Water damage in a house can wreak havoc, whether a flood, hurricane, or burst pipes. Not all water damage is visible at first glance, so home buyers must know what to look for before they purchase a new property. Buyers should know how to see the signs of water damage in walls or ceilings. There are many causes of water damage, but it inevitably leads to serious issues if the problem isn’t caught early — or corrected as soon as it’s found. Before you put in an offer on a new home, read on to discover what you need to know about water damage and what you can do if it happens to you.

What is water damage?
“Water damage” refers to any type of physical damage caused to property that has come into direct contact with water. It can stem from natural disasters such as floods, hurricanes, tornadoes, or torrential downpours. Other causes of water damage in the home include leaky plumbing, burst pipes, or even a leaking roof.

If leaks go unnoticed, they may create long-lasting, hard-to-correct damage to a house. Water damage can have both immediate and long-term consequences. Mold and mildew thrive in moist environments, and mold is one of the most common issues related to hidden water damage. Rotting wood and foundation problems are also common, and if a home’s foundation is unstable or damaged, you’ll end up with some serious (and very expensive) problems later down the road.

If you’re in the market for a new home, it’s important to understand more about water damage — and how much it could cost you — so you’re better prepared.

How water affects a home

Water can create serious problems for a property, and it only intensifies with time. Each issue results in more time and money the homeowner spends to correct the problem and ensure the home is structurally sound and safe to inhabit. Here’s the timeline of what happens during serious water infiltration in the home.

Minutes
As soon as water infiltrates a home, it starts to spread contamination. Flooring and furniture become soaked and damaged, and drywall soaks up water from the floor like a sponge.

Hours
Within hours, the water-logged furniture begins to swell. Humidity levels rise, and unpleasant odours become noticeable. Any dyed fabrics will bleed or become discoloured.

Days
It only takes a few days for fungi and mold to start growing. Solid wood starts to warp, and hardwood floors are typically ruined by this time. Paint may blister, or wallpaper may begin peeling off the wall. The home’s wood structural components will start to swell and may split.

Weeks
Homes exposed to water for weeks, such as an unnoticed broken pipe behind a wall, will have more widespread mold issues. The property may need to be evacuated due to health risks, and people with allergies or respiratory problems may have difficulty breathing. Homes that deal with heavy long-term water exposure may need to be gutted and rebuilt from the inside out.

Common costs associated with water damage include replacing flooring and furniture, mold repair and removal, and installing new drywall. Wood beams and other structural elements will often need to be replaced. If the home must be gutted and re-done, the costs can be astronomical — which is why having a comprehensive homeowner’s insurance plan is a good idea.

Not all water damage is detrimental to a home as long as the problem has been corrected. But it’s important to know what to look for and how to proceed before purchasing a home with previous water damage.

Signs of water damage in a home
When you’re looking at a property to buy, do a thorough walkthrough of the home and look for signs of water damage, including:
 

• Peeling paint

• Wet or dark spots on the walls or ceilings

• A damp, musty, or moldy smell

• Flaking or cracked drywall

• Bowing or warped wood

• Standing water in the basement or signs that the basement has been flooded, like watermarks on the walls.

Should I buy a home with water damage?

Not all water-damaged homes are a bad buy, and you can even use water damage as a negotiating tool if you think the repairs needed would be easy to complete. Talk to your real estate agent about offering the seller a lower price if you’re OK with doing the repairs yourself. But before you decide if the home is a good choice for you, here are a few things you should do.

Find out if the property is located on a flood plain or in a flood zone
If so, there’s a good chance that the home will deal with serious flood-related water damage again in the future. Ask the homeowner if they have proof of repairs done on the home so that you can confirm that past issues have been corrected professionally. If the water damage is minimal and has been fixed, the home could still be a great buy.

Schedule a home inspection
Hire a home inspector before buying property if you suspect water damage. You need an expert who knows exactly what to look for and who can spot issues before they get out of hand. Make sure that the inspector determines:
 

• The source of the water damage (i.e. from a flood, burst pipe, or leaky roof).

• How much damage was done, and how long the water was present before it was corrected.

• What the homeowner did to correct the problem – did they make repairs or have a professional mold remediation service come to the home?

• Whether the home’s HVAC, electrical, and plumbing systems have potential issues.

• That all receipts and proof of prior repairs have been provided to confirm the appropriate work was done.

• If testing was performed to confirm that the water issue was fixed and that the mold was removed.

• Whether the home repairs were covered by insurance and whether it will cover problems in the future.

Get an estimate on necessary repairs
If the inspector notes the presence of damage, get at least three to four professional estimates from companies specializing in water-related repairs. You can present these estimates to the homeowner, and they can opt to pay for the repairs, or you may be able to use the estimates in your negotiations to try and get a lower price. Either way, you should never purchase a home that has not been repaired if there’s still water damage present.

Consider water damage restoration and mold remediation
Mold damage can cause significant problems, including odours, stains, and serious health issues. Get estimates from a professional mold remediation company if there’s mold present in the home. A water damage restoration company will determine the cost to repair other problems, such as warped wood or water-damaged drywall. Before you make a bid, you should do the following:
 

• Get a Comparative Market Analysis report from a real estate agent so you have a better idea of the current market value of the home.

• Go over the home inspection contractor estimates carefully and determine the average cost to make any water damage-related repairs.

• Subtract the repair costs from the home’s market value to give you the amount you should bid on the property. You can always start by making a lower offer, then work your way up to this number if the homeowner decides to counteroffer.

• Talk to your real estate agent to find out if you can work the repair costs into the offer or if it’s better to simply offer the seller a lower asking price.

• Make sure that you include the repair costs in the bid so that everything is in writing before it’s presented to the seller.

Look into homeowner’s insurance
If you need a mortgage, a home will need to have insurance coverage before you can close on the property. It’s a good idea to look into what water coverage is available. Speak with an OTIP broker at 1-833-615-9329 for more details on your existing coverage and ways you can enhance your protection with additional optional coverage, or call 1-833-494-0085 to get a free quote if you are shopping for home insurance.

Dealing with water damage is stressful, but it’s not always impossible to fix
With the right plan in place, you can still buy the home of your dreams, even if it previously had some water damage. Learn how to spot the signs of water issues before you buy a home, and make sure you get help from the pros like a home inspector and water damage restoration companies before you put in an offer. With a bit of knowledge and the right negotiating tactics, you can find the perfect home and enjoy it for many years without worrying about water damage getting in the way.