Foundation problems can be a red flag when you’re trying to buy or sell a home, but the good news is that it doesn’t have to be a deal breaker. In many cases, armed with the right information, you can work things out for both parties without too much expense or stress.
Can I sell a home with foundation issues?
According to the rules of the real estate game, you really are obligated to let a buyer know if your home has any foundation or structural problems. Faulty foundations and leaky roofs are two of the issues that are most likely to scare off potential buyers, but it’s important for everyone to realize that not all warning signs are equal. Don’t ignore them, but don’t assume the worst.
Here are 6 simple ways to get a quick handle on the situation:
- Check for cracks inside and outside your home in the walls and foundation
- Notice the location, shape and severity of the cracks– some may only be cosmetic
- Make a note of doors and windows that stick or don’t open or close properly
- Be aware of water damage or moisture that collects around foundation elements
- Talk with your realtor about these signs and use a qualified home inspector
- Get a free estimate from a reputable foundation repair company
Once you know the specific foundation issue you’re facing and how severe it is, you’ll be in a better position (and most likely a calmer state of mind) to make useful decisions. It’s best to get a professional realtor’s advice on this, but in many cases you’ll save money in the long run by handling the repairs yourself, rather than cutting your price and leaving them for the buyer to fix.
Another advantage of managing the repairs before you sell is that your buyer’s home loan is more likely to be approved (which means a quicker sale for you) if you can show that any needed repairs are complete. Some contractors may defer the cost of repairs until the buyer’s loan is funded and take their fees at closing.
Should I risk buying a home that needs foundation repair?
Just as we’ve seen from the seller’s point of view, signs of foundation trouble don’t automatically mean that the home is a bad deal for the buyer. In fact you may be able to get a bargain.
Again, you’ll want advice from your realtor on this, but if the house meets your needs for features, location and price, it’s worth finding out how serious the foundation problems really are and what repair options are available. Depending on the extent of the damage, the cost of foundation repair may fall well below the discounted price of the home. Reputable companies can correct the structural damage and many (like Olshan) offer warranty options to help protect against shifting in the future.
Keep in mind that all houses tend to settle as they age because of normal variations in weather and construction materials, especially in climates susceptible to damage, like Texas where the real estate market is booming. Often this settling process will show up in the form of harmless cracks or other minor cosmetic conditions like small patches of loose masonry grout that can be easily and inexpensively repaired.
What you want to watch out for is cracks that keep getting bigger, walls that begin to bulge, increasingly uneven floor areas, unexpected moisture, rot or erosion around foundations and support members, doors and windows that stick or won’t latch like they used to and other signs of structural damage. When you’re shopping for a home, always insist on a report from a qualified home inspector and consider calling on a structural engineer for an evaluation if you think the foundation might be damaged.
Reputable foundation repair companies can provide an estimate which will help you and your realtor decide how to work potential repair costs into your offer for the house. In many cases foundation problems can be resolved affordably for all parties, and sellers are often motivated to compromise rather than lose the sale.
In short, foundation problems don’t have to be a deal breaker for buyers or sellers, but it’s important to ask direct questions and seek the right professional help before you commit.
FAQs
If you don't address foundation problems, the repairs can become more complicated and expensive. As the problem gets worse over time, your home will experience additional damage – water damage, mold, cracked walls, jammed doors, and sagging floors – that will cost additional money to repair.
How does foundation repair affect home value? ›
On average, foundation issues can reduce the resale value of a home by 10 to 15 percent. When it comes to foundation repair costs, someone will have to pay for it and it will be the homeowner in some way.
Can foundation repair cause more damage? ›
Side Effects Of Foundation Repair
It's common to worry about damages that might occur during the repair process. However, our team takes extensive measures to minimize any impact on your property. Side effects are typically minimal and temporary, such as minor disruptions to landscaping or exterior finishes.
What happens to a building with a poor foundation? ›
Structural Damage: A bad foundation can cause structural damage to your home, which can lead to cracks in your walls, ceilings, and floors. Water Damage: A bad foundation can cause water to seep into your home, which can lead to mold and mildew growth, and damage to your furniture, flooring, and walls.
Is it bad to buy a house with foundation problems? ›
Minor foundation issues do exist, and some aren't too expensive to repair. In fact, the foundation issues don't directly endanger you or your family, but they'll allow other, more concerning problems – like mold or vermin – to seep into your new home.
Is it safe to live in a house with foundation problems? ›
While you're home isn't likely to collapse, that doesn't mean you should try to live with a foundation problem. An unrepaired foundation problem will get worse over time and could lead to unexpected and dangerous situations. For example, foundation problems can prevent doors and windows from opening.
Do foundation problems affect appraisal? ›
Yes, foundation repair affects your home's value by preventing it from decreasing. This makes sense because any foundation problem will decrease your home's value. A house with a foundation repair is often easier to sell because buyers know the home's structural integrity is sound.
How much less to offer on a house with foundation issues? ›
If the house needs significant foundation repair that you don't take care of, you're likely to turn away a large pool of buyers and attract a group of house flippers who want a deep discount on the price. Foundation issues can reduce the sales price by 10% to 15%.
What is considered a failure for foundations? ›
There are several types of foundation failures, including settlement, heaving, sliding, and cracking. Settlement occurs when the soil underneath the foundation is unable to support the weight of the structure. This can cause the foundation to sink and lead to cracks in the walls and floors.
What is considered major foundation repair? ›
Some common examples of major foundation problems include significant cracks in walls or floors, bulging walls, or sinking or settling foundations. If you notice any of these signs, it is important to contact a foundation specialist as soon as possible.
What Can I Expect After Foundation Repair? Once your foundation has been repaired, whether you had a bowing wall fixed or your home was lifted using underpinning, you can expect a few things. Small cracks may form – As your walls and joists adjust back to their original positions, new cracks may form inside your home.
What happens if foundation problems are not fixed? ›
Foundation issues often lead to settled floors, misaligned doors, cracked interior walls, and in severe cases, collapsed ceilings and burst pipes. In some scenarios, the foundation damage may be irreversible, so repairs are unnecessary, as they cannot fix the damage.
Are foundation issues a deal breaker? ›
Foundation issues don't have to be a deal breaker - if the damage is minimal, buying the property will likely be worth the investment.
When should you walk away from foundation problems? ›
Fixing foundation issues can be expensive, and they're often not covered by homeowners' insurance. If the cost of the repairs is more than you're willing or able to pay, then it's best to cut your losses and walk away.
What does a bad foundation look like? ›
Look for cracks in the foundation, walls, or floors of your home. Also, check for uneven floors or doors that do not close properly. Examine the exterior of your home for any signs of sinking or settling, as well as water damage and mold, which can all be indicators of potential foundation issues.
When should you walk away from a house with foundation problems? ›
Fixing foundation issues can be expensive, and they're often not covered by homeowners' insurance. If the cost of the repairs is more than you're willing or able to pay, then it's best to cut your losses and walk away.
Can you fix a foundation without lifting the house? ›
Foam jacking is a potential alternative for homeowners who do not wish to raise their existing house. Foam jacking works by helping to raise sunken concrete slab foundations. Your foundation pro will start by drilling holes into the concrete slab before injecting it with polyurethane foam.
When should I be worried about my house foundation? ›
We recommend scheduling a foundation inspection if you notice considerable space growing between your cabinets or countertops and the wall. This can indicate damage from soil compaction or a settling foundation. Small separation may be a normal movement, but growing space should be investigated.
According to the rules of the real estate game, you really are obligated to let a buyer know if your home has any foundation or structural problems. Faulty foundations and leaky roofs are two of the issues that are most likely to scare off potential buyers, but it’s important for everyone to realize that not all warning signs are equal. Don’t ignore them, but don’t assume the worst.