Selling a House with a Bad Foundation
Though home sellers unanimously want the home-selling process to go as quickly and painlessly as possible, at times, unforeseeable bumps come up. During an inspection, sellers might discover that the house has serious foundation problems. This leaves sellers with a predicament. Sellers may want to list their houses sooner rather than later, yet might be afraid that buyers simply won't come knocking at the door to even look at the house. And while holding off selling the house until you get the renovation funds can increase the home value and get a better asking price, it isn't always a possibility.
When selling a home that needs foundation repairs, there are two main options. One is to sell the house as-is without making repairs, and the other is to make the repairs first before placing it on the real estate market. Sellers have to consider their options based on their unique financial situation and how they want to proceed with the sale of the house. If a seller decides to sell a home with existing problems, there are ways to do it while still attracting buyers. The main objective is to make the house so attractive and compelling to buyers where the foundation problem isn't a deal breaker. Here are several tips you can use when selling your home:
Be Upfront about Foundation Problems
Home buyers can become wary of house deals where the seller is hiding major repairs. They may begin to wonder what else you could be possibly hiding about the house, as some people not won't to stick around to find out. Have an inspection done before putting the house on the market so you're able to inform potential buyers of any issues to the best of your ability. Always tell buyers about the problem so they can factor in foundation repairs into their finances.
Provide Repair Estimates
When selling a home with preexisting damages, sellers should already have the repair estimates on hand after the inspection. Sellers can provide these estimates to the buyer to show them what it will actually cost to get the problem fixed. Remember, when a person hears about a house that has foundation issues, they think about the worse possible situation. Yet the problems, and the subsequent repairs, may not be as drastic as they imagined and the costs might actually fit into their budget if they planned to remodel the home anyway.
Price the House Wisely
Never expect to get the full asking price without fixing the foundation problem. You will have an easier time getting the house sold if you come down on the price to take into account the money that the buyer will spend to purchase the house and make the repairs. Some sellers will mark down the price 20% to 25% from the asking price.
Be prepared to negotiate even when marking down the house. Some buyers will try to play up the foundation problems as the reason why they should low-ball you. If you feel like you are getting less than what is deserved for the house even when drastically marking down the price, then you still have the option to say no.
Play Up the Fixer Upper Option
Some people are specifically looking for low-priced fixer upper homes that they can remodel to better fit into their preferences or to flip to make a profit. You can appeal to these subset of buyers by playing up the great features of the house and the types of additions that can be made to the property during the renovation process. So these buyers are walking in knowing that they will encounter problems and are more willing to take on a house that needs major repairs.
Sellers don't have to let a damaged foundation prevent the sale of a house. Consider all possible financial options, check into whether it's worthwhile to fix the issue or sell as-is, and place the house on the market to get the profit needed. To get further guidance on how best to sell a house with foundation issues, consider speaking with a real estate professional on the best ways to market the home.