Can You Sell a House with Water Damage

Selling a house with water damage can feel like an uphill battle – but it’s not impossible. Whether you’re trying to sell a water-damaged home in New Orleans or a condo in Phoenix, buyers may still be interested if the issue is handled the right way

So, can you sell a house with water damage? Yes, you absolutely can. You just have to do it the right way. Here’s your basic playbook for selling a house with water damage, from the first drip to the final signature.

1. Get a professional inspection

You can’t sell a house with water damage by pretending it’s a charming fixer-upper. That puddle in the crawlspace? It’s not “rustic.” It’s a liability. So, step one is to call in a professional. Reach out to a water damage inspector or restoration expert to dive into the details of the problem. 

This isn’t just about knowing what’s broken. It’s about arming yourself for the days ahead. Without hard data, you’re a sitting duck for lowball offers or lawsuits from buyers who discover the problem you “forgot” to mention.

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2.   Decide whether to repair or sell as-is

You’ve got two paths, none of them perfectly paved with gold.

• Repair the damage: Pay to fully repair the water damage and any underlying issues associated with it. There is a shot at getting some or all and more of the cost back in a higher sale price.
• Sell as-is: Sell the property as-is and target investors or cash buyers who don’t flinch at the idea of some major repairs after closing. This may be faster in some scenarios, but you’ll also likely take a hit on the sale price.

Your choice depends on your bank account, your patience, and the local market. If flippers are circling your neighborhood like vultures, an as-is sale might be your ticket. If it’s a seller’s market, repairs could improve your profit. Get contractor quotes, check comps for other water-damaged sales, and don’t kid yourself about how much buyers will be willing to look past.

3. Disclose all water damage honestly

Most states require you to fill out a disclosure form that’s basically a confession of your house’s shortcomings. Water damage? Mold? Past floods? You have to be honest about it. If you aren’t, you’re opening yourself up to a lawsuit that could cost more than the house itself. 

4.  Work with an experienced agent

A Redfin agent can act as your guide and point of contact. If possible, find an agent who has sold water-damaged houses before. They’ll run a Comparative Market Analysis (CMA) to price your place against other similar homes and handle the paperwork.

5. Price your home appropriately

Realistically, you probably won’t get top dollar for a home with water damage. That said, you need to price it realistically. If similar homes in your neighborhood are selling for $450,000 and your basement recently had water issues, it makes sense to lower your asking price a bit. A fair, well-researched price can attract the right buyers and help you avoid drawn-out negotiations or a stalled sale.

6. Get creative with your marketing

Your listing needs to scream “opportunity” without being dishonest or misleading in any way. Hire a photographer who can make the undamaged rooms pop but won’t airbrush the reality of the situation away. 

7. Be ready for questions

Buyers will likely send inspectors to check out your house. Expect them to find every flaw you disclosed, and even some you didn’t. Share your inspection report upfront to set expectations and show transparency. If you’re selling the home as-is, make that clear from the start, but be prepared for buyers to ask for credits or even walk away if the damage feels too overwhelming.

Traditional buyers with FHA or VA loans might bail if the damage makes the house uninhabitable by lender standards. Cash buyers or conventional loans may be your best bet.

Yes, you can sell a house with water damage

Selling a house with water damage is no walk in the park. Be honest, price it right, and target buyers who can see the dollar signs in your disaster. Whether you fix the home or sell it as-is, the key is momentum. Get a Redfin agent, create your plan, and sell your home the right way.

Selling a house with water damage: FAQs

Can I sell a house with water damage without making repairs?

Yes, you can sell a water-damaged home as-is, but it’s important to disclose all known issues. You may need to price it lower and target investors or cash buyers who are comfortable taking on repairs.

Will insurance cover the cost of water damage before I sell?

It depends on the cause of the damage and your policy. Insurance may cover sudden or accidental damage (like a burst pipe), but not gradual issues like long-term leaks or poor maintenance.

Do I have to disclose past water damage if it’s been fixed?

In most states, yes. Even if the issue was resolved, sellers are typically required to disclose any known history of water damage, flooding, or mold.

Can water damage lower my home’s appraised value?

Yes. Appraisers take the condition of the home into account, and visible or documented water damage can impact the final valuation—especially if it affects structural components or leads to mold.

Who buys homes with water damage?

Common buyers include real estate investors, house flippers, and some cash buyers who are willing to take on repairs. Traditional buyers using FHA or VA loans may not qualify if the home doesn’t meet habitability standards.