Decoding Knob and Tube Wiring: How It Impacts Your Home's Value

If you own or are looking to purchase an older home, there might be lurking in your home something that could affect its value – knob and tube wiring. Due to the age of many homes in Westmoreland County, I still see plenty of homes with some functioning knob and tube wiring. This old-school electrical setup was once a popular way to install electricity in a home. But now, it's like the outdated ancestor of today's electrical systems, and it comes with some problems.

What Is Knob and Tube Wiring?

Back in the late 1800s to the early 1900s, knob and tube wiring was the go-to for electrifying homes. It used ceramic knobs and tubes to keep wires in place. Fast forward to today, and it's not holding up so well.

Example of Knob and Tube Wiring

The Hidden Dangers

The materials used in knob and tube wiring, like rubber or cloth insulation, have probably seen better days. That means a higher risk of fires. Plus, there's no grounding conductor, which makes the chance of getting a shock higher and incompatible with three prong plugs. Insurance companies see these homes as risky, making it harder and more expensive to get coverage.

How It Affects Your Home's Value

Now, let's get to the point – how does knob and tube wiring impact your home's value?

Safety Worries

People worry about safety when they hear about knob and tube wiring. The fear of fires or electrical problems can make buyers think twice, lowering your home's value due to the smaller buyer pool. This can also have a negative impact on the insurability of the home due to the safety concerns. Many insurance companies will not cover a home with known functioning knob and tube wiring due to the known safety concerns.

Cost To Upgrade

Upgrading from knob and tube to a modern electrical system is a big job and can be costly. Buyers might consider this cost when deciding on a home, potentially lowering its value.

Appraisers Take Notice

When appraisers are on site to look at the property, they're likely to consider the knob and tube wiring in the overall quality and condition rating of the home. Homes that are not updated from systems installed almost 100 years ago have a lower quality and condition rating which, when compared to a home that is updated with newer systems, have a lower value.

If there are safety concerns when it is inaccurately spliced into a more traditional wiring system (I’ve seen this many times), frayed insulation on the wires, or being wired to newer 3 prong outlets, an appraiser might call these out to be repaired as a part of the loan process.

What Can You Do?

If you find yourself dealing with knob and tube wiring, it's not the end of the world. Get a qualified professional to check it out and fix any problems. Upgrading your electrical system can make your home safer and more attractive to buyers.

Will A House With K&T Wiring Qualify For A Mortgage?

The underwriting guidelines for all the major mortgage agencies (Fannie Mae, Freddie Mac, FHA, VA, and USDA) all allow for knob-and-tube wiring as long as the system is deemed to be safe, functional, and typical for the area. Just understand that while many loans will allow for this type of wiring, the house still might not qualify to be insured or there might be safety concerns that need to be repaired in order to qualify.

 In the world of home values, knob and tube wiring is like an old family secret – it can affect things more than you realize. Knowing the risks and doing something about them can make your home safer and keep its value strong. So, whether you're a homeowner or looking to buy, understanding this hidden issue is key to making smart decisions about your home.

Demystifying Square Footage Discrepancies in Real Estate: What You Need to Know

Confidence in the size of your home is a fundamental aspect of real estate, but have you ever wondered why the reported square footage can differ from one source to another? In this article, we will delve into the reasons behind these discrepancies and underscore the significance of precise measurements in the real estate world.

When you bought your house, someone, whether it was a real estate agent, a builder, or a published source, provided you with an estimate of its size. However, this estimate may not always be consistent or entirely accurate. Let's explore the factors that contribute to these variations.

Every source of square footage data follows different standards and regulations when measuring and reporting. Online real estate platforms like Realtor.com, Zillow, and Redfin rely on an IDX system, which aggregates information from regional MLS systems. The square footage displayed on these platforms is typically entered by the listing agent. Unless that agent has been trained in specific measuring standards, the data may originate from sources like tax records or the homeowner.

In Pennsylvania, for instance, assessors are not required to adhere to professional measuring standards like ANSI, leading to square footage estimates based on rounded or estimated measurements. Furthermore, many agents include areas like finished basements or unheated enclosed porches in the square footage, even if they are not considered above-grade space. This is done to represent the property in the best possible light and attract the right buyer.

So, why do appraisals often reveal differences in square footage? Appraisers must adhere to precise standards that dictate what can be counted as above-grade square footage. Using the ANSI Z765-2021 measuring standards, as enacted by Fannie Mae in 2022, appraisers must measure with precision down to the nearest inch or tenth of an inch. (Let’s not debate that these are two slightly different measurements- I didn’t write the standard.) There are also areas of a structure that cannot be included in above-grade square footage, such as spaces with a ceiling height of less than 7 feet. If any part of a level is not entirely above ground level, it cannot be included in the square footage calculation. Additionally, in homes with two-story ceiling heights, like large open foyers or great rooms, the open area is counted only once for the main level.

If you receive an appraisal report that indicates a different square footage than what you believed your house to be, it's essential to investigate further. Compare the source of your initial knowledge to the sketch in your appraisal report to understand the discrepancies.

In the world of real estate, understanding square footage variations is crucial. It can impact the value of your property, as well as your buying or selling decisions. Being aware of the different standards used by various sources can help you make informed choices and ensure that your home's size is accurately represented.

Reducing the Stress of Divorce: The Vital Role of an Experienced Appraiser

We understand that going through a divorce is an incredibly challenging experience, both emotionally and legally. In these turbulent times, it becomes crucial to alleviate some of the stress involved in the process. One effective way to achieve this is by engaging the services of an experienced and qualified appraiser who has been established as an expert witness in divorce litigation. In this blog post, we will delve into the significance of hiring an appraiser with expert witness testimony experience for divorce appraisals, offering invaluable support during this trying period.

Understanding the Legal Process

An appraiser with expert witness testimony experience possesses an in-depth comprehension of the legal process involved in divorce appraisals. They are well-versed in the intricacies of presenting their findings in a clear and concise manner, ensuring that their testimony carries maximum weight in the courtroom. Their familiarity with legal procedures enhances the likelihood of a favorable outcome.

Credibility and Reputation

One key aspect of hiring an appraiser with expert witness testimony experience is the credibility and reputation they bring to the table. By engaging such an appraiser, you can rest assured that their testimony will be taken seriously by the court. Having established a track record of providing objective, unbiased opinions, I have successfully demonstrated my expertise in numerous courtrooms located in Armstrong, Westmoreland and Indiana Counties, thereby earning the reputation of a reliable and trustworthy appraiser.

Crucial Role in Court

In my professional opinion, the importance of hiring an appraiser with expert witness testimony experience cannot be overstated in divorce appraisals. The appraiser's opinion often serves as pivotal evidence in supporting one party's claims over the other, making it imperative for their testimony to withstand rigorous cross-examination. By selecting an appraiser with this specific experience, you minimize the risk of having your clients' arguments weakened or dismissed.

Reducing Stress During Divorce

Navigating through a divorce is an emotionally taxing experience. By ensuring that you choose an appraiser with the necessary qualifications and expertise to provide expert witness testimony, you can alleviate some of the stress associated with the process. The knowledge that your appraiser is capable of delivering accurate and unbiased valuations to support your case will provide you and your clients with peace of mind, allowing you to focus on other crucial aspects of the legal proceedings.

In the event that you require an appraisal during the course of a divorce, we invite you to contact our office, where we guarantee the utmost standard of excellence in appraisals, coupled with the professionalism necessary to deliver expert witness testimony, should the need arise.