How to Sell a Sinkhole House
When a sinkhole opens up in your yard or beneath your home, it can damage your foundation, cripple your plumbing system, and threaten the structural integrity of your house. That’s true even if the hole isn’t a movie-style monstrosity that swallows up a portion of your home.
Any size sinkhole can leave quite a bit of damage in its wake, and repairing that damage can be remarkably expensive — to the tune of $15,000–$100,000 in many cases. If you’re currently stuck with a sinkhole house you no longer want, you should know it’s still possible to sell your home. However, finding a suitable buyer may take some additional work on your part, depending on the selling route you choose to take.
Read on to learn a few different ways you can sell your sinkhole house.
Repair the House and List Your Property
If you want to take the conventional route and sell your house with a realtor, it’s best to repair the sinkhole damage before you list your home. File a claim with your insurance company, wait for your claim to be approved, get your payout, and pay for the repairs.
If you want to sell your house fast, taking this route may not be in your best interest as the insurance and repair process could take several weeks or even months. However, it’s necessary if you want to sell your house the traditional way.
Most traditional home buyers aren’t interested in purchasing properties with existing sinkhole damage — even if they’re listed for a relatively low price — simply because that’s a lot of work to take on. Many prospective buyers also avoid these types of properties purely because they’re worried that such a home may be hazardous to live in.
During the repair process, hang on to every document you receive that details the work performed and its cost. You’ll also want to keep the engineer’s inspection and safety report that you receive as these documents will help boost the value of your property and allow the new owner to get insurance on the house.
Unfortunately, all sinkhole houses, even those that have been repaired, experience a drop in overall value of about 7%–10% compared to their value before the damage occurred. So be prepared to list your house for less than you may have anticipated in the past. Also, be prepared to wait for the mortgage approval process to go through because many lenders won’t finance a house that’s had a sinkhole.
What’s more, you’ll also need to be prepared to fork over about 10%–12% of your home’s final sale price in realtor commissions, closing costs, and associated selling fees.
Disclose Sinkhole Damage to Prospective Buyers
If you filed an insurance claim for the repairs, you are legally required to inform all prospective buyers that you made a sinkhole claim and that the claim was paid out by your insurer. You must also disclose whether you used the insurance funds you received to repair the damage to the home.
If you fail to disclose this information, and someone buys the property without knowing about the sinkhole, your buyer has the right to sue you for damages when they find out. And, yes, they will find out eventually because sinkholes are public record.
Sell Your House Fast to a Cash Home Buyer
If you want to sell your house quickly, without going through the hassle of filing an insurance claim and handling repairs, partnering with a cash home buyer is likely your best option. These types of buyers buy houses in any condition — even houses that have suffered a sinkhole.
When you sell to a cash home buyer, they’ll pay you fair market value for your house in as-is condition. They don’t charge commission fees, closing costs, or any associated selling fees, so you won’t need to fork over a portion of your proceeds as part of the sale.
When you close, the buyer will pay you in cash, so there’s also no waiting around for a lender to approve a mortgage. Depending on how quickly you’d like to sell, a cash buyer can typically close the sale in a matter of days if that’s in your best interest. If you need some flexibility in your selling timeline, that can also be arranged.
Need to Sell a Sinkhole House? We Buy Houses in Any Condition
If you’re looking to sell a sinkhole house in the Columbus, OH, area, don’t hesitate to get in touch with our team at We Buy Houses Columbus. We buy houses in any condition and can make you a no-obligation, cash offer within 24 hours of viewing your home. To learn more, feel free to give us a call today at (614) 515-5130 or fill out our contact form to request an offer, and we’ll be in touch right away.
