Foundation issues are among the most serious problems that a house can face. If your house has a foundation problem, you have probably considered how to sell it with foundation damage. The goal of this article is to provide you with some options when it comes to dealing with a house that has foundation problems. By the time you finish reading this article, you will hopefully understand how to sell a house with foundation damage, the cost of fixing foundation problems, and most importantly, the dangers of ignoring foundation problems.

How to Sell a House with Foundation Issues

Practically everyone knows that a house's foundation is the structural base of any building, which can take many forms, such as an above-ground or below-ground foundation. Unfortunately, even if your house was built by a master builder using high-quality materials and intended to last, you may still experience foundation issues. In fact, it is well-known that 25% of homes will eventually have some form of structural issue, including foundation issues, which may result from unseen factors that require further investigation.

One thing is for sure: if you are considering selling your house, you do not want foundation issues or damage. Not only do foundation problems scare away retail buyers on the traditional real estate market, but living inside a home with a cracked or damaged foundation can also be extremely dangerous. Additionally, the cost of fixing foundation problems can be very high due to the foundation's material, location, and the complexity of getting the property structurally approved after the foundation is repaired. Keeping all of this in mind, let us explain how to get the best price for a house with foundation problems. But first, let us cover some of the causes of foundation problems.

What Causes Foundation Problems?

The foundation of your house is an extremely important part of your property as it provides support to the entire house or property above it. As mentioned previously, a foundation can be either above ground, like a crawl space or slab, or below ground, like a basement. Typically, foundation material is either concrete, brick, or cinder block, which are used to ensure that the foundation is solid, strong, and sturdy. However, these materials can still be susceptible to damage, cracking, or residual wear, which can lead to problems throughout the rest of your home if not addressed. Thus, if you suspect there is an issue with your foundation, it is highly important to get a professional to take a look at your house as soon as possible.

Some causes of cracks in the foundation or other foundation problems include improper drainage, poor construction, or issues with the soil composition that the property was built on. Improper drainage can lead to something called water erosion, where built-up water causes the foundation to degrade over time. Additionally, because the water is not draining properly, there will be a buildup of hydrostatic pressure, which can cause cracks throughout the foundation and cause the floor and walls to become lopsided. This is an extremely serious problem, and we have had a client in the past whose entire house became uninhabitable due to a drainage issue that destroyed their foundation. The client was stuck paying the property taxes for multiple years because they were unable to sell the house, and the township still wanted to collect its tax revenue.

Improper construction or building a house on dry soil can create an issue known as sinking, where the ground beneath the foundation was not properly compacted, causing the house to sink downwards into the Earth over time. Conversely, if the soil was too wet, you might experience another effect that can damage your foundation, known as the shrinking-swelling cycle. This cycle creates a situation where the ground will expand and contract, causing the foundation to start cracking and becoming damaged over time due to the constant movement.

How to identify problems in your foundation?

To detect foundation problems, it is important to regularly inspect your property for signs such as cracks in the foundation, bowing walls and floors, and excessive water near your property. If you have a basement, inspect the walls regularly for cracking, check where the walls meet the ceiling for water damage, examine egress windows for any water intrusion, and conduct an exterior review to look for signs of potential future foundation problems such as cracks or excessive pooling of water. If you have an above ground foundation, use a flashlight to inspect the crawl space for cracks and perform an exterior review. If anything seems unusual, it is important to seek a professional opinion.

Signs of a Foundation Issue From The Exterior

• Look for signs of your foundation shifting from its original position

• Look for large vertical or horizontal cracks throughout the foundation

• Look for cracks in the mortar that resemble a staircase pattern

• Check your doors and look for gaps between the door and the pavement

• Check your trim and look for gaps between the trim and the house itself

• Examine the exterior walls and take note if they seem to be falling inward or outward

• Examine your porch, deck, or any columns that may be on your property and see if they are leaning or upright normally

• Examine your chimney and determine whether or not it is leaning or upright normally

Signs of a Foundation Issue From The Interior

• Doors or windows that do not open and shut properly may indicate foundation shift

• Diagonal wall cracks coming out of the corners of doors or windows could also be a problem

• Uneven or bowing floors or walls can indicate foundation issues

• Sagging or rotten wood and floorboards may indicate excess moisture, which is commonly associated with foundation problems

• Dampness in the crawl space can also be an indicator of excess moisture and potential foundation issues.

What to Do If Your House Has Foundation Problems

So, you have a couple of options if your house has foundation problems.

Firstly, you could opt to fix up your house and sell it. This would involve repairing all damages found within your foundation prior to selling. If you list your property on the real estate market, it is commonly believed that the seller is responsible for the costs associated with repairing structural damage. Whether you pay for it before or after closing doesn't matter - at the end of the day, you, as the seller, will be responsible.

However, if you're planning on selling your home and it has a cracked foundation, you'll likely have difficulty finding a potential buyer who is willing to buy the home. Additionally, those potential buyers will have problems getting a mortgage, considering that the house has serious structural issues.

It goes without saying that someone buying a property on the retail real estate market does not want to buy a home with foundation issues. You'll be required to disclose all information associated with your house's foundation issues to any potential buyers who are submitting offers to you. Hypothetically, let's say that they're interested in giving you an offer for the home despite the issues with the foundation - in order for you to get to the closing table, you'll most likely need to give them some kind of buyer concessions. This basically means that you're going to take money out of your pocket to pay to fix the foundation in a home that you're not going to live in anymore. The concession serves as a way to get the buyer to the closing table because the buyer is going to expect something in exchange for the issue with the foundation, such as money back, covered repairs, or a steep discount off the sale price.

Foundation Issues and Home Value

Foundation problems are a serious issue that cannot be overlooked. The foundation is responsible for the structural integrity of the entire property, and any problem with it will cause a significant reduction in the value of the property during appraisal. The degree of impact on the property's value depends on the severity of the damage, but serious foundation damage can bring down the property value by 15-20% from its actual appraised value, which is a significant loss.

For instance, if the property's actual value is $100,000, a potential buyer can offer a maximum of $85,000 if it has foundation issues. Furthermore, potential buyers find it challenging to get financing to purchase properties with foundation issues. Lenders have the right to repossess the property if the borrower defaults on their mortgage payments. Since the foundation is an integral part of the house, a property with foundation issues has less value as an asset backing up the lender's money. This adds a lot of risk for lenders, and therefore many potential buyers seeking to buy a property with foundation issues may not get their loans approved, leading to a deal falling through.

Although homes with foundation problems typically do not qualify for conventional mortgages, some loan options such as Fannie Mae loans and federal Housing Association loans may be of assistance. However, it's essential to note that accepting fewer loans reduces the buyer pool drastically. Therefore, it's critical to repair any foundation issues before selling your property to avoid significant losses and a limited buyer pool.

Can I Sell a House with Foundation Damage?

Most people believe that if a house has foundation problems, it cannot be sold. However, the truth is that you can sell it, but you should expect a decrease in the property value. Moreover, you will be obligated to pay for any repairs required to bring the foundation back to normal in order to close a deal. In this article, we will cover an alternate way to sell your house with foundation issues later, but first, let's go over the costs associated with fixing foundation problems so you know what to expect if you decide to sell your house with foundation problems on the retail real estate market.

The Cost of Fixing Foundation Problems

As expected, homeowner's insurance usually does not cover foundation problems. This is a significant issue for sellers of homes with foundation damage because they are responsible for covering all the costs associated with the necessary repairs. It is worth noting that the cost of repairing a damaged foundation will vary depending on the seriousness of the foundation issue. However, typically, foundation issues can cost anywhere between $4,000 and $10,000. Serious issues can cost well over $50,000. In the following paragraphs, we will break down the most common foundation issues and the cost to fix them.

• Sinking/shifting foundation: This is typically caused by soil movement beneath and around the foundation due to house settling. The average cost to repair this type of foundation issue can range between $1,000 and $15,000.

• Horizontal foundation cracking: This is most commonly caused by hydrostatic pressure due to poor drainage or soil pressure due to bad construction. You can expect to spend anywhere between $4,000 and $15,000 to fix this.

• Leaking foundation: This is caused by water entering into your foundation. You can expect to spend anywhere between $2,000 and $10,000 to fix this.

• Eroding foundation: This is caused by drainage issues and hydrostatic pressure. Essentially, water wears away the ground surrounding the foundation. It can cost anywhere between $1,000 and $10,000 to fix this.

• Crumbling foundation: This can be caused by a variety of reasons, including old age, settling, or water intrusion. The cost to fix this can range anywhere between $1,000 and $15,000, depending on the severity.

• Bowing foundation: This is also caused by water intrusion. This is where your foundation is not level. You can expect to spend anywhere between $1,000 and $15,000 to fix this.

As you can see, the cost of fixing foundation problems can be several thousand dollars in the best-case scenario. When you are considering selling your house on the traditional real estate market, it is crucial to factor in the cost to fix the foundation problems into your list price. Without a doubt, it will affect the value of your home.

How to Get the Best Price for a House with Foundation Issues

The other option available to you is to sell your house as-is. The previous option we discussed involved a lot of stress, energy, and money. Selling a house as-is can be a great choice for someone facing high repair costs due to foundation problems and who wants to avoid the hassle of dealing with traditional buyers and their lenders on the retail market. When you work with a cash home buyer like Flash Buys Homes, you don't have to worry about concessions, disclosures, or repairs. Instead of you, the seller, covering all the costs, we, the buyer, handle everything.

The easiest way to sell a house with foundation problems is to sell to us. We are a group of local investors who offer a free, in-person consultation at your house with no obligation. This means that when we give you our fair cash offer, you are not obligated to accept it. Most of the time, you can receive an offer on your property within 24 hours of meeting one of our experts in person.

We are a group of professional investors with extensive experience in real estate and construction. Therefore, unlike traditional lenders and buyers, we are not afraid of foundation issues. We know how to fix foundation problems in your home, what to do if your house has foundation problems, and how to get you the best price for a house with foundation problems.

The Dangers of Ignoring Foundation Problems

We buy properties as-is, which means you don't have to worry about fixing your foundation. You can let us fix it after we buy your property. The best part is we can close extremely fast, in as quickly as three weeks. As mentioned above, foundation problems are extremely serious, and the last thing you want to do is wait and allow it to get worse over time. That's why we're able to help you make a quick decision, get money for your home fast, and move on to the next step of your life without needing to worry about fixing expensive foundation problems in an aging house.

Are you ready to get your free no-obligation consultation so you can get an offer on your property today? Then shoot us a text or give us a call at 609-493-5777, or fill out the form on our homepage to book your consultation today! We'll buy your house with a damaged foundation for cash!