Skip to main content

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
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/c771mk/fthb_it_turns_out_the_house_im_buying_has_a/

Comments

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...

How to Avoid Property Scams in Delhi?

Here’s What You Should Know! Commercial Real Estate (Non-Residential) Buying a property in Delhi can be tricky, especially with all the stories about scams and shady deals. If you're in the market, here are some tips to keep yourself safe:Double-check the documents: Always verify ownership and approvals. Don’t just take someone’s word for it—look at the actual papers. Do your homework on prices: Compare similar properties to avoid overpaying. A little research can save you from a bad deal. Work with trustworthy people: Whether it's a seller or an agent, go for someone who's transparent about pricing and the process. If they’re dodging questions, that’s a red flag. Ask for reviews or references: If someone you’re dealing with has a good track record, they won’t hesitate to share testimonials or connect you with previous clients. I’ve noticed that some property services have started focusing on things like verified listings and clear communication, which makes the whole proc...