Are you looking to sell your home, but unsure as to whether it has issues with its foundation? Perhaps it does, though you’re unsure as to the possibility of it selling with damages, or potential prospects you can sell to. Maybe you’re thinking, “will I be unable to sell my home because of this?” Or perhaps there’s the thought, “how much can I sell my home without repairing the foundation?”
If these are thoughts that have come to mind, this article is for you.
Our team at Dalinghaus Construction has fixed more than ten-thousand homes with foundation repair projects across Southern California and Arizona. Though we also understand you may potentially be unsure as to whether or not you want to look into repairing your foundation as you sell your home. These are reasonable thoughts, and we’re here to explore these questions with you.
How do I know if I have a foundation issue?
Typically, knowing is more visual than anything. Here are common signs you may see:
- Cracks in stucco and drywall.
- Doors not opening or closing properly.
- Damp walls, leaks, or water intrusions.
- Floors are slanted.
- Chimney starts to lean.
- Gaps between walls, windows, or doors.
- In an older home with carpet or tile, there might be cracks on your floor.
It starts visually, though note that foundation repair is a niche industry. If a Home Inspector report sees any of these factors listed above, they’ll note and request you to find a foundation expert to confirm or deny the foundation issue.
How much can a Foundation Inspector cost?
A few years ago, it may have cost $400-$600 for a home inspection report. Dalinghaus Construction charges around $1000 to do this if your home is on the market, as well as provide a floor elevation survey. We don’t do the standard reports we provide for homes on the market or in Escrow. Our reports are more in-depth, requiring more labor and resources to create, develop and design. This said we will give you what exactly is needed and why. And if nothing requires repair, we will put that in the report.
If your home is not on the market, or you’re looking to put it on the market, Dalinghaus Construction can have an inspection done for you free!
We also offer you additional suggestions or recommendations on whether your house needs gutters for proper drainage to prevent foundation problems in the future.
The great thing with our costs is if you move forward with the home repair, the cost of that inspection will be credited to the overall cost of repairs. So if the overall cost is $15,000, that $1,000 you paid will reduce the remaining amount owed to $14,000.
The pressing question: Can I sell my home if it has foundation issues?
Thankfully, yes! It is not impossible.
Here are a couple of things to consider:
- Many people that are selling houses don’t know they have a foundation issue. If a buyer doesn’t perform a foundation inspection, it may get overlooked during the selling process, anyway.
- If it does get called on a form inspection report, the home can still be sold. You would have to legally disclose the foundation issue. Then there will be a price to get it fixed.
While you’re legally obligated to disclose that information, you’re not legally obligated to fix it. You can sell it ‘as-is,’ though this will limit the number of potential buyers you can sell to. Usually, Cash-Only buyers, who can negotiate 30% lower than the original asking price, are your potential prospects.
What does it mean to sell ‘as-is’?
It means you will literally sell your house as it is with full disclosure on every part. If you have issues such as plumbing, kitchen, electrical, or whatever it is, or maybe there are no issues, the buyer has the chance to go through and validate the information. They can even go through a request for repairs if the buyer wants them fixed.
What is a Cash-Only buyer?
A Cash-Only buyer is someone who has enough funds in their bank account to be able to purchase a home without a mortgage. Essentially, they don’t need to pull anything from the bank except their own funds. They are able to make the purchasing process faster, rather than having to go to the bank to pull out an Escrow loan and wait 30-45 days. Cash-Only buyers can buy within a matter of a few days, even known to purchase a home after five days.
Cash-Only buyers are typically investors looking to flip properties to make a large chunk of change. They will do what they can to have you accept as little money as possible. They have all of the leverage when making a purchase.
Again, they can negotiate around 30% lower than the original asking price. If you have a $600,000 home, they can bring the price down to $420,000, which is a whole $180,000 difference. Our average foundation repair projects are a little short of $30,000. So you can potentially miss out on $150,000 by selling ‘as-is.’ The time spent on the repair might be beneficial to your personal finances.
If you’re looking to sell your house quickly, perhaps Cash-Only buyers are the way to go. And that’s perfectly okay. That said you’ll more than likely lose a more significant chunk of money.
Can I use insurance to pay out a foundation repair?
The only time we’ve seen insurance payout on a foundation problem is whenever there’s a high-pressure water leak. We may endure one project a year that is caused by pressurized water leaks so it’s very uncommon for us. If the home has endured natural settling that results in cracking, shrinking, bulging or expansion of the foundation, it is likely home insurers won’t cover the repair.
If you’re looking for a financing plan, Dalinghaus Construction works with financing companies to do the payments. We utilize Greensky and Enerbank for a variety of loan packages involving this type of work. If you’re on a budget, but you have the time to go through with the repairs to maintain your home’s value, check out our page on 0% financing!
Should I repair the foundation issues before selling, or not?
Honestly, it depends. It depends where your market’s at and whatever area you’re in. If it’s going to impact the price of your house more than the cost of repairs done, you can earn more money selling your house.
If you’re planning to move out of state and are planning to use the money from your house now for a new home, you may want to negotiate harder to get those damages repaired.
And if you’re looking to sell your house as quickly as possible, consider selling ‘as-is.’ Though again, keep in mind you’ll more than likely lose around 30% of the price, which can be a few $100,000.
Overall, there is no right or wrong answer. It’s dependent on what you’re looking for and what you think is best for you.
But if you’re still unsure and this article has inspired more questions, never be afraid to contact Dalinghaus Construction with any inquiries you may have. You can call or text us at 877-360-9227.
If you live in Southern California, Arizona, or Nevada, you can schedule a Free Evaluation by clicking the link below!