As the old saying goes: ask any Realtor what factor matters the most when it comes to assessing a home’s resale value, and they’ll typically respond with “location, location, location!”
However, in recent years savvy home buyers have added another critical piece to the assessment puzzle: a home inspection. That’s because they know — either from personal experience, or by surfing an endless array of websites that are filled with tales of home buying woe — that a comprehensive home inspection is the only way to establish whether a property will become a delightful dream home, or an expensive and prolonged nightmare.
In light of the above, home sellers need to be proactive and do more than just stage their home so that it is warm, welcoming, and beautiful (some Realtors even suggest spraying rooms with cookie-scented air freshener!). They also need to make sure that their home is “ready for its close-up” — because it’s not a matter of whether interested potential buyers will do an inspection, but when.
Obviously, there are different things that sellers need to focus on, such as roofing, insulation, flooring, HVAC systems, and so on. However, there is a critical pre-list checklist item that some sellers overlook, but which costs them dearly: not upgrading their old electrical wiring.
There are two fundamental reasons why old electrical wiring can decrease a home’s resale value — and in some cases, to a dramatic extent.
The first reason why old electrical wiring can decrease a home’s resale value, is that buyers typically overestimate how much money it will cost them to upgrade electrical wiring. For example, if it would actually cost a licensed electrical contractor in Ontario $10,000 to replace knob and tube wiring, many buyers would estimate the cost at $15,000, $20,000, or sometimes even more. It’s not that buyers are trying to make a profit (i.e. lower their offer by $20,000, replace the knob and tube wiring for $10,000, and have an extra $10,000 in their pocket). Rather, buyers don’t want to take any chances that they might come across something unexpected. Basically, they want some insurance “just in case,” and that’s where the padded cost enters the picture.
The second reason why old electrical wiring can decrease a home’s resale value, is that it can lead to a home staying on the market longer — and in some cases far longer — than other comparable homes in the market (obviously comparable except for the electrical wiring). The longer a home stays on the market, the less likely it is to receive competitive offer. Generally, buyers become wary and suspicious of homes that do not sell relatively quickly.
If you’re planning to sell your home in the near future — or if you want to be in a position to rapidly list your home if the need or opportunity arises — then upgrading your old electrical wiring should definitely be on your immediate priority list. It will not only help you sell your home sell faster and easier, but it should translate into higher offers — and maybe even a lucrative bidding war!
To learn more, contact Langstaff & Sloan today at 416.503.2033. Discover why we are one of the most trusted and respected electrical contractors in Ontario.