How to Tell If a Basement Is Finished to Conceal Water Damage

When you buy a house, you are buying all its current and future problems. In legal terms, problems with a property are called ” latent defects ” and the seller of a home is legally required to disclose them to any potential buyer. And if the seller doesn’t disclose such things, you’re relying on a professional home inspector to identify problems on your behalf—except home inspections aren’t exactly thorough .

This encourages some unscrupulous homeowners to hide problems with their property in the hope that you will buy it and make your problems known to them. One of the most common problems sellers try to hide is a flooded basement: it’s estimated that 98% of basements in this country will flood at some point. Basement water intrusion problems can be costly and not always effective, so it’s not uncommon for a homeowner to do a quick basement renovation to hide water damage and signs of flooding, hoping it will last long enough for the home to sell. The inspector may miss it because he can’t look behind the drywall or under the floor, but there are signs you can look for that may tell you that there are serious problems lurking in that finished basement.

Information disclosure

It’s important to be able to spot quick repairs hiding a water-damaged basement because it can be difficult to hold the previous owners accountable. Although they are required to report problems such as flooding and basement water damage, you will have to prove that they knew about the problem and took steps to deceive you, which can be difficult. Even if you collect a lot of evidence of the existing problem, proving that the previous homeowners deliberately defrauded you will be a difficult task.

You may win a lawsuit, especially if it is obvious that they covered up the water damage. But it won’t be cheap and it won’t be fast. You’ll be much better off spotting signs of hidden water damage before you buy.

Signs of a cover-up

Even if your home inspector is inspecting the home you’re planning to buy, you should pay close attention to the basement and look for some signs of a hasty remodel:

  • Sore thumb. Is the basement the only part of the house that has recently been remodeled? If the kitchen and bathrooms are old but the basement is brand new, this is an odd decision (kitchens and bathrooms are by far the most frequently renovated rooms in the home).

  • Partial. Is only part of the basement being renovated or reconstructed? If only some walls or floors have been finished, or if there is a completely new floor but everything else is still from the last decade, it’s worth asking why – perhaps these particular areas have suffered water damage and it was a hack job to hide it .

  • Inconsistency. Look at the paint carefully. Can you see areas that look a little different – a different shine or a slightly different color? This may indicate urgent work to cover up water stains. Another aspect of this is the quality of the materials: the top floor of the house is renovated with expensive, top quality materials, but the basement looks like they bought it on sale at a hardware store? This may indicate the need for more repairs to cover up the disaster.

  • Ripple. Is the floor uneven ? Are the walls bulging? Freshly hung drywall and new laminate flooring may look great at first glance, but get closer and use a level or straight edge to make sure the walls aren’t bowing or rippling underneath the flooring.

  • Rusty Nail. Everything is fresh and new, but all the infrastructure—pipes, ducts, and appliances like the furnace—is rusty? If there’s a moisture problem there, rust will tell the story, even though drywall and carpet will hide the damage.

  • This smell. It’s obvious, but it’s worth reminding you that no matter how great a basement reno may look, if it smells musty or musty, there’s probably something lurking underneath that finish.

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