Home Buying in Denver>Question Details

Chris, Home Buyer in Denver, CO

What is the impact on the resale value of a home after foundation repairs by a reputable company in Denver, CO?

Asked by Chris, Denver, CO Mon Jan 9, 2012

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16
If you have a warranty and a receipt, you should be in the clear! Are you looking to put your home on the market soon? I would love to talk with you more about what you would need to do to disclose the issue to a potential buyer.

Please feel free to give me call if there is anything I can do to help!

Lane Walsh
Broker/Owner
Dwell Denver Real Estate
720-299-8895
Web Reference: http://www.dwell-denver.com
2 votes Thank Flag Link Mon Jan 9, 2012
As many have stated previously, the answer really is that it depends. Obviously, a warranty from a reputable company would go a long way, in my opinion.
1 vote Thank Flag Link Mon Jan 23, 2012
Hi Chris:

As others have mentioned, well-done structural repairs generally satisfy buyers. But, if this is an issue with a home you want to buy, I would suggest that you simply take care to make certain all repairs were handled properly and that all necessary repairs were made. You will want to make sure you have a copy of the guarantee from the company that did the repairs and have a structural engineer sign of on the work. You might even ask the current owner to pay for this special inspection.

Home sellers who have repaired structural problems should be proactive in selling the quality of the repairs. Colorado regulations make it extremely dangerous to avoid disclosure in a case like this, even if that were physically possible. So answer all possible buyer questions upfront. The guarantee should be uploaded to the MLS along with the seller's property disclosure. It probably should be available at the house also. If the company that handled the repairs has written recommendations from happy previous customers, these should also be easily available to buyers. And the sellers should offer to have an engineer's structural inspection. Make it clear that the work was done well, that the company will stand behind it and that you are happy with the result.

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
Days: 303.981.1617
Evenings: 303.473.1926
ron@rovtar.com
http://www.rovtar.com
1 vote Thank Flag Link Tue Jan 10, 2012
Chris,

In my experience, strutural issues don't necessarily impact the property negatively when repairs are done correctly. The proper structural engineers report and documented repairs can in some instances positively impact the resale value. This is especially true for turn of the century homes and other older homes. The question is always asked about current, previous, or possible future structural damage. Once it is understood that the structural issues and fears are taken care of by a reputable company with warranties, it can be a real plus.
Good success with your purchase.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
1 vote Thank Flag Link Mon Jan 9, 2012
Hi Chris-
I have sold a couple of homes like this. Even with a reputable structural engineer setting the scope of work and/or working through the repairs and providing a 30 year warranty, which is the typical warranty for this type of repair; it still depends on the nature and extent of the problem as well as what was done to correct it. Extensive foundation issues that require a lot of repair work may still have an impact on the house. If you are just utilizing piers that is not as apt to frighten future buyers as wall anchors will, warranty or no. And of course wall anchors are typically used when the problem is due to expansive soils so there is no guarantee that the problem won't crop up in another place on the foundation.

This question can be really well addressed by Peak Basement Systems out of Colorado Springs. (copy & paste following address into your browser: http://www.structuralrepaircolorado.com )
They will come out and conduct a thorough inspection of the property and provide an estimate free of charge- even if the repairs have already been effected they will inspect them. They have been in business a long time and can probably give you some ideas of value impact just based on experience. If for some reason they are not able to answer your questions to your satisfaction I would recommend calling a licensed appraiser- I use Mike Carney @ Metropolitan Appraisers (303) 761-5113 and ask him.
Good Luck out there!
Carole & Greg
1 vote Thank Flag Link Mon Jan 9, 2012
Chris,

Like any repair or damage to a house, if the job is done correctly you should have no worries. Foundation repair does not automatically mean that the structure has been compromised in any way. If you are concerned about the structural integrity of the property I would consult a structural engineer. Most realtors should know a reputable one.
Almost every house has had repairs done to them, if it has been done correctly you should not be able to notice the repair and hence it should not affect your resale value. If the repairs are structural then it may have an effect on the value of the property, depending upon the severity of the issue.
1 vote Thank Flag Link Mon Jan 9, 2012
Hi Chris,
You have lots of good answers here.
In my experience, if the repairs were done properly, and you have supporting paperwork, then it might make the home even more marketable, as any fears of foundation issues have been addressed and repaired. If there isn't a structural engineer's report, one should be obtained.
Best of luck
Chuck Strauss
Your Castle Real Estate
denverhomeguru@gmail.com
1 vote Thank Flag Link Mon Jan 9, 2012
It may also depend on how the buyer's feel about the repairs. Some Buyers may think it is an issue, some wont.
In the Seller's property Disclosure you must say it had structural problems and repairs. You may want to include details in the Property Disclosure
1 vote Thank Flag Link Mon Jan 9, 2012
The best answer I can give is "it depends" It depends on whether it is common in for other homes in the area to have foundation problems. It depends on whether a structural engineer made repair recommendations and whether the repairs were made in strict accordance with those recommendations. It depends on whether other systems in the house were affected and the quality of repairs to those systems. Your agent should be able to help you determine the value after repairs have been made.
1 vote Thank Flag Link Mon Jan 9, 2012
It should not hurt the resale value as long as proper permits, if applicable, and warranties are provided and it is done by a qualified structural engineering company. Call us with any addtional questions as 303-359-8218.
1 vote Thank Flag Link Mon Jan 9, 2012
Assuming that you got a Warranty from a reputable company;
I would venture that it would increase in value:
All homes settle some; those in an earthquake zone will have a lot of cracks.
Wherever you are, when a major repair like that has happened, it means less for the new owner to worry about.

Good luck and may God bless
1 vote Thank Flag Link Mon Jan 9, 2012
If the foundation was repaired and any other condition and maintenance issues are handled that would bring the house in to what is called marketable condition. Assuming those repairs are good then the house should be compared to sales in the immediate neighborhood to determine resale value. I would be happy to perform a Market Analysis for you to get down to a real likely selling price.
Assuming you market it you would need to disclose what the former foundation condition was and what repairs were done.
1 vote Thank Flag Link Mon Jan 9, 2012
Hi Chris,

That really depends on the details - what kind of repair was completed, extent of damage, possibility of further damage, etc. I would be happy to complete a free CMA for you if you are wondering what your home is worth. Please feel free to contact me anytime.

Chris Eisenhard
303-349-5035
chris.eisenhard@gmail.com
1 vote Thank Flag Link Mon Jan 9, 2012
A warranty provided from a very reputable company should go a long way for you after repairs. Of course, the buyer will most likely get their own inspection so be prepared to challenge that if needed. Also be prepared to probably have your home on the market a little longer than others with non structural issues. Just the word "structural" will scare off buyers even if the faults have been repaired.
0 votes Thank Flag Link Fri Oct 10, 2014
Hello Chris,

Thank you for submitting your question. The best way to answer your question is to advise both buyer and seller to have full disclosure of all known issues; disclose, disclose, disclose. Most inspection issues are easily manageable when properly disclosed. I have listed and sold homes with structural issues that were uncomplicated because my seller performed proper repairs with licensed contractors and engineers. As long as adequate documentation is provided to any prospective buyers, the transaction should move forward and you should be fine. Many sellers and some brokers are not aware that executed Inspection Notices are a component of the purchase contract and as such any Inspection Notice that is executed by both parties should be available to the lender. Having everything disclosed up-front will help you simplify the purchase process.

If you have any additional questions feel free to give me a call. 303-638-7021

Corbin Wagoner
RE/MAX ALLIANCE
0 votes Thank Flag Link Mon Jan 9, 2012
There are a few different impacts on the value of the home. The primary one would really be if it is going to affect the appraised value of the home with the repairs. If the damage was noticable to an appraiser, the sale price/value would be directly affected if you were to sell the home without the repair. Now with the repair, the home is worth whatever the market allows. If you want to know the value of a home, assuming there are no serious problems, then any Realtor, including myself, can help you with a CMA or Market Analysis of the property, providing recent comparable sales in the neighborhood. My office has former experienced Appaisers and home inspectors, who now do Real Estate, and can provide lots of detail and true value.
0 votes Thank Flag Link Mon Jan 9, 2012
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