Look, we get it. Having money in your pocket sooner than later is tempting. You’re probably thinking doing foundation repair before you sell isn’t worth it.
As the expression goes: patience is a virtue.
Going forward with your foundation repair before selling your home is a timely process, but might be worth it in the long run, especially when you can sell your home at its full value.
Dalinghaus Construction has inspected more than 10,000 homes in Southern California, Arizona, and Nevada for homeowners either looking to sell or repair their homes while it’s off the market. We understand what buyers and sellers are looking for when they want a foundation evaluation and why they might be interested in foundation repair for homes on the market. We want you to consider why you would do foundation repair before selling your home and the pros and cons of doing so.
Why would I do foundation repair before selling my home?
If you’re looking to get the full value out of your home, doing foundation repair beforehand is worth it.
If the home you’re selling has foundation issues, it will be of less value. That and information on foundation issues needs to legally be disclosed.
If someone, especially a cash buyer, really wants your home with a damaged foundation, they could negotiate your home’s value by at least 30%. This is a general rule, though the margins for negotiating a house down in price can be between 10%-50%.
So if you’re home is worth $1,000,000 but has a damaged foundation, someone can negotiate it down to $700,000. So you’re missing out on $300,000.
The average foundation repair cost is around $26,000. So even if the repair can cost you a few thousand dollars, that is still money you’re seeing in your pocket at the end of the day.
When it comes to doing foundation repair before selling your home, do what you think is best for you. Hopefully reading over this information will help you in your decision-making.
Selling a home with foundation issues limits your buyers
Most banks aren’t willing to finance homes with foundation issues. Some lenders are willing to lend money for homes that need foundation repair, but this isn’t too common, especially with FHAs and VAs.
Some Escrow companies will put the foundation repair into the deal and require you to repair the home before the deal is closed.
Your best bet for selling your home in need of foundation repair is via cash buyers. They’ll negotiate you down at least 30%, but they’re quick when it comes to the buying process.
You might find yourself still at an impasse where you’re thinking about selling your home without foundation repair. The decision is a tough call.
The foundation repair cost
Let’s be real for a second: foundation repair isn’t cheap.
Sometimes pulling a loan isn’t reasonable for you or the bank won’t allow it (especially with current interest rates). Selling the home because you can’t afford the foundation repair is understandable. You’re looking to gain money; not lose more.
Time to do foundation repair
Let’s be real for another second: foundation repair can be as short as a couple of days or it can take a few weeks (months even). It depends on the severity of the damage and the plans for your foundation repair.
If you’re looking to sell your home as fast as possible, foundation repair might not be in your best interest. Understandable that you want that money in your pocket sooner than later. You have to be patient when it comes to foundation repair.
Homes can be evaluated for foundation repair while on the market
With any foundation company you go with, there will be a charge to have your home inspected while on the market, whether it’s for buying or selling purposes.
Dalinghaus Construction charges $1000 for an evaluation of a home on the market.
You’re not just paying for the evaluation. We provide the documentation of what was discovered and the repairs necessary.
Signs and symptoms foundation evaluators are looking for
- Drywall cracks
- Stucco cracks
- Concrete slab cracks
- Ceiling cracks
- Tile cracks
- Chimney cracks
- Leaning chimney
- Sloping floors
- Doors and windows are hard to open and close
- Water leaks
What comes with the evaluation?
An evaluation for a home on the market comes with a repair plan, photos, and a proposal. We can do a write-up if it’s needed.
And the $1000 is used as credit for your foundation repair. So if your foundation repair project is $26,000 total, we add the $1000 you used for the inspection as credit, meaning your repair will instead be $25,000. It works out if you decide to move forward with your foundation repair.
Evaluations for homes or properties off the market are free. So don’t sweat it if you aren’t looking to sell your home.
Pros and Cons of doing foundation repair before selling your home
- You’ll get the full value out of your home after foundation repair.
- You’re limited to cash buyers if you don’t go forward with foundation repair.
- More variety in potential buyers.
- You might have some luck with some loaners, but cash buyers would be your quickest bet.
- Foundation repair takes time, delaying the time you have to close the sale.
- Foundation repair isn’t cheap.
Should I do foundation repair before selling my home?
Again, the decision to go forward with foundation repair is up to you. But this doesn’t help with answering your question.
From our collected experience, many of us in Dalinghaus construction believe it’s better to have the foundation repair done before selling in most cases. That way you don’t lose a significant chunk of money from not doing that repair.
If you don’t have the money for foundation repair, your best bet is to sell as is. You can find ways to finance your foundation repair.
Hell, even Dalinghaus Construction offers 0% financing options.
Consider foundation repair before selling your home
You’ve learned about why you should do foundation repair before selling your home, why you might consider selling your home as-is, evaluating homes on the market, and the pros and cons of doing foundation repair before selling your home. Have your home evaluated for foundation repair before selling your home. That way you can consider getting the full value of selling your home.
Take a look at our other article on selling your home with foundation issues.
Learn more about why you should have an inspection done when buying a home.
For any additional questions or to schedule an evaluation, you can call Dalinghaus Construction at (877)360-9277