Can I Sell My House With a Foundation Problem in Colorado?

Selling a home with foundation problems isn’t impossible, but it often comes with extra hurdles—delays, lower offers, and careful negotiation.

Before listing your property, add a foundation or structural inspection to your preparation checklist. Knowing whether your home has foundation issues is critical, as some buyers and mortgage lenders may refuse to move forward with a property that shows structural instability.

Government-backed loans such as FHA, VA, and USDA mortgages have strict requirements regarding a home’s structural integrity. Foundation problems could lead to a postponed closing—or even cancel the deal altogether.

If you’re unsure whether your house has foundation problems or how to confirm them, this guide will walk you through the signs, repair options, and strategies to sell your home with confidence.

How to Know if Your House Has Foundation Issues

Start with a simple walk-through around your property. Look for warning signs inside and outside the home. A qualified real estate agent or inspector can also help identify red flags.

Exterior warning signs:

• Sinking or settling foundation

• Foundation upheaval

• Gaps between garage doors and pavement

• Gaps between siding and trim

• Exterior walls bowing or bulging

• Rotating or tilting foundation walls

• Horizontal or vertical cracks in concrete or brick

• Stair-step cracks in mortar

• Porches, decks, or columns leaning away from the home

• Chimneys pulling apart from the house

Interior warning signs:

• Doors and windows that stick or won’t close properly

• Wall or floor cracks (especially diagonal cracks near doors and windows)

• Uneven or sloping floors

• Walls separating from the ceiling or floor

• Bulging or bowed interior walls

• Sagging wood flooring

• Cabinet doors that won’t stay shut

• Cracks near fireplaces

• Damp crawl spaces or standing water around the foundation

What to Do if You Suspect Foundation Problems

1. Hire a structural engineer
   Instead of calling a foundation repair company right away, get a professional inspection first. Engineers can determine whether cracks are structural or cosmetic and identify underlying causes such as drainage or soil conditions.

2. Decide whether to repair or sell as-is
   Some homeowners choose to fix foundation problems before selling to attract more buyers and command a higher price. Others sell the property “as is” to investors or buyers willing to take on repairs.

3. Work with licensed foundation repair contractors
   If you opt for repairs, get estimates from at least three qualified contractors. Make sure their methods are approved by the International Code Council Evaluation Services (ICC-ES).

Common Causes of Foundation Damage

Foundation issues are often linked to soil conditions and water problems:

• Shrinking soil: Soil dries and contracts during hot weather or due to nearby tree roots.

• Expanding soil: Heavy rain, plumbing leaks, or sewer breaks can cause swelling and pressure on the foundation.

• Poor drainage: Clogged gutters, improper grading, or pooling water destabilize the soil.

• Substandard construction: Poor soil compaction or building on mixed soil types can lead to uneven settlement.

Average Foundation Repair Costs

Foundation repair costs vary depending on severity, location, and materials. On average, homeowners spend $2,200 to $8,100, with most repairs landing around $5,200.

• Minor crack repair: $250–$800

• House settling or sinking: $5,000–$25,000

• House shifting: $700–$25,000

• Bowing walls: $4,000–$12,000

• Basement underpinning: $1,000–$3,000 per pier

Additional expenses may include soil reports, permits, engineer fees, and even tree removal if roots are affecting the foundation.

Can You Sell a House with Foundation Problems?

Yes, but expect some compromises. Buyers may demand discounts or use foundation issues as leverage in negotiations. That said, there are buyers who specifically seek these properties, such as:

• House flippers looking for investment deals

• Cash home buyers willing to purchase homes in any condition

• Buyers using renovation loans that cover repair costs post-closing

Should You Fix Foundation Problems Before Selling?

It depends on your goals, market conditions, and finances.

Pros of repairing before selling:

• Higher selling price

• Increased buyer confidence

• Better curb appeal

Cons of repairing before selling:

• Expensive repairs that may not fully pay off

• Delays in listing your home

• Some buyers may prefer to handle repairs themselves

Legal Disclosure Requirements

Most states require sellers to disclose known foundation problems. Even if you don’t fix the issues, you must disclose them in writing. Hiding foundation damage could lead to legal trouble later.

Selling As-Is or to Cash Buyers

If you decide not to repair, you can sell your home as-is or directly to a cash investor. These options let you avoid the hassle of repairs, inspections, and financing delays, though you’ll likely sell for a lower price.

Key Takeaways

• Get a professional inspection to confirm foundation problems.

• Weigh the costs and benefits of repairing versus selling as-is.

• Disclose all known issues to avoid legal risks.

• Work with an experienced real estate agent who understands how to market homes with structural challenges.