How to Sell Your Sinkhole House
What is a sinkhole house?
A sinkhole house is a home on a property that has actually been affected by the natural disaster of a physical sinkhole. Sinkholes are defined as “a depression or hole in the ground caused by some form of collapse of the surface layer.” They can range in depth from a few inches to over 100 feet and are usually a result of water not draining correctly (or at all). In many cases, sinkholes actually hold water and fill up to become ponds.
While sinkholes are rare in some areas of the United States, they are extremely common in others. For example, in areas where there is a lot of limestone or other rock susceptible to dissolving due to groundwater, sinkholes occur often across a city.
If a home is on a property that has been affected by a sinkhole, all is not lost though, and homeowners dealing with this situation still have options.
There are two main ways to sell your sinkhole house:
- Investing and making the necessary repairs, then listing the house on the market
- Not making repairs (or repairs are not possible) and selling to a cash buyer
There are major considerations to each option.
Making Repairs & Selling on the Market
In many situations, a sinkhole is small enough that major damage is not done to the home or property. There are also situations in which a property is large enough that a sinkhole does not cause a huge impact on the larger value. Another scenario is that a sinkhole might be able to be completely filled and will continue to be structurally sound.
Fixing a sinkhole or making repairs to a property affected by a sinkhole is not a DIY project situation. Depending on the state, the type of homeowner’s insurance provider, and the homeowner’s coverage and policies, sinkholes might not be covered by insurance either.
Homeowners will need to work with professionals like engineers, structural architects, and contractors to ensure repairs are completed correctly and safely. All of this documentation and information should be kept on file and will be referred to during the sale of the home.
Major Things to Note:
- Not all sinkhole situations can be repaired though, and if a sinkhole has appeared on a property, it very well might happen again in the future.
- Sinkholes are a matter of public record and must be disclosed when listing a property for sale.
- Even if a fix has been made, it is very unlikely that a homeowner will be able to sell for a high price or even a competitive market price.
- When a repair has been made and a certificate of stability received, having an inspector report is also recommended. Buyers will have a lot of questions, so homeowners who have official sign-offs and documentation will help give peace of mind.
Not Making Repairs & Selling for Cash
Sinkhole disasters can cost a lot of money to repair, and a home’s value will never be the same. If a homeowner is in a situation where they cannot afford to make the repairs, or they do not want to deal with repairs, selling the house as is for cash is a possibility.
Since sinkholes must be disclosed and are of public record, there is no hiding the situation. A home’s assessment and value without repairs will be drastically affected, and homeowners should not expect the same level of return. However, if you own a home outright or are in a situation where you need to sell the home fast for financial reasons, getting some money for the sale is always better than getting nothing.
Sell Your House Fast
At We Buy Salt Lake City Houses, we pay cash for houses, and we want to enable you to sell your house quickly so you can keep living your life. We buy houses regardless of the type of real estate or the current condition of the house, and our team is ready to make a fair cash offer. Contact us if you have a home in the Salt Lake City area you want to sell, and we will get the process started.