Last updated on February 20th, 2026 at 06:59 am
Depending on whom you ask, a house that must be sold with structural damage can be stressful for the owner. There are thousands of owners with structural issues every year.
Whether it is a crack in the foundation or a bad roof, a structural defect gives the impression of being an obstacle to selling the house. But you have more options than you might think.
Complete Guide to Selling a House with Structural Issues
Expert insights from 15 years and 300+ structural problem home purchases in Texas
📋 What You’ll Learn
- How to identify if your structural issue is major or minor
- Real cost breakdowns across DFW metro area
- Six selling strategies with actual net proceeds
- Texas legal disclosure requirements
- When to hire a structural engineer vs. skip it
- Red flags: sell immediately vs. repair first
- Real case studies from actual deals
- Common mistakes and how to avoid them
The 3 Categories of Structural Damage
Looks Scary But Isn’t Dangerous
Examples: Hairline foundation cracks under 1/4″, diagonal drywall cracks, minor floor slopes (under 1″), cosmetic brick cracks
Real Damage Needing Repair
Examples: Foundation settlement causing doors to stick, 1-2″ floor slopes, roof sag affecting shingles, cracked load-bearing beams
Immediate Safety Risks
Examples: Severe foundation failure (3″+ slopes), collapsed roof structure, rotted floor joists, condemned properties with red tags
💰 Real Repair Costs in Texas (2025)
Foundation Repairs
Roof Structural Repairs
Foundation companies make money on piers, so they tend to over-recommend them. I always get a second opinion from an independent structural engineer ($500-800). About 40% of the time, the engineer recommends half as many piers as the foundation company quoted.
Your 6 Selling Options (Real Math)
Example: 1,800 sq ft Richardson, TX home worth $350,000 in perfect condition, with $15,000 foundation issue
| Option | Sale Price | Total Costs | Timeline | Net to Seller |
|---|---|---|---|---|
| Repair + Traditional Sale | $350,000 | $42,000 | 3-5 months | $308,000 |
| Cash Investor (As-Is) | $280,000 | $1,500 | 7-14 days | $278,500 |
| List As-Is on MLS | $297,500 | $22,350 | 60-90 days | $275,150 |
| Owner Financing (10yr PV) | $335,000 | ~$65,000 | 10 years | ~$270,000 |
| Rent Out (10yr hold) | Value + income | ~$100,000 | 10 years | ~$250,000 |
| Auction | $260,000 | $20,000 | 30-45 days | $240,000 |
Key Insight: The difference between best option (repair + traditional) and cash sale is only $29,500 — but cash option is way faster with zero risk of deal falling through. Factor in holding costs, stress, and uncertainty, and the gap narrows even more.
Deep Dive: Each Selling Option Explained
1 Repair First, Then List Traditionally
Real Numbers Breakdown
✅ When This Makes Sense
- You have $15K+ cash available
- Can wait 3-5 months for full process
- Repair cost under 5% of home value
- You’re in a hot market
- Want maximum profit potential
❌ Skip This Option If
- Don’t have $15K+ upfront
- Need to sell quickly (relocation, etc.)
- Repair costs exceed 10% of value
- Market is slow with long days on market
- Can’t handle contractor delays
Most sellers underestimate holding costs. Mortgage + insurance + utilities + maintenance add up fast. Budget an extra 20% beyond quoted repair costs for unexpected issues.
2 Sell As-Is to Cash Investor
Real Numbers Breakdown
✅ When This Makes Sense
- Need to sell in under 30 days
- Don’t have cash for repairs
- Want certainty (no fall-through risk)
- Multiple issues beyond structural
- Facing foreclosure or hardship
❌ Skip This Option If
- You have time and can wait months
- Only dealing with minor cosmetic issues
- In a hot market with high demand
- Emotionally attached to max price
- Skeptical of investor intentions
You’ll net $29,500 less than Option 1, but factor in ZERO repair costs, ZERO uncertainty, SPEED, and no contractor headaches. For sellers in tough situations, that trade-off is worth it. What investors do: fix efficiently with contractor discounts, then rent or resell.
3 List As-Is on MLS
Real Numbers Breakdown
✅ When This Makes Sense
- Want maximum market exposure
- Not in a time crunch
- Moderate structural issue (Category 2)
- Local market has active investors
- Prefer transparency of MLS
❌ Skip This Option If
- Severe issues (won’t pass FHA/VA/conventional)
- Need to sell quickly
- In a slow market with low demand
- Don’t want showings and inspections
- Buyer pool limited to cash anyway
This is the middle ground. You often net LESS than selling to cash buyer (after commissions + holding costs), but some sellers prefer MLS transparency. If issue is severe, your buyers are cash/investors anyway — so why pay 6% commission?
Real Case Studies from My Portfolio
The Over-Engineered Foundation Quote
Property: 1,650 sq ft home in Lewisville, TX
Market Value (perfect): $285,000
Issue: Foundation settlement, 1.5″ floor slope, doors sticking
Seller’s Quote: $38,000 for 22 piers
What I Did:
- Hired structural engineer: $800
- Engineer recommended: 12 piers (not 22)
- My contractor cost: $16,500 (not $38,000)
The Math
Seller left $16,400 on the table by not getting multiple opinions. If they’d known the real repair cost was $16.5K (not $38K), they could’ve repaired and listed for $285K, netting ~$251K instead of my $235K offer.
When Cash Sale Made Perfect Sense
Property: 1,400 sq ft home in Grand Prairie, TX
Market Value (perfect): $195,000
Issue: Severe foundation failure, 3″ floor slope, city red tag
Situation: Inherited, out-of-state owner, code fines $500/week
Why This Worked
For severe structural damage, cash buyers are often the ONLY option. Traditional financing won’t approve. Seller netted $108K vs. being stuck with a property generating $2,000/month in city fines. Sometimes a quick cash sale saves you from a worse outcome.
When Repairs Made Total Sense
Property: 2,100 sq ft home in Frisco, TX
Market Value (perfect): $425,000
Issue: Minor foundation settlement, cosmetic cracks
Situation: Teacher with good credit, could get $12K personal loan, not in rush
The Smart Decision
Seller netted $20K more by repairing first. Key factors: (1) Minor repair cost (2.7% of value), (2) Hot market (sold in 18 days), (3) Ability to get financing, (4) Time flexibility. When all conditions align, repairs make financial sense.
🎯 Step-by-Step Decision Framework
1 Understand What You’re Dealing With
Action Items:
- Get professional home inspection ($400-600)
- If structural issues found, hire structural engineer ($500-1,200)
- Obtain 3-5 contractor repair estimates
Budget $1,500-2,500 for this step. Half the sellers I work with either don’t have a serious problem (it’s cosmetic), or they’ve been quoted 2-3x what repairs actually cost. You can’t make good decisions without accurate information.
2 Calculate Real Net Proceeds for Each Option
Use the comparison table above with YOUR specific numbers. Don’t forget to include holding costs, commissions, and repair estimates.
3 Factor In Your Personal Situation
Timeline Considerations
- Under 30 days needed → Cash buyer only
- Can wait 90+ days → Traditional possible
- Facing foreclosure → Cash or auction
Financial Considerations
- Have $15K+ cash → All options open
- No repair money → Cash, MLS as-is, auction
- Want guaranteed close → Cash buyer
Quick Facts from My Experience
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