If you're selling an older home in Lansing, old wiring can cause problems twice. First at the home inspection, then again when the buyer tries to get homeowners insurance. Knowing this ahead of time can keep your sale on track.
Which Lansing Homes Have Knob and Tube Wiring?
Many homes in Lansing neighborhoods like Moores Park, REO Town, Old Town, the Westside, the Eastside, Genesee, and North Capitol were built before 1950. Homes from that era often have knob and tube wiring or cloth covered wiring, unless they've been updated.
Problem One: The Home Inspection
A home inspector who finds knob and tube wiring will usually note it and recommend an electrician take a look. This happens early in the sale, while you and the buyer can still negotiate. Many sellers offer a credit or lower the price and think the issue is handled.
Problem Two: The Buyer's Homeowners Insurance
The buyer's lender requires homeowners insurance before closing. Many insurance companies won't cover a home with knob and tube wiring, or they'll require proof it's been replaced. A credit at closing doesn't change their answer.
This usually comes up in the final weeks before closing. By then, you've likely stopped taking backup offers, and the buyer may be able to renegotiate or walk away under their financing contingency.
Do You Have to Disclose Knob and Tube Wiring in Michigan?
Yes, if you know about it. Michigan's Seller Disclosure Act requires sellers to complete a disclosure form that asks about electrical problems and work done without permits. Selling "as is" doesn't change that. It only limits what repairs a buyer can ask for.
If the disclosure is given after the purchase agreement is signed, the buyer has 72 hours to cancel (or 120 hours if it was sent by registered mail). Sellers who knowingly hide a problem can also face legal claims after closing.
Should You Replace Knob and Tube Wiring Before Selling?
It depends on your home, your budget, and your timeline. Replacing it can mean opening walls and adding a new electrical panel, and costs vary a lot from house to house. A licensed electrician can give you a written quote. If you do replace it, keep the permit and final inspection paperwork, because insurance companies will want to see it.
Your options before listing:
- Replace the wiring and market the update
- Offer a credit to the buyer
- Price the home with the wiring in mind
Whichever you choose, disclose it up front so the buyer can line up insurance early.
What If the Buyer Can't Get Insurance?
Michigan has a backup option called the Michigan Basic Property Insurance Association, for homeowners who can't get coverage elsewhere. It isn't guaranteed. The home has to meet building code, and an inspection may be required. Think of it as a last resort, not a plan.
Frequently Asked Questions
Can you sell a house with knob and tube wiring in Michigan?
Yes. Michigan doesn't require you to remove it before selling, but you must disclose known problems, and the buyer may need it addressed to get insurance.
Does selling "as is" mean I don't have to disclose wiring problems?
No. Selling as is limits repair requests, not what you have to disclose.
How do I know if my house has knob and tube wiring?
A licensed electrician can usually tell in one visit by checking the basement and attic.
Will knob and tube wiring affect my home's sale price?
It can. Buyers and their insurance companies factor it in, so it's best to decide up front how you'll handle it.
Selling an Older Home in Lansing?
Advantage In Team helps Lansing sellers decide whether to replace, credit, or price around old wiring before listing. Schedule a pre-listing consultation to talk through your options.
This article is general information, not legal advice. For questions about your disclosure obligations, talk with a Michigan real estate attorney.