You are ready to sell your home, but you find yourself with a major dilemma on your hands: There is a problem with the foundation. So now you must make some big decisions about how you want to move forward. After all, foundation problems are one of the worst possible problems you could have when it comes to the selling process. How to sell a home with foundation problems? This article shows you how!
To fix or not to fix – that is the question.
Is it worth the cost of repairing? Is it worth the time it will take? Unfortunately, there is no clear-cut formula for figuring out the answer to that one. There’s no easy way to decide that, and there are many factors related to your situation that you are going to have to weigh in determining whether or not you want to invest the time and money in repairing your foundation problem, or if you want to proceed with the sale with the home in its current condition.
Are you in a worst-case scenario type of situation to begin with? In other words, is your situation such that, if you had the money for the repairs, you would not be selling your home, to begin with? Then if this is you, you are in the camp of “sell without repairing.”
On the other hand, is everything else about the home in pristine, excellent condition? Other than the foundation problem, is this the dream home someone has been looking for? Then it may be more beneficial to sell as a fixer-upper and hold off on making the repairs yourself, leaving that in the hands of the buyer.
What is it going to cost?
Again, it is next to impossible to pin down an exact number here. However, we can play the averages game anyway. While you need to take into consideration the geographic location of the home and what exactly the type of foundation problem is, on average, the cost of many foundation repairs tends to be in the neighborhood of $4000.
A foundation problem will not scare away everyone
Don’t get me wrong. There are plenty that are going to go screaming from the hills. Some people just won’t want to put the time and energy into a home that needs a major repair like that. However, there will be others …
There are people out there who will set out with the intention of purchasing homes that need repairs. These are going to either be people who have construction experience or friends in the construction business. The thing is, these foundation problems can quickly escalate and turn into much larger problems if they are not addressed properly, so they need to be addressed by professionals.
How can you sell a home with foundation problems?
One of the biggest things you need to take into consideration if you are going to sell your home in its condition with a foundation problem is that you are going to have to lower the price. You will not be able to get top dollar at fair market value for a home with a foundation problem. That is just the reality. To sell a home with a foundation problem, the price is going to need to reflect the severity of the problem. You also must fully disclose the nature of the problem to be within the letter of the law. If you sell a home that has a foundation problem, and you have not disclosed that problem to the buyer, you can be held legally liable and end up in a whole lot of trouble later – trouble that you may not be able to find a way to get yourself out of.
The first step in this process is going to be having the property appraised and inspected. This way, you are going to know right up front the exact nature of what you are dealing with. You will also know ahead of time if there are any other issues going on with the home. You do not want to get hit with any other surprises later, do you? After all, a foundation problem is a big enough hurdle to have to overcome. No one wants to have gotten through the obstacles thrown out by a foundation problem, only to find out he or she also has termites, or something else nefarious going on that he or she also had not planned for.
Above all else is honesty in disclosure. There can be major legal ramifications if your home needs major repairs and you do not disclose this honestly in the listing process. You need to make sure that you make very clear to potential buyers that the home is being sold as a fixer-upper and that the fact that it needs a major repair has been reflected in the price. If you do not do this, the buyer may be able to take you to court and not only recoup the money that they have lost in the purchase of the home, but they may also be able to be awarded damages in the process as well.
In a situation like this, it is always best to seek the advice of a qualified and certified realtor or real estate attorney so that you know you are doing everything the way that you are supposed to and that you have covered all your legal bases. That way, everyone is protected throughout the entire process, and no one ends up feeling as though he or she have been taken advantage of in the end.
This will ensure that everything in the process of selling your home with foundation problems goes smoothly and that there are no other bumps in the road. Make sure that you do as much homework and research as possible so that you are prepared for what lies ahead. Good luck in your home sale journey.