
Selling a house with foundation issues is not an insurmountable challenge, but it can lead to delays, discounts, and damage control. As you’re preparing your home for sale, add a foundation examination to your personal checklist. It’s important to determine if your house has foundation issues because if it does, your pool of buyers may be limited since some mortgage loan companies may not close on a house with foundation problems. Government-backed FHA, VA, and USDA loans also carry stringent requirements regarding the structural integrity of the home, so foundational problems could delay or even end a deal. Lenders’ reluctance to grant mortgages on homes with foundation issues stems from the fact that 80% of structural claims are caused by foundation movement, meaning a home’s foundation is the greatest source of structural liability, according to the National Association of Homebuilders. If you aren’t sure if your house has foundation problems, or even how to determine if it does, we’ll walk you through how to find out — and what to do if you discover your foundation is on shaky ground. If you’re worried about selling a house with foundation problems, we’ll offer some advice from our experts Jared Davis, a top real estate agent who works with 80% more single-family homes than the average agent in Richmond, Virginia, and Bruce Barker, president of the American Society of Home Inspectors Inc., about what your options are, what steps to take, and what to expect along the way. Start with a walk around the outside of your house to look for obvious signs of structural or foundation issues that warrant further investigation. “A qualified Realtor, though, should be able to walk through a basement of the home — or look at it from the outside if there isn’t a basement — and be able to pick up on any warning signs,” says Brett Young, an experienced agent who sells 43% more quickly than the average Indianapolis, Indiana, agent. Exterior signs of trouble you’ll want to be on the lookout for include: You can also spot signs of foundation problems inside your home. Interior signs of foundation problems to look for include: If you find signs of foundation issues, there are a few things you should do. Davis advises that you should first call a structural engineer to take a closer look. “A structural engineer will look at the lot, drainage, soil, moisture, and other things. Calling a foundation repair company [first] is not the best option.” A professional inspection can help distinguish genuine foundation concerns from “false signs” such as nail pops, seam breaks, hairline cracks in concrete, cracks in floor grout or tiles, and normal brick expansion joints. These issues are more typically due to wear and tear, a home’s age, or poor craftsmanship and do not necessarily indicate foundation issues. “About 90% of cracks and settling are not structural,” Davis estimates. Barker concurs: “Cracks are the most obvious sign of foundation issues, but they can be difficult to interpret.” He says additional investigation is necessary. Where are the cracks? What size are they — how wide and how long? What is the foundation material? Is the slab structural? Is there evidence of water movement? As the seller, you must decide whether to fix foundation issues or sell “as is.” Keep in mind that the foundation problem you see is usually the result of another issue, such as soil shifting or moisture, and you may need to address those issues to make any foundation fixes successful. Once you’ve had a professional inspection, if you need to repair any foundation issues, call a qualified foundation repair contractor. According to the Foundation Repair Network, a foundation repair educational resource center for property owners, foundation work is not a do-it-yourself project. They recommend you get quotes from at least three licensed contractors whose foundation repair methods have been evaluated by International Code Council Evaluation Services (ICC-ES), a nonprofit organization that evaluates building products, materials and systems for code compliance. “Don’t make your final decision based on advertising and cheap prices,” the network cautions on their website. “If it sounds too good to be true, it probably is.” Most foundation issues are caused by soil and water, although some may result from poor construction. In order to fix a foundation problem for good, you may need to address its cause. The most common causes are: Whatever the cause of foundation issues, you can expect to pay an average repair bill of just under $5,000. More specifically, the national average ranges from $2,137 to $7,426. Of course, that depends on the type of problem needing fixed and other factors, such as where you live and the type of material your foundation is made of. Of course, as with any home damage, there are extreme cases that require much higher repair costs. For this post, we’ve gathered estimates for the more common foundation issues a homeowner might face. A breakdown of costs for specific repairs could look like this: Sources: HomeAdvisor, Fixr and Angi. Additional costs could include: Yes. There are plenty of buyers who will still consider purchasing a home with foundation problems — though you will likely end up selling at a lower price. House flippers look for a bargain; since they intend to renovate the home anyway, they may not be concerned about your foundation issues … as long as the price is right. Some buyers may use foundation issues as a bargaining tool to get a lower price. Young mentions one buyer who was only able to purchase a home after the price had been lowered to reflect the problem with the foundation. A buyer might be able to get a rehabilitation loan that allows for the repair to be done after the sale. The lender finances the house for the anticipated appraisal amount after the work has been completed. The difference in the amounts is used to perform the repair. A top agent will have experience selling homes with foundation problems and can guide you accordingly. The short answer is … maybe. It depends on the severity of the issue and on the market — and on a myriad of other factors. Edmond (Buddy) Eslava, an appraiser with the Appraisal Consultant Group in the Mobile, Alabama, area says it’s “significantly wiser” to have them fixed before you sell so you can command a higher price point. Conversely, Jerin Harper, from Harper Certified Appraisals in Oregon, believes it is not necessary to fix foundation problems prior to listing unless it comes at a reasonable cost. If a seller is considering fixing foundation issues, she says, “It is wise for a seller to educate themselves on any foundation issues and to get at least three bids from licensed contractors.” When making a decision on whether or not to fix foundation issues, consider the pros and cons: In most states, if you know about any foundation issues, you’re legally bound to disclose them. If you don’t fix foundation issues, Davis says, they are “100% a disclosure issue” and can be a reason for a price adjustment. Even if you aren’t aware of any problems, when the buyer orders a home inspection, the inspector will look for indications of foundation issues. Inspectors have to “tell what they saw,” Barker adds. “That’s why the homeowner should care.” Inspectors are required to report their findings, although he says they do not draw conclusions as to causes. “We just point out defects; the homeowner can call in an engineer or contractor.” The buyer will get a report from a structural engineer if the home inspection turns up anything. At that point, the buyer can buy it, walk away from the deal, or negotiate a lower price. If you think the challenges of fixing the foundation outweigh the benefits, selling a house with foundation issues is not inconceivable. Two viable options are: This means that you won’t do any repairs and make no guarantees that anything is in working condition. A seller can even specify certain items “as is” rather than the entire house. Be advised that you will still be held accountable for complying with state and federal disclosure regulations. One of the downsides is that you’ll likely get a lower offer. Although you’ll attract flippers and investors, you’ll likely reduce your pool of potential buyers. Surveys indicate that 48% of younger buyers want turn-key homes. An experienced real estate agent can help you decide if this is the route you should go. Getting an experienced agent who can set expectations and priorities and keep the deal together is key, Davis believes. If you decide to sell “as is” or directly to a cash investor, the right agent can walk you through the process and help sell the house quickly for the most money. HomeLight’s Agent Match tool can help you find a top agent to guide you. This free service can help you locate experienced agents in your zip code who know your market. Another “as is” sale that requires little to no prep work, this type of sale avoids the complications and delays often associated with financed purchases, so it can be a valid option if time is an issue. Investors can include flippers looking for properties to renovate and resell; buy-and-hold investors who want to rent out properties; and iBuyers, who generally want a house in good condition in the $200,000 to $500,000 range. With HomeLight’s Simple Sale platform, you don’t need to worry about repairs — or open houses or agent commissions. HomeLight’s network of investors will buy houses in almost any condition. Simply answer a few questions about your home, its condition, and your selling timeline, and get a cash offer within 48 hours. If you choose to accept it, you could close in as few as 10 days.
Lots of questions arise when a home has foundation issues. Here are some of the more common ones: Foundation problems are intimidating and can be costly, but they aren’t necessarily deal killers. Keep in mind that if you live in an established neighborhood with older homes, you’re probably not the only one dealing with foundation issues, Davis points out. Buyers looking in your area will likely encounter similar issues with other homes, so if yours is in otherwise good condition, it might not deter them. Some things a top real estate agent may suggest include: If you’re selling a house with foundation issues, a top agent can give you firm footing in each step of the way. Find the most effective, experienced agents in your area today with HomeLight’s Agent Match.
How do I know if my home has foundation problems?
If I see a foundation issue, what do I do next?
1. Get a professional opinion.
2. Make a decision.
3. Call a professional to repair any issues you decide to fix.
What causes foundation issues?
How much does home foundation repair cost?
Are there buyers who will consider a house with foundation issues?
Should you repair foundation issues before you sell?
Pros
Cons
Do I need to tell buyers about foundation issues?
What can I expect if I decide to sell my home “as is”?
1. Sell “as is.”
2. Sell direct to a cash investor.
What else should home sellers know about foundation issues?
The bottom line — inspect, disclose, share, negotiate