What to Know Before Buying a Home with a Basement

When looking for your next home, there are plenty of reasons to consider adding a basement to your wish list. Basements are great for storage, but many people choose to finish their basements in order to use the extra square footage to extend their living space. Finished basements can serve as a playroom, exercise space, workshop, bonus living space, or even guest rooms and an extra bathroom.

But anyone with a basement will tell you that they also come with their fair share of problems. Moisture is the underlying cause for many common basement issues, such as mold, odor, humidity, and foundation cracks and shifting, and waterproofing your basement can cost, on average, anywhere from $2,000 to $7,000.

So while basements can be a great use of extra space, it’s important to know what you could possibly be getting into by purchasing a home with a basement. Let’s explore the more common basement issues in-depth, including the costs involved in the repairs, as well as what kind of return on investment (ROI) you can expect to see when selling your home.

Common Basement and Foundation Issues

Cracks in the Foundation

Be on the lookout for foundation cracks in both the interior and exterior of the home. Hairline cracks are common, and not always a sign of foundation issues. Vertical cracks often happen with regular settling, while horizontal, diagonal, or large cracks in a zigzag pattern can be indicative of a more serious problem with the foundation. If you notice these types of cracks, bowing or sagging walls, or foundation that appears to be sticking outward, you may want to consult a professional to better understand what you’re dealing with.

Keep in mind that even if cracks are small now, if water is able to come through, those cracks can get bigger and become more troublesome over time as water freezes and thaws, causing it to expand and contract those cracks.

Solutions and costs:

Repairing cracks is actually one of the most affordable types of foundation repair, ranging from just $35 to $1,000, according to Forbes. Smaller cracks may be fixed with DIY methods (which would land you on the low end of this range), but for larger, more worrisome cracks, you’ll want to work with a pro.

Sinking Foundation

If you notice that water tends to pool around the foundation of the home, this could be a simple issue with landscape erosion, or a more sinister problem like a sinking foundation. Most homes are graded so that any water or moisture will flow away from the foundation, so this is why it’s important to first rule out any landscape or soil issues.

Solutions and costs:

Working with a soil tester or specialist can help determine whether or not the soil around your home is compromising its foundation. These professionals can help identify the root of the issue, so that you don’t spend time and resources on repairs that don’t address the real problem. Soil testing costs around $75 on average, while sinking foundation repairs cost anywhere from $5,300 to $17,000.

Foundation Leak

Many of the most common foundation issues have similar telltale signs, and foundation leaks are no exception. Like the other problems we’ve already covered, foundation leaks can cause cracks, bulging or bowing walls, damp or wet basements, sinking or settling floors, and more.

Solutions and costs:

Repairing a foundation leak can cost between $2,000 and $7,300. The low end of that range is the average cost to fix a small leak, while the higher end includes waterproofing methods like installing a drainage system.

Flooded Basement

There are several reasons why a basement might flood, with many being some of the common foundation issues we’ve covered here. Standing water, wall drips, condensation, mold, and mildew are all signs your basement has moisture or flooding issues, and you’ll want to identify the cause before choosing a solution to ensure you’re fixing the right thing, as waterproofing methods can get quite pricey.

Solutions and costs:

Waterproofing basements costs homeowners around $5,000 on average, so you’ll want to determine how serious the issue is to see if you can get away with more affordable DIY methods. For example, one of the most common external causes of basement moisture is clogged gutters and downspouts, which is also one of the cheapest and easiest DIY fixes. Compare this to the cost of installing a sump pump (ranging from $7,000 to $18,000), and it’s easy to see why it’s so important to identify the root cause of the moisture before diving into costly repairs.

Bowing Wall

If you notice bowing or bulging in walls, it may be a sign of hydrostatic pressure that’s compromising the foundation of the home. And this means—you guessed it—water damage. This can happen when cracks are left to their own devices, allowing pressure to build up over time to cause the larger issue of bowing or buckling walls.

Solutions and costs:

Foundation repairs for bowing walls requires strips of reinforcement made from carbon fiber or steel. Carbon fiber will be the more affordable route, but if there’s a serious issue and the foundation needs a lot of reinforcement, steel will be the better option. These repairs can cost between $4,300 to $13,000 on average.

Basement Mold

Moisture problems gone unchecked can lead to mold and mildew in the basement. These issues will generally make themselves known by smell first, with stale or musty odors creeping into the rest of the home. While not always caused by foundation issues, a persistent mildew smell could be caused by moisture seeping into cracks in the foundation. If not dealt with, moisture can cause further rotting and attract other unwanted pests leading to additional problems.

Solutions and costs:

Mold remediation costs range from just over $1,000 to around $3,450, but homeowners spend about $2,330 on average to deal with mold issues. This is just the cost for the mold remediation—once the mold is dealt with, identifying the cause of the moisture and fixing that issue will incur further costs, like fixing cracks or waterproofing the basement.

Shifting or Settling Foundation

Finally, floors that appear to be sinking or settling unevenly could be an indicator of a foundation leak that’s causing erosion beneath the home. Finished floors may bounce as a result of the foundation settling or rotted structural beams, and concrete floors in the basement may crack.

Solutions and costs:

This is one of the more costly repairs, depending on the severity of the issue. Minor issues could be resolved with mudjacking, a process that involves pumping a mixture of sand, soil, and water below the surface of a settled concrete slab in order to lift it back up. This can cost between $600 and $1,600, whereas repairing severe settling may cost between $10,000 to $30,000, depending on whether or not underpinning is required.

Is There ROI in Basement and Foundation Repair or Finishing?

When it comes to selling your home, you want to be sure you can get the best return on the investments you made while living there. And while foundation repairs are not always the most glamorous projects, they go a long way when it comes to the value of your home.

Foundation repairs won’t necessarily contribute to a direct increase on your home’s value, but will rather restore the value in your home, allowing you to sell it closer to its actual worth.

Finishing your basement, on the other hand, adds livable square footage to the home and according to the 2022 Remodeling Impact Report, an estimated 86% of the project cost is recovered when it’s time to sell. This is huge, especially considering the average cost to refinish a basement is $22,850, but can range anywhere from $4,700 to $41,000.

Key Takeaways

Foundation problems should be dealt with swiftly and with care, because when left unchecked, these repairs are some of the most costly projects homeowners can face. If you’re considering buying a home with a basement, know that while they can add valuable square footage to your living space, you also need to be vigilant about any problems or issues that may arise in the space.