Selling A House With Electrical Problems

Published on April 3rd, 2023

When you put your home on the market, one of the most major items home buyers look at is the home's electrical system, not just the function but the age, condition, and overall integrity of the system.

What then, if your home has faulty electrical wiring, won't pass a standard electrical inspection, or has other electrical problems?

If you want to sell your home in need of electrical repairs to potential buyers, there are ways to do it. Although it might take a little more work and perseverance throughout this article, we will discuss five different methods for selling your home in need of electrical work.

Selling To A Real Estate Investor That Specializes In Homes With Electric Problems

While electrical issues aren't the end of the world in terms of renovations that might need to be made to a home, they can be costly and will require the assistance of a professional electrician to do the work.

Selling your home to a real estate investor who, going into the purchase, has experience in dealing with a home that might not pass a home inspection due to electrical issues might be a good choice for you.

Selling a home to a real estate investor who has the time, money, and expertise to dedicate to your home will allow you to avoid working with real estate agents and will produce a cash buyer or cash offer for your home. 

The reason an investor might be the right buyer for your home is that electrical issues sometimes can lead to a major renovation where the home wiring needs to be completely redone - which could deter potential buyers from purchasing with a standard mortgage.

Some signs that your home might have electrical issues include:

• Old knob and tube wiring

• Not enough outlets

• Lights flickering

• Circuit breakers that trip often

• A kitchen that is not GFCI equipped

While these are just a few of the many issues, your home could be experiencing when in doubt, it's always good to have a licensed electrician check it out and give their honest option and a quote for the work.

Selling Through A Real Estate Agent On The MLS

Selling a home that needs upgraded electrical systems through a real estate agent in a more traditional manner is still possible. Depending on the extent of work that needs to be done, you should be able to secure interested buyers for a home sale.

Both home shoppers and their agents will be on the lookout for any signs of electrical issues, including extension cords running through your home, grounded outlets, and any improperly modified electrical work that's common in older homes.

A home buyer will also hire a property inspector to go over the home with a fine tooth comb to see if the electrical current can sustain modern appliances, that outlets are properly grounded, and check for evidence of electrical fires and the electrical load of all the wiring.

If any major issues arise, the buyer might ask that you either repair the issue or take less for the asking price of the home.

Selling your house directly to a private home buyer will help you circumnavigate sales issues regarding insurance and underwriting due to electrical issues.

Your house, if purchased by a home buyer, will most likely be through a cash offer. Consulting with a local real estate expert before making the choice to sell directly to a buyer isn't a bad idea.

Selling Your House With Electrical Problem At An Auction

Selling your house without an electrical inspection at an auction is a good way to go if your home doesn't have modern solid copper wire or updated electrical fixtures - why?

These electrical upgrades that might need to be made to your home can be costly. Electrical contractors charge by the hour for their expertise and skill to work on your home's wiring systems - expensive. When selling your house at an auction, today's tech savvy buyers are able to walk around your home and take note of any problems and do a quick online search for a quick cost estimate - which will influence their offer price. If your home needs a lot of work, you might want to consider what a reasonable offer is and prepare yourself for that.

• Some things buyers at an auction might be looking for include:

• Convenient locations of outlets, like near the front door

• Consistency with outlets throughout the entire home.

• Solid copper wiring indicates a modern update.

• Tube and aluminum wiring can be susceptible to home fires and electrical fires.

• Adequate grounding on electrical fixtures to avoid electric shock.

• Look for a correctly labeled electrical panel.

• If selling your home at an auction sounds like a good choice for you, then you should follow the following steps for a successful auction.

• Hire a professional auctioneer

• Ask how the auctioneer gets paid

• Choose between an absolute auction or an auction with a reserve.

• Find out how the bidders will be qualified

• Determine how you will accept bids

• Proper Marketing
  

Last but not least, you can try selling your home to a local home-buying company that is equipped to deal with electrical problems. Why is this a good option? Today's home buyers are looking for perfection, and if your home doesn't offer that quite yet, a home-buying company can make it happen.

These "house flipping" companies have good working relationships with commercial electrical contractors who can get the work done fast and efficiently. They will make any needed repairs to the home's electrical systems and other minor repairs and then sell your home for a profit.

Now with we have laid out the five most common ways to sell your home with electrical issues, which is the right option for you? Take an honest look around your home, get a few quotes for the repair work and make the decision that is best for you.

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