So you’re in the process of selling your home. You’ve found a great real estate agent and want to make sure your house is in the best shape possible before you put it on the market. Everything is looking good so far, except for one problem – you’ve found signs of foundation problems around the property. Is selling a house with foundation issues possible, or should you get it repaired before you put it on the market?
There is no cut-and-dry answer to this dilemma as there are many factors to consider when making your decision. This guide will help you make the best possible choice.
Even if the cracks you’ve found seem to be minor, don’t underestimate them. More importantly, don’t attempt to fix the problem yourself, especially since insurance companies and/or lenders will likely ask for official documentation confirming the repair.
Find a foundation inspection and repair company to assess the issues you’ve found. The scope of the damage and the projected repair costs should be the primary factor driving your decision to sell your home as-is or fix it before selling. If you choose to sell your home as-is, you should offer your buyers a repair quote based on the repair company’s assessment.
Fixing your foundation before you sell your home will allow you to sell at a higher price point. The foundation repair will also come with a warranty, which will be reassuring to any potential buyer. Alternatively, fixing your foundation beforehand means it’ll be shown on the repair history of the home, which may turn away some interested buyers.
It’s also important to note that if the damage to your foundation is substantial, many banks may not offer loans for buyers. If you want your listing to attract buyers who may not have the ability to pay in cash, fixing your foundation may be your only option.
If the foundation repair is relatively small-scale and lower cost, getting it done before selling your home may be a fairly easy and risk-free route to take, especially if you’re concerned about attracting the widest possible pool of potential buyers.
Selling a home with foundation issues isn’t impossible – in fact, it may be easier than you think.
Keep in mind that not all buyers are looking for a move-in-ready home that requires little to no upgrades; in fact, many interested parties could be investors, house-flippers or flexible buyers who are open to purchasing a home that they can upgrade themselves.
These buyers won’t mind purchasing a home that needs a foundation repair, especially if they can get it at a lower price and/or have the means and personal connections to make the repair at a reasonable rate.
If the foundational damage is so extensive that banks won’t offer loans on your property, your home will be advertised as “accepting cash offers only,” and will primarily attract people looking to resell or “flip” your home. If you sell your home to a cash investor, your selling price will most likely be lower than it would be in the open market. Your real estate agent will be able to help you estimate how much you could get in a traditional sale versus a cash sale.
Ultimately, the decision to sell your home as-is or fix your foundation problems depends on the extent of the damage, the projected repair cost, the market you’re looking to reach and the price you’re willing to settle for. Take the time to talk with your realtor about your options as they can help you make the best decision for your needs.
No matter what you decide, you must be completely transparent about the state of your foundation with all potential buyers. If you’re not planning on repairing it yourself, give interested buyers the repair quote you’ve collected and be open to answering any questions they may have.
Regardless, your first step should be to consult an accredited foundation repair company to perform an inspection on your home. Perma-Pier offers no-charge evaluations to help you understand the extent of your damage and what to expect from a potential repair. Once you’re aware of what a foundation inspection and repair will entail, you can make an informed decision.
If you are in the process of selling a house with foundation issues, schedule your no-charge evaluation and let the experts at Perma-Pier help you move forward with confidence.