Under excavating typically occurs when your existing home has a crawl space, or a wet, unusable, or failing basement. This can be a great way to add an addition under your home without a increase in your roof size, and a minimal increase in taxes, and heating/cooling bills.
This could add significant long term value to your home by leveling and stabilizing the structure.
Leaving your home on a failing foundation will eventually cause damage to the structure of the home, such as, drywall/plaster cracks, trim misalignment, and improper closing or jamming of doors, etc...
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