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How do cracks in the home affect resale value and buyer interest?

By
Home Inspector with US Inspect

Below is what I know about cracks, but I want to hear from my friends in the Rain! Does crack really kill (deals)? How do cracks affect the home, when it comes to making the sale? Join the discussion!

Here is one comment from a discussion about cracks on Trulia.com, do you agree? How can a seller with cracks of any kind prepare for a sale?

"If the cracks give you pause, they will probably give other potential buyers pause as well. The degree to which they affect the homes value can only be ascertained when a buyer walks through the home and makes an offer. There's no set percentage or rule for it. " Joshua Hanoud, Agent, Spring Hill, FL, Trulia.com

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My Home Is Cracking Up, But I Ain't Laughing!

Most of us have seen cracks in our homes. Some of us may have even seen cracks appearing on the foundation of the home. But do you know how to tell if a crack is structurally deficient?

There are many variations of cracks, but there are three primary cracks that are commonly found--vertical cracks, horizontal cracks and diagonal cracks.  The following overview of the basic types of cracks should provide you with the information you need to help determine if the cracking you see is structurally related.

Cracks in foundationVertical Cracks
Vertical cracking is not structurally related or deficient unless there is lateral movement, displacement, bowing, or if the crack is uneven from top to bottom.  If the plane of the wall is the same on both sides of the crack, then it is a contraction crack, and not a structural issue.

Since everything expands and contracts, it is common in commercial work to provide control joints in areas where expansion and contraction is expected.  However, control joints are not typically installed in residential construction.  Ridged materials, such as poured-in-place concrete, tend to crack from expansion and contraction much easier than more flexible materials.

Horizontal Cracks
Horizontal cracking in block construction is usually structurally related because the bond between the block is broken.  However, this does not mean that the wall will collapse.  The amount of movement and the cause of movement are important issues to consider.  Frost, backfilling, or a significant unbalanced load may cause cracking.

A frost line crack is not likely to have serious repercussions unless conditions, such as negative grading, are not corrected.  Cracking due to poor backfilling practices, or heavy equipment close to the walls, is usually a one-time occurrence.  Movement caused by an excessive unbalanced load presents the most serious situation.  A significant unbalanced load may be destined for collapse.

Diagonal Cracks
Diagonal cracking is almost always structurally related.  Diagonal cracking is defined as a crack that tears through the material, not a step crack that follows the mortar joints.  If you are looking at a foundation wall with diagonal cracking, you should be concerned, however, determining the source is fairly easy.

To determine the source or cause of a diagonal crack, draw an imaginary line perpendicular to the center of the crack, downward towards the ground.  There you should find the source of the cracking.

Being able to determine the cause or source of a crack can serve as a guide to the action or solution needed.  If a design solution may be required, a structural engineer should be consulted.

Learn more about the structure of a home.

Posted By: Chrissy Doremus, U.S. Inspect Blog

Comments(19)

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Jane Nicoletti
SCHNEIDER Real Estate - Saint Charles, MO

No doubt about it cracks scare buyers.  When I list a home I always encourage the home owner to have the cracks professionally repaired and provide a transferable warranty to any potential buyer.  Most buyers, following a building inspection, will ask for these repairs to be completed, so be proactive in the solution when listing.  A warranty will help to ease the buyers concerns- WARNING to REALTORS be careful about giving your opinion - just provide information and let the buyers come to their own conclusion.  In our area the drought has caused foundation shifts and sellers are having to have the house pier ed (very expensive).  Even when these repairs are completed the seller sometimes has to lower the price in order to motivate buyers to make an offer.   

Mar 08, 2013 12:35 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Those diagonal cracks can be corrected by leveling the foundation back so the bricks meet back up, and then cosmetic repairs on the mortar. It's best to do this prior to listing the house otherwise the buyers will low-ball tripling the cost of the repair.

Mar 08, 2013 12:37 AM
Morris Massre
Pembroke Pines, FL
Real Estate Instructor Broward County Florida

Most cracks I have seen are quite small and insignificant, but the big ones like yours above are quite scary and I would definitely point it out to my buyers as something to seriously look into.

Mar 08, 2013 01:15 AM
Kristen Correa, Broker
Kristen Correa Real Estate & Reedy Creek Realty Services - Keller, TX
I love coffee & real estate. I am out of coffee!

Crack alone doesn't kill deals. Ha ha. I agree with you, it depends on the size, type, source, if it's already been repaired and just cosmetic, etc., as you said.

Mar 08, 2013 01:51 AM
Chrissy Doremus ~ US Inspect ~
US Inspect - Chantilly, VA
Residential Property Inspections

ha! Kristen ;-) I think maybe you should have titled my blog! :)

Mar 08, 2013 02:21 AM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

Cracks do scare buyers all the time.  Great information about cracks & I really appreciate the info.

Mar 08, 2013 02:28 AM
Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA

Cracks scare some buyers.  Many are normal settling cracks, however, this is where the value of good home inspector is important. Home inspectors can tell a buyer whether it's something to worry about or not.  All homes are going to have some small cracks.

Mar 08, 2013 02:59 AM
Chrissy Doremus ~ US Inspect ~
US Inspect - Chantilly, VA
Residential Property Inspections

You are absolutely correct, Christine! Probably the single most valuable skill after knowledge in a home inspector is communication skills and the ability to relate information to buyers--for example, not only pointing out cracks, but also explaining like I did above which cracks are more serious or less serious and put current conditions into proper perspective. 

Mar 08, 2013 03:42 AM
Jeff Pearl
Realty One Group Capital / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Many people overreact to cracks. Much of what is written above is fairly accurate. I'm still seeing cracks from the earhtquake from last year. A crack as large as the one shown above can be repaired, ( just like all cracks) but the source and cause of the crack should be determined first. Cracks vary with different building materials, and different types of mortars. Some cracks are best left alone, and some cracks will fix themselves and are nothing to worry about. In answer to your question, yes, some cracks could kill a deal, but they don't have to.

Mar 08, 2013 03:44 AM
Chrissy Doremus ~ US Inspect ~
US Inspect - Chantilly, VA
Residential Property Inspections

Thanks, Jeff, for your comments. You are correct, determining the source is a top priority in ascertaining the severity of the situation and the proper course of action if any. Though, to be more accurate, no cracks “fix themselves,” but rather some cracks require no fixing… In fact, as you pointed out, many cracks are nothing to worry about at all. Our job as inspectors is to do our best to determine which ones matter and which do not.

Mar 08, 2013 07:05 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Chrissy, it really isn't the crack itself that scares people, but the fact that the crack may very well be the result of underlying foundation damage.

If I were showing a home that had cracks like that... I would grab my buyers and exit the home as soon as I could.  If it looks like this now, what's it going to look like in five or ten years when the buyers turn into sellers, and are required to list things like this on their Homeowner's Mandatory Disclosure forms?

Mar 08, 2013 11:09 AM
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker, Notary
Good post. Crack are certainly a sign something is wrong. Not all cracks are fatal. Buyers and sellers should be aware they can be fixed or what is causing the crack can be cured.
Mar 08, 2013 01:29 PM
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

Fill them in is what most say to do, I as a buyer would have no problem with it.

Mar 08, 2013 01:45 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Chrissy - It looks like you know a lot about cracks. In answer to your question, yes cracks make a difference to buyers, the bigger the more of a difference  they make in the value buyers see in the home.

Mar 08, 2013 03:19 PM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Chrissy, you are back??!!! So good to see you writing again...cracks scare most but a good home inspector will clear up the scare ususally.  I jsut had one back to a house a year later because the homeowner was still concerned...nothing to worry about it was a 1/8" wide and told to fill with hydraulic cement.  Watching them is always important.

Mar 08, 2013 08:55 PM
Chrissy Doremus ~ US Inspect ~
US Inspect - Chantilly, VA
Residential Property Inspections

I'm baaaaaccck :) Yes, Ginny, it's great to be back in the rain! I have re-taken up my post blogging here, as a consultant for U.S. Inspect. They are one of the great clients of my growing marketing firm! I have been extremely blessed in 2013. Hope you are doing well!

Mar 08, 2013 09:59 PM
Richard Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Most excellent post...I am dealing with this now....It is something that does get your attention. After all, it is not part of the original design

Mar 08, 2013 10:26 PM
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

Great post - I would venture that cracks can be a deal killer - the more the cracks the better the chance of no deal. Regards Dave

Mar 11, 2013 12:42 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Chrissy,

We have so many cracks in our cement slabs and the stucco on the homes due to a lot of earthquakes. Your picture of course looks pretty severe so I am sure that is something that needs to be checked asap as it might be deep.

Mar 15, 2013 03:35 PM