For realtors, listing quality is the key to your business. Choosing properties and understanding how cosmetic and structural issues can impact a home’s value is important. According to the US Census Report, more than 6 million American homes have some form of structural damage. This is a significant concern for home buyers, sellers, and real estate professionals alike.
In this post, we'll explore the impact of structural and foundation damage on home value and provide practical advice to help your clients navigate this complex issue.
What is Structural and Foundation Damage?
Structural and foundation damage refers to any damage related to a home's physical structure, including the foundation walls and framing. This damage can arise from several factors, including natural disasters, water damage, or poor soil conditions.
Some of the most common signs of structural and foundation damage include:
Visible cracks in the walls
Stair step or horizontal cracks in foundation
Windows and doors that don't close
Gaps between walls and the ceiling or floor
It's important to note that even small structural issues can quickly escalate into significant problems if not addressed promptly. So, it's vital to take immediate action as soon as you suspect any issues with a home's structural integrity.
The Impact of Structural and Foundation Damage on Home Value
When it comes to real estate, the value of a home is primarily determined by factors such as location, square footage, and local real estate market conditions. However, home structural and foundation damage can significantly impact property value, and in some cases, it can significantly reduce the value of your client's home. Realtors know that a home with foundation issues can lose as much as 25% of its value. This substantial loss is primarily due to the cost and potential risks associated with repairing the issue. For buyers, a structurally compromised home may impact its overall value and push buyers away from the property altogether. These issues could occur during an inspection, resulting in stalled or canceled deals. Unaddressed structural issues can be a deal breaker for any potential buyer, resulting in a drop in demand and an immediate drop in property value. In contrast, addressing structural and foundation issues early on may avoid any negative impact on home value and improve its marketability, making it an attractive prospect for buyers.
Identifying, Addressing, and Overcoming Structural and Foundation Damage Challenges
Addressing structural and foundation issues is fundamental to ensuring the longevity of the property. Once the problem is identified, it's essential to seek professional help to repair the damage. Look for an experienced structural engineer or foundation repair company with a proven track record. While repair costs can be a concern, proactivity is always less expensive than reactivity in real estate. It is imperative to note that home repairs should always be deemed as investments in the property. For significant repairs, recommend that your clients choose a low-interest repair loan to minimize the financial impact. Finally, being transparent about the repairs and property condition with potential buyers is crucial. Highlight any repairs made and the measures taken to warrant the issue won't happen again in order to guarantee peace of mind for buyers.