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Dav Pohote
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31
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Inspection report when selling a house *electrical panel*

Dav Pohote
Posted

Selling a house and agreed to terms with a buyer *pending inspection report*. We got the inspection report back and boy... that inspector nitpick. The microscopic distance of the attic vent, insulation spacing, the smoke detectors not being in sync when 1 rings etc. 

However, the legitimate issue was regarding Electric. It's relatively outdated as it's a '97 house and apparently code has evolved in the past 25 years.

For one, it claims the Electrical Panel breaker box cannot be in the master bedroom closet (which is where it's located) nowadays and there's no outside shut off valve. No surge panel is installed in the electrical panel. Therefore, it's not up "to code" and it is recommended installing the panel elsewhere. 


This is essentially a $6,000+ job of a brand new panel and outside shut off valve for what was previously a perfectly functioning system that had never given any issues. 

What is the recommendation of those with expertise in this situation? If I say sell the house as is, and the buyer walks, would future buyers be deterred by an electrical panel in the closet? Do I go back saying I'll make the recommended changes to electrical panel, but keep it in the closet? Will I receive a permit for the outside shut off valve if the electrical panel is in the closet (ie, would we have to mention that)? 

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Greg Scott
  • Rental Property Investor
  • SE Michigan
6,292
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4,422
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Greg Scott
  • Rental Property Investor
  • SE Michigan
Replied

Codes change all the time for various reasons.  Imaging taking a house from 1920 and trying to update it to 2024 standards.  In many cases it may be physically impossible. 

Unless your panel has been recalled or has a known hazard issue, I wouldn't touch it.  If the buyer walks, what do you a have to say to the new buyer?  Talk to your realtor, but I wouldn't think you dont have to say anything.  The panel was compliant with 1997 codes when it was built.  It is grandfathered from code changes.

  • Greg Scott
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