Buying An Old House In Northeast Florida?

 Are you thinking about buying an old house in NE Florida or are you a Realtor selling your first old house?

Older homes are wonderful, especially, in our area. Some of the craftsmanship is remarkable and would be difficult or impossible to find in a modern home. Sometimes the value of the home and the neighborhood are simply too good to pass by.  However, there are several things that you need to be aware of during the due diligence process. 

First, let’s talk about that old house. What is an old house? Well, the home owner’s insurance industry is helping us define an old house. Some would say, 20 years would make the home old. Some will say 30 years makes the home old.  The insurance requirements may make them equal.  For sake of argument let’s assume you are thinking about buying a home that is 35 years old or you are a Realtor selling that first older home in a similar age bracket. 

Secondly, what’s the worry? The greatest everyday risks to an insurance company are fire, wind, and water loss from leaks, be it a roof leak or a supply or waste line leak.  Simply said, age of the home increases that risk of loss.

What do you need to know?

1.  Older homes in the greater Jacksonville area may have galvanized steel supply piping or was re-piped with Polybutylene plastic piping. Galvanized steel piping was used extensively from the 1940s through the middle of the 1970s. Typically this piping rusts from the inside out and will experience leaks and flow reductions as it ages.  Polybutylene plastic piping was used extensively in the 1980s as the water distribution system of the future. The problem with this piping is premature pipe leaks and leaking fittings, not to mention numerous class action lawsuits.

2. An older home in our area may have older shingles (roof covering).  Depending on the age of the home, you simply can’t tell from the ground if there is any remaining roof life. They may look good, and there might not be any leaks, but what about shingle tab adhesion?  Shingle tab adhesion is a critical component to withstanding a high wind event.  

3. An older home may have original wiring. As the home ages more and more demand is placed on the original wiring system as we install higher demand electrical fixture such electric dryers, new cook tops and oven and air to air heat pump. You know that stuff wasn’t around in the 1950s to 1970s. This places additional load on these original circuits. And older homes don’t have the same numbers of convenience outlets to plug in our lamps, computers, TVs, etc. Some of these older homes have only one or two outlets per room so owners end up using electrical strip centers. All of these things are fire risks. Older electrical distribution centers have fuses. Insurance companies don’t like fuses. Older homes often have home owner wiring, exposed wiring conditions, open splices, and other correctable electrical issues. All of these conditions can increase your risk and coverage.

 So, you have fallen in love with a cute bungalow in the San Marco area (it could be anyone of our wonderful eclectic communities) or your buyers are committed to an older homes charm and location. GET IT INSPECTED by a knowledgeable, trusted, home inspector. Your home inspector will be able to identify those risk factors and will put together what is commonly called a 4.0 Letter to use in the insurance buying process.

The 4.0 Letter will address four major components of the home, Heating and Cooling System, Plumbing System, Electrical System and Roofing. This information is then provided to the insurance company to assist them in understanding the home and the related risk.  It can also cause your trusted insurance agent to “pass on the home” causing you to shop for coverage.  This can be a trying process and don’t give up!

Additionally, a knowledgeable home inspector can help you understand those risks and can oftentimes suggest manageable solutions, such as prioritizing a to-do-list for improving conditions that may lower your insurance risk factors.

Now that we understand the 4.0 Letter there are some other factors that can impact you during the due diligence process.  Some mortgage lenders have concerns about loaning money on older homes, especially, if they are investor owned and flipped. They may require that a home inspection be conducted and that all items listed on the inspection report as a defect, get repaired. 

It is important to be informed and to ask those questions up front during the application process so you don’t have a delayed closing because repairs weren’t made.

Good luck.

Charles S. Gifford, ACI, RPI, CRC

President

AllSpec Services

CS Gifford Home Services, Inc.

Trusted. Valued. Experienced.

Each and Every Time!

Guranteed. ®

Certified ASHI Member 096358

FABI Registered Professional Inspector 0111

Licensed FL HI 1046

Licensed FL CRC 1326414

FL DACS WDO Inspector JE112133