New foundation labels in valuations: What does this mean for buyers and sellers?

Since 1st of April, something has changed in residential valuation reports. Foundations now receive more attention. Especially in cities and older town centers, this can impact the buying and selling process. Think of older areas in Rotterdam where many homes are built on wooden piles.

During a valuation, a foundation label is now automatically assigned. This label ranges from class A to E and is based on data from KCAF. In short, it provides an initial indication of potential foundation risk.

For many properties, this won’t cause immediate issues. However, for homes with a D or E label, the valuer must provide additional explanation in the report. In some cases, further investigation is needed, such as a QuickScan or a baseline measurement carried out by a technical inspection company.

Why is this important?

A label D or E can already be assigned if a property is built on wooden piles. This does not automatically mean there is a foundation problem, but it does mean more validation is required.

In Rotterdam, this applies to many properties, especially those built before 1970. Entire neighborhoods were constructed on wooden piles during that period. But it’s not a reason to walk away immediately, but it is something to take seriously during the process.

What happens with a D or E label?

There are roughly three scenarios:

The outcome is usually classified as low, medium, or high risk.

• Low risk: typically no further action needed
• Medium risk: monitoring or additional research may be required
• High risk: a full foundation investigation may be advised

Banks often want to see that sufficient personal funds are available for potential foundation repairs in cases of medium or high risk. This can affect mortgage approval.

If the buyer or client decides not to proceed with a QuickScan, the valuator must take a more cautious approach and assume a higher risk. Estimated repair costs may then be included in the report. These costs can be substantial, especially when factoring in temporary relocation, storage, or ground floor restoration.

In this situation, banks will also typically require proof of sufficient savings, which can lead to stricter conditions or additional scrutiny during the financing process.

For example, if the property is built on concrete piles, the foundation has already been renewed, or previous research shows no elevated risk. In these cases, no additional action may be needed.

Will this cause delays?

In some cases, yes. The market will need time to adjust to how banks, valuators, buyers, and sellers handle this. It is expected that more sellers will proactively carry out a QuickScan or baseline measurement before listing their property. This can help reduce uncertainty and prevent delays after a sale.

What can you do as a buyer or seller?

As a seller, it’s wise to check your property’s foundation label in advance, especially if it’s older or located in an area with wooden pile foundations. This helps avoid surprises and hiccups during the sale.

As a buyer, it’s important not to immediately see the label as good or bad, but as a signal to look deeper. A label D or E doesn’t automatically mean there is a problem. It mainly indicates that more information is needed.

With older properties, proper research remains essential. Not just for the valuation, but also for your own confidence in the purchase. It helps you understand what you’re buying and reduces the risk of unpleasant surprises later on.

Questions or advice?

Do you need help understanding these new foundation labels and preparing your home for sale? Or would you like guidance when buying a home with these new foundation labels in mind? Feel free to contact us. We’re here to help!