Tips on selling a home that needs foundation repair.
In several regions of the US and Canada there are many thousands of homes with concrete slab foundations built on expansive clay soils. This means that the ground on which the house sits swells during the rainy months and shrinks during hot dry weather. These conditions can lead to foundation movement and damage.
Other regions have homes built over deep layers of organic materials, mainly peat. Sometimes homes are constructed on fill dirt that may not have been compacted properly. These soils can also settle or otherwise move a concrete slab foundation.
The signs of foundation movement include cracks in the sheetrock that are wider at one end than the other, doors and windows that don't close properly, uneven floors, plus cracks and separation of brick and trim on the outside of the house.
What should you do when you suspect that your concrete foundation needs repair and you want to put the home on the market?
As the seller, you must disclose the issue. The buyer's inspector will see the signs of foundation failure and include that in his report. VA and FHA lenders are not going to lend money for a house with a bad foundation. Conventional loans are just as hard to come by.
Johnny Thompson is a licensed real estate agent in Florida. He says the best thing to do is to hire a licensed structural engineer to do a foundation inspection and if needed, a written plan for repair. Then get bids from foundation repair contractors that will execute the repairs according engineering plans. Keep copies of all reports and inspections before and after the repair and include them with your disclosure statement. All of this will make the mortgage process a lot easier for the buyer.
Rich Mochada is a Dallas area real estate investor. He buys and sells houses. His advice is to get the foundation repaired before the home goes on the market. When he makes an offer on a house that has a bad slab, the offer is well below market value. He knows he'll not only need to repair the foundation, but it's likely he'll also need to call in the dry wall folks and painters and maybe even a plumber. Foundation failure can and sometimes does break the plumbing. Leaking pipes can be a cause of the failure as well. Thus the offer he makes to the seller would need to allow for those expenses, some padding for when things go wrong and they almost always do, plus some profit.
Read the websites of foundation repair contractors that address the real estate angle and you'll hear the same song. Of course it is in their interest to sing that song, but in this case the facts are on their side. If you have to beg, borrow, or dare I say it, sell the boat, get the foundation repaired before you put the house up for sale.
Author: Bill Pryce
Author Bio:
Bill has is a graduate of New Mexico State University with a degree in Journalism and Mass Communications. He enjoys writing about odd things like foundation repair. www.repairfoundation.net
