How to sell a house with foundation problems
Selling a house with foundation problems doesn’t have to be frightening
It’s a homeowner’s nightmare. The time has come to sell and suddenly a major issue arises. One of the most dreaded is discovering your house has a foundation problem.
But there is a way forward. So, if you suspect your home has foundation issues, pull up a seat while we explain how that needn’t undermine your sale.
In this article we’ll outline the steps towards the best possible price by taking you through the key questions people ask:
What causes foundation problems?
How do I know if my house has foundation issues?
How much does foundation repair cost?
Should I repair foundation problems before selling?
Who would buy a house with foundation issues?
How do I sell a house with foundation issues?
What causes foundation problems?
Foundation problems are usually a result of:
the soil supporting the foundation having changed in some way. For example, through subsidence, expansion/contraction due to moisture, large trees nearby, damaged plumbing left unrepaired.
the properties of the soil not being adequately understood during the original design of the foundation; meaning the foundation is not adequate for the conditions.
For more detail on this topic, read our blog “What is underpinning and when is it needed?”
How do I know if my house has foundation issues?
You might do a DIY evaluation of your own property, but love can be blind so it’s best to have an independent party take a look. A good real estate agent will usually pick up on foundation problems during their market evaluation of your property, and suggest that an underpinning company should make an inspection visit.
If you want to do your own check first, there are some indicative signs of foundation problems to look out for, such as cracks in the floors or walls, the floor not being level, or doors and windows out of alignment.
But even if you find one or more of these indicators, don’t panic. It doesn’t necessarily mean that you have a major problem. And free, expert help is at hand. Talk to a couple of underpinning or foundation repair companies to get a feel for the issue (and for them). Then you can book someone to come to your home and investigate firsthand. For this purpose we provide a complimentary Home Checkup service that is an excellent first step and avoids you having to fork out money on engineers when they may not be needed.
How do you know if your house has foundation problems? Often you’ll need an expert to inspect your property. Some cracks can be superficial. Other can be serious.
How much does foundation repair cost?
Answering the question of “how much will it cost to underpin my house?” is similar to asking “what will it cost to renovate my house?” It depends on a number of factors that can result in significant variance in the cost. Most foundation repairs range in cost from $5,000–$35,000. In cases where major works are required, the cost can be in the range of $40,000–$80,000.
There are many contractors out there, so get more than one opinion and more than one quote. In the process you will also get a feel for the people you’re dealing with and be able to decide with whom you feel most comfortable.
When it comes to foundation repair (underpinning) costs, the key things your contractor should consider are the:
type of foundation
root cause of the foundation problem
extent of the problem/damage
ease of access to the foundations.
But in choosing the best company to address these things you’ll need them to excel in three categories:
#1 Individual approach
When it comes to house foundation problems, every situation and each house is unique. You need an expert to individually assess your house.
#2 Expertise
There are many underpinning contractors out there, with varying levels of competence and experience, and a variety of methods to underpin a house, so you might get conflicting information. You can narrow the field by looking for a contractor who is a master builder, checking online reviews and asking to speak to previous customers.
#3 Cost transparency and time
As well as an honest, competent contractor, you want someone who’ll make sure costs won't blow out part way through the process, and delays won’t cost you valuable time when trying to get things right to sell your home.
At Foundation Solutions, we take pride in our 8-step process we call “Wunderpinning” that removes the uncertainty from foundation repair. We will provide you with a quote that is:
Fixed price — inclusive of all additional expenses, such as any forensic engineering, soil tests, structural engineering reports, site inspections, the underpinning work and all materials.
Transparent — straight forward and free of confusing jargon. If not, we’re always available, by email or phone, to explain things for you.
Fixed time/schedule — committed to a work schedule that clearly outlines each stage of the process and how long it will take, weather dependant of course.
Inspecting cracks due to foundation problems on a property in the South of Brisbane
Should you repair foundation issues before you sell?
This decision will largely depend on your circumstances and the market.
If the cycle is favouring sellers, the pressure and emotion in buying a home can transcend other buyer concerns. The best buyer may be an investor who only wants the land and isn’t bothered about the foundations, so why waste the money? On the other hand, in a buyers’ market foundation problems can be a significant deterrent and/or a negotiating lever to reduce the price.
No matter which way you roll you’ll need to fully disclose, in writing, the issue and any works you undertook to repair it.
That’s why our logical, transparent inspection report, quotation and works schedule is so important. It’s a handy tool in deciding whether to repair foundation issues before you sell because:
you’ll be able to clearly find out whether or not your home insurance may cover some or all of the work
you’ll be able to work out whether you can afford the money and time to do the repairs
your real estate agent will know exactly what they are selling. This enables trust to be established with potential buyers, maximising the price.
Yes. Repair the foundations first
In an ideal world (and a normal market) it’s preferable that the foundation problem is fixed, with a written warranty, prior to listing. This gives you the widest possible pool of potential buyers.
As first impressions count so much in selling a home, it also helps to have enough time for your home to settle and for you to tidy up any cosmetic issues that may result from the foundation repair works, such as regrowing your lawn and gardens. Then when you provide all the documents, reports, and warranties it just helps to confirm in the buyers mind the “rightness” of their first emotional impression.
No. Sell without repairing foundations
In reality, not everyone has the time and money to repair the foundations first.
Aside from not having the cash, there may be any number of reasons why you have to sell sooner rather than later. This is when the inspection report, quotation and works schedule becomes even more important. It can help your agent reassure buyers and obtain the best possible price in the circumstances.
Who would buy a house with foundation issues?
You might be surprised by this. There are all kinds of buyers out there.
As we mentioned, foundation issues will not be as important to someone who wants to demolish and build. A buyer may stipulate a contract condition that the seller repair the problem first. Homes have even been bought with a clause that the buyer wants to fix the foundation problem to their own satisfaction before settlement.
These last two scenarios may lead to negotiated price reductions, depending on the market, but they do show that foundation problems are not necessarily a contract killer, especially if you build trust with good documentation at the beginning.
Measuring the level of the foundations at various points around the house allows us to determine just how much the foundations have moved.
How do I sell a house with foundation issues?
If your circumstances require you to sell your home without repairing the foundation issues, there are a few key things to do:
Disclose any known foundation issue to buyers in writing
There’s no point pretending the problem isn’t there. You must advise buyers about the issue up front and in writing. If you don’t, their building inspector will find it anyway and you’ll lose the sale or they will ask for a big reduction because now they don’t trust you. Or if they buy the house and find out later, they can make a legal claim against you. Being up front builds the trust you need to get the best price. And having a written assessment of your foundation conditions, along with a transparent underpinning quotation and fixed work schedule will once again be crucial, as will any warranty that can be provided and any engineers report.
Provide information to buyers on the suppliers you have consulted
You’ve done all the research to get the best foundation repair company, so why not share it? You’ll have information on qualifications, experience, reviews and contacts of previous customers. At Foundation Solutions, we’ll be happy to take a call from your buyer.
Obtain the buyer’s acknowledgement, in writing, that they have been informed
Real estate contracts operate only on what is in writing, so protect yourself by obtaining written acknowledgement. Your agent can help with this.
Work strategically with your real estate agent
The inspection report, transparent quotation, fixed work schedule and other documentation will help your agent best deal with the foundation issue for each potential buyer, while shifting focus to the other attributes of your home. For example, they might say to buyers “Yes, we know how you feel about this. Others have felt the same, but that hasn’t slowed interest in this home, because what we’ve found is that …”.
So while the foundation issues may lead to some negotiated reduction, at the end of the day you’ve put your best foot forward and obtained the best possible price in the current market.
Ready to take the next step?
Now that you’re better informed, you still might want to talk things over—probably with your partner first, then your real estate agent. At Foundation Solutions, we’re also happy to answer your questions.
Just call Nicole on 0451 824 961. Or if you’re ready to get to the bottom of your home’s foundation problems, book in a complimentary Home Checkup service and report with one of our experts.