Foundation Problems Found on Inspection: What to Do Next
The word "foundation" in an inspection report triggers panic. But not all foundation issues are deal breakers. Here's how to tell the difference.
"Foundation issues noted" might be the most anxiety-inducing phrase in a home inspection report. But foundations are complicated, and the range of findings goes from completely normal to genuinely terrifying. Understanding what your inspector actually found — and what it costs to fix — helps you make a rational decision instead of an emotional one.
Normal vs. Concerning Foundation Findings
| Finding | Severity | Typical Cost |
|---|---|---|
| Hairline cracks (less than 1/8 inch) | Normal settling | $0 - $500 (seal/monitor) |
| Vertical cracks, 1/8 to 1/4 inch | Minor — monitor | $500 - $2,000 |
| Stair-step cracks in block/brick | Moderate — evaluate | $2,000 - $8,000 |
| Horizontal cracks | Serious — structural | $5,000 - $15,000 |
| Cracks wider than 1/4 inch | Serious — active movement | $5,000 - $30,000 |
| Bowing or bulging walls | Critical — immediate attention | $10,000 - $50,000+ |
| Significant floor slope (1+ inch across room) | Critical — structural failure | $20,000 - $100,000+ |
California-Specific Foundation Concerns
California's geology creates unique foundation challenges. Expansive clay soils (common in the Bay Area and Southern California) cause foundations to heave and settle seasonally. Hillside homes may experience creep or slide. Seismic activity puts additional stress on foundations, and older homes may lack modern earthquake retrofitting like foundation bolting and cripple wall bracing.
If your inspector flags foundation concerns in a California home, consider hiring a licensed structural engineer for a focused evaluation. An engineer can tell you whether the movement is active or historic, what repairs are needed, and what they'll cost. This evaluation typically costs $300-$800 and is worth every dollar.
The Disclosure Question
Foundation problems are one of the most commonly under-disclosed issues in California real estate. The TDS specifically asks about "settling, slippage, sliding, or other soil problems." If the seller checked "No" but your inspector found significant evidence of foundation issues — especially evidence that's been there for years — that's a serious disclosure concern that strengthens your negotiation position considerably.
Evidence of prior foundation repair (patched cracks, previous underpinning, steel supports) is even more telling. If the seller previously repaired foundation problems, they clearly knew about them. Check whether the TDS discloses any prior foundation work.
When to walk away: Active foundation failure with repair estimates exceeding 10% of the purchase price, combined with evidence the seller knew and didn't disclose. At that point, you're buying a lawsuit, not a house.
Get Foundation Severity and Cost Estimates
OfferWise rates foundation findings by severity and provides cost estimates, cross-referenced against the seller's disclosure.
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