Finishing Your Basement

Back in April I wrote about the dangers of finishing your basement - the wrong way. Moisture, or water, was the culprit I said, and you needed to ensure you had bulk water management systems in place before doing anything.  Evaluate before you renovate, was and still is my message.

I also mentioned there were solutions out there and all you had to do was find the right person to ask. Well, since I've written that article I've been asked what the right way to do things is.  That means I'm the go-to guy for this type of information, so here is what you need to do to create a healthy basement.

Insulated Wood Frame Walls Need Two Sides to Dry Out

 

A typical method used to insulate basement walls is to build a wood frame wall, leave a 1 inch air space between the wood studs and the concrete wall, fill the stud bays with fiberglass batt type insulation, and then cover the interior side of the assembly with a sheet of 6 mil polyethylene vapour barrier. With the plastic sheet installed on the warm side of the wall, this limits the wall to only being able to dry out towards the exterior. 
 
Since basement walls are unable to dry out towards the exterior because the ground is damp, and with the tight film of plastic preventing walls from drying out towards the interior, the result is the small amount of water that does make its way into the foundation walls moves into the framed wall and stays there, trapped.

The Better Way to Finish

The better way to finish your basement is to create a wall and/or floor assembly that enables the walls and floor to breath. Using permeable materials allows moisture to travel through them and this helps both the foundation walls and/or floor slab to dry out. The excess water vapour is managed by using a dehumidifier. To construct wall and floor assemblies that help damp concrete to dry out will require you to use vapour-permeable materials like EPS for insulation, latex for paint, and cork for flooring, for example.

All of these finishes allow water to move through them. Although it’s impossible to keep your foundation and floor slab from getting wet because they are in contact with the ground, using a wall and floor assembly that allows the walls and/or floor to dry out is the better solution.

A Final Word Of Warning

A more common water issue impacting homeowners in developed areas in both the US and Canada is urban flooding. Paul Kovacs, executive director at the insurance industry's Institute for Catastrophic Loss Reduction, points out that, according to his research, basement flooding has emerged as one of the fastest growing causes of losses and extreme damage in Canada, costing $2 billion just in direct insurance payments annually. You can read the full study here in Urban Flooding in Canada.
 
The Center For Neighbourhood Technology in the United States has published a case study on the Prevalence and Cost of Urban Flooding in Cook County, IL, and say “the economic and social consequences can be considerable: experts estimate that wet basements decrease property values by 10 - 25 percent.” For a home with an appraised value of $300,000 that’s a monetary loss of $30K to $75K.
 
So before you decide to finish your basement make sure your bulk water management systems in place work, understand the risks associated with flooding, and when making your finish material selections, chose permeable finishes that breath so things dry out when they get moist.
 

Why You Should Not Buy That House

Would I Buy That House?

Ok, I wrote a post to let you know if you were asking yourself the question  "Should you buy that house?" there was help available.

Here I am going to describe some common scenarios some of my investigations uncovered. My advice, you don't buy that house, or if you do want to make an offer, you need to factor in the risk of owning a non-compliant, damaged, or failing home because of the following reasons.

Location, location, location and your emotions aside, your decision to ignore the "tells" of a property may be very costly.

Encroachment

Take a look at this property.  The setbacks for the rear yard are indicated in red, the exterior side yard in tan, the front yard is yellow, and the interior side yard is blue.  The outline of the house is in dark brown.

The only setback not impacted by the location of the existing structure is the front yard.  Adding to the complication of this scenario is the detached garage owned by the neighbour towards the rear of the property. Their garage encroaches onto the property.

If you wanted to add to or modify the house, there would be a great deal of non-conforming issues impacting your ability to develop a plan or design easily. The cost to address the existing issues would probably be equivalent to building a new home.

The only reason to buy this property would be to demolish the existing house and start new, and build within the available allowable area defined by the setbacks.

Would I buy this house to live in?

I would, but the offer would just be for the value of the lot.

Foundation

The foundation of this home has been so neglected and plagued by water issues over the years, it's starting to fail.  You can trace how the water flows along the outside of the foundation wall with the wettest area located at the window for some strange reason.

The damp conditions in the basement would make it unsafe to store anything down there since it would just become smelly and rot - perfect mold food. The moisture problems plaguing this home's foundation make it a serious risk to both the occupant's and home's health.

To fix this problem properly would require the demolition and replacement of the foundation at a cost of nearly $120K CAD.

Don't get me started on the rusty cast iron downspout or the wooden floor joists embedded in the concrete foundation wall either.

Would I buy this house to live in? No, but I would buy for the value of the lot only.

Structural Issues

There are some really weird structural issues out there.  Check this interesting scenario out.  What attracted my attention to the "beam" were a few things.  The first was it was bare, meaning unprimed, then there was the missing lateral support, and finally the rather odd shape to it too.

Upon closer inspection I was surprised to discover the "beam" was not your typical web and flange style configuration, instead the thing I was looking at was a salvaged train rail.

Then there is the questionable floor framing in the background for the stair opening.

This house had a great deal going for it, until you took the time to look at it just a little closer.

If I were to go ahead and renovate the basement later and have an inspection performed, as the owner I would be liable for the costs involved in making the floor structure compliant, and you can bet the pads for the posts are not adequately sized either.

This would be too risky a proposition for me unless, of course, the offer made discounted the risk I would be assuming as the owner.

Would I buy this house? Maybe, but there would be a big write-down in price because of the non-compliant framing and use of a non-approved building material.

Buyer Beware

These are just three examples of different houses with very big yet different issues.  If you are looking to purchase a property, be aware that the charm and uniqueness of the building also may also have its fair share of challenges and encumbrances too.

Before making an offer, determine the risk associated with the non-compliant work or failing infrastructure. 

If you are unsure what the risks are, then ask someone, like me, to help you find them.

Buyer and Seller Beware

I'm often surprised to walk into homes people have recently purchased to discover a number of defects waiting for them to deal with. The number one issue is always a leaky or moist basement, closely followed by zoning or encroachment issues, then by hazardous materials in building products.

The first thought that comes to mind is why didn't the previous owner disclose the problem? This is followed by how can the previous owner or buyer be so unaware of how serious an issue this can be?

As a building professional, there are a number of scenarios I've seen that really made me upset for the owners of the property.  I remember one case in particular.

It was a young family who had purchased a property in a part of the City that is now being gentrified.  Their intention was to purchase the home, renovate the areas needing repair, and live there for quite some time afterwards reaping the rewards of their being the first into a neighbourhood in distress.

They showed me the existing kitchen addition they wanted removed and replaced.  Their hope was to reuse the foundation, extend the basement into the area under the kitchen, and make the kitchen the heart of the home.

When examining the existing structure it became apparent the foundation was non-conforming, as was the plumbing, wiring, and framing too.  A number of red flags were thrown.

Then I asked if they had a property survey, to which they replied, yes they did have one. I took one look at the survey, walked over to an area inside the kitchen, pointed at the floor and said "According to your survey, your property line is here, meaning, your neighbour owns this side of the room and all of that exterior wall too."

The reaction received was curious, in that the young mother picked up her child, sat down in a corner, and held the child up as a shield. The young father stood there looking at me dumbfounded as all the blood drained out of his face.

So begins their adventure in home ownership.

If I was a sociopath I would have signed them up for a renovation contract and bled them dry but instead I felt a great deal of sorrow for them. We discussed a strategy for them to pursue in order to become better informed.  What they needed to do was:

• Have the state of the home (property, structural, electrical, plumbing, and HVAC) professionally assessed
• Prioritize findings
• Decide on how to move forward (move, renovate, or demolish and build new)

In Ontario, it's buyer beware, although there have been recent court decisions holding the seller and realtor accountable.  Here are a few to note:

• Rampersad v. Rose, [1997] O. J. No. 2012 (Ontario Small Claims Court) 
• A leaking basement case.
• McQueen v. Kelly, [1999] O. J. No. 2481 (OSCJ) 
• Another leaking basement case.
• Stone v. Stewart, [2009] O.J. No. 1674 
• Leaking basement again.
• Riley v. Langfield   [2008] O.J. No. 2028 
• A flood that had happened in the basement
• Swayze v. Robertson, [2001] O. J. No. 968 (OSCJ)
• Leaking basement
• Gallagher v. Pettinger, [2003] O. J. No. 409 (OSCJ)
• Hid evidence of moisture in the basement
• Moore v. Page, [2002] O.J. No. 2256 (OSCJ)
• Structural defects and water leakage
• Kaufmann v. Gibson  [2007] O.J. No. 2711
• Not being truthful about conditions of the home
• Hunt v. 981577 Ontario Ltd., [2003] O. J. No. 2051 (Small Claims Court)
• Ongoing obligation to report changes after disclosure was made

So, if you are in the process of buying or purchasing a property, take the time to educate yourself so both you and your family are protected. When looking at a home, forget about stuff like paint colour, whether or the carpet works for you, or if the kitchen looks dated.  That's emotional tug at the heart strings stuff and when the lights are out, meaningless.

If your roof leaks, your house encroaches into neighbouring property, or there's mold in your basement making you and your family sick, these are serious issues requiring significant time, energy, and money to repair.

Purchasing and selling property is a business decision and you need to be informed about what your obligations are to both yourself and family as a buyer or seller.  Be safe. Be aware.