Selling a house with foundation problems
Cracks, sloping floors or a worrying engineer's report don't make a house unsellable. They change who can buy it and how.
No obligation. No pressure. Takes about 2 minutes.
The short answer
You have three ways to sell a house with foundation problems: repair it and list, list it as-is with the problem out in the open, or sell to a cash buyer who prices the repair in. The problem matters most to buyers using loans, because FHA appraisers must report structural issues and call for an inspection, which can mean repairs before the loan closes. A structural engineer's report comes first, so every option is priced on facts rather than guesses.
Step by step
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1
Get a structural engineer's report
A written report tells you what's actually wrong, what would fix it and roughly what the fix involves. It turns a scary crack into a specific repair you can get bids on, and it's what serious buyers will ask to see.
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2
Know how financed buyers are affected
For FHA loans, the appraiser must report on structural conditions so the lender can judge whether the foundation will hold up for the life of the loan, and must require an inspection when structural issues show. A basement also has to be free of dampness, wetness and obvious structural problems. The lender decides which repairs are required.
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3
Price the three routes
Repairing and listing usually brings the highest price, but you pay for the work up front and wait for it. Listing as-is avoids the repair but can narrow your buyers to those paying cash or with lenders who accept the condition. A cash sale trades some price for speed and certainty.
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4
Be ready to answer buyers' questions
Maryland's disclosure form asks directly about foundation settlement, and DC's statement covers the foundation and basement. Virginia's rules work differently. Our Virginia, Maryland and DC seller disclosure guides explain what each one requires.
Sources: HUD Handbook 4000.1, Section II.D.3 (structural conditions, foundation) · Md. Code, Real Property § 10-702 · Maryland Residential Property Disclosure and Disclaimer Statement · D.C. Code § 42-1305
This page explains general rules and lending standards. It isn't legal advice. For your own disclosure duties, talk to a real estate attorney where the house is.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
We'll show the cash offer next to what listing could net after foundation repairs, commissions and time, so you can see which route leaves you more.
Frequently asked questions
Will a buyer's lender approve a house with foundation damage?
It depends on the damage and the loan. On an FHA loan, the appraiser must report structural problems and require an inspection, and the lender then decides which repairs have to be made before closing.
Should I fix the foundation before selling?
If you have the money and the time, repairing and then listing often nets more. If you don't, or the repair bids are high, compare those numbers against a cash offer before you commit.
Do I have to tell buyers about foundation problems?
The rules depend on where the house is. Maryland's form asks about foundation settlement and DC's covers the foundation; our state disclosure guides walk through each one.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.