Selling a house with foundation issues isn’t impossible. You just need to be aware that it may cause delays, damage control, and, potentially, discounts. But that depends on the route you take.
Generally speaking, you have two options when it comes to selling a house with foundation problems — fix the issues or sell as-is. If you go with the latter option, you may have to prepare yourself for getting less money than you initially expected.
In this article, we’ll discuss what happens when you find a foundation problem, how to sell a house with foundation issues, and whether you need to disclose repairs.
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What Happens If a House Inspection Finds Foundation Problem?
Foundation issues often arise when the soil expands or constricts as per temperature changes, weather shifts, and water level alterations.
Cracks in the walls, chipping slabs, warped siding, and walls pulling away from your property are all tell-tale signs. But even if you can’t spot them, a foundation issues home inspection will always bring them to light.
So what happens if you need to sell a house with foundation issues that a home inspection found.
Once a home inspection finds foundation issues, you must disclose them to prospective buyers if you aren’t going to fix them yourself. Otherwise, you could be held legally liable when the buyer finds out about the problems, regardless of how many years following the sale that might be.
If the buyer has issued a home inspection because they plan to purchase your house, the inspector will send the buyer the report directly. In this case, you don’t need to worry too much about disclosure, as they will already know.
However, this could impede the sale. Many purchasers aren’t prepared for foundation issues. Thus, pull out of the deal before closing.
How to Sell a House with Foundation Problems
As we mentioned earlier, you have two main options when selling a house with foundation issues. We’ll go over both in detail below:
Option One: Fix the Problems
A structural engineer will provide an educated estimate of the necessary repairs and the cost. The quoted price will depend on the severity of the damage and the work involved in fixing it.
“Make sure you talk to several engineers that specialize in real estate and are local to your market and don’t and be sure to take your time even if you need to sell your house fast,” said Shaun Martin, a real estate investor and cash buyer based in Denver, CO. “I have met many home-owners in Denver that didn’t talk to multiple experts and ended up spending way more cash to fix the foundation than they needed to simply because they over invested in the repairs and were trying to sell their home fast, and so in my humble opinion reach our to lots of experts, either a bunch of cash buyers you can find out about here, or an individual cash home buyer in Denver that has legitimate reviews which you can find by following this link.
In some instances, conducting the repairs yourself will alleviate potential buyers’ concerns and help you receive the maximum possible value for your home.
However, repairing the foundation can be a super-lengthy process. Plus, it tends to be quite an expensive affair, especially when there’s extensive damage.
In these cases, selling at a discounted price may be more financially beneficial than conducting the repairs yourself.
Do You Have to Disclose Foundation Repair?
Selling a house with foundation repairs will ensure you get the most money for your property. But whether or not you need to disclose these repairs is a pretty gray area.
The best way to decide on disclosure is by checking your state’s real estate disclosure form. Most of them require you to dictate whether there are current known problems and whether there were issues in the past.
Legally, you need to disclose to the extent the form requires.
Option Two: Sell As-Is
If you don’t want to or can’t pay thousands of dollars to repair your home’s foundation, you can sell it as-is. But be prepared to lower your asking price. After all, it requires the buyer to take on and repair the damage. If you are in California, check out selling a house in Sacramento as is to know more about the advantages of selling a home without making any repairs.
Always disclose the damage to potential buyers. They won’t take too kindly to the deception if you don’t let them know about the problem right away.
If you’re worried about selling your home as-is on the traditional marketplace, consider working with a professional house-buying company. They’re well-versed in these matters and are prepared to purchase your property with foundational issues.
Usually, this is the easiest way to move on to the next chapter of your life. These companies tend to finalize their sales in a week or so, relieving you of any responsibility.
The Bottom Line
Despite the disheartening feeling you may endure when realizing your home has defects, selling a house with foundation issues isn’t an overly complicated ordeal.
Whether you decide to fix the problems or opt for an as-is sale, you will sell your home at some point. Just pick the method that’s right for you, your house, and your circumstances.
