Can You Sell a House With Foundation Issues?

Reviewed by: Brandon Brown

Selling a house can be stressful, and if your home has foundation issues, you might be worried that no one will want to buy it. Cracks in the walls, sloping floors, or sticking doors and windows can make potential buyers hesitant. On top of that, traditional lenders often require repairs before approving financing, creating another hurdle for sellers. But don’t panic just yet. You can still sell your home—even if it has foundation problems. While these issues may affect your home’s value, you have options, whether you want to fix the foundation before selling or sell the house as-is. Let’s dive in and know more about house foundation issues and solutions.

How Do Foundation Issues Affect Home Sales?

Common Signs of House Foundation Issues

If you’re thinking about selling, it’s important to identify any signs of foundation damage your home may have. Here are some common red flags that buyers, inspectors, and lenders will be looking for:

Cracks in the walls, floors, or ceilings
Uneven or sloping floors
Doors and windows that stick or don’t close properly
Gaps between walls and the ceiling or floor
Visible foundation settling or sinking
Moisture or water damage in the basement or crawl space

These issues might seem small at first, but they can point to serious home structural problems that could affect the value of your property.

Causes of Foundation Damage

Understanding what causes foundation issues can help homeowners assess potential risks and take preventive measures when possible. Some of the most common causes include:

Soil Movement – Expanding and contracting soil due to moisture changes can cause shifting and cracks.
Poor Drainage – Water pooling around the foundation can erode soil and weaken its support.
Tree Roots – Undetected leaks beneath the foundation can wash away soil and lead to sinking or uneven floors.
Plumbing Leaks – Undetected leaks beneath the home can cause soil erosion and foundation instability.
Poor Construction – If the foundation wasn’t built properly, it may develop problems sooner than expected.
Natural Disasters – Earthquakes, floods, and hurricanes can put excessive pressure on foundations, leading to cracks and shifts.

Impact on Home Value

Foundation issues can significantly impact the sale price of your house. Buyers often treat foundation damage as a major problem, and many will hesitate to move forward without a fair discount. The impact depends on the severity of the foundation problem, the cost of foundation repairs, and how competitive the local real estate market is. Here’s a brief overview:

Minor Foundation Issues – Small cracks or slight settling may only require minor repairs, leading to a moderate reduction in home value.
Moderate Foundation Damage – Noticeable sloping floors or larger cracks in walls and floors may decrease a home’s value by 10-20%.
Severe Foundation Problems – Major structural damage, such as significant sinking or failing support beams, can drop a home’s value by 25-50% or more, depending on repair costs and buyer demand.

Additionally, if you’re selling to a buyer who needs financing, mortgage lenders may require foundation repairs before approving the loan. This can further limit the range of potential buyers and delay the sale process.

Should I Fix the Foundation Before Selling My House?

Selling As-Is vs. Making Repairs

If you’re selling a home with foundation issues, you’ll need to decide whether to repair the damage before listing or sell the property as-is. Here are the pros and cons of each:

Repairing the foundation – This can make your home more attractive to traditional buyers and increase the sale price. However, foundation repairs can be costly, often ranging from $4,000 to $20,000 or more, depending on the severity of the damage.
Selling as-is – If you choose to sell home as-is, you may attract cash buyers, investors, or house-flipping companies who specialize in buying properties with foundation issues. While you might have to accept a lower price, you’ll avoid the stress and expense of repairs. However, if you’re seeking the help of real estate agents, they may charge high realtor fees because selling a home with issues requires extra effort, like marketing and negotiations.

Disclosures and Legal Requirements

If you’re selling a home with foundation problems, most states require you to disclose these issues to potential buyers. Transparency is important—failure to disclose known issues can lead to legal consequences, including lawsuits or even financial liability after the sale. Here are some things to consider:

Seller’s Disclosure Statement – A seller disclosure is a legal document that outlines any known foundation issues, past repairs, and inspections. Some states require sellers to fill out a standard form with these details.
Required Repairs – In some states, certain foundation problems must be addressed before selling a house, especially if they pose safety hazards.
As-Is Sales – If you choose to sell as-is, you must still inform buyers of any foundation damage, but you won’t be responsible for making repairs.
Consulting a Real Estate Agent or Attorney – A real estate agent or attorney can help you understand the disclosure laws in your state and make sure you follow all the required legal steps.

Being upfront about foundation problems not only protects you legally but also helps build trust with potential buyers and avoids complications later in the sales process. And if you’re wondering if you can sell a house with a HELOC, the answer is yes—but disclosing both the HELOC and foundation damage is essential to avoid legal and financial complications.

Working with Traditional Buyers vs. Investors

Your options for selling will depend on the type of buyer you target:

Traditional Buyers

Most buyers use mortgages, which means the home must pass an inspection.
If the foundation needs repairs, the lender may deny financing.
Buyers may request discounts or require you to fix the foundation before closing.

Real Estate Investors & Cash Buyers

Cash buyers and investors buy homes with foundation damage as-is.
No need for repairs—they handle the work themselves.
Cash offers mean faster closings, often in a few weeks or less.

How to Sell a House With Foundation Problems

Get a Professional Foundation Inspection

Before listing your home, consider hiring a structural engineer to assess the damage. A written report can help you understand the severity of the problem, estimate repair costs, and price the home appropriately.

Price the Home Accordingly

When selling a home with foundation damage, pricing it competitively is key. Buyers will expect a discount to compensate for the repair costs. Work with a real estate professional to determine a fair market value that reflects the condition of your property.

Market to the Right Buyers

Since many traditional buyers may be hesitant to take on a home with foundation problems, it’s crucial to target the right audience:

Cash buyers and investors who are comfortable handling major repairs, and don’t need mortgage approvals.
House-flipping companies that specialize in buying and renovating distressed properties.
Direct home-buying companies like FlipSplit that can offer a hassle-free, quick-close solution.

FlipSplit: The Hassle-Free Way to Sell a Home With Foundation Issues

If you’re looking to sell home quickly without the headache of foundation repairs, FlipSplit is your best option. Here’s why:

No repairs needed – We buy houses in any condition, including those with foundation issues.
Fast, cash-based sales – Avoid the hassle of lengthy negotiations and buyer financing delays.
Transparent process – No hidden fees, no unnecessary delays—just a straightforward cash offer.

We understand that selling a house with foundation problems can be stressful. That’s why we provide a simple, reliable alternative that puts money in your pocket—without the hassle.

Sell Your Home Without the Stress of Repairs

Selling a house with foundation issues doesn’t have to be complicated. While traditional home buyers may be hesitant, cash buyers and direct home-buying companies like FlipSplit provide a practical solution. If you’re looking for a fast, fair cash offer without worrying about foundation repairs, let FlipSplit take care of the process. Get in touch today and discover how simple selling a home can be! Get your cash offer now and move forward with confidence!

Reviewed by: Brandon Brown

As a long-time Asset Manager, Investor, Real Estate Agent, and Broker/Owner of BayBrook Realty in Orange County, Brandon Brown is one of FlipSplit’s lead Real Estate experts. Having worked on over 2,000+ real estate transactions, Brandon brings a depth of knowledge that ensures clients are appropriately treated with honesty and integrity. His insights and advice have been published in numerous blogs beyond FlipSplit, and he keeps a close eye on market trends and statistics, which are updated weekly on his social media pages. Outside work, you can find him participating and serving at church, cycling, mountain biking, surfing around Orange County and beyond, and enjoying time with his wife and two daughters.