Should You Repair Foundation Damage Before Selling Your Home?

Must you repair foundation damage before listing your house for sale? You don’t have to do these repairs, no, but doing so can be a wise investment that pays off at closing.

Real estate agents recommend that sellers make their home as appealing as possible before listing it for sale. Unfortunately, foundation settlement problems are highly off-putting to most potential buyers. Doing the repairs ahead of time can facilitate the selling process and protect your home’s foundation damage

State Laws Govern Foundation Damage Disclosure

Many states impose legal requirements that compel sellers to disclose material facts about their home’s condition. This means that, depending upon where you live, you may have to advise potential buyers of any foundation problems.

Nevada home sellers must complete a disclosure statement that lists all known material defects, including any foundation settling or damage that you are aware of.

Utah law only requires home sellers to disclose previous methamphetamine use, storage or production on the property. Although structural defects don’t legally have to be divulged, most brokerages require sellers to complete a property disclosure statement.

Wyoming homeowners are also not required by law to disclose defects; however, real estate brokers are legally required to reveal any adverse information they have regarding the property’s condition.

Regardless of your state’s laws, disclosing foundation problems is important because it protects you against future legal liability. Refusing to provide a seller’s disclosure statement will also raise a red flag to potential buyers, who may assume that you are hiding a problem.

Foundation Damage Scares Away Potential Buyers

When shopping for a house, buyers and their agents are always on the lookout for obvious problems, especially structural or foundation damage. Even if you don’t disclose your structural issues, most buyers will discover any settlement or damage during their home inspection.

Structural issues are red flags to home buyers, and most will avoid any house that requires foundation repair. Unless you fix the problem ahead of time, your pool of potential buyers will be significantly reduced and your listing may languish, unsold.

Your other option is to reduce the asking price of the home and advertise it for sale ‘as-is.” However, you will likely have to cut your selling price far below the cost of the actual repairs.

Many Lenders Refuse to Fund Homes with Foundation Damage

If you elect to reduce the asking price and sell your house as-is, you will further restrict the pool of potential buyers – especially those who plan to purchase with a home loan or mortgage.

If your prospective buyers aren’t prepared to pay cash, they may have problems completing the sale. Many traditional mortgage lenders are unable to fund properties with unrepaired structural issues.

Fortunately, mitigating your foundation damage does not have to be a high-priced nightmare. An experienced foundation repair contractor can complete the work and provide you with the documentation necessary to give both potential buyers and their lenders peace of mind.

Atlas Piers, trusted by homeowners throughout Utah, Nevada and Wyoming for over 26 years, can provide the expert repair you need to command top dollar for your property. Contact us today to schedule a free consultation and estimate to repair your foundation damage.

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