It is every homeowner’s worst nightmare to discover that their home has suffered foundational damage. This realization comes at an even worse time if you are looking to sell. If this is you, you will have to know your options and be decisive to make the best decision for your situation.
Here are three ways you can sell a house with foundational problems and the pros and cons of each.
1. Fix Your House before Putting It on the Market
Depending on the severity of the problem, you might be able to repair the foundational damage. You will want to get the home inspected by an engineer to determine what exactly is needed. Once you have established what you need to fix and how much it will cost, you can then decide how you will sell. You will also want to consider that these repairs may delay your timeline for putting the home on the market.
How Much Do Foundation Repairs Cost?
The answer to this question depends on every situation. Here are a few examples of common foundational problems:
- Foundational leaks must be sealed off and waterproofed at an average cost of between $500 – $4,000
- Foundational erosion typically indicates drainage issues and can range from $1,000-$10,000.
- Sinking or shifting foundations caused by ground and soil movement can often be a significant problem. These repairs can cost anywhere between $1,300 and $1,500 per pier.
- Bowing foundation can eventually lead to the home completely collapsing. The first step in this type of repair is to identify the underlying issue and then reinforce the foundation. Again, depending on the severity, these repairs can cost anywhere between $5,000-$15,000
If the home has any combination of these issues, you may be looking at tens of thousands of dollars.
Pros: A newly renovated foundation could be a good selling point and increase selling price
Cons: You may end up paying more than you expected for the repairs, repairs could take a long time, you will need to pay realtor fees and closing fees, closing process could take a long time.
2. Put Your Home on the Market without Fixing
After exploring your options to fix the property, you may decide the damages are too much of a headache and too much of a financial burden. In this case, it may be in your best interest to sell the property “as-is.”
- Less stress, less proceeds
This trade-off means the buyer will be responsible for fixing any repairs, but you will be taking a cut in proceeds for the hassle. You may have luck finding a real estate investor willing to take on the challenge of a property with foundational damage. These investors often seek out distressed properties needing repairs or gutting to resell or rent out.
- Selling with a real estate agent
As with any real estate transaction that involves selling with a realtor on the market, you will be responsible for several fees. Real estate agent commissions likely cost you around 6% of the purchase price. Then, you will be responsible for closing costs, transaction fees, and any additional requirements set by the buyer. This process could take a while, especially if your buyer is working with a lender.
- “ Caveat Emptor”
In Massachusetts, the real estate industry follows what is known as “Caveat Emptor” or “let the buyer beware.” This means the home seller is not required to disclose known problems unless buyers directly ask. While it may not be the most morally sound decision, you do not technically have to bring attention to foundational problems. Although, through an inspection or appraisal, these issues will most likely come to light.
Pros: You do not have to worry about repairing the home
Cons: You will be selling the home for much less to make up for repairs needed, you will need to pay realtor fees and closing fees, closing process could take a long time
3. Sell “As-Is” to Professional Cash Home Buyer
If you know you don’t want to deal with the stress and cost of repairing the foundational damage but you also don’t want to waste money on unnecessary fees, you could consider selling to a professional home buyer. These companies specialize in buying a wide variety of homes, including fixer-upper homes and homes in need of severe foundational rehab.
- Fast, cash closings
These are experienced buyers who prefer purchasing directly from homeowners, so you can bypass the complications and extra fees associated with selling on the traditional market with a realtor. An added bonus: they often buy in cash! Meaning there won’t be any hold-ups with financing, and the closing process will go much quicker.
Pros: Sell “as-is” and don’t have to worry about repairs, they will pay in cash, fast closing process, no realtor fees, work with experienced buyers.
Cons: You will sell for less when property is sold “as-is”
We Will Buy Your Home “As-Is” (no matter what foundation problems your home has..)
At Pavel Buys Houses, we are a team of professional home buyers dedicated to providing top-notch service to the homeowners we work with. As a local, A+ accredited business we understand how stressful it is to learn that your home has foundational damage. That is why we make the process as quick and painless as possible so you can wash your hands of a needy home.
Our CASH offers are always fair and based on a market analysis of similar homes in the area. We want to empower you to make the best decision for your family, so there are no obligations. With us, there are no realtor fees, no cleanouts, and no repairs. We buy your home “as-is.”
We would love to speak with you. Contact us today, and we can discuss getting your house for cash fast.