# Buying A House



## Justman (Jul 22, 2006)

Hello everyone!

I know this conversation doesn't even remotely apply to our OB, but I figured I could make a loose association, given that we have to park it somewhere!

We're considering buying a house out in the country. It's pretty large and the price is right. I figure I can get it even cheaper than the list price because of the stagnant market down this way. They've reduced the price on it 4 times over the past 8 months.

When I started investigating the house, I noticed some cracks in the brick on one side. I know this is indicative of foundation issues, which immediately got my attention. I did some investigating and the Realtor told me that the owners had in fact had the foundation repaired. I know that some foundation repair companies warranty their work and the warranty is transferable to future owners, and I've been assured that this is the case with this house as well. I've also been told that the house has been certified by an engineer and that the owners have the certificate to prove it.

I have to say that is my only concern about the house. The inside is immaculate. My wife loves the location and the house itself. The outside property needs some cleaning up, but it's nothing that a chainsaw and some hard work wouldn't fix. I'm not afraid of hard work!

I've always gotten some good advice from folks here and I've never been one to turn down the advice of those with more experience. So... What would you do?


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## FlashG (Jun 23, 2007)

I would say go for it if:

You can afford the payments.
You have the home inspected independently. Or you are satisfied with current inspections.
The home is located in a good area.
Do you have a house to sell? - If so you may want to make the offer contingent on the sale of your home. Even this can be problematic.
You have researched comparable sales in the area.

Sounds like there will be room the the OB! Go for it.

PS - I have 33 years in the real estate industry.


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## skippershe (May 22, 2006)

Do you have the name of the company that did the foundation repair??

I would call them and make absolutely sure that you will be covered if anything goes wrong.

Our house came with a lifetime warranty on the outside stucco...if only we knew who put it on there


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## Ghosty (Jan 17, 2005)

i don't want to put a damper on this at all -- BUT

Foundation warranties are often only worth the paper they are wrote on...

There are many foundation warranty companies that claims their warranties are lifetime repairs, but in reality they really aren't.

Most of them state that if your foundation moves again within two years they will fix ... after that ... you are on your own and they will charge you the going rates.

There are thousands of homeowners that didn't read the fine print or understand the fine print in the warranty and don't know how limited home warranties actually are, until something happens to their home and they need coverage.

I have seen allot of folks that thought that their 10 year foundation warranty was actually a 10-year, bumper to bumper warranty that should cover everything... but they're not ... in fact ... if you read the foundation warranties for the new homes being put up you will see they are extremely limited ... and that also goes the same for those companies that suppose to come in and repair a foundation and then cover it...

10-year foundation warranties have many, many, many, many exclusions. And if you take a close look at them hardly anything is covered after the first year, and by the second year, only air and electrical systems are covered, and after the second year, basically nothing.

And allot of the warranties say that if you have any problem with the warranty then you have to accept binding arbitration clauses that take away your constitutional right to a trial by jury. Allot of the warranties also contain unrealistic maintenance requirements that you have to pay for ...like once a year foundation inspections that YOU pay for to keep the warranty up...

A typical foundation warranty covers your home for one year, major systems for two years and only major structural defects for years three to 10. In order for the warranty to cover cracks, the cracks must be ¼ of an inch, before the warranty will kick in during the first year only. For years two to 10, it must pose a threat to the safety of the occupants before the warranty will cover it.

Take a look at the warranty and if you see an arbitration clause ask to have it removed from the warranty.. that way at least you could sue in court before a jury of your peers and not have to go before an arbitration committee of the waranty providers choosing...

But in your case -- the foundation was already repaired previously -- so you probably got stuck with a Arbitration clause -- at least make sure that the foundation warranty is transferable ...

YES ---Foundation problems scare me ...


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## jedmunson (Apr 14, 2006)

Have it checked out by someone of YOUR choosing - get all their claims in writting as well as copies of the work done by their foundation/engineer.

If all meets with your approval, I would buy.

Good luck









Jennifer


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## GlenninTexas (Aug 11, 2004)

Two other things to consider.
First, Ask the seller to purchase a Homeowner waranty as part of the sale. This is pretty standard these days. It's sort of an insurance policy that covers the major items in the house.
Second, ias already mentioned, pay for an independent inpection on the foundation yourself. After that report comes in, if your still concerned about the foundation, ask the sellers to put up 1/2 the cost of a repair in an escrow account or take it off the selling price. Everyhing is negotiable.

Good luck.

Regards, Glenn


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## Scoutr2 (Aug 21, 2006)

I'd have an independant engineering firm inspect the foundation and then look over all the warranties and what not. The seller sounds really motivated, so I'd be sure that all the claims they make are, in fact, true. I'd then take copies of the warranties to my homeowner's insurance company and have them read through the warranties and claims to find out what their advice is.

And lastly, check with your insurer about foundation claims. In most parts of the country, unless you purchase specific riders to the standard homeowner's insurance policy, foundations are not covered against cracking, settling, crumbling, deterioration, shoddy construction (or repairs), or any other type of footing/foundation problems. (The reason for this is the wide and varied types of construction, the age of the foundation, etc. - insurance companies DO NOT like paying claims, so they just flat out don't cover these things. They're too risky for them.)

Case in point:
We have a mine subsidance rider on our insurance policy, because of all the old abandoned mine shafts in our area (you never really know where they are, and some have been down there for over a hundred years). About 10 years ago, we had to have one end of the basement excavated and the block basement wall put back in place, because a neighbor's tree had a large root (the size of my thigh!) searching for water alongside our foundation. It was pushing the wall inward (about 3") and had cracked the mortar joints, allowing water to seep into the basement. The contractor excavated down to the footings, pushed the wall back in place, using hydraulic jacks, and then installed four, 5" steel I-beams inside to hold the wall in place. They then tuck-pointed the blocks (inside and out), re-waterproofed, then back-filled. Total cost - $5000! Our insurance did not cover this, even with the mine subsidance. (A subterranian mine shaft did not cause the damage.)

Be careful, but if everything checks out (and some previous posters had some good advice, also) and you can live with it the way it is and feel that the risk is worth the rewards - go for it! Nothing like a quiet place in the country. You can camp in your yard if you feel like it!

Just my $.02, and some experience on this topic.

Mike


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## ember (Jan 17, 2008)

I agree with all the afore mentioned items, and will add this bit. Hire an independant inspector, BUT, before you hire one check them out too. Just because the firm has been around forever, some of their crew may not have all those years of experience behind them, and somethings are learned on the job and no other way!! Also make sure the inspector "does foundations". We do some restoration work, and one thing is ALWAYS for sure with a foundation problem, the problem was caused by something specific, and if that specific isn't fixed, the foundation isn't fixed!!
Ember


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## redmonaz (Jul 24, 2006)

You may ask around about houses in the area to find out if it is a problem with the soil in the area, or the way the house was constructed.

As far as moving to the country, make sure you can live that far away from stores and such. We moved out of town about 6 years ago. It took a little getting used to. No pizza deliveries, fast food is cold by the time you get home and you can cook it yourself faster than you can run to town to get it. Once we adjusted this was not a problem for us, in fact I eat much better and we save some money in the long run. We keep frozen pizzas and burger patties in a spare freezer. Another issue is when the kids would get sick and we needed Gatorade or other emergency supplies.

We have had friends move near us and within a few monthes they are selling and heading back to town. Unfortunatly town is growing to us, but we love it!


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## Justman (Jul 22, 2006)

Well, I guess I should correct myself a bit... When I say we're moving out to the country, that's probably a bit of a stretch. The house sits on 4 acres, but it's adjacent to other properties with houses on them. They're relatively close by, say about 150 yards between them... However, that's still better than being able to stand between your house and your neighbors house and touch both walls at the same time!

The house is about a 15 minute drive from where we currently live, and about 10 minutes from the nearest grocery store and fast food joints. It's not "out there" out there, but it's further "out there" than where we live now.

Thanks for all the advice! We'll probably wait a bit to make an offer and see if mortgage rates are going to fall again. I figure that if we loose this house while we wait, that God has another place for us to live elsewhere!


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