Answering the question of whether foundation issues affect the value of your home is easy. Absolutely! Issues of this nature will affect your home's value. Answering the question of how this will affect the value of your home becomes much more difficult.
You have been through the purchasing process if you own your home. Imagine coming across the perfect home and finding out there are foundation issues that will need to be addressed before you can move in. The first thing you will want to know is how much the realtor will take off of the selling price. That is because problems with your foundation can be very costly.
The Many Roads The Lead to Repairs
Whether or not you are looking to sell your house right now, having foundation issues will definitely affect your home's value. There is no easy answer as to how much of an effect it will have. The simplistic answer would be to say that your home's value can be decreased by 10 to 20%. A longer and more realistic answer is determined by many factors. The cause of the foundation damage will play a key role in deciding how much your home's value is affected. Because there is a myriad of different reasons your foundation could become damaged, there is more than one way to fix a foundation. Each approach takes a different amount of time and materials.
One example we could use that causes foundation issues is water damage in a basement. Over time this can lead to foundation posts that have started to rot. Or you may have severe bowing in your concrete floor due to large tree roots that have started disturbing your foundation. Another example would be if you developed a crack in a poured concrete wall caused by shifting in the ground.
These may be examples of bad foundations, however they truly have very little in common with each other. Each one of these examples will have different repair costs and affect the value of your home differently.
You might ask yourself what all of this will mean to you if you are thinking in terms of selling your home, now or in the future. Should you repair the foundation if you are thinking of selling your home immediately? Maybe you should lower the price of your home instead?
Things to Consider: Costs
The first thing you need to do is call in a professional and get a price estimate. This way you will know how much the foundation is going to cost for repairs. You can make an informed decision once you know the cost of the repair. There are two options available to you.
1. According to Home Advisor, most foundation repairs will cost between $1700 and $5900 to repair. You can choose to have the repairs done before you put your home on the market. You will be spending time and effort, as well as money, should you choose this route.
2. The other option you have is to just sell the home as is. Potential homeowners will not only look at the cost of the repair, but also at the time and effort it will take to do the the repairs. This can mean having to lower the cost of your home more than the actual repairs would be.This may result in taking more of a loss than if you were to have it repaired yourself. Only you can decide whether the time and effort that you will put into the repairs can compensate for the money that you will lose selling it as is.
The Sleeper Costs of Foundation Repair
There are other costs involved with having foundation issues. Your home's value will decrease when you factor in these other costs. A bad Foundation that is not caught in time will have secondary costs associated with it. These are not the cost of repairing the actual foundation, but repairs to structural damage caused by the foundation issue.
A beam or a post that has split or shifted can cause the flooring above it to bow and/or crack. The money spent on these repairs can sometimes be more than the foundation repair itself. Deducting these expenditures will lower the value of the home you are selling.
You can develop cracks in your exterior walls because of a shifting foundation. Structural issues such as this are often the result of a damaged foundation. Structural problems are sometimes more visible than the actual foundation issue. This can, in turn, cause your curb appeal to dwindle as well. This can mean lower home values for you and possibly your neighbors as well. Often times we do not see the early warning signs of issues with our home.
"I'm Not Planning on Selling My Home Right Now"
Does that mean you should not be worried about the value of your home? You should always be aware of your home's value and the things that you can do to increase it. The value of your home will have an impact on the interest rate and amount of any loan, whether it be student or home improvement, that you may seek in the future.
A bad foundation will also lead to an increase in your homeowner’s insurance as well. The cost of this insurance is directly related to the condition of your home. You have to factor in the increase of the insurance as well as the other costs. This will determine whether your home has truly decreased in value when you eventually sale it.
Having foundation issues does not mean you will lose money when selling your home. You need to call an expert and get the cost for repair and their professional opinion on how to proceed. They can also tell you the time it will take for repairs and whether it might be better to sale as is. The biggest thing to remember is not to ignore the issues you are having.
When you ignore a bad foundation it will continue to deteriorate, along with the structures around it. This can easily turn a $1500 repair into a $10,000 repair. Fixing the foundation problems as they become apparent will ensure your home's value, whether or not you decide to sell.