What the heck is a knob and tube, and why should I care?
When my husband and I bought our first house in 2018, we had no idea what knob and tube meant. We quickly learned. It refers to an old-fashioned type of electrical wiring still found in many old homes. It is also a fire hazard and safety concern.
The sellers agreed to give us money at closing to have the knob and tube replaced, along with some other home repairs. It cost about $5,000 to have the knob and tube replaced with a modern wiring scheme.
This included the cost of hiring an electrician, a plaster expert and a general contractor to manage the project. The repairs took about a week, and we split that time between my in-law’s home and a local hotel.
It was a messy, expensive and time-consuming affair. We had to deal with three separate contractors, one of whom lost our house keys, and the other who called me “difficult” in a text he accidentally sent to me.
So, was it worth it?
Is it worth replacing your knob and tube?
When I researched ‘the best ways to increase your home’s value,’ updating knob and tube electrical wiring wasn’t on the list. Most people care about curb appeal, new appliances, and functional closets.
Updated wiring also doesn’t save you money on your electrical bill. But if the home inspector says that your knob and tube wiring is a fire hazard, then it is certainly worth replacing.
Knob and tube wiring can range from “perfectly maintained” to “currently dangerous.” Depending on the condition of the knob and tube, borrowers may even have trouble getting a mortgage from a conventional lender.
If the inspector’s report is particularly incriminating, insurance companies may also deny coverage to homes with extensive or degrading knob and tube wiring.
Mindy Jensen, host of the BiggerPockets Money Podcast and a real estate agent, said if her clients wanted to buy a house that still had knob and tube wiring, she would ask the sellers for a discount on the house.
“You want to make sure you're not paying top dollar for a house that will have thousands or even tens of thousands of dollars in repairs coming your way,” she said.
Why I’d recommend replacing knob and tube
The ROI on updating our home’s wiring may be up for debate, but we’ve definitely been enjoying more peace of mind. My husband is a musician and often has a lot of instruments plugged in at the same time. We hated the idea that an electrical fire could happen, potentially damaging our home and his valuable equipment in the process.
Again, this depends on the particular knob and tube situation. Homes where the knob and tube wiring is in good condition may be eligible for financing and homeowners insurance as ours was. But houses where the knob and tube is in poor condition may force the owners to upgrade.
Plus, we love knowing that if we decide to sell the house, we won’t have to worry about replacing the knob and tube before we put it on the market.
Join homeowner and personal finance writer Zina Kumok as she tackles remodeling projects at her new home with “Adventures in homeownership.” Gain new insights through her adventures in homeownership and even exchange tips from your latest home improvement projects.
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