Cracks In Brick Siding - Back out of deal or keep investigating

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Cracks In Brick Siding - Back out of deal or keep investigating

Zach DeRossette
Real Estate Agent · Oakland, CA · Member since 2018 · 17 posts · 8 votes

I am in contract on a house and the inspection report revealed some cracking on the brick siding. The inspector suggested to get a structural engineer to check it out. I'm debating whether it's worth it to spend $550 for a Structural engineer to look at it or back out of the deal. I definitely won't proceed not knowing how big the issue is. I've already paid $300 for a home inspection, and I'm wondering if I should just keep investigating the issue or keep looking for a new house.

The house is in East Point, Ga. It's about $130k and expected Cash on Cash return is about 8%. Other than this issue, the house is in decent shape and I like the area. 

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Jim K.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
5y

Spend the $550. This is the kind of situation where it's nothing or it's a lot. How old is the place? Where else do you see issues? Is that interior wall drywall or plaster? Do other houses in the area have the same issues. Those are classic Z-cracks in the corners of windows indicating foundation settling, and one of them has even been repaired, indicating this is an ongoing thing. Both are larger than the 1/4-inch in width usually quoted as nothing to worry about.

If you find out it's nothing, hallelujah. Ask for a concession anyway. The seller knows this will drive other potential buyers away.

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  • Account Closed
    Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
    5y
    Foundation problems is one thing that will cause this. Looks like a basement window, are the basement walls bowing/shifting?  The buckling on the interior wall is a new one to me though....

    If you have any interest in persuing the deal I would spend the money on the engineer. May be a negotiation point too.
    1Reply
  • Zach DeRossette
    OP
    Real Estate Agent · Oakland, CA · Member since 2018 · 17 posts · 8 votes
    5y

    no sign of bowing or shifting in the basement. There are no windows down there either.

    1Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    5y

    since the inspector suggested an engineer the cracks are more than just normal cracking of the brick veneer. 

    I would check further before proceeding. 

    0Reply
  • Derrick Dill
    Investor · Hawaiian Gardens, CA · Member since 2015 · 308 posts · 386 votes
    5y

    I would get a structural engineer to check it out if you want to continue with the deal. Structural problems can be a big headache, on the other hand, could be more minor than you think.

    Upwork.com has freelance engineers

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  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    5y

    Spend the $550. This is the kind of situation where it's nothing or it's a lot. How old is the place? Where else do you see issues? Is that interior wall drywall or plaster? Do other houses in the area have the same issues. Those are classic Z-cracks in the corners of windows indicating foundation settling, and one of them has even been repaired, indicating this is an ongoing thing. Both are larger than the 1/4-inch in width usually quoted as nothing to worry about.

    If you find out it's nothing, hallelujah. Ask for a concession anyway. The seller knows this will drive other potential buyers away.

    1Reply
  • Travis Frenchak
    Investor · Butler, PA · Member since 2014 · 130 posts · 114 votes
    5y

    If day of an 8% COC return is a good deal for your area spend the money to investigate more. If 8% is pretty common I'd say walk away and find another one.

    1Reply
  • Aigo Pyles
    Flipper/Rehabber · Memphis, TN · Member since 2020 · 758 posts · 285 votes
    5y

    If you are keen to continue the deal then you need a structural engineer to do so. Once the engineer informed you the results of the inspection, you may want to negotiate for the price. 

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  • Zach DeRossette
    OP
    Real Estate Agent · Oakland, CA · Member since 2018 · 17 posts · 8 votes
    5y

    Thanks everyone. We ended up having it inspected and the seller has agreed to fix it before COE. 

    2Reply
  • Jeff Young
    New to Real Estate · Sarasota, FL · Member since 2020 · 22 posts · 6 votes
    5y

    Good afternoon Zach,

    I know you already concluded this action, but for future reference maybe ask the seller if there is something found, they are willing to fix it or drop the price based on estimated costs of repairs.

    I'm glad to hear they agreed to fix it. I would recommend confirming it was fixed properly.

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    5y

    @Zach DeRossette

    What did the inspector find the problem to be?

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  • Zach DeRossette
    OP
    Real Estate Agent · Oakland, CA · Member since 2018 · 17 posts · 8 votes
    5y

    Originally posted by @Jeff Young:

    Good afternoon Zach,

    I know you already concluded this action, but for future reference maybe ask the seller if there is something found, they are willing to fix it or drop the price based on estimated costs of repairs.

    I'm glad to hear they agreed to fix it. I would recommend confirming it was fixed properly.

    We talked about this option, but the repair is too expensive to cover in closing cost credits. I prefer that the option of the seller fixing the problem rather than offering a reduced purchase price, because the repair cost is about 8-10k. I'm putting 20% down, so an extra 10k in cash would be using too much cash that I could be using for a future downpayment on another property. With interest rates so low, knocking 10k off the purchase price doesn't improve my cash flow by a huge amount.And I agree the big concern is that the work won't be completed properly. We will verify the work with another company before COE.

    We talked about this option, but the repair is too expensive to cover in closing cost credits. I prefer that the option of the seller fixing the problem rather than offering a reduced purchase price, because the repair cost is about 8-10k. I'm putting 20% down, so an extra 10k in cash would be using too much cash that I could be using for a future downpayment on another property. With interest rates so low, knocking 10k off the purchase price doesn't improve my cash flow by a huge amount.

    And I agree the big concern is that the work won't be completed properly. We will verify the work with another company before COE.

    0Reply
  • Zach DeRossette
    OP
    Real Estate Agent · Oakland, CA · Member since 2018 · 17 posts · 8 votes
    5y
    Originally posted by @Bill B.:

    @Zach DeRossette

    What did the inspector find the problem to be?

    Foundation is sinking which is causing the bricks to crack. 

    1Reply
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