Your home’s foundation is one of the most important aspects of your house. It can also be one of the most expensive items to repair. There are lots of discussions as to whether you actually need to repair your foundation before selling so let’s break it down.
When you list your home with a realtor the buyers that come to your home generally need conventional financing (unless its an investor). Before the bank will lend money on the property they will send inspectors to your home and if the inspector finds that your home has foundation issues they will not give a loan on the property until it is fixed.
What are your options?
Don’t give up hope yet even if the bank won’t lend money for your property you still have other options.
- Repair the foundation. This may be the simplest option in some cases. However, this isn’t necessarily the cheapest option. The average homeowner will spend around $4,000 on foundation repairs and more serious damage can cost over $10,000.
- Owner finance\rent to own. This may be a viable option in some cases but not every homeowner is open to this type of transaction especially if you still have an outstanding mortgage on the property. Owner financing and rent to own usually attracts buyers that don’t have great credit or couldn’t get approved for a conventional loan.
- Find a cash buyer. The best-case scenario would be if you found a cash buyer for the property. This may seem simple however its easier said than done. A cash buyer is going to be very cautious about where they put their money. Often foundation issues can scare off cash buyers because of the extent of work that needs to be done and the potentially high cost.
- Sell to Savvi Buys Houses. We buy homes in As-Is condition. We also pay all closing costs and since there isn’t any agent there won’t be any commissions. All you need to do is call in and schedule an appointment, we do a quick inspection of the property and make a cash offer. The offer we make to you is the exact amount you will receive at closing.
So do you need to repair the foundation on your house before selling? No, there are plenty of options. All you need to do is find the best option for your situation. In some cases, it may be necessary to consult with a real estate agent before making a final decision.