Thinking about selling your home? Before you list, you will need to know what condition your house is in. One of the primary areas of concern during a home inspection is the state of the foundation.
More than 80% of structural claims are caused by the movement of the foundation, making it the most significant structural claim liability. A cracked foundation can make it difficult to sell to an interested buyer and forces the homeowner to consider an expensive repair to get full value for the home.
What are the Signs of a Cracked Foundation?
There are several warning signs to look for when inspecting your foundation before you list your house for sale. These include:
- Cracks in walls or floors
- Doors and windows that stick or do not close properly
- Gaps around window frames
- Sloping or uneven floors
- Sagging wood floor planks
- Exterior walls bowing or bulging
- Cracked, broken, or leaning chimney
- Mold or mildew in damp crawl spaces
- Walls pulling away from the floor or ceiling
- Foundation settling or sinking
If you notice any of these issues with your foundation, it is recommended to seek a professional opinion. Discovering a cracked foundation early could save you tens of thousands of dollars in repairs or a significant reduction in your asking price.
A structural engineer will thoroughly inspect your foundation and give your home a thorough assessment so that you can sell your home with confidence.
Can I Sell My Home with a Cracked Foundation?
Even with a cracked foundation, it is still possible to sell your home. However, if a seller is looking to get maximum value, it may be worth hiring a structural engineer to assess the extent of the damage.
During a home inspection, the discovery of damage to the foundation can result in the buyer requesting a considerable reduction in the selling price. Issues with the foundation could also be a red flag that other significant problems exist in the home like plumbing, roofing, mold, or pest infestation.
It is also a greater challenge to convince lenders to grant a mortgage on a home with foundation issues. This may slow down the process of selling your house quickly.
Should the Foundation Be Repaired Before Selling?
A homeowner can go years without ever realizing there is damage to the foundation, so it does not necessarily make a home uninhabitable. However, to get maximum value for your house, you may want to consider repairing your foundation before the property hits the market.
More than 50% of home buyers consider foundation issues a deal-breaker. The high cost of repairing the problem will have to be negotiated, considerably lowering your home’s value.
If your home has multiple repair needs, focusing on fixing the cracked foundation will give you a better chance of selling your home. If the foundation only has small cracks, you might be able to have them patched at a minimal cost.
Before deciding on what to do, get estimates from several different companies specializing in foundation repair. Though the repair cost may be high, a structurally-sound home will have a much greater chance of selling on the traditional market.
How Much Will It Cost to Repair a Cracked Foundation?
Repairing a major structural issue with your home does not come cheap. Depending on the extent of the problem, a homeowner can expect an average repair bill of around $5000.
Homeowners need to repair any unusual cracks they find before they become a more significant issue. Minor cracks less than one-eighth of an inch can be filled with polyurethane foam then sealed to prevent moisture from causing further structural damage. This repair will cost less than $1000 and save you thousands in the long run.
If your foundation issues are more advanced, the repair costs will be too. If your house is settling, shifting, or sinking, repairs could be upwards of $25,000. A crumbling foundation will also cost in the range of $20,000.
If you discover severe foundation issues, you might want to consider selling your home as-is.
Should I Sell to a Real Estate Investor?
Do-it-yourselfers who look for houses to fix up and turn for a profit would top the list of potential buyers of a home with foundation issues. But who else would want to make such a significant investment into a property requiring expensive repairs? You may get an offer from a real estate investor.
A real estate investment company has the equity to buy a house with structural issues then make the necessary repairs before listing. Real estate investors offer lowball prices to sellers to buy homes in almost any condition. Although the potential for making a quick sale may seem enticing, working with a real estate investor often results in a significantly lower price than what the homeowner would like.
Can I Sell My Home As-Is?
If you do not want to undertake expensive home repairs yourself, it is possible to sell your house as-is. Selling as-is lets the prospective buyer know that no repairs or renovations will be made before the sale and that ownership will be taken in its current condition.
By disclosing what repairs are needed to the house, a prospective buyer can then decide how much they want to invest in a fixer-upper. The asking price will be calculated accordingly, considering the cost to repair the foundation.
There are several advantages to selling a home with foundation issues as-is:
- You avoid the expense of repairing it yourself
- You can sell your home faster
- You do not need a real estate agent
- Get a fair asking price
- Appeals to the DIYer
Even a buyer looking for a bargain to fix up and flip will take a long look at the extent of foundation damage to determine whether their investment will be recouped in a re-sale.
Conclusion
If your home has foundation issues, it is still possible to sell it without facing enormous repair bills or the hassle of dealing with a real estate agent.
Cash buyers are looking to buy homes in almost any condition. If you want to sell your house as-is without undertaking repair costs, get cash from trusted buyers and sell your home fast!
Brianna Hansen has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers).