We are now in the midst of a global pandemic.  There is so much that we don’t know about the virus such as why a young and otherwise healthy person becomes ill and an elderly person manages to survive.  It is the randomness and insidiousness that is so frightening and makes us question what the future holds.  Basic assumptions you may have made about future prosperity, employment, housing and retirement have been turned upside down as the wheels of the life we once knew grind to a halt.   

The same could be said of homeowners faced with the epidemic of crumbling basements in Northeast and central CT and Massachusetts.  Assumptions that your house and likely nest egg would be worth current market value once you reached retirement age, that your new 900 square foot addition would add value and curb appeal to your home or that your aging in place modifications would be the last major expense to tackle once your children left home and you became empty-nesters.  Imagine coming to the realization that your only hope for financial survival is effectively a ventilator in the form of a short sale or foreclosure. 

As Realtors, the marketing and sale of a home with a confirmed or suspected crumbling basement is a unique experience and uncharted territory for all parties. 

Pricing is a challenge as the data we typically use to provide the most accurate sales price is skewed by the interpretation of the property condition and value by the buyer, the appraiser, the lender, the home inspector or the structural engineer.  In other words, many of these properties that test positive for pyrrhotite are not in imminent danger of collapsing and are structurally sound.  A buyer can enjoy many years in these homes with routine maintenance if they are comfortable with and have the financial ability to withstand the risk of a lower resale value in the future.    

Generally, we have found that some homes sell for roughly a third less than they would have with a crumbling basement.  Here is a recent sale in Ashford with a crumbling basement that was originally purchased in 2010 for $314,900, listed in January 2020 for $232,500 and sold for $180,000.  This home would have probably sold for $280,000-$290,000 without a crumbling basement. 

Ultimately the question with these homes is not what the market will bear but what is the buyer’s risk tolerance and intended use for the property?  After all, they say beauty is in the eye of the beholder.