Foundation/Structural issuse

[jalacart]

Working on a 1004 Conv Purchase. Marketed as needing TLC, so figured it would be C4/cosmetic. Inspect the property and it has SEVERE foundation and structural issues. Massive cracks, doors dont close, on a slab and it is MAJOR issues. Not sure why they thought they could finance it. In engagement it says if C5 make it subject to a C4, I mean it may be a C6, the finishes aren't bad but the structural integrity is compromised. I feel like I am not qualified to make that call. How would you all proceed?

 

[shrubberyvaluation]

Working on a 1004 Conv Purchase. Marketed as needing TLC, so figured it would be C4/cosmetic. Inspect the property and it has SEVERE foundation and structural issues. Massive cracks, doors dont close, on a slab and it is MAJOR issues. Not sure why they thought they could finance it. In engagement it says if C5 make it subject to a C4, I mean it may be a C6, the finishes aren't bad but the structural integrity is compromised. I feel like I am not qualified to make that call. How would you all proceed?

Explain what you said to us to the client and that you are not a structural engineer and do not have the expertise to know what all needs to be done to bring it to C4 perhaps?

 

[Charles West]

Working on a 1004 Conv Purchase. Marketed as needing TLC, so figured it would be C4/cosmetic. Inspect the property and it has SEVERE foundation and structural issues. Massive cracks, doors dont close, on a slab and it is MAJOR issues. Not sure why they thought they could finance it. In engagement it says if C5 make it subject to a C4, I mean it may be a C6, the finishes aren't bad but the structural integrity is compromised. I feel like I am not qualified to make that call. How would you all proceed?

Request a hold on appraisal and ask for a full structural engineer report with a estimated range of cost to cure possibilities.

 

[Charles West]

Explain what you said to us to the client and that you are not a structural engineer and do not have the expertise to know what all needs to be done to bring it to C4 perhaps?

Great minds think alike.

 

[Overimprovement]

Most SEL's have a clause that says if subject is this, this, or that, stop work and call us immediately. A foundation that bad is definitely this this or that...

Hope you get paid at least half for your time, but this deal is very likely dead.

 

[jalacart]

Ya that's what I was thinking, just wanted to make sure I wasn't missing something, this is the worst I have ever seen.

 

[Overimprovement]

In addition, if realtor photos do not show some of this damage, I would not want to be that broker. They should not get a free pass on issues this bad IMHO. That's a very serious safety issue as house could be on its way to collapse.

 

[jalacart]

In addition, if realtor photos do not show some of this damage, I would not want to be that broker. They should not get a free pass on issues this bad IMHO. That's a very serious safety issue as house could be on its way to collapse.

I looked at photos again on MLS, and you can kinda see them, but NOTHING like in person.

 

[Fernando]

I had an adverse situation and I noted in report. I assume client read my lack of expertise and requested a foundation engineer to investigate.
Later, I got an engineer letter on the foundation which helped explained the situation.
Putting it in the addendum as a revision report, I explained the situation and how it affected my appraised value.
Thank goodness I charged a lot on the appraisal prior to finding out the problem. It was a lot of work and time on that appraisal.

 

[Overimprovement]

I looked at photos again on MLS, and you can kinda see them, but NOTHING like in person.

Well that's something anyway. Just curious, is the house priced as a C4, or C6? Does it seem like buyer knows what they are getting into?