While there is a lot of freedom that comes with owning a home, there is also a lot of responsibility. In 2020, the biggest worry among homeowners was that they would have to make major repairs.
One of the last things that any homeowner wants to hear is that their foundation has issues.
How do you go about selling a house with foundation problems? Is it possible?
Let’s take a look at everything you need to know.
How to tell if a foundation is bad
While you probably won’t be able to officially diagnose structural problems or foundation issues on your own, there are signs of a bad foundation you can look for. If you discover any of these signs, then you can investigate further.
The first thing you’ll want to do is take a walk around your home. Keep an eye out for any crumbling or cracks, or anything else that seems a bit off. This might mean separated siding, bowed walls, or long cracks in the paint.
Other things you can look for include uneven flooring, a mildew smell or wetness, or cracked flooring or tiles.
If you find one or more of these signs, you can then call a foundation repair company and have a professional come out. They’ll be able to tell you more about what the issue likely is.
If you are planning on fixing the foundation problems, this isn’t a job you’ll want to do on your own. Instead, you’ll want to collect assessments from at least three different contractors before choosing one.
Are you wondering if you should sell your house now? Check out this article to learn more.
How much does it cost to repair a foundation?
The cost of fixing a damaged foundation varies widely depending on how severe the problem is and what type of problem it is. The national average cost to fix this type of problem is about $4,000. In a worst case scenario, it can cost up to $50,000.
Many inspectors will say that cracks in the foundation that are less than a half-inch aren’t too much of an issue. For larger cracks that are a result of the house settling over the years, the repair could cost up to $10,000.
Let’s take a look at some of the different types of foundation problems and how much they typically cost to repair.
Horizontal foundation crack
This type of crack is often caused by water pressure or soil pressure that comes from poor drainage. This can also be due to insufficient backfilling during the process of construction.
Repairing even minor cracks can cost around $4,000. However, it’s possible that it is indicative of a larger problem that could cost up to $15,000.
This type of issue typically indicates there are drainage issues. It occurs when dirt is moved away from the outside of your home’s foundation wall.
In minor instances, fixing this might cost $1,000. If there is severe bowing, on the other hand, it might cost more in the range of $10,000.
Foundation leaks can be caused by insufficient drainage, excessive rain, and high water tables, to name a few possible causes. If the leaking is minimal, it will likely cost around $2000. If the problem is more severe than it can cost upwards up $10,000.
Sinking foundation repair cost
This type of issue is normally caused by the ground beneath your foundation settling. If you find uneven flooring in your basement or crawlspace, or parts of your floor that have sunk, it might indicate you have a sinking foundation.
If there is only a small amount of sinking, the problem can usually be fixed with slabjacking (or mudjacking). This usually costs around $1,000. If the problem has come on quickly and the foundation has sink more than an inch or two, the sinking foundation repair cost might more more like $15,000.
It is common for foundations to settle due to soil movement. However, if it shifts significantly is can cause big problems.
Caught early on, mudjacking can correct this issue. This process should cost around $1,000. If the shifting is more serious, it will require the installation of supportive piers which can cost around $15,000.
Bowing in either direction can eventually lead to the collapse of your home. You’ll need to first fix the underlying issue and then reinforce the foundation. Depending on the size of the job, it can cost anywhere between $1,000 and $15,000.
There are a number of causes of a crumbling foundation. This might be water intrusion, settling, or old age. Depending on the severity, it can cost anywhere between $1,000 and $15,000 to fix a crumbling foundation.
Is your property distressed? Learn more about selling distressed property here.
What are your options when you discover the signs of a bad foundation and you want to sell?
If you’re worried about whether selling a house with foundation problems is possible, you can rest assured that it definitely is. You have two main options: fixing the problem before you list the house or selling the house as-is.
Fix the issue before listing
It’s possible that your foundation issues aren’t that large and can be fixed relatively inexpensively. For this reason, it’s a good idea to have a structural engineer take a look and give you an estimate.
You can then have the foundation repaired and proceed to sell the house on the open market.
It’s important to know that it’s never a good idea to try and hide something like foundation damage. It will be found during the inspection if you don’t disclose it. This can sour the relationship with the buyers, as they will become aware that you were being deceptive and they could very well walk away from the deal.
A lender also might no be willing to provide funds for a home with foundation problems, too. This means that the sale could fall through anyway, leaving you at square one.
You can list the home on the market without fixing the issue depending on how big the problem is. Check with a real estate agent to get their opinion, as the problem might not be as bad as you think. You can then have a foundation company or home inspector take a look at the issue.
You’ll have to disclose any known issues to buyers in writing and you should share the inspection report with the buyers. You’ll also want to negotiate accordingly.
Do foundation problems affect appraisal? Appraisers will definitely look at the foundation, and major problems will impact the value of the house. Whether this is an issue in your particular sale will depend on the circumstance.
However, for larger foundation issues, it might make more sense to sell the house as-is.
Sell the home as-is
If you don’t want to deal with the time, money, or stress of repairing the foundation before selling, you can sell the house as is. Essentially, you are selling the house with the idea that the buyer will take care of the issue instead of you.
Most people who buy property as-is are cash investors. They offer no-fuss and quick transactions.
Just because you’re selling to a cash investor doesn’t mean you don’t have to disclose foundation problems if you know about them. However, you won’t have to deal with repair negotiations of the potential of a lender backing out of the deal.
If you’re dealing with tens of thousands of dollars of repairs, selling to a cash buyer can be an appealing option.
The tradeoff is that you will likely get less money for the house than if you were to sell it on the open market. The people who are investing in your home are planning on fixing it up and reselling it or renting it out. This means they are buying it for less, putting money into repairing it and then planning on creating a profit with it.
These days, though, there are more potential cash buyers than in the past. This means that, at least theoretically, the competition should increase the amount of money you can get for your home.
Having severe foundation problems might limit your options when it comes to buyers. That being said, there still might be an investor that’s interested in purchasing your home and making the repairs.
Selling a house with foundation problems
If your home has foundation problems and you want to sell it, you can either fix the problem before listing the home or sell your house as is. Depending on your particular circumstance, one of these options might be much more appealing and accessible to you.
Are you interested in selling a house with foundation problems to a cash buyer? If so, you can find out what a trusted iBuyer will pay fair home in just a few minutes. You can do this with absolutely no obligation.
If you want to sell your house without making any repairs, hosting any showings, and avoiding all the common headaches, click here to get your free quote today!