How much to reduce ARV for a house with foundation repairs?

Question

Popular opinion (at least in and around Pittsburgh) is that a home that has had wall anchors, etc installed frightens most buyers and therefore requires a price reduction.

I'm looking at something that could be good, if I can price it correctly in my analysis.

Thoughts?

Any experience that can provide a general estimate for what that might be? 20% under ARV?

Jay Belcher · Answer

Hey @Chris Gordon - just an idea, but considering studding out the walls (finishing the basement) so that the anchors aren't visible. You still disclose them on the seller disclosure (obviously), but it's not immediately in their sight when looking at the house.

Jay Belcher · Answer

@Jerry Kisasonak - you are correct, anchors need tightened, but that's a very small access point - even a 4x4 j-box cover could be enough access.

However Jerry is correct, anchors and straps aren't really a "solution". They stop the problem from getting worse, but the state pressure against the wall remains. Addressing the real problem could be as simple as fixing downspouts to as complex as regrading and providing foundation drains. Even rebuilding the walls doesn't address the static pressure.

My only point is that most buyers know nothing about such issues and object on the basis that there's something there they don't understand. And when they don't see it, their objections are lessened.

Jerry Kisasonak · Answer

@Jay Belcher

You can't really finish off the walls. The anchors need to be tightened regularly and should remain accessible.

In my opinion anchors and/or carbon fiber straps aren't a real solution. You still have static pressure against the wall which could cause more problems down the road. I think a lot of buyers feel this way too, which is why resale can be difficult.

Chad Reed · Answer

20% seems really high to me....I would say closer to 5%

How much to reduce ARV for a house with foundation repairs?

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