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I am buying house for the first time and the home inspection report came back saying there may be potential foundation issues. I have attached screenshots from the report below. This is an 1976, one story house at 78745, Austin, TX. I am wondering how serious the problem is and if I should move forward with the house. Many thanks in advance for your input!

Excerpt from the report

Foundations 1. At the time of inspection the foundation appeared to have some movement considered beyond normal, exceeding acceptable tolerances. Observations made to support this opinion are listed, but not limited to the following: significant cracks observed on the exterior of the foundation; noticeable changes in the floor elevation; step cracks in the exterior veneer wall(s); interior sheetrock cracks and/or stress indicators; Typical settlement cracks Spalling or flaking occurring. A professional engineer should be consulted to evaluate the current integrity of the foundation and propose necessary repairs (if any).

Cracked tile(s) were observed in the primary bedroom, hall, and living room. The crack appears to be following a pattern consistent with typical foundation settlement. Repair as needed.

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    You have a very good inspector. Run, don't look back. The foundation defects are caused by the ground, which could be mainly consisted of "expansive clay" that is very difficult to deal with.
    – r13
    Commented Dec 10, 2021 at 23:21
  • Thank you for your input!
    – Dian Zhao
    Commented Dec 14, 2021 at 6:07

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Sorry , I would not buy it; you may not have the option as most mortgage companies would not write a mortgage on a cracked foundation. The separation of the interior floor tiles are a bad sign for me. That is; the cracks in the brickwork (mortar) may not be serious, but the separated floor tile reflect a cracks in the pad/foundation which is a problem. My son had a house in Round Rock , after several years it showed cracks in the edge of foundation which ran into the brick. Then separation of interior floor tiles. Bottom line, he rented it when he moved because no buyer could not get a mortgage. He had a happy ending, found a cash buyer and took a reduced price. You may be able to find a tolerant mortgage company today, but what about in the future if you want to sell ?

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  • Thank you for your input!
    – Dian Zhao
    Commented Dec 13, 2021 at 14:35

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