Don’t worry: Whether you’re dealing with hairline cracks or major structural shifts, anyone can sell a house with foundation issues — all you need is a little planning and strategy. Documenting the damage, getting estimates, disclosing the issues clearly, and pricing the home accordingly (and to the right market) will all play a big role in getting your home sold.
Depending on the severity of the issue and your budget, you’ll also face an important decision: Should you fix the damage or sell the house as-is? Either option is viable, and both can lead to a successful sale.
Already feeling a bit in over your head? You can always check out Clever Offers to get a fast as-is offer from a buyer who understands your situation, or to connect with a top local agent who specializes in homes like yours.
Why foundation problems make it harder to sell your house
Foundation issues can make it harder to sell your house because they often reduce its resale value by 10–15% or more.[1][2] Even minor damage can spook buyers, who may imagine worst-case scenarios like flooding, structural collapse, or massive repair bills.
Three of the biggest reasons why foundation problems make it harder to sell your house are:
Buyers fear costly repairs and safety risks
Many buyers assume the worst about foundation issues, whether or not the damage is actually serious. Buyers may worry about future problems, resale complications, or repair costs that spiral out of control. This can be especially true for first-time buyers, who often want a move-in-ready home and may not have the budget after closing to pay for major repairs.
“Foundation issues are a huge red flag,” says Martin Orefice, CEO of Rent To Own Labs. “Some are just minor annoyances, but people get images in their heads of collapsing houses.”
Lenders may deny financing
Even if a buyer is interested, their mortgage lender might not want to follow through with the sale. Most conventional lenders — and especially lenders for government-insured loans like FHA, VA, and USDA — won’t approve financing on homes with serious structural issues. This makes it harder to sell to traditional buyers and slows down the sales process.
Exception: Sometimes lenders will approve financing on a home with foundation issues if the buyer or seller has obtained a repair estimate and booked the repair.
Buyers will need to check with their lender to see if this is allowed in their situation.
Fewer buyers means fewer (and often lower) offers
With financing challenges and buyer hesitations, your pool of potential buyers shrinks. You’ll be mainly targeting:
- Cash buyers: Paying cash means these buyers won’t have to worry about mortgage lender foundation standards.
- Investors and flippers: These buyers plan on doing some work to homes before renting or reselling them for a profit.
- Buyers using renovation loans: Some mortgage loans come with a built-in cushion for repairs.
Each of these buyers will be more comfortable with repairs, but they will also expect a discount.
Do I have to disclose foundation issues?
In most states, home sellers are legally required to disclose known foundation defects and other details about the property on a standardized seller’s disclosure form.
Even if disclosure isn’t required, it’s almost always a smart move. According to Zillow, about two-thirds of buyers hire a home inspector, so there’s a good chance foundation problems will be discovered.[3]
"A home inspector provides a general inspection," explains Steve Nicastro, a real estate investor and former agent. "But if they notice signs like structural cracks in your exterior brick or interior drywall, they may flag it as a potential foundation issue and recommend a follow-up inspection by a structural engineer."
In a handful of states, sellers aren’t required to proactively disclose defects. These “Caveat Emptor” or “buyer beware” states place more responsibility on the buyer to identify issues before closing.
However, even in these states, you could still be held liable if a buyer can prove you knowingly hid a major defect.
Caveat Emptor States
Seller disclosure is not always required in the following states:
| State | Notes |
|---|---|
| Alabama | May still require disclosures in specific counties or jurisdictions |
| Arkansas | Varies by county or contract terms |
| North Dakota | Some voluntary disclosures recommended |
| Virginia | Requires buyers to conduct due diligence |
| West Virginia | Disclosure laws are minimal |
| Wyoming | Disclosure not required statewide |
To stay on the safe side, always talk with your real estate agent about your state’s disclosure rules.
What about past damage I've already repaired?
Depending on your state’s disclosure laws, you may or may not be required to report past foundation repairs.
Quality repairs typically last the lifetime of the home, and many companies offer transferable warranties that give future owners added peace of mind.
If you’ve repaired the foundation in the past, here’s how to reassure buyers:
- Hire a structural engineer to inspect the foundation and provide a report on its condition.
- Provide any warranties for the work.
- Show contractor receipts or repair documentation.
- Include before-and-after photos, if available.
A recent, well-documented repair with a clean bill of health can ease concerns and may even strengthen your negotiating position.
Should I fix foundation issues or sell my house as-is?
When selling a home with foundation damage, one of the first decisions you’ll face is whether to fix the problem or list the property as-is. Both approaches can work, but your best choice depends on your timeline, budget, and target buyers.
Here’s a quick decision guide to help you choose:
Fix the foundation if:
- You can afford the repairs or have access to financing.
- The repairs will add more value than they cost.
- You want to attract traditional buyers and maximize sale price.
- Your selling timeline is flexible enough to wait for work to be completed.
Sell as-is if:
- The repairs are too expensive or not worth the added value.
- You need to sell quickly and can’t risk construction delays.
- You’re comfortable selling to an investor or cash buyer for less than market value.
- You don’t have the funds or bandwidth to manage repairs.
“In the case of a substantial amount of damage where repairs would prove to be expensive, it is best to sell as-is,” says Emma Alves, a real estate attorney at Alves Law. “Sellers can still attract serious buyers by lowering the price and being upfront about the foundation issue.”
What to know about selling as-is
Listing your home “as-is” means you’re letting buyers know upfront that no repairs will be made. While this approach can save you time, it usually narrows your buyer pool.
Most traditional buyers shy away from foundation issues, leaving you with cash buyers, flippers, and investors. Many cash buyers and investors follow the “70% rule,” meaning they’ll pay roughly 70% of the home’s after-repair value (ARV), minus the cost of fixing the damage.
To make an as-is sale successful:
- Get a foundation inspection and share the report with buyers.
- Provide cost estimates for repairs to set clear expectations.
- Disclose all known issues upfront to build trust.
- Consider working with a local agent or cash-buying platform like Clever Offers to connect directly with investors.
Foundation problems you can fix yourself
Not all foundation issues require hiring a contractor. The key is knowing the difference between a small fix and a sign of deeper structural damage.
Cosmetic issues like hairline cracks or moisture around the foundation may be safe to handle yourself. Anything involving structural shifting, bowing walls, or uneven floors should be evaluated by a structural engineer.
Here are some common foundation symptoms and what repairs you can reasonably take on yourself:
| Symptom | Potential repair(s) | Can I fix it myself? (Experience level) |
|---|---|---|
| Hairline exterior cracks | Seal with epoxy or hydraulic cement | Yes (Beginner) |
| Water pooling by house | Clean gutters, redirect downspouts, regrade soil | Yes (Beginner) |
| Moisture in crawl space | Seal cracks, install vapor barrier | Yes (Beginner/Intermediate) |
| Sagging floor (crawlspace) | Install screwjacks | Yes (Intermediate/Expert) |
Never attempt serious repairs yourself unless you're qualified. It's a safety issue, and for major projects, you'll have a much easier time convincing buyers the repairs are sufficient if you hire a professional.
Home foundation issues and average repair costs
Many foundation issues look intimidating at first, but they aren’t always as costly as you might expect. Repairs can fall under $10,000, which could be a worthwhile investment if it helps you sell at the top of your price range.
Here are some of the most common symptoms, their potential causes, and what you might expect to pay for repairs:
| Symptom | Possible Repair(s) | Estimated Cost (2025) |
|---|---|---|
| Hairline cracks | Seal with epoxy or hydraulic cement | $300–800 |
| Horizontal cracks | Seal, reinforce wall, improve drainage | Up to $4,000 |
| Leak/excess moisture | Seal, sump pump, drainage fix | $2,000–10,000 |
| Bowing wall | Reinforce wall, install piers or anchors | $5,000–15,000 |
| Settling or sinking | Mudjacking, piering, stabilization | $4,500–20,000+ |
| Major structural work | Underpinning or complete leveling | $15,000–30,000+ |
Common structural foundation repairs and their typical costs
When foundation damage is more severe, a structural engineer may recommend one of the following solutions. These methods typically require licensed contractors and may be necessary for stabilizing or restoring the home’s structure.
Note that actual costs depend on the size of the home, soil conditions, materials used, and geographic region.
| Foundation Repair Type | Estimated Cost (2025) |
|---|---|
| Basement Underpinning / Piering (8–10 piers) | $7,000–30,000+ |
| Foundation Sealing | $2,500–7,500 |
| Foundation Jacking / Slab Leveling (via mudjacking or foam injection) | $800–2,500 |
| Foundation Wall Stabilization (e.g., carbon fiber or steel strips) | $4,000–15,000 |
Does homeowners insurance cover foundation repairs?
Homeowners insurance usually only covers foundation damage when it’s caused by a sudden, unexpected event that’s already included in your policy. That means gradual wear-and-tear, poor drainage, or shifting soil likely won’t be covered. But there are a few exceptions.
For example, if a fire or storm damages your foundation, or if a pipe bursts inside your home, it could be covered. But you’ll need an additional rider or policy to cover any foundation issues caused by earthquakes, sinkholes, or floods.
If you’re unsure what your policy covers, don’t guess. Call your insurance agent and ask directly. Also ask if optional riders (like earth movement or sewer line backup coverage) are available and worth adding based on your region’s risk factors.
How to pay for foundation repairs
If you can’t afford foundation repairs out of pocket, financing them might still make sense, especially if getting the work done helps your house sell faster and for more money. Many sellers use short-term financing to cover the repairs, then pay off the loan at closing.
Below are some of the most common ways to finance home repairs, plus what to watch out for if you're borrowing money before a sale.
Financing options for foundation repairs
You don’t need perfect credit or a ton of savings to pay for foundation work. Depending on your situation, there are several financing options that can help you move forward.
| Financing Type | What It Is | Best For... |
|---|---|---|
| Home improvement loan | A basic loan from a bank or credit union that gives you a lump sum to pay for repairs | Sellers with decent credit but not much equity |
| Home equity loan / HELOC | A loan or credit line that lets you borrow against your home's value | Sellers who’ve built up home equity and want lower rates |
| Credit card (0% intro APR) | A credit card with no interest for a limited time (usually 12–18 months) | Sellers who only need to borrow a small amount and can repay quickly |
| Repair company financing | A payment plan offered by the contractor doing the work | Sellers who want convenience and already picked a contractor |
| FHA Title I loan | A government-backed loan that doesn’t require equity or great credit | Sellers with limited home value or lower credit scores |
| USDA Section 504 loan | A 1% fixed-rate loan for low-income rural homeowners | Rural sellers who meet income and location requirements |
Pros and cons of each option
Not sure which one makes sense for your situation? Here's a quick breakdown:
| Financing Type | Pros | Cons |
|---|---|---|
| Home improvement loan | Easy to apply; fast access to funds | Higher interest if your credit is low |
| Home equity loan / HELOC | Low rates; large borrowing limits | Must be paid off at closing; some have early closure fees |
| Credit card (0% intro APR) | No interest (if paid off in time) | High interest after promo; smaller borrowing limits |
| Repair company financing | Convenient; may offer no-interest promos | May be more expensive than third-party lenders |
| FHA Title I loan | Doesn’t require equity or strong credit | Fewer lenders offer them; 1% insurance premium |
| USDA Section 504 loan | Very low fixed rate | Strict eligibility requirements |
Real-world example from the author
I’m a real estate agent in Indiana, in an area where we have Victorians that are well over 100 years old. These historic houses are beautiful and popular, but buyers almost always ask, “Has the foundation been checked?” For that reason, I always recommend a pre-listing inspection to my selling clients.
A client was selling their 1895 home of 30 years. The pre-listing inspection showed some semi-challenging foundation issues that would be around $12,000 or more to repair.
I advised that we could sell the home as-is, but it would be listed around $20,000 below market value — however, I also pointed out that with 30 years lived in the home, they probably had built up a lot of equity and would qualify for a home equity loan to cover the repairs.
The process of qualifying for the HELOC, vetting contractors, and waiting for the repairs to be completed was going to push their preferred listing date out by about two months. They realized that while they had plenty of time to move, they could definitely use more cash in their pockets for it.
Before the repairs, we were looking at listing the house around $175,000. After the work was done and we had all the paperwork ready to show buyers, it sold for $200,000.
It was a win-win: The house sold quickly, the buyer felt confident, and the seller walked away with more money in their pocket.
What if the buyer's home inspection reveals foundation problems?
If a buyer finds damage during their inspection period (after you’ve accepted their offer) don’t panic. Foundation problems aren’t necessarily a deal-breaker, and many sales still go through with the right adjustments.
Still, brace yourself: buyers may get spooked, financing can get tricky, and you’ll almost certainly have to renegotiate.
Step 1: The buyer decides whether to stay or walk
Once the issue comes to light, the buyer has a decision to make: move forward or walk away. If they’re still serious, they’ll usually bring in a structural engineer to assess the damage and provide a professional opinion. Depending on what the report says, they’ll probably come back to renegotiate the deal.
Step 2: Prepare for a revised offer
Once the report lands, expect the buyer to submit a new offer. This may include:
- Asking you to make all repairs before closing
- Requesting a credit at closing to cover the work themselves (i.e., seller concessions)
- Lowering their offer to account for the damage (which won’t work if their lender refuses to finance a home with foundation problems regardless of the cost)
Buyers often default to the most cautious route, especially if their lender requires repairs for loan approval. But you can negotiate based on your timeline, finances, and the buyer’s urgency.
Step 3: Weigh your options
Here’s where you take stock and figure out what you’re willing and able to do. Your agent can help you assess the deal from both sides so you don’t overreact or give up more than necessary.
Questions to ask yourself and your agent
- How much will the recommended repairs cost?
- Can the buyer still get financing if the foundation needs work?
- Are there similar homes nearby in better shape?
- How long has your house been on the market?
- What’s your timeline if this deal falls through?
- Would you consider relisting and selling to a cash buyer?
These questions help clarify your best move.
Step 4: Understand the worst-case scenario
If the buyer walks away, you’ll need to relist. In many cases, that means you’ll be limited to cash buyers. Major foundation issues can disqualify a property from most conventional loans, especially the more common government-insured FHA and VA mortgages. And while cash buyers move quickly, they tend to offer less, knowing they’re your fallback option.
That’s why it’s often smarter to work with the buyer you already have, even if it means giving up a little more in the deal.
Negotiating seller concessions on a house with a bad foundation
If you and the buyer want to keep the deal alive after foundation damage comes up, the next step is figuring out how to make it work for both sides. You don’t always have to fix the problem yourself.
Here are four common ways sellers handle foundation issues, along with the upsides and downsides of each option.
Note: In pretty much every scenario, you’ll need to accept some lost profits.
| Option | What’s good about it | What to watch out for |
|---|---|---|
| Make the repairs before closing | Helps the deal stay on track | Expensive and could delay closing since you’d need to complete repairs before closing. |
| Lower the sale price | Easy for you and appealing to the buyer | Might not satisfy the lender if the home has serious issues |
| Pay the buyer’s closing costs | Helps the buyer by saving them money upfront | Lenders often limit how much you can cover, and it may not solve the bigger problem |
| Offer a repair credit at closing | No money needed upfront; buyer handles the repairs later | Some lenders cap the size of these credits, and repairs may still need to be scheduled before closing |
Don’t forget the lender
Here’s the tricky part: it’s not just about what you and the buyer agree to. The lender also has to sign off on the home’s condition before they’ll approve the loan.
Even if the buyer is fine with the damage, the lender might say no. This is especially true if the foundation problem is serious. In some cases, the deal can’t close unless the repairs are finished ahead of time.
How to (possibly) solve this:
Sometimes, one way to keep the sale moving is to book the repairs in advance, then send the invoice to the lender before closing as proof that the repairs will happen. The work can be scheduled to happen after closing, but the lender needs evidence that:
- A licensed contractor is doing the work
- The cost is covered
- The job is actually scheduled
This approach can satisfy the lender’s requirements without forcing you to get everything done before closing. Not all lenders will allow it, so it’s something the buyer needs to ask their loan officer about.
Final checklist
Selling a house with foundation damage isn’t impossible, but it does take some planning. Here’s a quick checklist to sum up everything you’ve just learned and help prepare you for your sale:
- Get an inspection to identify the extent of the damage
- Document the issue with photos and a written report
- Estimate repair costs by getting quotes from licensed contractors
- Decide whether to fix it or sell as-is, based on your budget and timeline
- Disclose the damage to buyers clearly and honestly
- Price the home accordingly, with room to negotiate
- Market the home strategically to the right buyers (including cash buyers, if needed)
- Sell with an agent and skip the for-sale-by-owner (FSBO) to ensure you get top dollar
Not sure what’s best for your situation? Clever can help. We’ll connect you with a local agent or cash buyer through Clever Offers so you can weigh all your options for free.