during inspection period should we put forward an offer.

Our concern is that once a house has settlement issue, how reliable is the correction previously put in place? What if the house keeps settling in the future? Also, we have never worked with a structural engineer before, what is the process like having a structural inspection? Do they need to tear open things to inspect? How much usually a structural inspection would cost?

Thank you very much in advance!

J Scott · Answer

There are a lot of variables here.  First, the settling issue -- is that a new issue or an old issue that was just recently fixed?  If a house is 110 years old, it generally should be done "settling" by now (probably 80 years ago :), unless something new has happened or has been introduced into the equation.

Second, was the repair work done properly and is it warrantied?  The seller can hopefully provide information about the work that was done, who did it, and what the warranty is.

Third, yes, you should bring in an engineer to review and make recommendations.  A typical engineer in my area will run about $150/hour, they'll probably spend about 2 hours at the property and then another 1-2 hours writing up their findings.  So, expect to pay about $500 for a typical engineering review/inspection for something like this (though obviously it could vary).

The engineer likely wouldn't have to open up any walls, but it depends on the work that was done previously and how/if it was covered up.

If the deal is great, and you're willing to spend $500 to check it out, go for it.  If the deal is the less than great, or if $500 in due diligence (that might be wasted) is too much for your budget, you should consider moving on.