Selling Your Home: 5 Deal Killers That Are Lurking In Older Homes

You've listed your home for sale, you have a Buyer and now their Inspector is performing an inspection. You think you have a pretty good home, but do you really know for sure? What is he finding? Why is it taking so long? Here are 5 deal killers to watch out for when selling your home.

Deal Killer #1: FPE Breaker Boxes. These breakers and breaker boxes are known to have performance issues. They are no longer made, however they were very popular between the 1950's and 1980's. Many homes still have them.

Some of the problems were that the breakers would trip but still allow electricity to pass through the breaker. Another issue was that the breaker would not trip at all causing an over current condition which could lead to fires.

Just because the home is 30 years old and you've had no problems, don't expect any Professional Real Estate Inspector to look past a FPE breaker box. The time theory does not hold water with electrical components. In my market, the cost to replace the box with a new 150 amp breaker box is anywhere from $1000 to $2500 depending upon the company and the extent of the work.

Deal Killer #2: Aluminum Wiring: The problem with aluminum wiring is that it expands and contracts more than copper wiring. So the components meant to be used with Copper wiring did not work well with Aluminum. The Aluminum would work its way loose over time and cause arcing, which lead to excessive heat, which leads to fires.

Even after the alloy was changed in Aluminum wiring, problems still persisted with the wiring.

Special outlets have to be used. These are marked CO/ALR. This means that the outlet is designed to work with either Copper or Aluminum.

"Pigtailing" the Aluminum wiring with Copper so that the Copper wiring can be attached to the outlets (remember, less expansion and contraction" is allowed by the National Electrical Code. No one is sure why. The Consumer Product Safety Commission does not see 'pigtailing' as a safe alternative.

Rewiring the home can be costly. The total price depends on to many variables to give you a price range here.

Deal Killer #3: Asbestos: Asbestos was used in many building materials and is still used in a very few even today.

Areas a Seller or Buyer will have to worry about it are in a few places. Pipe insulation on older heating pipes, vermiculite insulation, some paints and to a lesser extent, on roof and siding shakes.

Asbestos causes the most problem when it is in a loose state (friable) where particles can float around. We're all aware of the health problems concerning Asbestos, so I'm not going to go into them here.

If you have Asbestos siding or roofing shakes/shingles, then there is a lesser worry because these are not friable unless broken.

Asbestos removal can be very, very costly and not likely a cost a new buyer will want to tackle shortly after moving into their new home.

Deal Killer #4: Composition Wood Siding: Some of this type of siding is known by it's generic terms like Masonite and LP siding (there are other brands). This type of siding was (and some are still) involved in class action lawsuits.

This type of siding is basically constructed from pressed and glued wood particles, some as small as sawdust.

Some of the problems arise from poor installation techniques that allowed this siding to get wet. It would then start rotting and letting more water into the structure.

There have been many homeowners who joined the class action lawsuits, received money to replace the siding, but instead pocketed it and put their homes up for sale.

Composition wood siding companies only pay once for siding on a home. If a claim has been filed and paid out on a home, there'll be no more money coming down the pipe for siding replacement on that particular home!

Deal Killer #5: Polybutylene (PB) plumbing lines: These are water supply lines that are grayish in color.

The problem was that this type of piping is known to burst, especially at the seams. Many of the class action lawsuits have been closed and it may be difficult, if not impossible, to receive any money for replacement if the home you are buying has PB plumbing.

Replacement cost can be in the thousands of dollars. Any good home inspector will call this out on their inspection report and likely recommend a licensed plumber to investigate. I don't know of one reputable plumber who will recommend keeping the pipes in your home.

Granted, many of these Deal Killers only exist on older homes. However, especially in rural areas, we've seen these components show up on newer homes. How, I don't know unless someone had a stockpile of these materials.

A pre-listing inspection by a reputable and qualified home inspector will bring these Deal Killers and other potential deal killing threats to you attention before listing your home. Playing ignorant about what is in your home (like some real estate agents recommend) will not save you from having to fork over some greenbacks before you home will sell.

Donald Lawson is a Professional Real Estate Inspector licensed in Oklahoma (#454) and Texas (#5824). He currently owns and operates a multi inspector firm in Houston Texas, V.I.P. Home Inspections. You can learn more about homes and home inspections by visiting his site at http://www.best2inspect.com. There are also pages about the local real estate market at Houston Real Estate

---

5 Rock-Solid Real Estate Investment Strategies

Investing in real estate is more complex than simply buying... Read More

Flipping or Fixing Houses for Profit

Many real estate investors make $5,000 to $10,000 or more... Read More

Real Estate Investing ? Finding Cheap Houses

Real estate investing expertise can certainly accommodate the luxury home... Read More

Youre Not Paranoid: The House Really Hates You

If you've just bought a house, you may be able... Read More

OPM - The Art of Leveraging

Equity lender, hard money lender, private investor or what ever... Read More

Give Your Home A Timeless Feel

In the world of real estate, there is a huge... Read More

The 21st Century Way To Build Equity

Here to stay and firmly established in the U.S. mortgage... Read More

Basic Tips for First Time Home Buyers

Choosing a first home can be a daunting task, but... Read More

Getting Raw Land, Not a Raw Deal!

There is more to buying raw land than meets the... Read More

How to Choose the Proper Entity for Your Business

First, let me state that I'm not an attorney and... Read More

Boston Real Estate ? Choosing the Right Boston Real Estate Agent

As a successful Boston real estate agent, it always puzzled... Read More

Using Color Psychology to Sell Your Home

When painting your home for resale, choosing the right colors... Read More

Real Estate Investing - Basis Explained

Our complex IRS code requires that your, as a real... Read More

Why Invest In Property?

Why property, some people ask when looking for an investment.... Read More

Notify Them When Youre Moving

One of your first steps, when you're getting ready to... Read More

Moving On: Powerful Tips For Selling Your Home

Maybe you're moving to a larger home to accommodate a... Read More

Seven Questions You Should Ask When Buying a Condo Hotel Unit

You may have heard all the buzz about the newest... Read More

Do I Have To Buy Real Estate Through An Agent?

Sometimes when we are very busy professionals and very rich... Read More

A Real Estate Investing Primer

There are a great many books and web sites devoted... Read More

Home Equity ? Don?t Spend It on Risky Investments

The housing market has exploded in the last five years,... Read More

Fixing Houses for Resale: Three Beginning Steps to Increase Profits and Have Fun

Real estate investors specializing in fixers make higher profits when... Read More

Panama is Hot - A World Class Retirement Haven Thats Ripe For Profitable Real Estate Investment

If you've followed any of the major survey agencies around... Read More

An Ideal Way to Purchase Your New Home without Strict Banking Regulations

You've searched high and low around town looking for that... Read More

Do Bankers, Bubble, Discounters, & Justice Department Cloud Real Estate Industry?

Once relegated to the classified advertising section of the local... Read More

How Professional Property Investors Interpret and Use Capital Growth Statistics

Understanding and using yearly price growth statistics in an area... Read More

Buy to Let Property Investment

In recent years buy to let has been a popular... Read More

Finding Structural Problems During Escrow ? Upscale Home Example

When buying and selling homes, the property purchase is often... Read More

Making it affordable: Nine tips for first time home buyers

It seems that everyone loves a good real estate story.... Read More

RESPA: The Real Estate Settlement Procedures Act

The Real Estate Settlement Procedures Act (RESPA) is a consumer... Read More

Buying a House in Scotland

Buying a house in Scotland is slightly different from buying... Read More

The Most Sensible Investment Decision Youll Ever Make

So much advice is bandied about on the internet and... Read More

How To Create A House Buying Wish List For Your Dream Home

Buying a house is one of the most exciting things... Read More

Selling Houses: Design Psychology and Interior Colors

Interior colors are vitally important to selling your home quickly,... Read More