Can You Sell a House With Foundation Issues?

crack in house foundation

Purchasing a home is perhaps one of the largest financial investments anyone can make in their lifetime. Considering that most buyers conclude the purchase with a mortgage that signifies 30 years’ worth of payments, it really isn’t a surprise that many people are concerned about getting a home that requires serious work.

However, what does this mean for houses that have significant problems like those with foundation issues? And how does it affect those that own them? This article is for you if you have a home with foundation issues that you would like to sell.

Finding out your home has foundation issues can be scary; however, you should note that it is incredibly common. There are various foundation types, and a few are more suited to certain terrain than others. Nevertheless, there isn’t any type of foundation in the world that is completely immune to problems.

Table of Contents

Can You Sell a House With Foundation Issues?

Yes, you can sell a house with foundation issues. A house foundation problem doesn’t have to stop you from selling your home, as it is perfectly legal. In Colorado, you can sell your home “as is” so long as you are upfront about the home’s condition.

While each state has certain specifics concerning disclosure during house sales, material defects in a property are one of the general things that all states have in common. Read here to know your rights and see if you can sell a house that needs repairs.

Furthermore, being upfront about the house’s foundation problem is essential in real estate since:

  • Foundation issues could impact the buyer’s eligibility for mortgage insurance and mortgage programs.
  • Lying about foundation issues could result in a bad reputation among local realtors and buyers, making it impossible to sell the house.
  • Undisclosed foundation issues can be discovered by inspectors resulting in the sales process collapsing.
  • Being untruthful about the home’s structural integrity could open you to lawsuits.

With all of these issues, you have two options when you want to know how to sell a house with foundation problems. You could fix the problems and sell the home once the process is complete and there is no longer a structural problem. OR, you could sell the home just like that, with the dealer fully aware of the house’s issues.

Either option comes with its pros and cons when it comes to knowing how to sell my house for cash with foundation issues.

Fixing the Foundation Before Selling the Home

If you require the highest valuation for your home, you will need to repair the home foundation before selling. In certain instances, this decision is an easy one to make. Minor foundation damage can cost from just $500 to repair. This is a small amount compared to what you can get for the house.

Depending on your policy and the cause of the home foundation issue, your homeowner’s insurance can cover some, if not all, of the associated expenses. In other situations, you might have to take on labor and cost-intensive interventions like:

  • Underpinning
  • Mudjacking
  • Waterproofing and sealing
  • Wall repair and stabilization

This foundation repair cost can come in at a minimum of $15,000, depending on the severity of the situation, location, and home size. These interventions can also be time-intensive and stressful for homeowners.

Pros of fixing before selling

When you fix before selling, you have benefits that outweigh the negatives and inconveniences. Once the foundation issues are sorted, you can:

  • Attract a wider range of buyers
  • Sell your home using the traditional process
  • Get the highest price for the house.

This can be a great option because repairs can be much less expensive than most homeowners believe. It can also be quite helpful for homes in competitive markets. Homeowners without the necessary cash in a seller’s market can typically see great returns by taking a loan to cover the repairs. The house can then be sold for its best prices, with a portion of the proceeds used to pay the loan off.

How to Sell a House With Foundation Problems: Selling the Home “As Is”

Not every seller wants to fix their home’s foundation issues before selling it. This is especially true for:

  • Individuals with an inherited home cannot keep
  • Individuals that need to sell a home to settle an estate
  • Landlords that want to sell unprofitable properties
  • Homeowners suffering from personal challenges such as health issues that bar them from investing time and energy in intensive repairs
  • Formerly married couples liquidating their assets due to divorce

When you sell our home with foundation problems “as is,” you have to fully disclose the status of the home. The potential buyer then agrees to purchase the property in its current state and handle the repairs themselves. This means that you are financially and legally off the hook.

While this process is easy, there is a tradeoff: the home will have to be sold at a discounted price. The buyer will need to invest heavily in the repairs after the purchase.

Sell your house fast for cash? Well, selling your home with foundation problems to a cash home buyer is one of the most prevalent ways to sell your home as-is. This method is quite popular as cash buyers offer a lot more, including:

  • Cash payment for the house
  • A streamlined sales process
  • Increased willingness to buy houses that require work
  • When dealing with cash buyers, you can avoid home stagers, realtors, and other costs typically associated with traditional sales.
damage in house foundation

What Causes Foundation Issues?

Foundation issues can stem from a single flaw or might result from a plethora of variables. Some of the common and contributing factors can include:

  • Frost heaving
  • Extreme temperature changes
  • Continuous dampness from any source
  • Leaks within the home
  • Terrible initial construction
  • Destabilizing events like earthquakes and floods

Furthermore, age can also play a pivotal part in houses settling over time due to natural environmental changes. Considering that about 50% of the homes in America were built before 1970, this variable is pertinent.

How to Know if a Home Has Foundation Issues

Some of the common symptoms of potential foundation problems and even the foundation settling can include:

  • Large cracks in doors, walls, and windows
  • Sloped or uneven floors
  • Gaps between ceilings or floors and decorative molding
  • Doors and windows no longer shut and open properly
  • Cracked tile
  • Broken concrete both outside and inside the home
  • Dislodged or uneven wooden flooring planks
  • Bowing ceilings or walls
  • Water infiltration in crawlspaces or basements
  • Flaking or chipping concrete
  • Out of square corners and walls
  • Cabinets separating from walls

While the above list of damaged foundation problems is exhaustive, you should note that not every sign of a foundation with issues signifies a major problem. You can have small benign cracks in the basement concrete due to the house aging.

Getting a Professional Assessment

If you intend to sell your home and aren’t sure what the state of its foundation is, then you can hire a professional to conduct three levels of assessments.

The first one is having a realtor conduct a house walkthrough. Experiences realtors can discern what normal settling is and what is a lot more. If there are indications of possible issues, then the realtor will request you get a second opinion.

The second opinion requires you to have the home inspected by a licensed home inspector. The home inspector has the required expertise to tell you if anything in your home can be detrimental to selling, especially if it involves relevant safety codes. If the licensed home inspector gives you the all-clear, you should have no problems selling your home.

However, if the home inspector discovers signs of severe foundation issues, they recommend hiring a structural engineer. The structural engineer has the necessary expertise to conduct an independent assessment. This assessment will result in a report concerning the state of the foundation.

The following are outlined in the report:

  • The issues, if any
  • Recommended repairs
  • General repair estimate

These reports are vital as they provide the required data to make an informed decision concerning how to sell a house with foundation problems.

Checking for Foundation Issues Yourself

Generally, you shouldn’t concern yourself with small cracks about a quarter of an inch or less. Furthermore, hairline cracks in the basement concrete mortar shouldn’t concern you. When shrinkage cracks happen, however, you should take action.

These cracks are typically L-shaped and can occur where the foundation changes levels. While these are dangerous, they will need to be sealed to stop leaks that could cause problems in the future. This type of repair is usually inexpensive and quick.

Cracks in the masonry joints are a serious cause for concern. If left unattended, they could cause the walls to bulge or bow, negatively affecting the house’s structural integrity. 

Having horizontal cracks in the foundation signifies potentially serious and dangerous damage to the home. These cracks need to be swiftly addressed by professionals to protect your safety and your home’s integrity.

“I don’t want to do any repairs anymore, I want to sell my house fast for cash now!”

Worry no more, if I, the owner of a run-down house, want to sell my house for cash now, is my solution to selling my house, because as Denver’s number 1 cash home buyer we pay cash for houses in any condition so if you want a cash offer on your property simply give us a call or fill out an online form and our team of experts will get to work, quick smart, to help you get your house SOLD!


Your solution to selling a house with foundation issues on your terms is a cash for houses company and we are experts at buying houses in Denver and all of Colorado. Our mission is to give the people of the Mile High city the best solution to sell any house.  When you sell your house to us there are:

  • NO Fees and we cover all the normal closing costs. 
  • NO Stress because you know what is happening at all times – you are in control!
  • Sell your house fast and for easy cash. 
There are even more benefits when you sell a house to including:

This is how selling a house in Denver should be!

Fill out the form to get your no-obligation cash offer today. 

More Scintillating Articles About Real Estate

The latest real estate news, forecasts, insight, and advice are brought to you by the leading authorities in the Denver housing market. We have ears and boots on the ground in the Mile High reporting the facts. Extensive research goes into all our articles and we gather information from trusted real estate experts, renowned local Denver housing specialists, home buyers, and more. We buy houses Denver and as accomplished professionals with a proven track record, we now want to share our experiences with you.   Please enjoy!