Winnipeg's Real Estate Blog

"What's wrong with that basement floor?"

"Why is the basement floor all cracked? Is the house shifting?"  This seems to be a very common question these days.  By my count, nearly 25% of homes have basement floors which are heaving, cracking or breaking up.  This percentage is much higher in some areas, such as river Heights.  However, before we hit the panic button, or discount a potential home, lets take a look at what is really happening:

It is important to understand how homes are constructed.  After the hole is dug, the 'footings' are poured in place.

These footings are concrete and typically 16" to 24" wide by approx. 10" thick.  They basically follow the outline of the house (not including the garage).  In addition, you will find 3 or 4 square concrete blocks in the centre of the outline, which will hold future teleposts.  These footings serve to hold the weight of the house.  The next step in the constrution process is to pour the basement walls into these footings.  Following this, the entire house is built, up to and including the roof.  The last thing in the project is to pour the concrete basement floor.  This is poured on top of the footings, and not attached to them.  This is to allow the basement floor to float, much like a driveway.  The reason for this is simple:  As the ground underneath the house shifts and settles, it creates very high forces.  The 24" wide footings are able to deflect those forces sideways, however a large slab of concrete, perhaps 1400 sq ft in size, would not be able to deflect  this force, and must be allowed to move up or down.

What about piles?  A common mis-conception is that piles would prevent this from happening.  It is important to realize that the piles sit under the foundation (and footings) only, and have no impact on the basement floor.  An average home may take 20 or more piles, just to secure the foundation.

So if you see a house which has a rough and uneven basement floor, this does not mean it will ever affect the structure.  On the other hand, a pristine basement floor does not mean it will never shift or get worse, either. 

The bottom line: The basement floor does not form part of the structure of the house, and is designed to move and shift with the Manitoba Gumbo.

"WHEN" is the best time to buy a house (or condo)?

A common question among prospective home buyers is "when is the best time to buy a house"?  My (tongue-in-cheek) reply is "4 years ago".  But since we don't have a time-machine, and are forced to deal with the current reality, lets look at some realistic answers:

How about the spring-time?

While there are usually a flood of listings in the spring, this is also the most popular time for buyers.  After a long winter, home buyers come out to buy a home for early summer possession.  This means that there is usually a competition for the available homes.

So perhaps the middle of summer?

This used to be a case.  Most buyers take a break from home-shopping in the middle of summer, instead heading on vacation, the lake etc etc.  I have found there are 2 types of home-buyers:  Those who want a home, and those who really really want a home.  While in the spring time, both groups come out to look and shop, the second ground (the one who really really wants or needs a home) comes out all year long.  So where a home might receive 10 offers in May, it may only receive 3 in July, but those 3 are the really serious buyers.

Add to this the fact that there are generally fewer listings to choose from, and the end result is pretty much the same.

In the fall-time we usually see an increase in activity once again, as buyers want to get a home before christmas.  I see the fall market as a smaller version of the spring market:  more listings, but also more buyers.

So what then is the answer to the question:  I have found that perserverance and persistency pay off.  Don't give up, just because you lost 2 or 3 offers.  Many times I have had a buyer say "This is my last attempt" ....and then get the house they wanted. 

You may also be rewarded by occasional 'blips' in the market:  perhaps a listing has been just slightly overpriced, or a poor-weather weekend has kept other buyers away from the showings.  Any number of things can happen, but if you don't try, you won't succeed.

Perhaps the worst advice has been to wait until the market cools down:  I've known buyers who gave up their search for a home a couple of years ago.  The homes which sold for $125,000 at that time are now commanding $170,000 plus...   

As a real-life example I will leave you with this:  a young gentlemen bought a condo thru me in the fall of 2006.  At $79,000 I felt that the 2 BR condo was a very good value.  He lived in it for 18 months, and the only alteration he made to the condo was to allow his cat to destroy the carpeting.  We just sold that unit for $124,000, a 57% return.

While this type of increase is not typical, it does go to the point of this article:  the best time to buy....is right now!