If you’re planning on putting your house on the market, doing it with a cracked and sunken foundation is not a good idea. Not only does the damaged slab foundation indicate structural instability, but it also lowers its value by about 10-20% and encourages the few interested parties to bargain and haggle down the price even further due to the repair expenses they’d have to endure. If you want to understand the monetary impact that compromised slab foundations would have on your property, this is the right blog for you.

From Slabs To Sales Prices: How Compromised Foundations Impact Your Property

The foundations of a structure lay the base for its integrity, strength, and longevity. And if they’re damaged? It can significantly compromise the curb appeal of the property. If you’ve got a house with cracked slab foundations you want to sell or you’re going to purchase a property with sunken foundations,  this section explains how the value is impacted.

Read along to understand the true effects of damaged foundations.

• Reduced Resale Value

The most direct way that compromised foundations impact your property is by lowering its resale value. So, for example, if you have a house valued at $4,00,000, worn slab foundations can lower the price by 10-20%, making you lose $40,000-80,000.

• Lowered Curb Appeal

If buyers visit your property and the first thing they notice is cracks along your walls and moisture damage near the foundations, they will immediately grow wary or be put off entirely. They may not want to pay the asking price or low-ball the price because the foundations are damaged.

• Repair Cost Negotiation

Even if the buyers still want to purchase the property, sharp parties will demand a reduction in the purchase fee equal to or more than the repair fees to compensate them for the expense and hassle later on. And this will be another blow to the price.

• Further Damage Repair

As if that’s not enough, the compromised foundations easily lead to other structural damage like cracked chimneys and drywall. The interested parties will cite this and the repair costs, thereby further lowering the price of the property.

• Delayed Sales

A property with compromised foundations will often stay on the market for longer. This is because realtors and buyers won’t be willing to take the risk. Another cause for a delayed sale is a lower price.

• Insurance Complications

Insuring a house that’s already been compromised is never easy due to the higher risk. The realtors and any interested parties may cite this as another reason to lower the price. Even if you do manage to get the property insured, the insurance premium will be far too high.

• Lowered Appraisal Value

Before purchasing a property, an appraiser will need to assess its condition. A qualified appraiser will immediately point out the foundation damage and the risks that go along with it, thereby diminishing the selling price.

• Mortgage Hurdles

Along the same lines, if someone needs to secure a financing package for the property, they’ll find the lenders either very unwilling or charging high interest rates. This just adds to the financial burden because of the foundation damage.

• Other Problems

A cracked foundation isn’t just that. Other than the cracks traveling, the foundations will also make your property vulnerable to pest infestations, moisture damage, and mold, which will further reduce the market value of the property.

• Shaken Buyer Confidence

If your foundations have been damaged once, it’s going to leave its mark. Even if you have them repaired before putting it up on the market, buyers will be made aware of the property’s history, which will automatically make them worry about future issues and have them lean toward a damage-free one instead.

• Lost Equity

Since you’re legally bound to disclose the state of the foundations, the repairs are costly, and you’re having trouble selling your property, you may find that you could lose a great deal in the equity of the property.

Conclusion

To summarize it all, having cracked or sunken slab foundations is going to take a lot from the value of your property. It will directly lower its price by 10-20%, it will take longer to sell, and a few interested buyers will further lower the price for the repair expenses they’ll have to endure. We hope this blog helped you understand the importance of strong and sturdy foundations. For any more information regarding your foundations, please drop us a line.

FAQs

What factors damage your foundations?

Slab foundations are damaged by moisture intrusion, soil shifting, age, and invasive tree roots.

How can I protect my foundations from damage?

You should ensure proper grading, fix plumbing issues quickly, and plant trees far from your foundations.

How can I have my slab foundations repaired?

Depending on damage type, repair techniques include piering, slab jacking, and polyurethane injections.