Basement Waterproofing

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The absolute 'best' method is to excavate the entire outside of your house foundation right down to the footers, treat the outside of the foundation with a EDPM rubber membrane, install a proper french drain system around the house set in 3-4 feet of crushed stone, then treat the inside walls with a vapor barrier coating.

The problem is, that this method can easily exceed $20,000 even for a modestly sized house...but may be necessary to 'cure' the problem.

Short of that, you could still treat from the outside but that still includes a full foundation excavation, treatment of the outside walls with some type of waterproof coating, and the installation of a french drain system...the cost difference being marginal.

This is why most people simply opt to deal with interior basement de-watering systems which allow water into the basement only to channel it off to a sump and pump.

Interior walls can then be treated with a water proofing coating such as DryLok paint to prevent water vapor from entering.

And by the way, while foundation coating (tar) will waterproof a foundation, it does nothing to stop water vapor (gaseous water) from entering). DryLok stops both, but DryLok is not designed for use outside and underground.

Interior treatment systems can often cost 1/10th what a full exterior system can cost but are never as effective.

Helpful link:

http://www.extension.umn.edu/distribution/housingandclothing/DK7051.html