I was pursuing a house in the past. I was not able to put a contract on the property as I was told someone already has an active contract on it. Later I was told the property is available and the original party has withdrawn the contract based on the result from their inspection. The house is now available. I just want an expert opinion on the verbiage below. Have anyone seen an issue like this before or how much can it cost to fix or is it fixable at all. Please assist...Thanks
2, the front side exterior wall has a horizontal crack at the bottom. The horizontal crack also has a movement about 5/8 inch. It seem the soil lateral force pushing the foundation wall into the house. This needs to be checked by a professional engineer or a soil professional. Repair by a foundation contractor is needed.
11, horizontal crack and movement (inward) are observed on the basement block foundation wall. (In the basement utility room – unfinished area.) The steel beam in the middle of the house is out of plumb. The movement at the foundation wall is about 1 inch. It is a structural concern. A professional structure engineer should be called.
Foundation, soil, and settling issues are not uncommon, and can be expensive to fix, or in some cases, not worth fixing. Here are some things to consider:
1. If you make an offer, include your own inspection contingency so you can have your own contractors look at it and get firm cost estimates.
2. Remember that a retail buyer buying the house after you renovate it is going to have their own home inspection. Any visible flaws (or visible repairs) are going to hurt your ARV. Worst case scenario - the house may never be worth "full retail" if there is a visible crack, flaw, or settling.
This might not matter if it's a rental.
As a flip, the numbers might still work...just make sure you account for the costs (both direct and indirect).
As a structural engineer I would recommend that your first step is to contact a reputable investor friendly structural engineer to assess the damage and provide some preliminary repair options. I would be glad to help you out but I live across the country from you. I have provided design repairs for similar walls as you described with repair costs ranging from $5K to over $20K depending on the wall size. One thing I would caution you on is that if one wall has a defect the other may have similar flaws that have not shown up yet. Your structural engineer should be able to help you out. After getting preliminary input from engineer contact a contractor for pricing.
I hope this helps a bit. I would be excited about this opportunity for the right price.
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