Yes, you can sell a house with a bad foundation. Discovering a foundation issue can feel like a homeowner's worst nightmare, sparking fears of massive costs and an unsellable property. The good news is you have options, and your home isn't "stuck" with you forever.

This guide will help you navigate selling a home with structural problems. We'll outline your options, from making full repairs before listing to selling directly to investors specializing in distressed properties. By the end, you'll understand the available paths and choose the one that fits your situation, timeline, and financial needs.

Understand the Problem: Signs of a Bad Foundation

Before making decisions, understand what you're dealing with. Not every crack in your home signals a catastrophe. Homes settle over time, and minor cracks can be normal. However, certain signs should alert you to potential foundation issues needing professional attention.

Exterior Signs:

• Large cracks in the exterior brick or foundation (especially horizontal or stair-step cracks wider than ¼ inch)
• Bowing or leaning exterior walls
• A chimney that is tilting or separating
• Visible gaps between the home and the ground
• Water pooling near the foundation after rain

Interior Signs:

• Cracks in drywall or plaster, especially over doorways and windows
• Sticking or improperly closing doors and windows
• Sloping or uneven floors
• Gaps between walls and the ceiling or floor
• Cracks in floor tiles or concrete floors
• Bowing basement walls

These problems stem from common causes: shifting soil beneath the home, poor water drainage around the foundation, plumbing leaks that erode the soil, or flaws in the original construction. In some regions, natural events like earthquakes or floods can also trigger foundation damage.

The Two Most Important Steps: Assessment and Disclosure

For foundation problems, guessing isn't an option. A structural engineer is a licensed professional who can provide an unbiased, third-party assessment of your home's condition. Unlike contractors who may recommend extensive repairs, engineers focus solely on evaluating the situation accurately.

The engineer's report will document the problem's cause, assess its severity, outline a repair plan, and provide an estimated cost range. This document is invaluable regardless of how you choose to sell. If you repair before selling, it guides the process. If you sell as-is, it gives buyers and lenders clarity. If you sell to a cash buyer, it helps them make a fair offer.

Disclosing Foundation Problems When Selling

When selling, honesty isn't just the best policy when disclosing foundation problems, it's typically the law. In almost all states, sellers must disclose known material defects, and foundation problems are a material defect. You cannot hide the issue and hope buyers will not notice.

Failing to disclose known foundation issues can lead to serious consequences, including lawsuits for fraudulent misrepresentation, sale rescission, and financial damages. Rather than viewing disclosure negatively, consider it a crucial step that protects you and the buyer from future legal complications.

Seller disclosure laws vary by state and municipality. This information is for educational purposes only and is not legal advice. Always consult a qualified local real estate attorney to understand your obligations.

Three Paths for Selling a House with Foundation Issues

Now that you understand the problem and your legal duties, you have three primary paths. Let's break down the pros and cons of each.

Option 1: Repair First, Then Sell on the Traditional Market

This approach involves hiring contractors, funding the repairs yourself, and listing your home on the MLS with a real estate agent, like any other home sale.

Pros:

• Higher potential final sale price
• Appeals to traditional buyers wanting move-in ready homes.
• Eases buyers’ access to conventional financing
• Eliminates the stigma of "foundation problems" from your listing.

Cons:

• Requires significant upfront cash. According to HomeAdvisor (2023), the average foundation repair cost ranges from $5,000 to $25,000, with major repairs potentially exceeding $30,000.
• Repairs can take weeks or months, delaying your selling timeline.
• Living through major foundation repairs can be extremely disruptive.
• There's no guarantee you'll recoup 100% of your repair investment in the sale price.

Option 2: Sell "As-Is" on the Traditional Market

With this strategy, you list your home with a real estate agent and state it's an as-is sale with known foundation defects. You provide potential buyers with the structural engineer's report and price the home accordingly.

Pros:

• No upfront repair costs.
• You can still market the property through traditional channels with agent assistance.
• Transparency about the issues can attract serious buyers rather than wasting time with those who would back out later.

Cons:

• Expect a significantly lower sale price. Buyers will deduct repair costs and add a "hassle factor" premium.
• The buyer pool is extremely limited, consisting mostly of investors or flippers looking for discounted properties.
• Many traditional buyers can’t get a mortgage on a home with major structural defects, often killing deals late in the process.
• Homes with disclosed foundation problems stay on the market longer than comparable properties.
• Some agents are reluctant to take listings with known serious issues.

Option 3: Sell Directly to a Cash Home Buyer

This path involves selling to companies that buy problem properties. These cash home buyers for structural issues have the expertise and resources to handle foundation repairs after purchase.

Pros:

• No Repairs Needed: They buy the house as-is, regardless of the foundation issues.
• Fast Closing: The sale can be completed in 7-10 days, compared to months on the traditional market.
• No Fees or Commissions: By not using real estate agents, you save about 6%.
• Certainty: Cash offers don't depend on bank financing that could fall through due to the property's condition.
• Simplified Process: Minimal showings, no open houses, and fewer contingencies.

Cons:

The offer will be lower than the home's "after repair value." This is the trade-off for speed, convenience, and avoiding all repair costs and risks.

This is the simplest, most predictable path for homeowners prioritizing speed and convenience over maximizing the final price. Companies like GetHomeCash specialize in evaluating properties with structural problems. They can give you a fair, no-obligation cash offer based on the home's condition, letting you bypass repairs, listings, and showings. With our simple process, we handle all the paperwork and can close on your timeline, allowing you to get your cash and move on without the stress.

FAQs

How much does a bad foundation devalue a home?

It's not a simple percentage. Devaluation typically equals the full repair cost plus a "risk premium" of 10-20% that buyers factor in for hassle and potential unforeseen repair issues. If repairs cost $15,000, expect the home to be devalued by $16,500-$18,000 or more.

Can a buyer get a mortgage for a house with foundation issues?

It's extremely difficult. Most lenders (FHA, VA, Conventional) won't approve a loan for a home with active, un-repaired structural defects. That's why cash buyers for structural problems are often the only option for a quick sale. Some buyers obtain a renovation loan like an FHA 203k, but these are more complex, take longer to close, and many buyers aren't willing to navigate the process.

Is it better to offer a repair credit instead of fixing them myself?

Many buyers remain wary, even though offering a repair credit may seem like a good compromise. They often overestimate repair costs and may still struggle to secure a loan if the lender determines the foundation issues must be addressed before closing. Usually, more straightforward paths are fixing it yourself or selling to a cash buyer who specializes in selling your home completely as-is.

Conclusion

Yes, you can sell a house with a bad foundation. While foundation problems present a challenge, they don't make your home unsellable.

Your path depends on your priorities. If maximizing your sale price is most important and you have time and money for repairs, the traditional route works best. If you need to sell quickly, without upfront costs, and with minimal stress, a direct sale to a cash buyer offers the simplest solution.

Assess your property, understand your goals, and choose the path that brings you peace of mind. You are in control.