Is this a serious issue?

[pixiegurl]

Hey all,

We are first time home buyers in Fremont, CA. We just found a home that we liked and had it inspected. There were not many significant issues, except some deterioration in a foundation wall. The home inspector was not willing to comment on this issue , but he did mention that this is not a common problem that he encounters.

This is his write up:

Foundation perimeter stem wall at family room perimeter has deterioration. Sufficient deterioration can compromise the structural integrity of the foundation and structure. Also, rebar inside foundation is exposed, increasing risk of corrosion and further damage/deterioration of foundation.
Specific structural conclusions and structural risk
assessments are beyond the scope of a home
inspection and would require further review by an
appropriate specialist. Recommend that this finding
and all associated components be reviewed, and
corrected as needed, by a qualified, state licensed
foundation contractor.

I have attached a photo of the issue.

I am not sure if this is a big issue or a common issue. Should we stay away from this house or still pursue it? Anyone got any ideas?

Thanks

[burnselk]

Your best and most appropriate solution is to hire a professional structural engineer to tell you what needs to be done to this house before you make an offer. This is an easy one. Just do it if you're serious about buying the house.

Run, don't walk, away from houses with obvious and serious structural problems. There are too many houses to chose from.