Foundation Matters: Ensuring Stability in Real Estate Transactions in Arizona Horizons

The Arizona Perspective

Arizona, particularly Phoenix, has witnessed a surge in real estate activities. As prospective homebuyers explore the housing market, an alarming trend has come to light - significant wall cracks in many houses during Open Houses. Our team at Arizona Foundation Solutions encountered this firsthand when one of our employees engaged in house hunting across the Phoenix area.

Recognizing the Foundation Signs in AZ

The cracks observed were not mere cosmetic issues, as some realtors suggested. They were indicators of potential foundation problems. From misaligned doors to dismissed questions about cracks in the drywall, these signs demanded attention.

The Role of Realtors in Arizona

Real estate agents have a crucial responsibility, guided by the commissioner's rule to be fair and transparent in transactions. However, there's a fine line when it comes to issues that require specialized knowledge, such as foundation problems.

The 'Tool and Tuxedo' Rule

Realtors adhere to the 'Tool and Tuxedo' Rule, acknowledging that they aren't obligated to discover conditions that require tools to uncover or can't be done in formal attire. When facing signs of stress in a house, the responsibility shifts to deferring to experts.

The Dangers of Opining on Foundation Issues

Opining on cracks or signs of stress without proper expertise can lead real estate agents into risky territory. By assuming an expert stance, they unknowingly take on liability, potentially jeopardizing the transaction.

A Lesson from Arizona Home Inspectors

Home inspectors have learned the lesson of deferring to specialists. When signs of stress are detected, they recommend involving a foundation expert. Realtors should take a similar approach, avoiding unnecessary liability.

Realtors' Responsibilities and Tools

Realtors can play a proactive role in preserving transactions while navigating foundation issues.

Getting Ahead with Foundation Inspections

Listing agents, in particular, can benefit from proactively obtaining foundation inspections before initiating a transaction. This preemptive step can prevent surprises during the process.

Incorporating Hold Clauses in Arizona

A strategic move is to include a 2-week hold clause in contracts. This allows for a thorough investigation if signs of stress are suggested by a home inspector, providing time to assess and obtain results.

Negotiating Repairs in AZ

When foundation inspections recommend repairs, realtors can engage in negotiations. Structuring contracts to withhold appropriate funds ensures the closing can proceed while repairs are executed post-closing.

Mastering the Art of Compromise

Negotiation skills come to the forefront in handling foundation issues. Striking a fair agreement that satisfies both buyers and sellers is crucial. Objective engineered reports contribute significantly to this process.

Aligning with Lenders

Ensuring that the lender is on board to facilitate funding holds adds an extra layer of security to the process.

Conclusion

Navigating foundation issues in real estate transactions demands a blend of training and perseverance from realtors. Prioritizing expert opinions over personal assessments, using strategic tools, and mastering negotiations are essential to mitigate risks and ensure successful transactions. In Arizona, where foundation matters, being proactive is not just advisable; it's imperative.