Does Re Stumping Reduce The House Value?

dealmeister on 21/05/2021 - 13:31

We have a (45 years old) house which is slightly on a sloping block.
The main structure is on brick, but we also have one weatherboard extension as a second living room.

That extension room has small cracks on the walls but not very noticeable. Last month while doing some other work, our carpenter advised us to check the leveling of the extension room which may require re-stumping. But also advised that it does not look like a major issue and most of the houses in Victoria get this problem over the years.

So, we invited a re-stumping company to check the leveling and found that the wooden stumps under the extension room are not in good condition and need to be replaced with concrete ones. Surprisingly, the quote for the re-stump is not too overwhelming. Because they told us soil and everything is good. Just stumps need to be replaced. So, reasonable to do. Also, the company told us even though our structure is not in danger, it is a good thing to improve the condition for the future.
Also, they told us since this is structural work, it has to be done with a permit and also registered as well. This means that in the future if we plan to sell the property, this will be visible inside the section 32 report. Which I totally support and is the right thing to do.

So now we have two options:
1-) Leave it as is until it becomes a real issue and do the restumping if only needed.
-When selling the house, let the buyer see the structure, do the inspection, and decide what to do with the current condition.
2-) Get it done immediately.
+improve the structure and have peace of mind.
-Concern: The history of re-stumping will be visible in the section 32 report. And has the potential to turn off the buyers. Or buyers will use it as a major bargain point.
Even though the restumping improves the structure, we are afraid that buyers may not understand the work done, and feel that the structure is not good.

Under these conditions which option would you choose?
And if anyone has experience in this matter, do you guys think re-stumping history is a big red flag when buying a house, even though it is done properly?

Thanks

Home & Garden

Comments

  • hashtagbargain on 21/05/2021 - 13:38
    +21

    I'd go option 2. Peace of mind is worth it.

    Plus as a future buyer, I'd be happy that the work was done. This showing up on your section 32 is to your advantage, meaning you've been on top of the upkeep of your house.

    • peteru on 22/05/2021 - 14:12

      This.

      As a buyer, I'd prefer to have the structural work already completed and paid for by the vendor. Finding about the need for such work from a pre-sale inspection devalues the property significantly as you can never be sure of the expected cost and complications. As long as the rectification work has been done to a good standard, you are making your property more attractive to future buyers. It is also good to have that work done well in advance of a potential sale. Any fresh work done on a property put up for sale raises the question as to whether it was a cheap and nasty quick job done just to sell the property.

      tl;dr: Fix ASAP.

      • dealmeister on 24/05/2021 - 20:58

        Wish, majority of buyers will have a good commonsense like yours

  • Chandler on 21/05/2021 - 13:55
    +3

    The history of re-stumping will be visible in the section 32 report. And has the potential to turn off the buyers. Or buyers will use it as a major bargain point.

    Potentially. I look at that is "something was wrong, we fixed it."

    It's like someone telling you they want a discount on your car because you replaced the tyres.

  • netjock on 21/05/2021 - 13:56
    +4

    If you got it done properly I'd say it increases value as the new buyer's won't have to worry.

    Then it depends on whether your house gets bought by people who want to knock down and rebuild in which case they only worry about the bottom line price.

    If you have a house with character then people might fight for it regardless of the condition. I saw people pay $20k less for a 600sqm block with an okay small 2br weatherboard vs a 650sqm block with a 1960s prefab concrete house (2 blocks away from each other, same suburb, the prefab was next to a park which would be better than sandwiched all sides by double story unit developments for the weatherboard).

    • dealmeister on 24/05/2021 - 21:00

      Our property has some sort of that character. But the area we live in is not like some of the suburbs where buyers get crazy in the auctions.

  • SF3 on 21/05/2021 - 13:58
    +1

    has the potential to turn off the buyers. Or buyers will use it as a major bargain point.

    I think it adds value, if your future REA is worth their salt.

  • Ocker on 21/05/2021 - 13:59
    +1

    Get it done asap as any buyer would likely prefer not to have the hassle.
    Well done in finding a company to do the job. We have a 95 year old house in Melbourne's eastern suburbs that need re-stumping and cannot find anyone who wants the job

    • netjock on 21/05/2021 - 15:17
      +2

      cannot find anyone who wants the job

      Everyone is onto that sweet nectar of government homebuilder grant. It is basically free cash to tradies.

      • ItsMeAgro on 21/05/2021 - 17:19

        Anything to look like the govt is addressing the housing affordability crisis without every risking actually lowering the crazy prices, I guess…

        • netjock on 21/05/2021 - 17:36
          +2

          Half the affordability crisis is because every trades person is working as developers on the side. So they get enriched by government grants, then enrich themselves buying / bidding up properties.

          Can you imagine if the government gave away dental maker grants. Everyone would have Hollywood smiles.

    • dealmeister on 24/05/2021 - 22:00

      In our case, the extension block is on the slope and it is super easy to get under the house. I guess that was one of the reasons for us to easily get a quote for a reasonable price.
      Just wondering, is the age of your property or lack of space to work under the house makes it difficult for the companies?

  • hoey888 on 21/05/2021 - 14:09

    Are you doing the restumping due to the cracking or you want to have piece of mind?

    Restumping isn't going to help with cracking in short term. Its probably going to make it worse due increased movement. You should also budget to have the affected areas patched up and painted again. Generally people wait 6-12 months after restumping to get interior works started. If not; you'll be back to square one with cracks on the wall.

    So overall not a cheap job nor a quick one either.

    • dealmeister on 21/05/2021 - 16:34
      +1

      Thanks for that. Actually, the company told us they won't be expecting any movement since the current condition is not too bad. But also they advised that it would be wise to wait a couple of months to let the structure settle before doing any interior patching.
      The main reason we are doing this is to stop the condition from worsening since it is cheaper and with fewer side effects when fixed at an early stage.

  • Brian McGee on 21/05/2021 - 14:13

    our carpenter advised us to check the leveling of the extension room which may require re-stumping. But also advised that it does not look like a major issue and most of the houses in Victoria get this problem over the years.

    Hopefully many house inspectors will get a building report on any of their potential purchases and yours will come out looking good compared to ones that don't. If most houses 40+ years require restumping that can only improve your market appeal to potential new owners,

  • Cho0028 on 21/05/2021 - 15:17
    +2

    At 45 years the stumps are pretty much done so you're essentially delaying the inevitable. Over time those small cracks will become bigger cracks and you'll find doors may start jamming. This is before you even consider selling your place one day and if you put yourself in a prospective buyers position, you're more likely to be deterred if the house has cracks in the walls purely because the seller was lazy, which would make me think what else has been neglected or had shoddy work done to it?

    Get it done and have the peace of mind. It's almost standard practice to have houses at that age re-stumped so it shouldn't be a concern if it shows on section 32.

  • brendanm on 21/05/2021 - 17:18
    +1

    Sounds like it would improve value, and show that you cared about the house. Sure wouldn't be a negative to me.

  • tbone74 on 21/05/2021 - 17:34

    As a number of people have already said, it's not surprising a house this age would need it done. So in theory it shouldn't be a red flag. However a lot of people, especially younger or first time buyers, have limited knowledge about this type of thing. The fact that you considered it might be a red flag to some is an example that some may feel this way. I'd hope though that anybody who has initial concern would research the topic and understand it's a good thing rather than a bad thing.

    I'd be more concerned seeing this type of work on a newer house as that may suggest issues with the building quality.

    I think also that the building works only need to be on the Section 32 if done within a certain number of years. Depending on how far in the future you think it would be before you sell, the point may be moot.

  • Drakesy on 21/05/2021 - 18:13
    +2

    Or the lack of history of restumping will be used as a bargaining point?
    Easier for a buyer to walk away based on works not carried out than works carried out.

  • Euphemistic on 21/05/2021 - 18:22

    It’s going to improve the value, with the possible exception that the house was listed as historically significant and you removed/damaged some of the important historical stuff.

    • dealmeister on 24/05/2021 - 21:56

      Thanks for that detail. Luckily, our property is not listed as historically significant.

  • Transient on 21/05/2021 - 20:25
    +1

    Wooden stumps are not going to improve over time. I would have them replaced with concrete / brick ones. We bought a house that was on sloping block built on brick piers. The piers were leaning causing some of the floors to bounce and some cracks in exterior walls. Had the leaning piers rebuilt and they even jacked up the sinking wall parts and filled the cracks. Still good more than 15 years later.

  • Logical on 21/05/2021 - 23:13

    Would the future buyer consider demolishing the whole house and building a new one, in which case you would be over capitalising with the restumping works…

    How long do you intend to keep the house? If short term then do not carry out the work, if keep for 10+ years then consider doing it.

    • dealmeister on 24/05/2021 - 20:57

      Have a plan of selling between 5-10 years. Currently, the area is not famous for schools. So, will continue occupying the house until our little one reaches secondary school age.
      Our concern was like let's say we ignored the issue and did not spend a penny to fix it. So, when selling the house buyers made an inspection and said this will cost $X to fix and asked for that discount. Only $X is lost.

      But let's say we did the job already paid for $X. And when selling this became visible in section 32 report. And turned of many potential buyers. And we ended up less competition lost $XX plus the repair cost we already did.

      Or maybe I'm too much concerned :)

      • Logical on 24/05/2021 - 23:02

        Yes, you are over concerned. No one will ask for a discount as the house is sold as is. Why spend now when future owner will want to renovate or demolish it anyway to suit their own needs?

  • godofpizza on 24/05/2021 - 22:27

    is the re-stumping company offering a warranty? is might benefit you if you decide to sell for peace of mind.

    However if you property is more of a candidate for knockdown rebuilt, it might not make a different.

  • dealmeister on 08/11/2021 - 14:32
    +3

    Just an update after the re-stumping job done. Anyone with similar concerns might benefit from some experience we gained here.
    * The work took 5 days to complete and was smooth.
    * We had several cracks on plasters. Mainly around the doors.
    * Thank god! No windows got jammed or cracked. (generally it is an expected side affect)
    * Two inner doors got jammed. They need full replacement. Because of the damage on the frames. Currently did a quick fix and moved on.
    * One outer sliding door for the deck got jammed. Was easy to fix.
    * It was not easy to remove the old wooden stumps which are attached to the weatherboards. So we decided to keep them. Otherwise, the weatherboards would get damaged and more cost would be involved. Now the property looks bit awkward from the outside. Because the old stumps are visible but not attached to the property anymore. Will call someone with a saw to trim them :)
    * Because of the movement, a few downpipes needed re-attaching. Our plumber fixed them in 20 mins for $120.
    * Got an independent inspector after the job. Asked my concerns about whether re-stumping in the section 32 would reduce my selling price? Been assured that the opposite. It is a good investment and always considered as a positive thing. So it was a big relief.

    So, spent around 6K including the permit and mandatory inspection costs.
    Now looking for another 2-3K for the plasters, and door replacements.

    • peteru on 08/11/2021 - 15:51
      +1

      Congrats on that. Great to see the follow up too!

    • mohitkh on 26/07/2022 - 20:08

      Can I ask which company did you use for re-stumping and did they fix the door issues (including sliding) as well after the job? Also, what part of Melbourne was this?

      • dealmeister on 26/07/2022 - 21:26

        I’m in the eastern part of Melbourne around Knox City area. The company name was DJ Baker and Son.
        Fixing the doors was not part of the job. So, I had to call another company to do it. Also keep in mind that it is not advised to fix things immediately after the re-stumping since the structure can slighly move to final position.

        • mohitkh on 28/07/2022 - 21:16

          Ok thanks. I had contacted this company. They suggesred they only replace wooden stumps with concrete, and don't work on replacing existing concrete stumps.

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