10 Things Buyers and Sellers Need To Know About Foundation Repair
July 24, 2023
Whether you are a seller or a prospective buyer, a home with foundation issues presents a huge problem. As a seller, you will struggle to get buyers to even look at your home. If you manage to attract a buyer, they will often make ridiculous offers that you are forced to reject.
For buyers, you have to deal with the disappointment of discovering that a home you want has foundation problems. Secondly, if you choose to go forward with the purchase, you are often unsure how much it will cost to fix the foundation and if the solution will last.
As a result, SGI Dallas PM explains most sellers and buyers regard foundation issues as a death sentence on the salability of a home. Because of this, owners of such houses will often fail to disclose the foundation issues. Buyers, on their part, will not even give foundation-damaged homes a second thought.
But just because a home has foundation problems doesn’t mean it is inhabitable. Buying a home with foundation problems can be a good deal for buyers. But for that to happen, there are a few things buyers and sellers must understand.
Before you list your home for sale, ensure you know the extent of the foundation issues. Most foundation problems can be solved. But there are situations where the best option is to demolish the home. Knowing the extent of the issues will give you an idea of how much money to expect from the sale and the best way to approach buyers.
It is possible to sell a home with foundation issues, but there has to be a reason why buyers will even consider buying the house. One way to make your offer more compelling is to be willing to make concessions. This strategy works best if the issues with the home are not extreme and the concessions make the trouble worth it.
What sellers should know about selling a home with foundation issues.
1. Know the seriousness of the problem
2. Be willing to make concessions
3. Decide whether to fix the home or sell it “as-is”
Some buyers prefer to let you repair the foundation. Others will doubt the quality of your repair; this can be enough reason for them to walk away. If you choose to fix the foundation, make sure the repair company gives you a warranty and that you can transfer that warranty to a buyer.
Even if you fix the foundation, buyers can still learn about the problem when they see the home’s repair history. It is usually better to be upfront about the issues instead of letting buyers find out for themselves. Failure to disclose might come across as being dishonest. It will take a while to find a buyer since most buyers are unwilling to buy a home with foundation problems. In addition to taking longer, your home will sell for less than the value of similar homes. To help your home sell faster, put yourself in the buyer’s shoes and ask the questions they would ask. Get a licensed structural engineer to inspect the foundation. If you decide to buy the home, the same structural engineer should inspect the repaired foundation and sign off on the job. If lenders don’t see a stamped report by a licensed structural engineer, you won’t get a mortgage on the home.
Once you have the structural engineer’s report, request quotes from at least three foundation repair companies. The estimates will tell you whether the home is a good or bad deal. When choosing a foundation repair company, avoid going with the cheapest one and make sure they offer a guarantee.
Know that you cannot buy a home using a conventional mortgage. That is because lenders will not approve mortgages for a home with structural issues. But it is possible to use other kinds of financing; construction loans or hard money loans. But these are often more expensive.
1. Be ready to disclose the problems
2. Expect a lower sales price
What buyers should know about selling a home with foundation issues.
1. You need a professional evaluation of the foundation
2. You should get estimates for foundation repair
3. You will have difficulty with financing
4. Include contingency clauses in your agreement
Give yourself a way out of the deal by including a contingency in the agreement you reach with the seller. It will give you a way out if things go wrong. Talk to an experienced estate agent and attorney to help you decide the best clauses to add to the agreement.
Even if the foundation problems are completely solved, the record of the issue will continue to appear in the home’s repair history. This can be a problem if you ever decide to sell your home. Before you buy the home, ensure you can live with this reality.
You may have difficulties selling the home in future.
Finally, openness and flexibility on the part of both the seller and buyer can help make what is already a difficult transaction easier for everyone.