Factors in Home Appraisals If the home has structural damage or other foundation problems, this can negatively affect the final appraised value of the property until it is repaired. Mortgage companies require homes to meet their structural strength standards. Foundation issues affect the marketability of the home, jeopardizing the lender's investment. Richard Haddad is an editor at HomeLight, where he works with an experienced content team that oversees the Seller Resource Center, a blog that features in-depth articles on the home sales process, homeownership news, design and home care tips, and related trends.
Previously, he served as editor and content producer for World Company, Gannett and Western News %26 Info, where he also served as director of news and director of Internet operations. Richard is a veteran of the United States Air Force and published his first works in military newspapers and magazines. According to Foundation Repair Network, a foundation repair educational resource center for homeowners, foundation work is not a DIY project. They recommend that you obtain quotes from at least three licensed contractors whose foundation repair methods have been evaluated by the International Code Council Evaluation Services (ICC-ES), a non-profit organization that evaluates code compliance for construction products, materials and systems.
Prospective homebuyers may be wary of bidding on a home with foundation problems because of the perceived cost of repairing them. Selling a home with foundation problems isn't an insurmountable challenge, but it can lead to delays, discounts, and damage control. If an appraiser determines that the integrity of the foundation needs professional review, they will note it in their report and will likely wait until such review is completed before completing their value review. Some very honest and honest foundation repair companies will try to sell you the wonderful idea (usually after repairing a section of your house) that your entire house needs to be protected against new settlement or upheaval.
If you decide to live in your home without having to deal immediately with foundation problems, you may end up having to deal with what we'll call “referred symptoms.” Due to the lack of licenses, housing inspectors are unable to give a detailed analysis of foundation problems. If your foundation has a problem, regardless of whether you have plans to sell your home, it's wise to consider doing the repair sooner rather than later. Because of the many types of foundation problems, and the wide range of healing costs, it's impossible to know exactly how much a foundation problem will affect a home's value. Unless you use the basement as a home office or rent it out, you can't claim foundation repair as a tax deduction.
Regardless of the severity of your foundation problem, you should repair it because the problem could end up with the sale of your home. Relevant to the base, they will look for the type that has the house and inspect closely for any problems. If your foundation fails the inspection, the bank may deny the buyer the mortgage loan or make it conditional on repairs. Or, they may require the prospective homebuyer to provide a sufficient down payment to cover the cost of repairing the foundation.
Foundation repair is therefore worthwhile, if only for the privilege of living in your home without worrying about foundation failure extensive enough to force you out.