Can You Sell a House With Foundation Issues
If you’re selling a house with foundation issues, you’ll likely have trouble finding a buyer. When searching for “Sell my house fast in Chattanooga,” rely on Chattanooga Property Solutions to find custom solutions to your selling challenges. We make fair cash offers and handle 100% of the expenses, so you keep the profit.
The Challenges of Selling Real Estate With Foundation Damage
Why does a damaged base complicate the sale of a home? With foundation issues, home value plummets and puts you at risk of losing money. You have to disclose foundation problems to avoid risks of legal complications and future expenses.
Repairing the foundation costs significant money, and someone has to pay for it. If you leave it to the buyer, they may balk at the extra cost, and you may go months without an offer.
Options When You Sell a House With Foundation Issues
If you’ve noticed bad foundation signs but need to sell your home, you may struggle to choose the best route. First, realize that selling a home yourself, even in excellent condition, is never a prudent decision. That leaves you with either finding a real estate agent or a reputable cash buyer.
Sell As-Is and Set a Lower Listing Price
If you choose a real estate agent, you may wish to sell the home as-is. Imagine the following situation:
- You have $50,000 in equity on a $300,000 house and still owe the bank $250,000
- The real estate agent suggests you list the house for $280,000 to accommodate the money the buyer will spend on repairs and the inconvenience.
- Even though you’re selling a house with foundation issues, you obtain the asking price.
- You pay minimal closing costs at 10% ($28,000).
- After paying off the mortgage, you’re left with $2,000.
You barely have enough for the security deposit on an apartment and far from an adequate down payment.
In this case, even with a moderate amount of equity, you barely break even.
Invest in Repairs and Reduce Your Profits
You can also consider making the repairs yourself. Consider the above situation, but instead of lowering the price, you invest in repairs.
You ask for the full $300,000 and disclose the recent repairs. Buyers are still hesitant, but you get your asking price after four months.
After all the expenses, you technically have $20,000 in profit. However, you likely spent around $10,000 on repairs and a couple thousand in prolonged mortgage repairs. Your profit still isn’t great.
Find a Reputable Cash Buyer
If you don’t want to repair the foundation before selling, find a reputable cash buyer. Don’t work with predatory companies.
Instead, find someone local with a reputation for acting like a partner. They’ll buy the home as-is, and can often close in as little as one week.
Contact Chattanooga Property Solutions When You’re Selling a House As-Is
When you’re selling a house with foundation issues, contact Chattanooga Property Solutions. We don’t care if the property has code violations or other problems. You’ll receive a fair cash offer in 24 hours or less.
To start the process, call (423) 454-3070.