County Cottage 78 yrs. old

[OhBeeHave]

Originally Posted by Dallas Yvonne

I am considering buying a beautiful country cottage. I realize there are many cosmetic fixes to attend to. All in due time. Structurally sound, However the electrical needs rewiring and updated breaker box. The bid for the work is $9200.00. I have asked the seller to contribute 1/2 the cost? She refuses. Do I have any recourse since the inspector labeled the house a potential fire hazard? Other than not buying the property. I am a senior citizen on a fixed income. I realize I have the option of backing out however I have been looking for about 2 years and I fell in love with this home on first sight. I truly want to make it my own. Any good advice out there?

My house is 87 years old. We bought it 20 years ago and it had a electrical panel that was 'updated' in the 1950's. I believe it was a 100 amp service. The house was in such disrepair that it was a complete gut -- everything walls, wires, plumbing -- and in the process, rewired and upgraded the service to accommodate our needs.

Our previous home (we rented a very tiny summer cottage converted to year-round residence) had an old school fuse box. About 6 years after we moved out of that home, there was a fire which completely destroyed the cottage.

Get a second, even a third bid on the work. See exactly what it it that the electricians propose.

[hotzcatz]

Hmm, in 1937 they didn't use grounded wires did they? Is it the old two wire tarpaper stuff or pillar and post wiring? In '37 they also didn't have anywhere near the electrical demand current (no pun intended) houses have now.

Can you add a bit to the purchase price so the wiring can be up dated? Then the repair would be covered by your mortgage and not an out of pocket expense.

[WorldKlas]

One other idea is that the owner agrees to pay for the re-wiring (money goes into an escrow account) if you agree to increase the price to cover the work. If the house appraises out at the new price (appraiser needs to understand the updated contract) your loan and fees will reflect the higher price. But the payment adjustment of $10K more in price will be pretty nominal... so its just an idea you might think about.

[mawipafl]

Originally Posted by Dallas Yvonne

I am considering buying a beautiful country cottage. I realize there are many cosmetic fixes to attend to. All in due time. Structurally sound, However the electrical needs rewiring and updated breaker box. The bid for the work is $9200.00. I have asked the seller to contribute 1/2 the cost? She refuses. Do I have any recourse since the inspector labeled the house a potential fire hazard? Other than not buying the property. I am a senior citizen on a fixed income. I realize I have the option of backing out however I have been looking for about 2 years and I fell in love with this home on first sight. I truly want to make it my own. Any good advice out there?

No, a seller doesn't have to fix anything found in an inspection unless the seller wants to proceed with the contract. If your offer contains an inspection contingency then you can walk away and get your deposit back. However, if your inspection contingency contains a dollar amount, say up to $10,000, then you may still be on the hook. All depends how your offer was written.

Sometimes inspectors can overdo it a bit. Our house was 75 years old and over the years had had a little bit of electrical updating (the kitchen for one in 2011 that included complete rewiring and a new panel, the main panel upgraded to 200 amps). We think the builder's plan was for knob-and-tube wiring, and that was in part installed, but the house was instead wired throughout with insulated "normal" cabling available in the late 1940s (it's minus the ground wire). For two reasons our buyer's inspector labeled the house a "fire hazard": one because the inactive K&T had not been removed; and two because except for the kitchen the outlets were two-prong rather the three; and three because the only GFCIs were in the kitchen (the bathroom ones were fake - no ground wires).

We knew all this when we bought the house in 2011, and our buyers in 2013 knew it, too. Since you love the country cottage, maybe look at what constitutes a fire hazard. Is there a fire just waiting to happen or was the inspector covering his butt? Presuming it may be K&T, if it's in sound condition and not covered with (and suffocating in) insulation, and your electrical usage won't overtax it - and if the house is insurable with it - that could buy you some time if you decide to purchase. As others have suggested, get additional quotes. Know that it will be expensive, but perhaps you could do it step by step (although overall that might not be any cheaper and might actually be more expensive).