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FTHB, it turns out the house I'm buying has a leaking basement. What next?

Backstory:
My offer was accepted, and the house was inspected and appraised.

The sellers disclosure noted that the basement does leak in the spring. The inspector saw that it was leaking after recent heavy rain, and at that point both the inspector and my real estate agent suggested that clearing the gutters and grading the area around house would likely take care of the issue.

The house is 95 years old, has block foundations, and after speaking with the neighbors, they've told me that every house in the area has water issues. I grew up in a house with block foundations that leaked, and it wasn't a big deal. We just fixed our downspouts and graded around the house.

It didn't seem like a big deal, and in this area, every house has a leaking basement, so we proceeded to the next step.

The appraiser came and noted the water, too, and the bank now wants a foundation inspection. The house appraised at $14k over the accepted offer (about 15%).

Cutting through the marketing is difficult when trying to find a foundation inspector. Every search just turned up foundation repair companies. I actually couldn't find a foundation inspector, but a Facebook group turned up a highly rated foundation company that also offered inspections. (Which, in hindsight, is apparently just a marketing tactic.)
The company sent out someone who acted more like a sales guy and ran through a big spiel leading inexorably to the conclusion that we needed to dig out the inside of the basement and install a sump. He did concede that the foundation is structurally fine (while not actually documenting that fact on paper), but the local water level is just too high, and said that no amount of above-ground efforts will prove effective at reducing water ingress.

I'm getting a second opinion. My real estate agent reached out to connection of his for a more straightforward experience. I'm meeting with that guy tomorrow, and will hopefully be determining how I proceed soon.


What I'm trying to figure out:
I don't know if it's worth proceeding.

I'm at least partially falling victim to sunk cost fallacy on the inspection/appraisal, but the house does meet all of the 'must have's' checkbox, and 90% of the "would like to haves" checkbox, in a market that has been really competitive. The appraisal being so much over the offer helps, too.

I know there are other considerations, such as whether the seller is willing to work with me on things (or even what the shape of those things will be).

Would you walk away, or would you proceed? Are there considerations with the that would affect your choice one way or another?

submitted by /u/ElectricCharlie
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source https://www.reddit.com/r/RealEstate/comments/c771mk/fthb_it_turns_out_the_house_im_buying_has_a/

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