There’s no problem worse for a homeowner than a problem with the foundation of the house. With such a pressing issue with the building, it can make moving forward seem overwhelming, especially if you are considering selling your property.
If your house has a foundation problem you already know about or just discovered in an inspection, the real question becomes – can you still sell it?
The short answer is – of course, you can still sell your house. But not without considering how it will impact your finances or the types of offers you will receive.
Here’s a closer look at your options when it comes to selling your house with a foundation problem.
If your home has been damaged due to settling but doesn’t need foundation work then you might want to consider a home renovation company to assist you with the repairs.
What Are the Options For Handling a Home’s Foundation Problem?
Any time there is a major issue with the property you are trying to sell, it’s important to find out the options available to you.
Before selling, you want to make sure what you choose to do makes the most financial sense. That, of course, depends on your individual circumstances. But it helps to be prepared and aware of what can happen.
Take this homeowner’s experience for example. Joel owned his house for over 10 years when he decided it was time to sell. He paid for an appraisal and signed a contract with a real estate agent to help him with the sale of his property.
As soon as he listed it, he received several offers. When the inspection came back from the first set of buyers, it revealed a crack in the foundation of his home. The potential buyers asked for it to be repaired as a condition of their offer.
The cost of fixing the crack was substantial and Joel didn’t have that type of money handy. Instead of repairing the foundation, Joel decided to re-list his property for less while disclosing the problem.
Based on the initial enthusiasm potential buyers had for his property, he hoped he’d receive more offers.
But a crack in the foundation of his home was enough to scare off potential buyers and Joel ended up with no offers on his property.
Joel was unaware of other options for selling his house so he decided to refinance his property to cover the costs of fixing the foundation before he attempted to sell it again.
The refinance took weeks before it cleared and the repair took even longer. The added time, loan fees, and actual costs of repair resulted in Joel losing thousands of dollars.
If you are in a similar situation, it’s important to be aware there are other options available to you. Perhaps you will find a buyer who is willing to purchase your property even with major problems.
However, selling your house through a real estate agent means you still have to pay realtor fees, which average 5-6% of the total sale price as well as closing costs and capital gains tax.
Short of having to follow through with a costly repair, the other option you have is selling your home for cash. Doing so means you can sell your house as-is and there are no real estate agent fees to pay.
But be careful who you choose to sell your house to as cash buyers often offer low-ball prices or are out to rip you off. Not all cash buyers engage in shady business tactics, however.
There are reputable home buyers who will offer a fair price for your home, even if there is a foundation problem.
Here’s How to Sell Your House For Cash Without Having to Pay For Repairs
- Selling your property as-is without having to make any repairs
- No real estate fees, closing costs or other hidden expenses
- No expensive repair costs
- Skip marketing your property and hoping you receive offers
- No longer responsible for making mortgage payments
- Cash in hand quickly
Selling your home for cash is a worthy option to consider, especially if your house has a major repair that is needed. Often times, homeowners don’t have access to the capital needed to make those repairs.
Cash buyers are usually investors who can fund repairs and marketing to sell the property at a profit.
Rather than holding onto your home because you don’t want someone else to profit off it, consider the money and time you will save by not having to go through the process yourself – not to mention the stress you will avoid!
When it comes to searching for a cash buyer, make sure you research them thoroughly. Getting ripped off when selling your property is the last thing any homeowner wants.
Here are some things to watch out for when looking for a cash buyer:
- Unreasonably high offers – Keep in mind that investors buy homes for cash so they can make a profit. If the initial offer is close to what it would sell for on the real estate market, it could be a sign the buyer is setting you up for a bait-and-switch – meaning they may change their offer later on once they have you interested.
- Unusually low offers – Unreasonably low offers are a sign the buyer is out to rip you off from the very beginning. Make sure to shop around and find references from any previous homeowners the buyer has worked with.
- Unwillingness to meet in person or talk on the phone – Any reputable buyer should be willing to speak to you directly. After all, you are selling a valued possession and they should be willing to make you feel at ease. This includes speaking to you directly or meeting with you in person.
- Substantial application fee or other upfront costs – Many cash buyers offer free quotes. Although some may charge a small application fee, you shouldn’t be paying large sums of money just to see what a cash buyer can offer you. Beware of companies that are trying to make money off you without actually buying your home.
- Doesn’t close the deal quickly – Cash buyers who tell you what you want to hear but are unwilling to draw up paperwork or start the process could be the sign of a scammer. They may draw out the process, waiting for you to feel financially distressed, before changing the terms of the offer. They do this so you feel your options are limited and will accept their terms. Reputable buyers won’t waste your time this way.
If you live in the Austin, Texas area, Jerred is an excellent real estate consultant with a reputation for honesty and transparency when buying homes for cash. He can help you sell your house as-is with a flexible closing date.