Nothing kills a deal faster than the words foundation problems in an inspection report. Colorado has a lot of expansive clay soil that swells when wet and shrinks when dry, so cracks and movement are common. Most cracks are minor. Some aren't. My construction background taught me one rule: don't guess, get an engineer. Here's how I walk agents and buyers through it.
The short answer
A home inspector can flag signs of movement, but only a licensed structural engineer can say what's going on and what fix is needed. Common signs include stair-step cracks in block, wide or uneven cracks in poured walls, sticking doors, sloping floors and gaps at windows. Fixes range from grading and gutters to piers (like helical piers screwed deep into stable soil) to wall bracing. Get the engineer report and contractor bids before you negotiate.
Step by step
- Stay calm on the phone. Tell the buyer, "Lots of Colorado homes have cracks. Let's find out if this one matters."
- Order a structural engineer. Do it right away so the report comes back before the inspection objection deadline.
- Ask for a written report. It should describe the cause, whether movement is active, and the recommended repair.
- Get bids from licensed contractors. Use the engineer's repair plan. Get two bids if time allows.
- Check for past repairs. Ask the seller for any engineer letters, warranties or permits from earlier work. Some pier warranties transfer.
- Look at the water. Many problems start with bad grading, short downspouts or sprinklers too close to the house. Cheap fixes can matter a lot.
- Negotiate with facts. Ask the seller to complete the engineer's repair with a final engineer letter, give a credit, or adjust price. See handling the inspection objection.
- Tell the lender. Big structural issues can affect the appraisal and loan. Some loans require repairs before closing.
Common signs and what they may mean
| Sign | Possible meaning |
|---|---|
| Hairline vertical cracks in poured concrete | Often shrinkage, usually minor |
| Stair-step cracks in block | Movement worth an engineer's look |
| Doors and windows sticking | Possible settling or heave |
| Sloping or bouncy floors | Possible structural or soil issue |
| Basement floor heave | Common with expansive soil |
| Water at foundation | Drainage problem; often fixable |
How to explain it to your client
"Colorado soil moves, so a lot of houses have cracks. Some are cosmetic. Some need work. I'm not going to guess and neither should the inspector. Let's get a structural engineer out this week. They'll tell us what's causing it and what the fix is, and then we'll get a real repair bid. Once we have numbers, we can decide together whether to ask for a repair, a credit, or walk away."
Watch-outs
- Don't diagnose. Agents and inspectors flag. Engineers diagnose.
- Time is tight. Engineer schedules fill up. Book on day one of inspection.
- Repairs need paperwork. A final engineer letter and any permits protect the buyer and future resale.
- Disclosure. Sellers must disclose known structural issues and past repairs.
- Investors see opportunity. A known foundation fix can be priced in. See working with investor clients.
Further reading
- What investors should know about homes that need helical piers on kennarealestate.com
- Foundation maintenance tasks that prevent costly repairs on kennarealestate.com
This is training for real estate agents. It isn't legal advice. Check with your managing broker.
Questions
Are foundation cracks always a big deal?
No. Many are minor. An engineer tells you which ones matter.
What are helical piers?
Steel piers screwed deep into stable soil to support or lift a foundation.
Who pays for the engineer?
Usually the buyer, as part of their inspection. It's negotiable.
Can the buyer walk over foundation issues?
Under the inspection terms, yes, by the deadline.
Do foundation repair warranties transfer?
Some do. Ask the seller for the paperwork.
Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.