Accepted Answer

Hello XXXXXXXXXXX, and thank you for your question.

Foundation repairs by reputable, experienced contractors seldom result in disasters of any sort.
In regard to the specific risks that you mentioned:
Major water damage, fire, or a crumbling house certainly are not common or expected consequences of foundation repair. If routine precautions are taken to protect the work area, and the contractor understands the soil and water table conditions and proceeds appropriately for conditions, and if utilities in the area are located and properly protected, there should be no flood or fire disasters. In fact I've never heard of an instance of a fire that was even indirectly related to a foundation repair.
Depending upon the type and extent of existing foundation problems, and the measures taken to repair them, some disturbance to some finishes in the home could occur - i.e. I've occasionally seen problems such as stress cracks in plaster or drywall wall finishes after foundation repairs, especially in areas such as below windows with low sills, that are in an area of the home that is close to the area where the foundation is repaired.
But it's rare to have any damage beyond fairly easily repairable cosmetic damage to finishes.

You asked for worst case scenarios, so I will tell you that the worst nightmare scenario I've ever seen was a home that collapsed while it was jacked up to allow an entirely new foundation to be poured. This accident was apparently the result of unexpected soil conditions and insufficient and unbalanced structural support. So, yes, this type of problem is not entirely impossible.
But the thing to keep in mind is that usually a foundation that is in need of repair poses a much bigger risk if the problem is simply ignored. A damaged foundation that is not repaired can eventually allow serious water damage, structural damage, and eventual threat of crumbling and collapse.

A house does not become worthless because it has had any particular number of repairs. Repairs that are done competently should never reduce the value of the home. Often recent repairs will increase the value of the home. And it's important to keep in mind that homes can and do become worthless simply because repairs are neglected.
If your buyer was willing to purchase the home even with the existing damage, there is just no reason to think that repairing the damage would cause the buyer to back out. And, if the bank is requiring it, it's a given that you will lose the sale if you don't have the repairs done.

You are wise to be concerned about the quality of repairs, and should be sure to check as many references as possible on any contractor you're considering for this work. Make sure that the contractor has at least 10 years of experience in this type of repair, and that the contractor is licensed and insured.


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Edited by MJ on 10/7/2009 at 2:39 AM

Expert:	MJ
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Answered:	10/7/2009

Architect

Licensed Architect, LEED® AP, NCARB Certified, M.Arch degree, 10+ years experience