When you’re selling a house with foundation issues, sitting on that property can feel like dragging a boulder uphill. Buyers get spooked. Lenders get stingy. And sellers, more often than not, find themselves navigating a mess they didn’t budget for.
All that said, it’s not impossible to sell a house with foundation issues, regardless of whether it’s a condo in Los Angeles or a home in Charleston. With the right approach, honest disclosures, and some smart strategy, you can still sell your house—maybe not for a dream price, but without losing your mind in the process.
Figure out the full scope of the problem
Start by getting clear on what you’re dealing with. Are you looking at minor hairline cracks, or a full-blown structural crisis with sinking corners and bowing walls?
Hire a licensed structural engineer. Not a general contractor. Not a handyman with a good reputation. You need someone who can give you a full diagnostic. Expect to pay a few hundred dollars, but this report is your baseline. Without it, you’re just guessing and hoping, which is a bad combo when tens of thousands of dollars are at stake.
Fix it or sell as-is?
This is the big decision every seller with foundation damage faces: fix the problem, or sell the house in its current condition?
Option A: Fix it
If the damage is limited and repair costs come in under, say, $10,000–$20,000, and you’re in a seller’s market, it might be worth it. Buyers get peace of mind, the home qualifies for traditional financing, and you can list at full market value.
Option B: Sell as-is
If the cost to fix is astronomical—or you don’t have the time, energy, or money—it might make more sense to sell the house in its current condition. You’ll take a hit on the price. But you can offset some of that loss by avoiding months of construction, loan payments, and stress.
There’s no one-size-fits-all answer. Sometimes, fixing it nets you more in the long run. Other times, the time and effort to fix the issues may not be worth it in the end.
Disclose everything
There are no shortcuts here. Every single known issue has to be disclosed in writing. And when it comes to foundation problems, leaving anything out is not just unethical, it’s also a great way to end up in court.
If you’ve had repairs done, include the reports, invoices, and any warranties. If you’re selling as-is, say so clearly in the listing and again in the purchase agreement. Let the buyer know up front what they’re walking into. Some will walk away. That’s fine. You don’t need every buyer. You just need the right one.
Price appropriately
Buyers aren’t going to pay top dollar for a house with foundation issues. But that doesn’t mean you have to take the first lowball offer that comes in.
Work with a Redfin real estate agent who has experience selling homes with issues. They’ll know how to price strategically—low enough to reflect the damage, but high enough to keep negotiation on your terms. Sometimes, the best way to market a property like this is to show potential: “Great opportunity for an investor,” or “Priced to reflect needed repairs.”
Identify your target buyer
You’re probably not going to sell to a first-time homebuyer using an FHA loan. They’re too risk-averse, and their lenders won’t touch a house with structural problems unless they’re fixed first. Instead, focus on three groups:
- Cash buyers. Investors, flippers, and people who don’t need financing.
- Contractors or tradespeople. Folks who know how to fix things themselves and see value in the discount.
- Buyers using renovation loans. These are rare and complicated but can work. A 203(k) loan, for example, wraps repair costs into the mortgage.
Adjust your marketing accordingly. Don’t waste time pitching to people who can’t—or won’t—deal with the issue.
Appraisals and lender red flags
If you do end up with a buyer who needs a loan, you’ll have a bit more work to do. Lenders require appraisals, and foundation issues often tank them. An appraiser might flag the problem as “structural damage,” which is the kiss of death for financing unless you’ve already made the repairs or the buyer agrees to fix it after closing—something most banks won’t allow.
This is why cash buyers are easier. No appraisal. No lender. Fewer hoops.
Prepare for longer timelines and tougher negotiations
Selling a house with foundation issues isn’t a quick process. Expect longer days on market. Be ready for deals to fall through and buyers to get spooked. Their inspectors find something new. Their uncle who’s “in construction” takes one look and tells them to run.
This is normal. Stay patient. Keep your paperwork in order. Be transparent. And don’t let one failed deal make you desperate for the next one.
You can sell a house with foundation issues
At the end of the day, selling a house with foundation issues comes down to two things: honesty and persistence. The damage is real. You can’t spin it. But you can sell it, if you don’t pretend it’s not a problem and start showing buyers why it’s still worth their time.
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