Illinois first-time buyer discovers energized knob-and-tube wiring and considers renegotiating

"The inspector said it's live but recommend an electrician to come and inspect it."

An Illinois first-time homebuyer drew plenty of advice after an inspection found live knob-and-tube wiring in the basement and attic of an 1880s house.

The discovery came after the buyer had already gone under contract for $135,000 on a home that otherwise appeared to include several major upgrades, such as newer windows, siding, a roof, and a breaker box.

What the inspection found

The buyer described the property as a two-story home of roughly 1,500 square feet with three bedrooms, 1.5 bathrooms, plaster walls, and multiple recent improvements. Those updates included remodeled bathrooms, a sump pump, some basement electrical work, and new drywall on the main-floor ceilings.

"The inspector said [it's] live but recommend an electrician to come and inspect it," the buyer wrote in the r/FirstTimeHomeBuyer Reddit thread. "Should I lower our offer depending on how Electrician Inspection comes back?"

Several commenters warned that active knob-and-tube wiring can make homeowners insurance harder to obtain. One said it became "a nightmare to insure" for their parents, and that some companies "just flat out refused."

Before deciding whether to reopen negotiations, the buyer said they were still waiting on both an electrician's inspection and a home appraisal. One commenter advised holding off: "I'd get the electrician's written estimate before changing the offer, since GFCI outlets don't mean the knob-and-tube itself is safe or insurable, and what does your inspection contingency say?"

A written estimate could give the buyer stronger footing if they want to ask for a seller credit or a lower price instead of absorbing the rewiring cost after closing.

More context

Old wiring can raise both safety concerns and financial risks.

The situation reflects a common tradeoff for buyers of older homes: historic character and visible updates on one side, and hidden infrastructure expenses on the other.

The buyer said they live in Illinois in "a small college town with alot of historic homes," where similar homes are listing for comparable prices "or even [higher]" without the same exterior improvements.

Some commenters said comparable sales matter as much as the wiring issue during negotiations. One wrote, "If the comps are $135k, it is priced correctly," pointing out that a new roof, windows, siding, and breaker box are expensive updates.

Others shared their own experiences with knob-and-tube wiring. One commenter who bought a similar 1879 house in 2021 said they asked for a credit and ultimately received $9,000 from the seller. Another said their insurer allowed about six months to fix the wiring, while a buyer in Southern California said an agent told them coverage could be canceled after roughly 90 days unless the electrical system was replaced.

What happens next?

Most of the advice focused on waiting for the electrician's findings before trying to renegotiate. The original poster said they were waiting for an electrician to conduct the inspection after the general inspection and appraisal were completed.

Commenters said the inspection should answer three big questions: how much active knob-and-tube wiring remains, what a full replacement would cost, and whether local insurers would cover the home in its current condition.

Those answers could help determine whether the buyer should ask for a lower price, seek a seller credit, or walk away from the deal.

Other factors the buyer mentioned may also influence the decision, including the updated breaker box, GFCI outlets in the kitchen and bathrooms, and a seller-paid home warranty tied to the age of the central air and furnace.

In the end, getting a written electrical estimate before closing may help prevent surprise repair bills and could support thousands of dollars in negotiations.

More to read

Problems with old wiring often extend beyond the inspection report, especially when insurance, safety, and repair costs are all involved.

• In one older house, aging wiring scorched a wall after dangerous hidden electrical damage went unchecked.

• A homeowner faced pressure to take an upgrade after an electrician flagged a panel.

• One homeowner was told a new breaker box would come with an outrageously high bill.