Inspection report when selling a house *electrical panel*

OP

Member since 2024 · 31 posts · 11 votes

2y

Quote from @Greg Scott:

Codes change all the time for various reasons. Imaging taking a house from 1920 and trying to update it to 2024 standards. In many cases it may be physically impossible.

Unless your panel has been recalled or has a known hazard issue, I wouldn't touch it. If the buyer walks, what do you a have to say to the new buyer? Talk to your realtor, but I wouldn't think you dont have to say anything. The panel was compliant with 1997 codes when it was built. It is grandfathered from code changes.

I don't have to say anything. It is in perfect working condition and has never had any problems. Agent thinks they just want a price reduction so demanding as much as possible. But I have wondered abou the ease I can sell a house if everything is not up to code, code being an ever evolving technicality as you stated.

Alan F.

Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes

2y

The 1937 code was 1.5 ft. of working clearance, in 1940 ish, 3 ft was introduced. By the late 60's most AHJ'S had adopted the 3ft radius. The brands to be very leery of are Square D XO, Zinsco & Sylvania Zinsco and Federal Pacific Stab-lok. FWIW electrical work is typically the most unpermitted poorly executed work.

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

2y

You can't expect a 25 year old home to be built to today's standards. Unless there is a known problem (ie overloaded circuits), I wouldn't do anything. It passed the code of the day and 25 years is not that old for a home. Nothing for you to worry about.

How long has it taken you to get an offer? It the market is moving quickly, tell them it is to code of the day it was built and you're not willing to do anything. Remember they have also invested in the home with the inspection, so they may not be as willing to move on to another home.

1 Reply

OP

Member since 2024 · 31 posts · 11 votes

2y

Quote from @Theresa Harris:

You can't expect a 25 year old home to be built to today's standards. Unless there is a known problem (ie overloaded circuits), I wouldn't do anything. It passed the code of the day and 25 years is not that old for a home. Nothing for you to worry about.

How long has it taken you to get an offer? It the market is moving quickly, tell them it is to code of the day it was built and you're not willing to do anything. Remember they have also invested in the home with the inspection, so they may not be as willing to move on to another home.

It's in a well sought after neighborhood with good schools that I remodeled to appeal to modern tastes. Offer received within first week with plenty of showings. However, the upstairs bathrooms aren't remodeled and they didn't say anything about that.

Closing is 24th -- I want to go back to them with something concrete rather than arbitrarily say "As is, take it or leave it". What I'm getting from BP is it was code in '97, have never had any electrical problems, all appliances and a/c's are new and functioning well, so if you want you can do that on your own dime.

I'm fine with whatever they choose to do, there's plenty of interest and we're early in the summer.

1 Reply

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

2y

Quote from @Dav Pohote:

Quote from @Theresa Harris:

You can't expect a 25 year old home to be built to today's standards. Unless there is a known problem (ie overloaded circuits), I wouldn't do anything. It passed the code of the day and 25 years is not that old for a home. Nothing for you to worry about.

How long has it taken you to get an offer? It the market is moving quickly, tell them it is to code of the day it was built and you're not willing to do anything. Remember they have also invested in the home with the inspection, so they may not be as willing to move on to another home.

It's in a well sought after neighborhood with good schools that I remodeled to appeal to modern tastes. Offer received within first week with plenty of showings. However, the upstairs bathrooms aren't remodeled and they didn't say anything about that.

Closing is 24th -- I want to go back to them with something concrete rather than arbitrarily say "As is, take it or leave it". What I'm getting from BP is it was code in '97, have never had any electrical problems, all appliances and a/c's are new and functioning well, so if you want you can do that on your own dime.

I'm fine with whatever they choose to do, there's plenty of interest and we're early in the summer.

If closing is on the 24th of June, then they are close to having to lift the conditions or they risk losing their deposit. Either way still plenty of time to list it and sell it if they bail. If you don't want to tell them to take it or leave it, offer $1000 to use as they want. It sounds like they are getting new appliances and A/C, so it isn't like a 25 year old home that has had nothing done to it. Most of it they could see what it was and knew when they put in the offer.

Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

2y

I agree with those saying to leave it as is and make no conciliations. A good home Inspector does not do 'Code Compliance' inspections, it's none of their business - except to maybe just mention it.

It's time to see how badly this buyer wants the house IMHO....

4 Reply

Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

2y

8 days before closing and they’re still in their inspection period? I would just ignore until the inspection period expires in the future have a 5 day inspection period that starts when the offer is accepted this should have expired weeks ago

My mom’s panel is 60 years old, do you think it’s up to code? I’ll give you a hint. It’s on a basement bedroom in a closet. Right next to the water meter.

If this condition existed in the buyer’s home there is ZERO chance they would fix it. And if you cut the price $6k and give them the cash there is zero chance they’d spend $3,000 to change it.

“I’m sorry, this ‘condition’ was visible to you during your walkthrough.” It is not new information.

Let us know what happens.

James Mc Ree

Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes

2y

Check your contract to see if you are still in your inspection period. They may have missed their opportunity.

Check with your local municipality regarding their maintenance code. That is what you need to adhere to. A building inspector can quickly clarify this question. Likewise, call the home inspector. If they wrote they "recommend" a change, you can probably ignore it. If they wrote it is required by code, ask if that is today's maintenance code for a home built in 97.

There is almost always a shut off outside for every utility, but it may be in the street. Your shut off is normally at the gas meter or just inside the house for gas and water. Again, check to see if this is a "recommend" or "required" observation.

Alecia LovelessPro Member

Member since 2019 · 3k+ posts · 2k+ votes

2y

@Dav Pohote The last property I sold had 1 person make an offer at the list price. However when the inspection report came back they made me fix every single issue within the inspection report right down to buying new rubber stoppers for the bathtub and sink because the existing ones did not fit.

Being nit picky and requiring the repairs is the new norm in todays market in my opinion.

Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

2y

Quote from @Alecia Loveless:

@Dav Pohote The last property I sold had 1 person make an offer at the list price. However when the inspection report came back they made me fix every single issue within the inspection report right down to buying new rubber stoppers for the bathtub and sink because the existing ones did not fit.

Being nit picky and requiring the repairs is the new norm in todays market in my opinion.

But the seller can always say NO. If the house is desirable and priced right, the buyer will back down.

Corby GoadeBusiness Member

Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes

2y

Here's the thing- sure, code changes and in most cases, older homes get grandfathered in. That said, with this buyer, sounds like you're either going to be replacing the panel or they'll be pushing back for a credit because of this issue. You have to decide how you want to handle it and if you push back too hard, go back on the market and try again. What was your DOM before you accepted this offer?

Marcus Auerbach

Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes

2y

You are not required to update your house every year and you are not required to fix anything on the inspection report. This is simply a negotiation.

If you want to keep the deal together offer them a couple grand closing cost credit and if not find another buyer!

But also consider, if you go back on market, you'll be asked what happened and might get a lower offer than you have.

Pro tip: don't make this about who's right and who's wrong. Your holding cost is likely going to be more than a couple grand. Do what's best for your bottom line.

3 Reply

OP

Member since 2024 · 31 posts · 11 votes

2y

Quote from @Corby Goade:

Here's the thing- sure, code changes and in most cases, older homes get grandfathered in. That said, with this buyer, sounds like you're either going to be replacing the panel or they'll be pushing back for a credit because of this issue. You have to decide how you want to handle it and if you push back too hard, go back on the market and try again. What was your DOM before you accepted this offer?

Accepted in the first week. Had to cancel plenty of showings once offer accepted. As mentioned previously, it's in a good neighborhood with good schools and there is plenty of demand. Not a single vacancy in entire subdivision.

OP

Member since 2024 · 31 posts · 11 votes

2y

Quote from @Marcus Auerbach:

You are not required to update your house every year and you are not required to fix anything on the inspection report. This is simply a negotiation.

If you want to keep the deal together offer them a couple grand closing cost credit and if not find another buyer!

But also consider, if you go back on market, you'll be asked what happened and might get a lower offer than you have.

Pro tip: don't make this about who's right and who's wrong. Your holding cost is likely going to be more than a couple grand. Do what's best for your bottom line.

I have done exactly that while recommending contractors I have worked with that don't upcharge like crazy (unlike the people they sent) - let's see what their response is.

Josh Goertzen

Inspector · Fort Collins, CO · Member since 2022 · 12 posts · 3 votes

2y

Just another opinion from an inspector and investor perspective: it is important to have an electrical shut off switch (at least 6 switches or less) to kill all power to a home in case of an emergency. If I could not find one on a property, I would note that as a safety concern and would highly encourage adding one for the safety of the home owners. However, we inspectors are human, so it’s possible that the electrical shut off is present but simply was not found, as someone earlier mentioned they can be located anywhere on the property from way out at the street to even at the far side of the backyard. Some in a neighborhood I’ve inspected are even located in street lamps in front of the properties. Don’t ask how long it took me to figure that out. The shut off switch/valve is what stands out to me as something that should be either found or consider adding to the home.

Corby GoadeBusiness Member

Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes

2y

Quote from @Dav Pohote:

Quote from @Corby Goade:

Here's the thing- sure, code changes and in most cases, older homes get grandfathered in. That said, with this buyer, sounds like you're either going to be replacing the panel or they'll be pushing back for a credit because of this issue. You have to decide how you want to handle it and if you push back too hard, go back on the market and try again. What was your DOM before you accepted this offer?

Accepted in the first week. Had to cancel plenty of showings once offer accepted. As mentioned previously, it's in a good neighborhood with good schools and there is plenty of demand. Not a single vacancy in entire subdivision.

Then what is your concern? Tell them no, sounds like you'll have no issues if you go back on the market. I did the same on a listing a few weeks ago and ended up netting an extra $10K.

1 Reply

OP

Member since 2024 · 31 posts · 11 votes

2y

Quote from @Corby Goade:

Quote from @Dav Pohote:

Quote from @Corby Goade:

Here's the thing- sure, code changes and in most cases, older homes get grandfathered in. That said, with this buyer, sounds like you're either going to be replacing the panel or they'll be pushing back for a credit because of this issue. You have to decide how you want to handle it and if you push back too hard, go back on the market and try again. What was your DOM before you accepted this offer?

Accepted in the first week. Had to cancel plenty of showings once offer accepted. As mentioned previously, it's in a good neighborhood with good schools and there is plenty of demand. Not a single vacancy in entire subdivision.

Then what is your concern? Tell them no, sounds like you'll have no issues if you go back on the market. I did the same on a listing a few weeks ago and ended up netting an extra $10K.

In general, what the next buyer will have an issue with or haggle over. Getting it over with. The agent is saying we have to disclose this info and making a big deal about it for the next buyer if they withdraw offer.

We've gone back to the agent and see what she responds with.

Melanie P.Pro Member

Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes

2y

@Dav Pohote I would take the gloom and doom talk from your agent with a grain of salt. They're doing their job which is to get your almost-there deal over the finish line. Ask him how much he would like to offer the buyers from his commission and offer to match it.

It sounds like the buyer is looking for a new build after going to contract on an old house. Not your problem.

Marcus Auerbach

Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes

2y

Quote from @Melanie P.:

@Dav Pohote I would take the gloom and doom talk from your agent with a grain of salt. They're doing their job which is to get your almost-there deal over the finish line. Ask him how much he would like to offer the buyers from his commission and offer to match it.

It sounds like the buyer is looking for a new build after going to contract on an old house. Not your problem.

Sorry, but zero from my commission and here is why: I'll tell you what you need to know, what the likely outcome is in each scenario, and then it's the client's decision. You would never ask an attorney to lower his rate for doing his job and telling you what to expect.

Frankly, this should be a financial decision. If you can reasonably expect to get another offer that is matching or higher, go back to market and by all means disclose what you have learned. If the current deal is likely to net you more money got for it.

OP

Member since 2024 · 31 posts · 11 votes

2y

Update: Buyer Agent sent a notice of termination over her inability to interpret the report. We made concessions including covering the cost of a brand new panel, she kept digging more and embellishing matters to her clients. Also had a roofing contractor lie about the state of the roof in hopes of getting a new one - when our own roofer said there was nothing wrong with it and the life span of a roof is a lot more than 10 years.

Relieved but a nightmare of a person to deal with. I doubt the buyers know who is representing them.

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

2y

Quote from @Dav Pohote:

Update: Buyer Agent sent a notice of termination over her inability to interpret the report. We made concessions including covering the cost of a brand new panel, she kept digging more and embellishing matters to her clients. Also had a roofing contractor lie about the state of the roof in hopes of getting a new one - when our own roofer said there was nothing wrong with it and the life span of a roof is a lot more than 10 years.

Relieved but a nightmare of a person to deal with. I doubt the buyers know who is representing them.

Good riddance. I hope you get an offer from a better person soon. You can also report the buyer's agent to their broker and the board if their behaviour was unprofessional.