If you’ve been told your house has foundation problems, you might feel stuck. Cracks in walls, sloping floors, or doors that won’t close can raise a scary question for homeowners across California:

Can you even sell a house with foundation problems?

The short answer is yes — you absolutely can. But how you sell, who you sell to, and what you disclose will make a huge difference in your outcome.

This guide explains your options, the risks, and how California homeowners successfully sell properties with foundation issues every day.

For a broader look at selling homes with major damage or safety concerns, see our full guide about Selling a Damaged or Unsafe Home in California.

Can You Sell a House With Foundation Problems in California

What Counts as a Foundation Problem

Foundation problems can range from minor settling to serious structural failure. In California, common issues include:

Cracks in the slab or crawlspace foundation
Uneven or sloping floors
Doors and windows sticking or misaligned
Separation between walls and ceilings
Earthquake-related shifting
Expansive soil movement (common in parts of Southern California)

Some issues are cosmetic, while others affect the structural integrity of the home.

According to the California Geological Survey, expansive soils and seismic activity are two of the leading causes of foundation movement across the state.

Is It Legal to Sell a House With Foundation Problems?

Yes — it is completely legal to sell a house with foundation problems in California.

However, California law requires full disclosure of any known material defects. Foundation issues are considered material because they affect safety and value.

Even in an as-is sale, you must disclose what you know.

The California Department of Real Estate (DRE) makes it clear that selling “as-is” does not eliminate disclosure requirements.

How Foundation Problems Affect a Traditional Sale

Selling a home with foundation issues through the MLS is possible — but it comes with challenges.

Inspection & Appraisal Issues

Most traditional buyers rely on mortgage financing. If a home has foundation problems, it often fails inspection or appraisal, causing the lender to deny the loan.

Example:
A seller in Torrance accepted two offers on the MLS. Both deals fell apart after inspections revealed foundation cracking and soil movement concerns. The house sat on the market for five months.

Buyer Negotiations

Even if a buyer is still interested, foundation problems usually lead to:

Large repair credits
Price reductions
Lengthy renegotiations

Foundation repairs in California often cost $15,000–$60,000+, depending on severity.

Your Options for Selling With Foundation Issues

Option 1 — Fix the Foundation Before Selling

If you have time and money, repairing the foundation may increase buyer interest.

Pros:

Broader buyer pool
Easier financing
Potentially higher sale price

Cons:

Expensive repairs
Permit and engineering delays
No guarantee of full ROI

Option 2 — Sell As-Is on the MLS

You can list the home as-is, disclose the foundation issues, and price accordingly.

This approach works best when:

The issue is well-documented
The price reflects repair costs
You’re prepared for a smaller buyer pool

Expect longer days on market and lower offers.

Option 3 — Sell As-Is to a Cash Buyer or Investor

For many homeowners, this is the fastest and least stressful option.

Cash buyers:

Don’t rely on financing
Expect foundation issues
Buy as-is with no repairs
Close quickly (often 7–14 days)

Example:
A homeowner in Long Beach was quoted $48,000 for foundation repairs. Instead, they sold as-is to a local cash buyer and closed in 12 days — no repairs, no inspections, no permits.

How Much Less Will My House Sell For?

There’s no one-size-fits-all answer, but homes with foundation problems typically sell for 20–50% below retail value, depending on:

Severity of the damage
Repair estimates
Location and demand
Method of sale

Cash buyers factor in:

Repair costs
Risk
Time
Resale margin

Disclosure Requirements in California

If you sell a house with foundation problems, you must disclose them using:

Transfer Disclosure Statement (TDS)
Any inspection or engineering reports
Known past repairs or estimates

Failure to disclose can result in:

Lawsuits
Financial penalties
Sale rescission

Disclosure rules are governed by California Civil Code §1102 and enforced by the California Department of Real Estate.

When Selling Makes More Sense Than Repairing

Selling as-is is often the smarter move if:

Repair costs exceed your budget
You need to sell quickly
The home has multiple major issues
You inherited the property
You don’t want construction stress

For many sellers, certainty and speed outweigh maximizing price.

Real Seller Example

A family in San Bernardino inherited a home with foundation settlement and cracking walls. Repair estimates ranged from $32,000 to $55,000, and the house also needed electrical updates.

Instead of repairing everything, they sold as-is to a cash buyer, closed in two weeks, and avoided six months of uncertainty and construction headaches.