What Do You need to Know About Selling Your San Diego Home with Foundation Issues?

What Do You need to Know About Selling Your San Diego Home with Foundation Issues

Foundation issues can be very frightening for many homeowners. They can not only threaten the safety and value of a home, but they also drastically alter its looks and functionality. However, it needn’t be so. According to Angi.com, previously Angie’s list, the average cost of foundation repairs was $4500 as of March 2021. Like anything, those costs will continue to rise over time. Some minor crack repairs were as little as $500 and were done within two weeks after the initial inspection.

In general, foundation issues will affect resale by 10-15%, that’s potentially significant. The average price for a single-family home in San Diego County was $842,000 by the end of 2021. That median price has only increased since then.   If you use the formula above, the resale of your home will be subject to an $80,000 – $120,000 reduction in offer prices based on historical data.  

Signs of foundation issues include uneven or sagging floors and crooked doors. As the foundation settles, cracks or shifts, it can leave you with doors that are uneven, drywall or stucco walls with cracks, as well as downward-sloping floors.

If you are determined to sell a San Diego home that has foundation issues, there are some things that you should know before listing your home.  

Even if you decide not to repair the foundation before you sell, it will help you negotiate a fair price with potential buyers. If a buyer loves the house, they are less likely to walk away from the deal if they know the cost of repairing the foundation, so it’s best to have three reputable estimates of repair costs before you list the home for sale. If you are determined to sell your home with foundation defects, it’s best to know beforehand more information about costs, as well as the time to do repairs. I’ve found that any additional information homeowners have will help ease some of that fear while. Getting you the information needed to plan your marketing and handle objections brought up with potential buyers will give you more confidence and help you get the best possible price for a home that is less than perfect.  

Moving is never easy. However, learning a few things about foundation issues can do to make the process smoother and less stressful. Beyond the move, the things you may learn about foundation issues will stay with you your entire life and hopefully help you in the future. My goal is to write this blog will look at the different steps you need to take when selling your San Diego home with foundation issues. If you learn one thing that you may not have thought about, it’s well worth the 5 minutes you’ve invested in reading it.

How can you tell if your home has structural issues?

Suppose the house shows signs of wear and tear with cracks or bulging on walls and ceiling. In that case, soil pulling away from house walls, cracks in the chimney, uneven gaps on windows and doors, sagging or sloping of floors, and a sagging roof with leaks, there may be foundation problems. Also, if the subfloor is damp and concrete or brick is crumbling, the house could be structurally unsound and needs to be repaired.

Should I fix my foundation before selling?

It’s a challenging decision to make as a home seller whether to fix foundation issues before selling the home or not. Should they sell the house as-is?  The short answer is foundational issues should be repaired.  

The homeowner can hire a foundation repair expert to make the necessary repairs to make the home structurally sound and safe for the buyers. However, what if the seller cannot afford repairs?

We have relationships with contractors and other vendors who will do the work upfront and settle for getting paid at the close of escrow.  

Another thing to consider is that foundation repairs are generally not covered in your home insurance. Depending on your end goal, and the motivation for considering repairs, today we are talking about the resale value of the home as it’s affected by foundational issues. Experience shows Sellers must disclose any known defects to a property, whether observable or not. Realtors, in general, advise that foundation repairs are worth the cost, time and trouble.

Do foundation problems affect appraisal?

Are you selling a home in San Diego that has foundation issues? A house with a bad foundation can be a nightmare to sell, but it doesn’t have to be.

Experience shows that getting the home priced correctly is 85% of the marketing. So how then will a cracked or crumbling foundation affect the resale of the home?  

The consensus is that homes with foundation issues sell 10-15% less than homes without foundation issues.  So, if you have a home with structural or foundation issues in San Diego, set the price accordingly if you are not prepared to make the necessary repairs before selling. That doesn’t mean you should just slap a price on your home and hope for the best. 

Factors affecting the asking price of your home include the overall condition of your home, curb appeal, the location of the home, and the condition of your neighbors’ homes. Your Realtor will summarize homes that have sold recently and in close proximity to your home within your neighborhood to make sure your home gets priced appropriately.

How to make sure you get a Fair Price for your home when it has foundation issues?

Are you selling your home? It can be difficult when it comes to disclose that there are major structural problems. And there’s no guarantee a buyer will pay a fair market price. What if your home needs to be torn down because of foundation issues? Can you sell it at all? An experienced San Diego real estate agent can help you determine if it’s worth your time and money to repair your home’s foundation or if you’d be better off selling it while it still has value. You should ask yourself: Do you want to fix the foundation problems, or do you want to sell your home as-is? A seller’s market means real estate in San Diego is selling quickly, so you could potentially get a great price for your home. with some renovation. If you’re able to sell for more than you owe, you may be able to pay off the mortgage or pay for repairs.

Tips for selling your house with foundation problems:

There are a few key things to do if you find yourself in the position of having to sell your home without repairing the foundation issues first:

Let buyers know about any foundation issues in writing.

If you are selling a house with any foundation issues, it is your responsibility to disclose the issue to the buyer in writing. This is a common risk that homeowners face when purchasing a home. The buyer needs to know what they are purchasing to make an informed decision on whether or not they want to proceed in buying your home. If you choose not to disclose the foundation issues and find out later, they can sue you for not disclosing this information. This is something that you should consult a lawyer about, but it is essential to make them aware of making an informed decision.

Let buyers know which suppliers you’ve consulted.

Selling a home is never easy, even more so when you have foundation issues. You should never try to hide the problem. You could fix the foundation and just tell the buyer that you did so, but that may come with a cost, and you don’t want to spend the money on a home that’s not going to sell. You need a way to show the buyer that you’ve fixed the foundation and show them that you’ve consulted a foundation repair company and a structural engineer. I always advise homeowners to keep a folder with repairs as part of the disclosure process to be viewed and reviewed by both the buyer as well as the buyer’s real estate agent. At the close of escrow, this resource folder containing all the foundation correspondence, receipts and warranties should be given to the buyer at close of escrow.

Get the buyer’s written acknowledgement that they have been informed.

Written confirmation from the buyer as well as the buyers’ agent should be obtained, confirming that they have been informed of defects, conforming to the contract disclosure agreements. This will protect you from any future disputes or liability. Your agent should help facilitate this process.


If you are selling your home and it has foundation issues, just know up front it may not sell at all. The reason for this is that the repairs can be pretty expensive. If at all possible, get the repairs done before selling, as buyers will want to know that the home is sound. 

One thing that is universally common to all home sellers is that most will want to get top dollar for the home. If you have foundation issues, you will want to have it repaired before selling. At Sell Home Fast In San Diego, we have developed referral relationships with all sorts of services and vendors. Foundation experts are part of that referral community. We have nurtured relationships over the years and can get quick estimates, problem-solving as well as repairs scheduled quickly so home sellers can know and understand how the foundations’ conditions will affect both the timeline of the home sale as well as their bottom line. If you’re thinking of selling your home in San Diego and it has any of the symptoms described above, don’t wait. Call Kevin McClenahan – Realtor, today at 858-284-7778. Experience shows that initial symptoms only get worse over time. It’s best to make an informed decision. With our invested approach to home selling, it’s our goal to get you the highest possible sale price for your home, and in the timeframe that works best for you and your family, with the least hassle and stress. I’m sure you’ll have questions, reach out today with a phone call. If it’s after hours, send an email to KevinSellHomeFast@gmail.com 

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