Real Estate Transactions

Addressing Foundation Damage Misinformation in Real Estate Transactions

Every year in the United States, thousands of home sales fail to close, and millions of dollars are lost due to misinformation regarding foundation damage. This pervasive issue is causing financial setbacks for both buyers and sellers in the real estate market.

Foundation damage and its subsequent repairs remain among the most misunderstood aspects of homeownership. Widespread misinformation often leads to misdiagnosis, resulting in the unnecessary installation of thousands of piers throughout the country. Cosmetic movement is frequently mistaken for structural damage, leading to entirely different repair methods and significantly varying costs.

Adding to the confusion is the misidentification of upheaval as settlement, particularly by pier salespeople, leading to improper pier installations. In these cases, repair expenses skyrocket, with a near 70% failure rate, warranties favoring the contractors, and dissatisfied consumers left in their wake.

Consider this: if you were to call three pier contractors for free estimates, you'd likely receive three vastly different proposals in terms of the number and piers or type of repairs, as well as their associated costs. This lack of consistency can be perplexing for homeowners facing foundation issues.

However, there is a better way to approach this problem. My mission is to protect both buyers and sellers by providing unbiased guidance. Unlike foundation repair salesmen, my recommendations are not influenced by my compensation. My goal is to ensure that any required repairs are done correctly and at a fair price.

Unfortunately, the typical sequence of events often unfolds as follows: I am frequently called in after home inspections have been completed, and by that point, the sale is often on the brink of collapse. Buyers may have already solicited free repair estimates from pier-selling companies, leading to costly and often unnecessary repair bids. Whether repairs are genuinely needed or not, the sale is usually jeopardized, or the buyer demands a substantial discount. Once the fear of foundation damage has taken hold, it becomes challenging to convince buyers that the damage or estimate was exaggerated or inaccurate.

In such scenarios, the seller loses the sale, and the buyer loses the opportunity to own their dream home due to inflated or unwarranted repair estimates. At this stage, all this book can do is guide sellers on how to prevent such issues with future buyers. Perhaps, if they had read the book earlier, this situation could have been avoided.

Ideally, here's what should happen: before listing a property on the market, the client or realtor should read the book. With knowledge you can identify and address any cosmetic or structural issues that may exist. Knowledge can preempt unnecessary repair concerns and be made available to help the inspector understand any potential issues. This proactive approach can prevent early viewers from walking away due to confusing findings during inspections, thus improving the chances of receiving offers that will not be derailed by unfavorable inspection reports. This approach should lead to successful closings on the initial offers, saving both buyers and sellers time, money, and stress.