Aluminum wiring tends to expand and contract. As a result, it becomes loose. The looseness is a cause of concern as it predisposes the wiring to rust due to oxidation, breakage, or cold creep. As such, aluminum wiring is not used in modern homes.
If you have an old house constructed in the 1960s and 1970s, it most likely has aluminum wiring. Check the plastic covering of the wiring to confirm.
It is definitely aluminum wiring if it is labeled “ALUM” or “ALUMINUM.” If you are looking to sell your house, you may wonder if the aluminum wiring will affect the ability of the house to sell.
Aluminum wiring will affect the ability to sell the house. Although aluminum is still permissible in some building codes and can be used in modern constructions, most home buyers will be concerned about its risks.
According to the Consumer Product Safety Commission’s (CPSC) Publication 516, homes with aluminum wiring are 55 times more prone to fire hazards compared to copper wiring. As such, it is understandable that homebuyers may be hesitant to buy a house with aluminum wiring.
Therefore, if you choose to sell the house as is—with aluminum wiring—you can expect to lose some money in the sale price as buyers will negotiate a discount to replace the wires.
On the other hand, you can replace the aluminum wiring before putting up the house for sale to enable you to list it at the fair market value.
This article will explore the various ways you can go about selling a house with aluminum wiring.
If the wiring shows evidence of damage, it is best to replace it. Some common signs that the wiring is faulty include flickering lights, hot electrical outlets, loose connection at the electrical outlet, scorch marks, etc.
Even if there are no obvious signs of defect, you may want to replace the aluminum wiring to improve the safety and marketability of the house and prevent fire hazard conditions.
The first step would be to get a licensed electrician to inspect the house and advise on the scope of work, including how much it would cost in materials and labor, if you need permits, and how long it would take to complete the replacement or aluminum wiring repair. You can contact different electricians to get multiple estimates for your comparison.
Then consult with an appraiser to establish if changing the wiring would increase or decrease the house’s market value significantly. Compare the difference in the value with how much a replacement would cost to decide whether it is worthwhile.
You do not want to spend too much on the replacement and sell the house at a loss but you also want to ensure everything is safe to avoid a possible electrical fire.
On average, replacing aluminum wiring costs between $1000 and $2000 per 500 square feet of living space. The total cost will depend on the overall square foot of your home, whether the home is single or multilevel, how easy it is to access the wiring, and typical electrician consultation and labor costs in your area.
You will likely incur additional costs such as repairing torn walls, updating electrical service panels, new circuits, outlets, and switches.
Although you may feel comfortable dealing with electricity and consider replacing the wiring yourself to save on professional and labor costs, changing electrical wiring is a high-risk job. It can cost you your home through a fire or cause electrocution if done wrongly.
Therefore, it is paramount that a licensed electrician does the job. Besides, in case of an incident, the home insurance company will not pay for damages if a licensed electrician does not do the replacement. It can take two to three weeks to complete the replacement.
If the replacement cost is too high, consider mitigating aluminum wiring hazards. During a home inspection, a certified home inspector checks if the house has single-strand aluminum wiring and if there are remedies put in place to mitigate the potential hazard.
Such adjustments can improve the marketability of your home without having to lower the listing price too low. Yet, they are much more affordable than replacing the entire system—it costs $200-$500 on average.
The most common upgrade or repair option for aluminum wiring is pigtailing. Pigtailing involves using connectors known as Copalum connector crimps to attach a copper wire to the connection points of the aluminum wiring. Copalum connector crimps have a metal sleeve design for a secure and safe attachment.
However, they are expensive. In their place, you can use wire nuts or AlumiConn connectors, which are cheaper and CPSC-approved. Pigtailing is applicable even if there are no signs of damage on the aluminum wiring.
If you choose to sell the house as is, you are legally obliged to disclose to potential buyers that the house has aluminum wiring—regardless of whether the electrical wiring is damaged or not. As part of their consideration process, they may contract a licensed electrician to inspect the electrical wiring to enable them to make an informed purchasing decision.
Depending on the condition of the aluminum electrical wiring, they may or may not request a discount on the sale price. They may agree to your listing price if it is intact with no defects.
If it has obvious signs of damage, most potential buyers will shy away, and those who do not will request a discount on the listing price. Consult with a licensed electrician about how much it would cost to replace the wiring and discount the estimated amount from the sale price.
Lenders may require mortgage buyers to take homeowners’ or hazard insurance to qualify for financing for a house with aluminum wiring. Some homeowners insurance companies refuse to cover a house with aluminum wiring, while those that do charge a higher premium. Therefore, such buyers may negotiate the listing price further to cover their insurance premiums.
Since it may be particularly difficult to find a potential buyer if the aluminum wiring is defective, you may want to consider selling to a cash buyer.
These are mostly real estate investment companies and flippers who buy houses in whichever condition for cash. They then do repairs, renovate, or upgrade the houses to boost their market value and resell at a profit.
Although you can quickly sell a house with aluminum wiring to a cash buyer, beware that they offer a much lower price than the house’s appraised value. The sale process is quick compared to a traditional sale.
Aluminum wiring is still permissible in most building codes. However, copper wiring is better preferred due to its higher fire hazard risk. Therefore, selling a house with aluminum wiring may be more challenging than one with copper wiring.
As discussed above, your options include replacing the aluminum wiring with copper, upgrading it to ensure safety, or selling it as-is.
Replacing will be costly upfront, but it will improve the competitiveness of the house in the market and allow you to sell at its fair market value. If you do not have the budget for it, upgrading is more affordable and will give you more negotiating power with potential buyers.
If you opt to sell as-is, be ready to sell at a much lower price than the market value. Contact a cash buyer in your area for a quick sell as is sale. Looking for a cash buyer in Denver?
Contact Webuyhousesindenver.org to get a quote to sell your house with aluminum wiring.
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