Robert and Susan's Grand Rapids home had significant foundation issues discovered during a routine basement inspection — two walls had horizontal cracking indicating soil pressure, and a structural engineer estimated $28,000-$40,000 in repairs. They were planning to list but the agent advised the listing would fail to close without fixing the foundation first.
Foundation repair costs were prohibitive — the couple didn't have $28,000-40,000 in liquid savings. Listing without disclosing the issues would create liability. Listing with disclosure would likely result in either no offers or offers with massive contingencies that buyers would use to walk away after prolonged inspection periods.
7 Lakes Properties reviewed the structural engineer's report and made an offer of $148,000 as-is — fully disclosed foundation condition and all. We didn't require the sellers to repair anything or provide any credits. Our offer reflected the cost of the foundation repair as part of our renovation budget.
Robert and Susan closed 18 days after accepting. Net proceeds: $148,000. They used the funds to purchase a smaller, newer home without foundation issues. 7 Lakes Properties completed the foundation repair (parging, interior drain tile, and sump pump upgrade) within the renovation.
"Every realtor told us we had to fix the foundation before selling. 7 Lakes Properties said 'no you don't.' They were right and we were done in 18 days."— Robert and Susan T., Grand Rapids MI
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