Should we re-do all the old electrical wire in a Philly reno?

[Nikki Taylor]

My partner, a GC, and I are involved in our first flip in Philly (Girard Estates area) and we're trying to decide whether we can keep the some of the old wiring in the house or whether we need to completely re-do it. It's old cloth-bound wiring, I'd guess from when the house was built in the 1920's. Right now, everything works just fine. An electrician we trust said that as long as the wiring looks to be in good shape, and is working, we can keep it as long as it's holding only 15 amps and we re-distribute heavier loads to new wiring (like in the kitchen, for example). That would certainly be helpful as a lot of the wiring is currently behind plaster walls.

My question is this: if we keep some of the old wiring and it one day causes problems after the sale of the house, are we liable for any damage? Is old cloth wiring something we would need to disclose before the sale of the house? Any other considerations we're missing here?

[Ethan Giller]

You aren't liable for old wiring so long as it's clearly shown on the seller's disclosure.

Older wiring will almost certainly affect the resale value, possibly so much so that a buyer would back out of the purchase after the inspection or request a substantial discount, so it really depends on what your plan is with the property. If you're doing a full gut or semi-gut renovation anyway, and trying to sell near the top of the price point for the area, then yes it's definitely a good idea to spend the extra money to redo the wiring now. If you're only putting in some basic cosmetic upgrades, and leaving older plumbing and mechanicals otherwise, and asking a low price for the location hoping for a quick sale, then you can likely get away with leaving it.

I believe that most buyers in the Girard Estates area of Philly (higher priced homes) are going to be looking for a final product that has updated wiring. Especially because older wiring can affect the buyer's ability to get insurance coverage.