Location, Location, Location (Again)
Normally, when a house has a major foundation issue, standard Realtor advice to Buyers is “run, don’t walk” (to something else).
What’s the exception to that?
If the home in question is on desirable lot in a hot neighborhood for tear-downs — and the foundation issue translates into a sufficiently hefty discount.
Exit Strategy
Even then, two caveats apply: 1) the house needs to be structurally safe to occupy,** at least in the short run (see next); and 2) the prospective Buyer’s timeline is relatively short – say, 3-5 years.
Then, the strategy is for the Buyer to pocket the discount; put no money into the house; then sit tight until it’s time to sell to a developer, who’ll tear it down.
**The Buyer’s lender (and likely insurer) will have a say in that. If the house is determined to be unsafe, the lender will nix the mortgage . . . which will likely nix the deal.
See also, “House Problems That Will Never Be Fixed.”