Guide to Selling a House with Foundation Problems

Are you navigating the challenge of selling a house with foundation issues? Whether you're in Dallas-Fort Worth, where foundation problems are widespread, or near the Massachusetts coast, where the repair rates are a little lower, foundation issues are something that every potential buyer is likely to take seriously. In this comprehensive guide, we'll provide you with essential insights and actionable steps to help you effectively manage this situation.

What are foundation issues and why do they matter?

Your home's foundation serves as its fundamental support system, essential for maintaining structural integrity. Foundation issues, such as cracks, settling, or shifting, can compromise the stability and safety of your property, decreasing its overall value. Foundation issues can also cause cosmetic problems like cracked brickwork, as well as irritating hassles for the homeowner like doors that won’t open or close properly.

Common causes of foundation issues

If you have foundation problems, you aren’t alone. These issues can occur anywhere, with causes ranging from a leaky pipe to the type of soil in your region. Here are some of the more common causes:

• Expansive soil: Expansive soil is soil that expands when wet and contracts when dry. Expansive soil is rich in clay and is widespread in sections of the South and Midwest. Expansive soil, combined with hot weather, is a central reason that the Dallas-Fort Worth area has a lot of foundation problems.
• Poor water drainage: If water pools along the side of your house when it rains, you run the risk of developing foundation problems.
• Plumbing leaks: Even a small leak from a sprinkler system or a bathroom pipe can cause movement in your foundation, no matter what part of the U.S. you live in.
• Weather events: A weather event like a hurricane in a coastal area can subject your house to high winds and flooding, which can compromise your foundation’s health. Similarly, droughts dry out the soil and can cause foundation problems like air pockets and uneven settling.
• Seismic activity: In earthquake-prone areas like California, even small tremors have the potential to cause foundation damage.
• Sinkholes: Sinkholes can be a major contributor to foundation damage in parts of the country with a lot of karst terrain, which means that water dissolves certain kinds of bedrock. This happens in Florida, where much of the bedrock is limestone.
• Tree roots: Tree roots can put pressure on your foundation, as well as introduce water into your foundation. This can happen in yards with large trees, or in cases where trees and shrubs were planted too close to the house.
• Frost heave: In cold areas, ground ice can push soil upward and outward, causing foundation issues. Frost heaves are particularly common in New Hampshire and Vermont.
• Faulty home construction: If your house was poorly built or used faulty materials, foundation issues can occur later on.
• Poor soil compaction: If the soil wasn’t compacted properly when your house was built, house settling may be uneven, causing foundation problems. This is a common issue for new construction on previously undeveloped land.
• Temperature fluctuations: In areas with temperature swings, the freeze-thaw cycle can cause your soil to expand and contract. This issue regularly damages foundations in Upper Midwestern states like Michigan, Wisconsin, and Minnesota.
• Manmade vibration damage: Manmade sources of ground vibration, such as busy roads, subway lines, and heavy construction zones have been known to cause foundation damage. This has occurred in urban areas, in places near mining sites and industrial zones, and even near some military bases.
• Expansive bedrock: Much like expansive soil, water causes certain kinds of bedrock to expand and contract. This happens a lot with shale rock and has been observed in areas like the Front Range of Colorado near Denver.
• Burrowing animals: Burrowing animals like moles, gophers, and prairie dogs can cause foundation problems. This has been seen in regions like the Southeast, the Pacific Northwest, and the Southwestern U.S.
• Soil erosion: Soil erosion caused by hurricanes, heavy rains, loose soil, and poor drainage can cause foundation damage. Soil erosion can be caused by poorly graded yards or be a common problem for an entire region, such as southern Louisiana.

While some areas of the country have more foundation problems than others, no house can be considered completely safe.
 

How to identify home foundation problems

Identifying home foundation issues early is crucial. Look out for telltale signs such as uneven floors, cracks in walls or ceilings, doors that stick or won't close properly, and gaps around window frames or between walls and floors. If you notice these indicators, it's wise to consult a reputable foundation specialist for a thorough assessment.

How much does foundation repair cost?

According to Angi.com, the average cost of foundation repair is $2,217–$8,114. How much it will cost to fix your foundation will likely depend on the size of your house and the type of corrective action needed. Here are some average costs for typical repairs:

• Foundation lifting ($20,000–$23,000): Foundation lifting is a process where the foundation is lifted and repaired.
• Mud- or slab-jacking ($500–$1,300): In mud- and slab-jacking, holes are drilled in the foundation and filled with a grout-like material. Mud- and slab-jacking is usually applied to smaller areas, rather than to level an entire house.
• Piering or underpinning ($1,000–$3,000): Piering and underpinning involves installing beams or posts to lift and stabilize a house’s foundation.
• Reinforcement strips ($4,000–$12,000): Reinforcement strips boost the strength and tension resistance of foundations. This involves running carbon fiber strips vertically along the walls of a basement or crawl space.

Specific foundation issues have price tags as well. Here are what some common foundation problems cost to resolve:

• Foundation crack ($500)
• Foundation leaks ($2,000–$7,000)
• Home settling ($5,000–$25,000)
• Foundation reinforcement ($1,000–$5,000)
• Bowing walls ($4,000–$12,000)
• Poor soil drainage ($800–$15,000)

Additional costs can include structural reports, soil reports, and tree removal. If your foundation needs to be completely replaced, average costs can run from $20,000 to upwards of $100,000.

Does homeowners insurance cover foundation repairs?

Most standard homeowners insurance policies focus on covered perils. Covered perils typically include events like tornadoes, falling trees, sudden and accidental water damage from a burst pipe, and vandalism. If your foundation was damaged in an event like this, there is a reasonable chance it will be covered. Events like floods and earthquakes will likely require separate endorsements from the insurer, as they are not included in standard homeowner policies.

Normal wear and tear, foundation settling, faulty construction, soil erosion, and issues caused by homeowner neglect are the types of issues that are less likely to be covered.

How foundation issues can affect the sale of your house

In most states, sellers need to disclose known issues when they sell a house. Even in buyer-beware states like Georgia, Virginia, and Wyoming, a seller may face liability if they purposefully attempt to conceal problems associated with their property.

Additionally, home inspections are typically required before the buyer can get financing. This means that foundation problems are likely to be discovered before closing. A minor issue that can be remedied might not affect your chances of a home sale too much, whereas a house with extensive foundation issues will likely struggle to attract buyers.

If significant foundation issues come up when you are trying to sell your house, your main options are to make repairs, offer a credit to the buyer so they can make repairs after purchase, or sell your house “as is” to an off-market buyer like HomeVestors^®.

HomeVestors^® can save you the trouble of making foundation repairs.

HomeVestors buys houses “as is,” which means that there is no need to fix your foundation before closing day. We consider properties ranging from condos to rental units to single-family homes. Our 900 franchises have bought houses in regions of the country that see a lot of foundation problems, as well as houses where the foundation was damaged by individual factors such as home settling.

Before you invest in foundation repair, give HomeVestors a call.