Selling your house when it has foundation issues is a massive challenge. Over 8% of buyers will not give the home a second thought once they know it has foundation problems. As a seller, you are also not sure of the best way to proceed with the sale.
If you tell buyers your home has foundation issues by including the information in the details for the listing, you won’t get them to even take a look at the home. But, if you omit the information, prospective buyers will think you wasted their time with deceptive marketing.
Furthermore, you are not sure if the few buyers who may be interested in the home would like you to fix the foundation damage or not. These are just a few of the difficulties owners of a foundation-damaged home face when trying to selling their property.
So, what is the best way to sell your home if it has foundation damage?
How to sell a home with foundation damage?
There are three options available to homeowners trying to sell a home with foundation damage:
- Sell as-is
- Fix before selling
- Sell to a cash investor
Each option has its merits. Read on to find the solution that is best for you.
1. Selling the home as-is
When you sell as-is, you don’t do any repairs to the house; you leave the work of fixing the foundation to the eventual buyer of the property. The question you should answer when you choose this option is why would anyone want your home over a structurally sound property?
The only reason buyers choose a home with foundation problems over one with sound structures is the price. To attract buyers, the price of the home after a buyer has fixed the foundation should be lower than the sales price of similar homes that are structurally sound.
2. Fixing the home before you sell it
If you choose to fix the home before you list it, you should be aware of two things:
- Fixing the foundation does not erase it from the home’s history. Buyers will eventually find out about the problems, so you still need to disclose the issue.
- Some buyers will not trust the quality of work you have done. They will worry that you may have chosen the cheapest solution.
That being said, if you choose to repair the foundation before listing the home, the first thing is to do a proper assessment of the problem. Hire a licensed structural engineer to inspect the home, evaluate the problem and determine the cause of the foundation damage and the best way to solve it.
Next, have, at least, three foundation repair companies provide estimates for fixing the problem. There are several variables that influence the cost of foundation repair. These are the type of foundation, the origin of the problem, how long the problem has been there, and the type of solution.
Most foundation repairs cost between $3,000.00 and $30,000.00, depending on the size of the home and the other factors listed above. This price may not always include the cost of fixing issues that caused or contributed to foundation damage such as plumbing leaks in the basement.
After repairs are completed, you should have the same structural engineer assess the home again to verify that the problem has been solved. Note that banks and insurance companies will only accept a report on the status of the foundation if it is written by a licensed structural engineer.
Another thing to be aware of is, even when you fix the foundation, you will still need to price your home below market value to attract buyers. Also, if you fail to use a licensed structural engineer and document the repairs properly, the potential buyer will face problems getting a mortgage and insurance.
3. Selling to a cash investor
If you are unable to find a buyer who is willing to buy the house as-is and you don’t have the money to fix the foundation, there is a third option. Selling to a cash investor option lets you sell the home at once and you can escape the hassle of financing foundation repair.
A cash investor will buy your home without putting you through the tedious processes you have to endure with conventional channels. This option is stress-free, does not require you to disclose anything about the foundation problem, and you can conclude the transaction in a matter of days.
The only condition is the investor will usually offer to buy the house at a lower price than you would get on the open market. That’s because the investor must compensate for the risk they assume when they buy your home without any preconditions.
If you are a homeowner struggling to sell a house with foundation damage, Texas Cash Investor offers you a way to sell your home for cash. We will make you a no-obligation all-cash offer, without any fees or commissions. Contact Texas Cash Investor today!