Foundation problems can significantly impact the value of a property and deter potential buyers, so it’s important to address this problem right away.
Unfortunately, foundation issues are common in the Little Rock area due to the expansive soil, which shifts and often leads to damaged foundations.
This guide will explore what’s involved in successfully selling a house with foundation issues, from understanding repair costs to attracting the right buyers for a smooth transaction process.
Understanding Minor vs. Major Foundation Problems
First, you’ll need to differentiate between minor and major foundation problems.
When it comes to home repairs, on a scale from 1 to 10, a foundation problem starts at 6 and only goes up from there! As does the average cost to fix.
Minor foundation issues in a home are often characterized by superficial cracks in walls or floors, minor settling causing slight unevenness, or doors that stick occasionally.
While these problems may seem relatively harmless at first glance, they can be early indicators of underlying foundation issues that, if left unaddressed, could lead to significant structural damage.
Minor problems will be spotted by a home inspector and the information will be passed on to the potential buyer. This could cause a delay in closing, or even cause the buyer to walk away from your property.
Major foundation problems are more severe and can include extensive cracking in multiple areas, noticeable sinking or shifting of the foundation, doors and windows that no longer close properly, or even visible gaps between walls and the ceiling. They can also be the cause behind expensive slab leaks that often aren’t covered under insurance.
Major issues not only compromise the structural integrity of the house but also have the potential to cause safety hazards and dramatically decrease the property’s market value.
This level of foundation damage must be dealt with before you can consider selling. You’ll need to hire a licensed structural engineer to do a thorough assessment of your house. With this information, you can then come up with a plan for how to proceed.
Yes, that foundation repair cost will likely be very high. But without it, good luck finding a potential buyer.
And of course, you should expect delays in getting all this work done. Don’t expect to sell this house anytime soon.
4 Challenges When Selling a House In Little Rock With Foundation Issues
Naturally, if you suspect you have foundation issues and you want to sell your house, you likely are anticipating issues, such as home inspection challenges and having to pay for the repairs before you sell your house.
Luckily Gary can help.
Let’s dive into 4 common challenges when selling a house in Little Rock with foundation issues and the best ways to resolve these challenges.
Fixing Your Foundation is Expensive
One of the biggest hindrances of a foundation issue is that it’s expensive. A home is supported by its foundation and as it is often built using concrete, it is expensive to fix.
While there are government grants, loans, and financing that can be used to fix the home, it is still a massive expense and it is likely that you will have to pay that or take on that debt as the homeowner.
This cost to repair your foundation can eat away at the money you should be getting when you sell your home.
Luckily, you can sell your home as-is, so you don’t have to make any expensive fixes. Instead, just sell your house to a reputable cash buyer and move on.
Cash buyers like Gary let you walk away with the money you need while leaving behind all the stress.
Delays in Bringing the House to Market
Addressing foundation issues when preparing to sell a house will lead to delays in bringing the property to market.
While addressing foundation issues will also delay the selling process, it is essential to ensure the structural integrity of the house. Foundation problems can deter prospective buyers, often resulting in longer selling times when trying to find a willing buyer.
The good news is there are non-traditional ways to sell your house—even one with major structural damage!
You can sell your house as-is by selling it to a reputable “for cash” home buyer. They make this process simple!
Gary Buys Houses is a reputable home buyer in the Little Rock area. Give Gary a call today.
Lower Appraisal Value Which Leads Buyers Unable to Secure Financing
When selling a house with foundation issues, one common obstacle that sellers may face is potential buyers being unable to secure financing due to the property’s structural problems.
Lenders are typically cautious about providing loans for homes with foundation issues as it poses a risk to the property’s value and safety.
This issue can significantly limit the pool of prospective buyers. While Arkansas doesn’t require the seller to disclose these issues, (AREC) 10.6 does make it very difficult for the realtor to withhold this information from the potential buyer.
Luckily, cash buyers don’t face these problems, making it easier to sell your house with foundation issues.
Home Inspection Challenges
Home inspections present unique challenges, especially when dealing with homes suffering from foundation issues.
Inspectors need to carefully assess the extent of the foundation problem, such as large cracks, structural damage, or uneven floors, to provide accurate information to potential buyers.
Often, home inspectors don’t have the training and experience to properly assess a structural problem. So they will likely raise alarms, even if the problem is minor. They will also recommend bringing in an expert, which can scare potential home buyers.
Identifying these issues is crucial for determining the necessary repairs and estimating repair costs. Additionally, it might require working with a structural engineer to fully understand the scope of the structural damage and ensure the home’s integrity.
Without this information, a potential buyer will be highly reluctant to make an offer.
Despite the obstacles, addressing foundation concerns during inspections is essential for transparency and building trust with prospective buyers.
How to Resolve Foundation Issues
Because of all these difficulties, you might want to consider addressing any foundation issues before calling in a realtor.
Here are the key steps in resolving foundation concerns:
- Hiring a structural engineer to assess the extent of the problem, and come up with a repair schedule.
- Budgeting for the repair costs, and then finding a foundation repair company to make those needed repairs.
- After the repairs are completed, another foundation inspection to ensure the work was done properly and the foundation now has the necessary structural integrity.
- Now you’re ready to bring your house to the real estate market.
Because of the difficulties and complexities of a house foundation, this is not DIY. You will need to bring in licensed professionals to solve this problem.
Final Thoughts: How to Sell Your House With Foundation Issues
Selling a house with foundation issues presents significant challenges that can impact the property’s value and deter potential buyers.
Start by differentiating between minor and major foundation problems and address them proactively to ensure a smooth transaction process. This will require hiring a licensed structural engineer who can assess the problem(s) and provide a blueprint for the necessary repairs.
Repair costs will be high, and there’s no DIY workaround. You will need to work with a reputable foundation repair company to resolve all the foundation concerns before making that sale.
Now, are you ready for our “simple” solution?
Sell it for cash—fast! That’s right. No need to go the traditional route, with all that upfront work and expense. Simply bypass all this stress and yes, you can sell your house without a realtor.
Just call Gary. We will come out to your house and take a look. Then we will make a cash offer. If it sounds good to you, we will take care of the rest.
FAQs Related to Selling a House with Foundation Issues in Little Rock
Is it worth buying a house with foundation issues?
Buying a house with foundation issues can be a risky investment, potentially leading to costly repairs and structural problems down the line. It is crucial to thoroughly assess the repair costs and implications before deciding if the purchase is worth the associated risks.
Is it hard to sell a house with foundation problems?
Selling a house with foundation problems can be challenging due to the potential buyer’s concerns about the structural integrity and repair costs.
However, with full disclosure and the assistance of professionals like structural engineers and foundation repair companies, it is possible to find the right buyer willing to take on the necessary repairs.
Do foundation problems affect appraisal?
Foundation problems can significantly impact the appraisal value of a house, often leading to lower appraisals due to the potentially costly repairs involved in fixing the foundation issues. Appraisers typically consider the extent of the foundation damage and the repair costs when valuing a property with foundation problems.
