If your home was built between the 1880 and the 1950s, it most likely has tube wiring. The electrical wiring is set up so the wires pass through ceramic tubes placed into holes drilled on wooden joists around the house. They are then anchored with ceramic insulating knobs.
Home buyers may be cautious when prospecting a house with a knob and tube wiring. Although it is not necessarily a deal breaker, it may be disadvantageous to the selling process.
While knob and tube wiring is not unsafe, there are certain issues associated with it that may deter potential home buyers during a home inspection. For instance, the wires have poor heat dissipation, which can cause the insulating cover to get hot when the wire comes into contact with it.
In addition, this type of wiring does not have a grounding wire. Therefore, even if it is used with three-prong outlets, it does not offer protection against electric shock.
As a result of these shortcomings, knob and tube wiring is no longer the preferred option in properties. It cannot handle the higher electricity load typical in most modern homes. If not installed and maintained properly, knob and tube wiring increase the fire risk and shock.
When selling a house with knob and tube wiring, you can either sell it as-is or replace the wiring. Below we discuss the pros and cons of each option and when either would be best suited.
Although most state laws do not specify whether you should disclose knob and tube wiring to potential buyers, it is best to avoid disclosure. If the wiring is faulty, you must disclose it to potential buyers.
Even if the tube and knob wiring is inspected and declared safe, home buyers encounter challenges when seeking financing for houses with such an electrical wiring system. Most lenders will require a home insurance policy for the buyers to be considered for a mortgage.
On the other hand, only a few home insurance companies are willing to cover homes with knob tube wiring. A majority require that the old wiring is replaced. The home buyer has to hire a professional to ensure the wiring is in good condition. Furthermore, the insurance company may charge a higher premium.
Consequently, you can expect to sell your house at a lower price than the fair market value. This is because most potential home buyers will negotiate a discount on the listing price to cover the higher insurance premiums or to replace the wiring.
To establish a fair discount, consult an insurance agent about how much home insurance coverage with knob tube wiring would cost. Or hire a licensed electrical contractor to assess how much it would cost to replace old wiring with more modern wiring.
If you want to compete fairly in the market—attract a wide pool of potential buyers, and sell within the fair market value—replacing knob and tube wiring would be the ideal option.
Electrical wiring is an intricate job that needs to be done by a professional. The cost of tube wiring replacement ranges between $3000 and $15,000 or more.
However, the exact cost depends on factors such as the size of the house, required permits, materials cost, electricity load, and labor costs for the electrical service you use. Do not cut corners and attempt to replace the electrical wiring yourself to save on labor costs.
Selling a house with knob and tube wiring to a cash buyer is the easiest and simplest option for selling the house as-is.
The sale process is straightforward, and you do not have to involve a real estate agent. Simply find and contact reputable cash buyers in your area. They will inspect the house and make an offer. Choose the best offer.
Cash buyers will offer a lower price than the appraisal value of the house to enable them to shoulder the convenience and risks associated with the knob and tube wiring. Sell your house for cash now.
However, the variance in proceeds may not be too high compared to if you sold the house the traditional way. You save on listing, real estate agent commissions, and attorney fees.
The first step when selling a house with knob and tube wiring is to hire a licensed electrician to inspect its condition and if it is safe.
Whether you decide to replace the wiring before selling or sell the house as-is, have the electrician assess how much it would cost to replace it. The estimate will help you budget for the upgrade if you choose to replace it.
Conversely, if you choose to sell as-is, the amount quoted will guide you on how much you can discount from the list price.
Replacing the wiring will enable you to be competitive and sell at a fair market value. However, it might be quite costly.
On the other hand, if you opt to sell as-is, you will not incur any upgrade costs, and you can list immediately. However, the sale price will be lower than if you had replaced the wiring, and the best option would be to sell to a cash buyer.
If you are looking for a cash buyer in Denver, contact webuyhousesindenver.org to get a quote to sell your house as-is—with knob and tube wiring.
WeBuyHousesinDenver.org is a cash for houses company and we are experts at buying houses in Denver and all of Colorado. Our mission is to give the people of the Mile High city the best solution to sell any house. When you sell your house to us there are:
This is how selling a house in Denver should be!
Fill out the form to get your no-obligation cash offer today.
The latest real estate news, forecasts, insight, and advice are brought to you by the leading authorities in the Denver housing market. We have ears and boots on the ground in the Mile High reporting the facts. Extensive research goes into all our articles and we gather information from trusted real estate experts, renowned local Denver housing specialists, home buyers, and more. We buy houses Denver and as accomplished professionals with a proven track record, we now want to share our experiences with you. Please enjoy!
Moving to a new city can be both exciting and overwhelming. Denver, known for its vibrant culture, stunning natural beauty, and thriving job market, is
Value add in real estate means finding ways to make a property more valuable. This can include things like renovating, improving operations, or changing how
Colorado Springs is a great location for rental property owners, but even in high-demand rental markets, selling your rental property sometimes makes financial sense. The
We’re a service-focused, home buyer that specializes in helping homeowners get rid of burdensome houses quickly. We are Colorado cash buyers who can buy your house fast with a fair all-cash offer. Imagine an instant online quote to sell as-is, without realtors and on your timeline! As a house buyer that’s what we offer. Therefore, if you need to sell your house fast and need a trusted professional home buying company look no further because we buy houses fast for cash.
We Buy Houses In Denver, 1337 Delaware St, Denver, CO 80204
