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Unlock Hidden Property Issues: Soil & Foundation Insights for Agents

In the original video from eAgent, I walk you through how understanding soil and foundation reports can uncover hidden property issues and save your clients thousands. If you're a real estate agent in New Zealand (or working with properties that have complex ground conditions), learning to read these reports protects your clients and your reputation. The phrase hidden property issues should be on every agent’s radar — and this article shows you how to spot them, explain them, and act on them.

Table of Contents

Why soil reports expose hidden property issues 🧭

Most property problems start below ground. A building can look perfect from the street, but soil conditions such as expansive clay or subpar fill can cause significant movement, cracking, and expensive repairs later. As I say in the video:

"I bet you didn't know understanding soil and foundation reports could save your clients thousands."

Soil and foundation reports translate technical findings into practical risk information. When you know what to look for, you can highlight issues early, advise on likely costs and timelines, and keep negotiations honest and safe.

Common red flags to spot 🛑

Be familiar with the common terms and what they mean in practice:

  • Expansive clay — Swells when wet and shrinks when dry; can lift or crack foundations.
  • Subpar fill — Poorly compacted or mixed fill can settle unevenly, causing subsidence.
  • High water table or poor drainage — Increases risk of ongoing movement and rot in timber structures.
  • Slope instability — Sloping sites can need retaining works or specialist engineering.
  • Contaminated soils — May need remediation, affecting cost and legal obligations.

Spotting one or more of these in a report is not a deal-killer — but it is a negotiation and disclosure point. The sooner clients know, the better decisions they can make.

How to read a soil and foundation report 🔍

Here’s a simple step-by-step approach to make technical reports readable and actionable:

  1. Start with the summary and recommendations. These sections state the main concerns and any required remedial work.
  2. Check the bore logs and diagrams. They show the depth and type of soils encountered (clay, sand, rock, fill) and where tests were taken.
  3. Note lab test results. Look for moisture content, Atterberg limits, and classification that indicate expansive or weak soils.
  4. Look for required actions. Does the report recommend underpinning, improved drainage, deeper footings, or further investigations?
  5. Assess cost and urgency. Ask a structural or geotechnical engineer for ballpark costs if the report lacks figures.

When you translate each section into plain English for clients, you turn confusion into clarity — and that reduces surprises down the track.

Talking to clients: plain English scripts 💬

Use straightforward language that focuses on risk, options, and next steps. Examples:

  • When a report flags expansive clay: "The soil under the house expands and shrinks with moisture. That can cause cracks and movement over time. The report recommends changes to foundations and improved drainage. We should get a cost estimate from an engineer before committing."
  • When the report shows subpar fill: "There are layers of fill that might settle. That usually means additional foundation work or compaction is needed — the report outlines possible fixes."
  • When the report is clear or only recommends monitoring: "The report doesn't identify high risk. It recommends routine monitoring and good drainage — both manageable and cheaper than structural repairs."
"That's where the eAgent course comes in. We break down reports, identify issues, and communicate what they mean in plain English."

That course also offers non verifiable CPD credit accepted by the real estate authority, which means you can upskill while meeting professional development expectations.

Quick checklist for agents ✅

Use this checklist when reviewing a property file or preparing for a client meeting:

  1. Obtain the full soil and foundation report (not just summaries).
  2. Read the executive summary and recommendations first.
  3. Pinpoint any mention of expansive clay, subpar fill, groundwater, or slope issues.
  4. Check for required remedial actions and whether costs or next steps are provided.
  5. Advise clients to get an engineer’s estimate if significant works are recommended.
  6. Disclose known risks clearly in listings and negotiations to protect clients and your reputation.

Conclusion: turn hidden risks into informed decisions 🏁

Hidden property issues often sit beneath the surface, but they don't have to blindside your clients. By learning to read soil and foundation reports, you can identify red flags, explain them in plain English, and guide clients to sensible solutions. The eAgent approach is about protecting clients and protecting your reputation — and it starts with a single skill: knowing how to read what's under the footing.

FAQ ❓

Q: How urgent are soil issues typically?

A: Urgency depends on the severity. Some recommendations are preventative (improve drainage), others require structural work. Always get an engineer’s opinion on timing and cost if the report flags major concerns.

Q: Will a flagged soil issue always reduce a property's value?

A: Not necessarily. Some issues are manageable and priced into the market; others require expensive work. Clear disclosure and accurate cost estimates help buyers and sellers reach fair outcomes.

Q: Can an agent read these reports without engineering training?

A: Yes. With basic training you can spot the main red flags and know when to refer clients to specialists. Short courses (like the eAgent course) teach how to translate reports into plain English and mark when professional advice is needed.

Q: How often should agents ask for soil and foundation reports?

A: Request them for older homes, properties with visible cracking, sloping sites, or listings in areas known for clay soils or fill. When in doubt, recommend a report — it’s better to know than to be surprised later.

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