Water damage can significantly reduce your property’s value. According to Kenna Real Estate Group, water damage can cut down your property’s value by an estimated 5% to 20% depending on the scope and how severe the issue is. The percentage can go higher if water-related issues remain active at the time or repairs are yet to be completed.
The financial impact doesn’t come from the repairing costs, but also stems from the buyer’s negative perception, who avoids buying your house due to the possibility of future issues, such as mold, and the weak structure of the place. Another surprising fact is that water damage affects nearly 14,000 individuals in the U.S. daily, and 98% of the basements in the U.S. suffer from some level of water damage.
If you don’t want this to happen with your home, this blog will provide you necessary measures to see maximum buyers take interest in purchasing the home, ways to prevent water damage, and who can help you.
How Water Damage Devalues Your Property
Water damage is a huge threat to a home’s value for numerous hidden and obvious reasons. This effect can be classified into three main areas: financial, structural, and psychological.
Cost of Repair and Restoration
Water damage immediately requires you to pay for repair and restoration. The National Association of Realtors and other restoration companies have revealed that a home with a water damage history can sell for an average of 3-20% less than a residence without this issue. It totally depends on the severity and whether you properly resolved the damage.
Minor Damage
Minor damages may include small leaks from a dripping faucet or a minor pipe leak under your sink. The repairs might cost you a few hundred dollars. So, if you quickly resolve this, the effect on value will be minimal; otherwise, it can turn in a massive issue.
Moderate Damage
This damage involves problems such as a burst pipe, an overflowing electronic appliance, or your leaking roof. The average cost is around $3,800, but it can rise to $10,000 depending on severity.
Severe Damage
Major floods or untreated leaks result in severe damage. You will have to bear the expenses that can soar to $20,000 to $100,000 or even more for removing mold, repairing the structure, and completely rebuilding affected areas. In such cases, the value can drop, and your insurance company might also regard it as a “total loss.”
Besides adding the cost of repairs, water damage also creates a significant disclosure issue when you plan to sell the house. In most of the U.S. states, it’s a legal requirement for the seller to reveal their water damage history and the current condition. If you have had a terrible water incident, you must inform the buyers. This often makes buyers hesitant, and as a result, they offer low prices or force them to keep searching.
Structural and Health Concerns
Water damage shakes the entire structure of your house. When it seeps into the structure, you can expect long-term and pricey damages that are not always immediately visible:
Structure Weakens
Leaked water can rot, resulting in weakening the framing of the wood, floor joists, and beams for supporting. It compromises the home’s structure, causing sagging floors, warping walls, and loss of the foundation. You can take the help of a professional home inspector to spot these problems, and they will probably need comprehensive and expensive repairs, discouraging mortgage lenders and buyers, too.
Growth of Mold and Mildew
Water damage also results in the growth of mold and mildew, which is viewed as one of the most significant and dangerous after-effects. The unwanted living organism can start growing within 24-48 hours of a water event. Apart from being a major turn-off for purchasers because of its smell and weird appearance, a few mold types can also increase health risks. For instance, respiratory issues, allergies, and other illnesses. Removing mold can be a complicated and expensive process.
Buyers Fear Water Damage
Even after completing repairs, homes with a history of water damage can raise red flags for buyers.
Perception of Risk
Selling a home with a history of water damage falls into the list of higher risk. Potential buyers might fear that problems might bother them in the future, resulting in more insurance premiums or having difficulty securing a mortgage.
Loss of Trust
If a buyer gets to know later that you had hidden the water damage issue, it can damage trust and your image in the real estate industry. In a few cases, they can even sue you for misleading them, adding another huge financial burden.
How to Prevent Water Damage?
You can prevent water damage in the following ways:
Properly Maintain Your Roof and Gutters
Your roof stands as the first line of defense against water intruding into your property. Regularly inspect the roof to check the damage or missed shingles, or let professionals look into this. Plus, clogged gutters can also stop the water from draining out and pooling around, leading to a flooded basement. So, clean them at least twice a year for the water to move out.
Inspect and Maintain Your Plumbing
You might miss out on slow leaks from pipes and faucets, damaging inside walls or under flooring:
Check for Leaks
Keep checking your exposed pipes under sinks, behind appliances, and also in your basement to spot any signs of rust, mold, or moisture.
Water Heater
Your water heaters typically have a limited lifespan. Inspect the tank for rust and seek professional assistance to check the pressure relief valve. You can replace the heater before it fails.
Conclusion
Water damage is more than an inconvenience, it’s a threat to your home’s structure, value, and even your family’s health. By staying proactive with maintenance, you can reduce these risks and protect your property. If you’re already facing water damage, don’t wait, reach out to Water Damage Boca Raton for expert restoration services you can trust.