How to Sell a House with Foundation Issues
Most realtors will tell you the biggest barrier to selling your house is the location. But ask any certified home inspector and they’ll tell you an entirely different story. It’s actually the foundation.
That’s largely because foundation issues occur gradually and frequently without detection to the untrained eye. Without detection—until it’s too late.
What’s more, they can be expensive to repair. National estimates indicate it can cost upwards of $4,000 to repair a house with foundation issues. That’s just for average cracks and fissures. Major repairs could easily cost you well over $10,000. That’s on top of other household repairs, to mention nothing of inspection and appraisal fees, lender fees and other costs which are likely to lop off considerably more of your final offer. An offer which a broker has already negotiated.
Virtually all lenders will require a home inspection before approving a loan. If you’re trying to sell a house with foundation issues, here’s what you should know.
It May Not Be as Severe as You Expect...
Both lenders and appraisers take everyday wear and tear on a home into consideration as part of establishing its final value. While it’s always a good idea to remodel before selling a house, it may be both outside your budget and timeframe. A house that’s kept in good condition without restoration and minor foundation issues may not command that much at final closing. But you may find that both buyers and agents are willing to overlook minor repair needs if your house has historical value or is located in a desirable neighborhood.
Be Prepared to Settle for Less
Potential buyers aren’t particularly eager to purchase a house with foundation issues; and it’s understandable why. It’s been estimated that 12 million nonfatal injuries occur each year at home; and housing structure and design plays a significant role in that number. If you’re already selling your home at a bargain, you may find that buyers are more than willing to purchase a home with foundation issues—minus the actual cost of repair. That is, if they’re willing to purchase it at all.
List Your Home as Is
There’s a new breed of home buyers on the market who are eager to purchase a house with foundation issues, often without a drastic reduction in price. Inspired by reality TV and their own ingenuity, they consider themselves DIY afficianadoes. They purchase a house for the challenge of turning a fixer-upper into a showcase home. Yes, they exist; but they’re not easy to find. It’s a question of both luck and circumstance. In most states, you’re legally required to indicate any damages to a home prior to putting it on the market. And in most states, finding would be DIY gurus means actively looking at the number of refurbished houses that aren’t for sale. A hint? It’s not very many.
Sell Your House to a Home Buying Company
The flip side of the above scenario would be to sell your home as is to a home buying company like Enlight Homebuyers. Unlike the individual buyer, these are companies who will purchase a house as is—no matter what the condition—for the purpose of refurbishing to increase resale value. Virtually any region in any state has a reputable company who will pay cash for your home, regardless of how extensive damage is to your foundation.
If you need to sell your home fast, Enlight Homebuyers can give you a reasonable and negotiable offer in less than 7 business days. Ultimately, we can be an ideal solution… to a less than ideal foundation.
Don't feel like dealing with the hassle of fixing a home that has foundation issues? Contact us today! We’ll buy your home as-is so you can move on with life and not have to worry. Want to learn more? Give us a call at 1-800-655-8322 or fill out the form below!