If you know your home has foundation issues, but you’re on the brink of selling, what should you do? For some, the answer is simple: sell the home as-is. But if you’ve noticed some signs of foundation problems, potential homebuyers and home inspectors will most likely observe those issues as well. It is for this reason that trying to sell your home as-is can be quite challenging. Furthermore, foundation damage is one of the problems known to deter potential buyers and significantly reduce the sale price. To help you make the best decision possible, here are a few things you should consider before listing your Houston home for sale.
Fixing Your Houston Home’s Foundation before Selling is Usually Best
When trying to sell a home, there are a few reasons that fixing the foundation is usually the best decision. First and foremost, it will be very difficult to find a buyer willing to pay the full market price if an inspection turns up foundation damage. Furthermore, if the appraisal shows serious foundation problems, the lender may revoke the pre-approval and deny a new loan application until all the conditions are met.
Another aspect worth mentioning is that once a bad appraisal is on the records, it can take more than six months to have a fresh appraisal done and bring the home back up to its market value. Even if the damage is not significant, most homebuyers will not stick around to find out. At the first signs of foundation damage, they will exit your home and never look back. So, fixing foundation issues up front is a really good way to get the highest number of fully qualified buyers bidding on your home and ensure smooth sailing through the appraisal process.
If you’re unsure whether or not your foundation needs to be repaired, the best thing to do is call in a foundation repair specialist and have a complimentary foundation assessment done. In the worst-case scenario, the foundation may require extensive repairs. In the best case, the damage is minor and will only cost a few hundred dollars to fix.
When to Sell Your Houston Home As-Is
For some Houston homeowners, the prospect of doing a major foundation repair is simply too costly. In fact, many homeowners feel somehow forced to sell their homes when foundation damage becomes a hazard—so, it’s no longer safe to live in the house—but they also can’t afford to have it fixed right away. In those cases, an as-is sale is better than nothing at all. Of course, many investors will swoop in trying to pick the house up for rock bottom prices so they can flip it for a profit.
In other cases, buyers may ask for a concession to offset the repair costs. That might be a good resolution if you want to get the most for your home but you don’t have the cash to pay for the repair immediately. Assuming that a buyer is interested in negotiating over the price to include the repair, it’s best if you have already had the foundation damage assessed by two or three companies. Coming to the table with quotes in hand will allow you to make a fair deal without giving up too much.
As mentioned above, if an appraisal or inspection mentions foundation damage, you may find that lenders do not want to provide lending for your home. In that case, the price you set will need to reflect that only cash buyers will be able to come to the table. For what it’s worth, if you find yourself in a sticky situation with budget concerns and a need to move, it is definitely possible to sell your home as-is. Just be prepared to take a slightly lower price for it and make sure you have accurate estimates on the repair cost from Allied Foundation so you can make the best negotiations possible.
However, fixing foundation damage before it reaches the point of disaster remains one of the most effective strategies for selling your Houston home for more money. The good news is that we make available several financing options that offer some really convenient payment plans for homeowners who want to repair their homes’ foundations but cannot afford the costs. To discuss the financing alternatives that may be available or to require a free foundation inspection and estimate, feel free to get in touch with one of our representatives today!
