Aug. 11, 2008
Dear George: I purchased a new home two years ago, and recently had issues with cracks in the walls and sloping floors. The builder investigated my claims and determined that the foundation had moved eight inches. He covered the repairs. Although the foundation-repair company hired by the builder offers a pro-rated lifetime warranty, I'm concerned about selling my house in the future. Do houses that have had foundation repair lose some of their value versus a comparable house without foundation issues? If so, what recourse do I have at this point to recoup any loss I may suffer at a future date?
Answer: If other homes in your area have had foundation repairs or you see little or no foundation movement in the years before you sell, there probably won't be too much price differential. Is your foundation-repair company's warranty transferable to future owners? If so, that could help your sales price. You can also hire an appraiser to determine what your home's sales price would be with and without foundation repairs. Area REALTORS® are another good source for comparable sales-price data.
Dear George: Is there a customary percentage or amount for earnest-money deposits? Does it depend on whether the house has already been built?
Answer: No, the amount of earnest money required by sellers is negotiable.
E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
