What is an Electrical Inspection?
An electrical inspection evaluates a property's electrical system including the main panel, sub-panels, wiring type and condition, outlets, switches, grounding, GFCI/AFCI protection, and overall capacity. Electrical issues are both safety hazards (fire risk, electrocution) and code compliance concerns that affect insurability and financing.
General home inspectors check basic electrical function, but a licensed electrician provides a more thorough evaluation. Specialty electrical inspections cost $150-$400 and are especially important for homes built before 1970, homes with evidence of DIY electrical work, or properties with 60-100 amp service (modern homes need 200 amp).
Common electrical issues
Knob-and-tube wiring (pre-1940s): Ungrounded, lacks capacity for modern loads, and many insurers refuse to cover homes with active knob-and-tube. Rewiring costs $8,000-$20,000.
Aluminum wiring (1965-1972): Expands and contracts differently than copper connections, creating loose connections and fire risk. Remediation involves pigtailing aluminum to copper at every connection ($50-$100 per connection) or full rewire.
Federal Pacific or Zinsco panels: Known fire hazards due to breakers that fail to trip. Panel replacement costs $1,500-$3,000.
Undersized service: Older homes with 60 or 100 amp service cannot safely power modern appliances and HVAC. Panel upgrade to 200 amp costs $1,500-$4,000.
Electrical issues and investor deals
Electrical problems, like foundation issues, scare retail buyers disproportionately to actual repair costs. A $3,000 panel upgrade may cause a $15,000 price reduction in negotiations. Flip investors who understand electrical costs can capitalize on this perception gap. Always budget for bringing electrical up to current code during renovations, as permit inspections will require it.