selling a home with foundation problems

Can (or Should) I Sell My House With a Foundation Problem?

The summer home selling season is underway and you’re seriously considering selling your house this year or maybe next year. BUT, you *might* have foundation problems. Or you KNOW you have foundation problems. Can you EVER even sell this house???

Anchor Foundation Repair Bryan College Station

And after that question gets answered, you’ve got more, like:

  • Should I just put it on the market as-is?
  • Should I go ahead and get the foundation repaired?
  • How will any of these options impact the sales process and price?
  • And the list goes on . . . 

At Anchor Foundation Repair, we’ve been inspecting and repairing Brazos Valley foundations since 1985 and those homes are sometimes involved in real estate transactions. We’re quite familiar with how home selling and foundation problems affect one another and can tell you what we know through our years of experience.

This article addresses homeowner’s top questions and what to consider about selling a home with foundation issues. By the end, you will have more clarity to decide which sales and repair path is right for you when putting your home on the market.

Can You Sell a Home With Foundation Issues?

home buying and selling with foundation problems

The short answer to whether or not you can sell your home with foundation issues is . . . YES. Yes, you can certainly sell a home that has foundation problems. It happens all the time.

Home sales depend heavily upon the local real estate market in your area and the inventory available for buyers to choose from. Of course, not every homebuyer will want to buy a home with foundation issues, but someone will if their circumstances and the price are right.

Who Would Buy a Home with Possible Foundation Concerns Anyway?

There are certainly some *fearless and far-between* folks out there who might want to buy a home with foundation issues. Here are a few examples:

home foundation repair and home selling
  1. House flippers
  2. Cash buyers
  3. Bargain hunters
  4. Wholesale resellers
  5. Someone buying the home for rental property
  6. Foundation repair contractors
  7. Someone who wants a house in your desirable neighborhood and there are none available except for yours
  8. Someone getting a construction loan to fix up the house in many ways in addition to repairing the foundation

See, many kinds of people might not shy away from a home with foundation problems . . . 

Some can buy without the strings attached to traditional financing. Some can afford to get the issues corrected through experience and savvy. Some just really want your particular house and will do whatever it takes to get it because it meets one of their top needs.

*Disclaimer Alert* Even though there are eight types of people listed here, there’s still only a small percentage of buyers that could be interested in a home with foundation issues. The majority of everyday homebuyers looking to buy a primary residence can honestly be deterred by a home with foundation concerns.

How Do Foundation Problems Affect the Sale of My Home?

For a home with possible foundation issues, the sale can certainly be affected. Foundation problems in the mix of a home sale can make the process:

  • More difficult to negotiate,
  • More time-consuming going back and forth with negotiations,
  • Take longer due to having one or more inspections by engineers or contractors, and
  • More painful both financially and emotionally.

Yes, foundation issues will affect the sale of the home. We’re not saying this to scare you or suggest that you not sell, we just want you to be prepared for possibly a *less easy* process.

How Do Unrepaired Foundation Problems Affect the Sales Price?

Home buyers are not going to pay the same amount for a home that needs a major repair compared to a home that does not need the repairs. This feels like an obvious fact, but when it comes to pricing your own home, sometimes home sellers tend to forget this.

how do foundation issues affect home sales?

In general, expect a home to sell for a lower price if you have unrepaired foundation issues. Most buyers won’t pay full price for an unrepaired foundation. Instead, they would be looking for compensation or accommodation so that the foundation gets repaired as part of or after the sale.

For example, you’ve got a home that should be worth $200K and the needed foundation repairs will cost $20,000. You might have to price your home at $180K to compensate for the needed repairs that are not yet done. 

OR if you want to sell the home for $200K, then you have to accommodate them and get the repairs done and then they will pay that price.

*Exception Alert* The only time that a foundation issue might not affect the sales price is if for some reason the inventory of homes is extremely low. It all goes back to the local real estate market. Is there anything else better for home buyers to choose from in the same price range? Or is every house in a price-escalating bidding war because there’s nothing available?

How Do Foundation Repairs Affect the Sales Price?

Let’s say your home had *previous* foundation issues that have already been repaired – how does that situation affect the sales price?

In general, a home with the needed foundation repairs completed can be priced the same as a comparable home that did not need repairs. Putting the money into the repairs *theoretically* brings the home back up to the expected price range. 

foundation repair affects home selling

We say theoretically here because, from an appraised home value standpoint, there should be no difference between a repaired foundation and a foundation without issues. However, that doesn’t take into account the psychological x-factors and confidence levels of a home buyer. 

So it could somehow still affect the final sales price in the long run . . . 

On the flip side, do not expect a repaired foundation to *increase* the price of your home above normal. A repaired foundation only potentially returns your home to the same price as an equivalent home. The logic here is that a foundation repair is not an upgrade or improvement. 

Foundation repairs only return the home to an *adequate and expected* condition. The repairs do not make your home more valuable or special to justify a higher price like a major kitchen remodel would.

For example, you’ve got a home that should be worth $200K if it were in regular condition. You paid $20,000 for needed foundation repairs. The value of your home will still be $200K after the repairs, it will NOT now be worth $220K.

Should I Fix the Foundation Before Putting It On the Market?

give me the real truth about selling a home with foundation issues

Now that you’ve read through the information above, you’re wondering if you should go ahead and fix the foundation before putting it on the market

Some people just feel that the right thing to do is to get home repair issues handled whether the house is for sale or not. Getting things like this done gives a positive signal to home buyers that the home is well-cared-for and in good condition.

But honestly, it still depends on the market. Sorry, these kinds of real estate questions are never cut and dried or the same in all cases . . . 

  • If the market is moving at an average pace with good homes selling quickly while less desirable homes are sitting, you want to put your best foot forward to actually *compete* with what else is out there. So if your finances allow you to fix the foundation first, do it and your home might sell faster if it has other desirable qualities.
  • If the market is so competitive that people are buying sub-par homes in bidding wars, then you could roll the dice and see if your home sells without doing the repairs.
  • If the market is slow because there is a ton of inventory, you still might want to fix your foundation to not give anyone an excuse to dismiss your property. As long as it won’t hurt you financially to put the money into the home upfront.
  • If you are not under any time crunches to sell, you might consider putting the home on the market and see what the buyers want and be willing to reduce the price and/or negotiate.

can I pay for foundation repairs before I sell my house?

The main thing to think about when deciding if you want to do the repairs in advance of the sale is whether you can afford to pay for or finance the repairs (even temporarily while you wait for the home to sell to pay it off). 

What if you do the repairs and your home doesn’t sell right away? Will that make you mad or feel like it’s a waste of money? Or will you feel satisfied knowing that you did your best to take care of your home and offer it up for sale in the best possible condition?

What Happens If I Don’t Repair the Foundation Before Listing It?

If you don’t go ahead with foundation repairs before listing your home for sale, what will happen? We can’t say with any certainty which one of these things will happen, but it will be one of them. Your home could:

  1. Get priced appropriately for its condition and sell quickly with no problems,
  2. Get an offer and they ask for a price reduction,
  3. Get an offer and they ask that you do the repairs before the sale,
  4. Sit on the market and you might have to reduce the price more before it sells, 
  5. Require a combination of price reductions and eventual repairs before it sells, or
  6. Not sell at all this season.
foundation repair and selling your home
Sorry, we cannot predict the future . . .

Listen, there’s no telling what will happen whether you fix your foundation before listing it or not. We cannot predict the future, nor can we predict what any prospective buyers will want.

Real estate is always about market conditions plus the right person coming along and wanting your house no matter what. They do what it takes to buy it and you do what it takes to sell it

Sometimes *what it takes* to sell homes with foundation issues is getting less than you were hoping and doing more than you thought was needed. OR your home could very well sell without much fuss if it’s well-priced for the market conditions and that perfect person comes along looking for exactly what you’re selling.

What Should You Do With Your Foundation and Home Situation?

a realtor can advise you on foundation repair and home sales
Don’t do this yourself, get help from a Realtor®.

We are foundation repair people, not real estate people, so we don’t know your local home sales market. We can’t fully advise you on what is best for your particular foundation and home-selling situation. 

Do you know who can advise you? Your favorite Realtor® . . . so if you’re serious about selling, you need to be consulting with an experienced real estate professional instead of reading articles online at 2 am . . . just sayin’ . . . 

How Much Will My Foundation Repairs Cost If I Get Them Done?

Okay, now we can help you with this . . . If you need to better understand the condition of your foundation and how much it will cost to fix it, a foundation repair contractor is what you need. If you at least know how much it might cost to get the foundation repaired, you’re in a better position to price your home accordingly or prepare for negotiations.

looking for signs of foundation issues before you sell your home

We understand the stress and anxiety that come with overwhelming repair projects on top of trying to sell your house too!

At Anchor Foundation Repair, we offer fair and impartial assessments, empowering education, and a fully transparent inspection and repair process. After 35+ years in business, we want you to know as much about foundation repair as we do and we’ve got no secrets to hide from the Brazos Valley community.

We’ll tell you what your home needs and how much repairs cost during a thorough in-home assessment of your foundation. A *major bonus* of repairing your slab foundation with Anchor: we offer a fully transferable lifetime warranty and service agreement that can be passed on to any buyer as well.