Is It Worth It to Fix Your Foundation Issues?
Whether you were preemptive and found an inspector to take a run around the property before you tried to sell the house or you found out after the deal was nearly closed, you still have foundation problems. Most likely though, you found out prior to even thinking about selling your home. In fact, most homeowners start the selling process because their house has foundation issues and they simply don’t have the funds, or perhaps even the desire, to fix those foundation issues themselves. That’s ok though, there are buyers who would consider a “fixer-upper,” however, those buyers are fewer and farther between in a bull market like the one Colorado is hosting now.
Selling in a “Good” Market
Economics are complicated and real estate is more complicated still. Despite your opinion on the current economic situation, there are certain forecasts that should not and cannot be ignored. For example, the previous couple of real estate years in the state of Colorado have been influenced by a couple of major factors: marijuana and AirBnB. You may have read the news in Denver and other surrounding areas of neighbors and community members proposing laws against purchasing homes just for AirBnB use. Several of these new guidelines have been implemented, but previous AirBnB properties have already been grandfathered into the system.
The spike in tourist traffic is of course due to the other major influencer of the past decade: legalized marijuana. It hasn’t only turned Colorado into Amsterdam, and caused a boom in tourist interest for the area, it’s also caused a spike in the people who have moved to Colorado, especially population from California, specifically.
People from California could sell the home they owned in L.A. or Sacramento for literally millions of dollars and come to Colorado to buy a much nicer home for much less money. Why wouldn’t they, especially with the attractive skiing opportunities and the legalized recreational attractions? Thus, property prices have been skyrocketing all over Colorado, but there’s a caveat to this real estate boon: other states are legalizing marijuana and the people moving here have expensive taste. That actually means there are fewer buyers for “fixer-upper” properties and more buyers for new developments and posh, already remodeled homes in historical districts. With fewer home buyers looking for a good deal, it’s unlikely you’ll be able to get out of your house with a trashed foundation without taking a major price dip that could harm your financial health more than the foundation repairs could.
Not All Foundation Problems Are Ruinous
However, just because you have a foundation issue does not mean the house is ruined. You could look into a couple of repair options and see how expansive the damage is. There are some forms of damage that could be less expensive to repair. If the expense isn’t too bad and you can afford it without sacrificing your financial health, it’s worth it to make the repair. Your inspection can include the repair and the warranty attached to the repair which gives your potential home buyer a bit of peace of mind before forking over hundreds of thousands of dollars. It should be noted though, that foundation issues are foundation issues, and no matter if they’re fixed or not, if the foundation isn’t rendered flawless again you’ll have to sell at a lower price point.