Three Tips for Selling a Home with Foundation Issues
Posted on: 29 September 2016
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Foundation issues are a red flag for buyers. Most buyers who look at a home with foundation issues are going to say "no thanks" and move on to other options. However, there are a number of buyers out there looking for fixer-uppers. Some of these buyers may not mind a home with fixable foundation issues. The secret to selling your home with foundation issues is finding these buyers and providing the right information to convince them that your home is the fixer-upper worthy of their time and money. Here are some tips to help you do just that.
Get estimates for the repairs, and show them to potential buyers.
Even if you don't plan on having the repairs done before you sell, you should at least have a couple of contractors come out and give you estimates for the required repairs. This way, you can show the estimates to potential buyers. Knowing whether a foundation needs $3,000 worth of repairs or $30,000 worth of repairs will ensure they know what they're getting into. Some buyers may plan on doing the repairs themselves, but having these estimates at least gives them an "upper ceiling" in terms of what they can expect to spend. Plus, knowing the cost of the repairs will allow you to set a more realistic asking price.
Be completely upfront and honest.
If a buyer thinks you're trying to conceal information about the foundation or make the problems out to be less serious than they really are, they're going to hesitate to commit. So get into the habit of being completely honest from the get-go. You can't hide a big foundation problem (in some cases, doing so may even be illegal) so you might as well disclose it completely so you don't lose a potential buyer due to deception.
Look into mortgage policies of banks in your area.
Some mortgage lenders may not grant mortgages on properties with foundation damage. Other mortgage lenders may only lend to buyers who sign a contract to have the work done before they close. Call a few lenders in your area and ask about their policies in this regard. This way, you can provide some of this basic knowledge to potential buyers who are interested in the home but unsure of which lenders will work with them.
To better ensure your success when selling a home with foundation issues, work with a realtor who has experience selling fixer-uppers.