Selling a House with Foundation Problems

Identify the problem

The first thing to do is not to panic, but seek a professional evaluation of your foundation. Many times, the problem is minor and easily remedied, other times the problem is major that will require extensive repairs. The key in this first step is to identify the problem and needed repairs so you can make informed decisions. The best way to do that is to hire a professional structural engineer that specializes in foundations and foundation repairs. It will cost between $300 to $1,000 to hire a structural engineer to look at your house, provide you with a report, and foundation repair recommendations.

This is money well spent and preferable to having a bunch of foundation contractors come out to give their opinion. You want a professional engineer’s unbiased evaluation and recommendations – not a bunch of contractors trying to sell you on their system and method.

Quantify the Cost to Repair

Upon completion of step one, you should know if you have a minor or server foundation problem, what caused the problem, what needs to be done to fix the foundation, and fix the problem that caused the foundation failure. Now we need to quantify how much time, effort, and money it will take to complete the repairs. This is not a do-it-yourself project and generally will require the homeowner to seek bids from multiple contractors including:

Foundation Repair: A foundation repair contractor will fix the foundation and may also fix any drainage or grading issues. Typically, they are not well suited to fix the other damage caused by foundation failure.

• Plumber: Many times, a plumber is needed because the foundation problem is caused by a plumbing leak or a plumbing line is broken during the process of lifting the foundation.
• Carpenter: Are your doors not level or are there large gaps in the wood trim around the doors and windows. The process of leveling the foundation may reduce these gaps and misalignment, but quite often, you will need to hire a carpenter to correct these types of issues.
• Painter: All those cracks in the walls and ceiling will still be there after the foundation is repaired. Repairing and repainting these are the job of the painter.
• Brick Mason: Many homes in Texas have a brick or stone exterior that gets damaged and cracked when a foundation fails. Many times, raising the foundation causes additional damage. You will need to hire a brick mason to repair the damage.
• Landscaper: The process of repairing a foundation is usually quite messy and damaging to the lawn and garden. A good landscaping contractor will fix the damage and make it look better than before the foundation was repaired.

To complete this step, you will need to obtain bids from some or all of these trades. We recommend you get at least 3 bids for each trade and preferably 5 or more per trade. The more bids you obtain, the better prepared you will be to select the best contractor for the most reasonable price. Per Home Advisors, the national average cost for foundation repair is $4,033 which excludes the cost of repairing the damaged doors, trimming, landscaping, and many other repairs. Foundation repairs are not cheap.

Review Your Options

At this stage, you have a plan, a cost estimate of what it will take to repair the foundation and restore the home. It is now time to review the pros and cons of completing the repairs and restoration. This is easy if the required repairs are minor and the cost is minimal. But if the work is more extensive and the cost is substantial, then you should consider the financial burden and risk of undertaking a project of this magnitude versus the potential payoff.

To start with, let’s look at the pros of tackling the foundation repairs yourself.

• With a repaired foundation, your pool of potential buyers becomes wider.
• A home with a repaired foundation will generally sell for more.
• Completing the repairs may ease buyers’ fear as you’ve already done the hard work.
• If the home does not sell for an acceptable price, you have the option of staying in the home without worrying about the problem getting worse.

Now let’s look at the cons and potential pitfalls of completing the foundation repairs yourself.

• You will need to have readily available cash or borrow the funds to complete the work.
• You have no guarantee that the cost of repair will not be substantially higher than expected. It is not uncommon for unforeseen circumstances to substantially increase the repair.
• Fixing the foundation before you sell rarely gives you a full return on investment.
• After completing all of the repairs, the house still may not sell for an acceptable price.
• Fixing the foundation and restoring the damage inside the home is extremely messy, time-consuming, and stressful for the entire family.

Every person and home is unique and will have additional pros and cons based upon your skillset and comfort with working with contractors. The key in this step is to honestly evaluate your options and your comfort level in taking on a project of this magnitude.

Decision Time

Unfortunately, with foundation problems, time is the enemy. The damage will continue to grow and become more costly to repair over time, so a decision needs to be made whether to tackle the foundation problems yourself or just sell the home as-is and let it be someone else’s problem. For the average homeowner, the cost, time, risk, and stress involved are simply too high, and selling the home as-is will be the right choice. But how do you sell a house as-is that has foundation problems?

You can attempt to sell the home the traditional method and list it on the MLS. Depending on how bad your foundation issues are, it is very unlikely you will sell it this way. Most buyers will want their new home to be in tip-top shape as they are not interested in buying a major repair project. Another thing to keep in mind is that most traditional lenders cannot loan on a property with foundation problems. Many homeowners in this situation waste months trying to sell the traditional way.