FHA Question

[Arbiter]

I inspected the property, all electrical outlets work, lights work. Contract states " Seller also agrees to escrow $1,200 at closing to cover the cost to replace the existing Federal Pacific Electrical Panel". Should this appraisal be subject to the installation of that panel? Thanks in advance.

 

[RSW]

Ask the lender.

 

[bnmappraisal]

Ask the lender.

I agree.

to the OP - if everything seemed fine and passed your FHA inspect, I'd just check with the lender. It sounds like there's no affect on value (my assumption) and is just something negotiated between buyer/seller. But check with the lender/client to see how they would like the report completed. Hope it works out

 

[Elliott]

Why wouldn't you? More panel work, safer house. Did you have any other conditions?

I love FHA questions, makes me fee like I work for the FHA.

 

[miktay]

For anyone not familiar with the Federal Pacific Electrical Panel, a quick Google search is recommended.

 

[bnmappraisal]

just looked them up (thanks Miktay) They don't seem to have the best track record for sure. But I still think if everything passed the appraiser's inspection, it should be ok. I don't blame the buyer (after searching the FPE Panels) for wanting this replaced as part of the sale

 

[Peter LeQuire]

Is there market information that the new electric service panel influences value or marketing times? If so, talk with the lender. If not, talk with the lender. If so, talk with the lender.

 

[Mr Rex]

For anyone not familiar with the Federal Pacific Electrical Panel, a quick Google search is recommended.

Not all FPE panels are problematic. The Federal Pacific "Stab Lok" panels are the ones that have serious issues and should be replaced.

 

[glenn walker]

Personally I would not make an issue of because it's working and going to be changed out after escrow, also the buyer is aware there was a recall on some of the panels and seller is paying $1,200 at close. Often what happens the buyer has home inspection and the inspector noted this in his inspection report. The same with some of the forced air heaters some had recalls and the inspectors tell the buyers. This does not mean they are bad.

 

[Dublin ohio]

Not all FPE panels are problematic. The Federal Pacific "Stab Lok" panels are the ones that have serious issues and should be replaced.

Serious issues is an understatement. In another life I was an electrician for about 8 years. Stab Lok breakers were the worst. We used to say that a Stab Lok breaker was the only breaker you could arc weld with. Many times when doing service work and the panel was not labeled instead of turning numerous breakers on and off we would just short the hot and neutral on a circuit so the breaker would blow and we could work on the circuit. Only problem was that when you did that to a Stab Lok breaker. It would not trip even after more than 1 attempt. It is an inherent problem with the tripping system since they would also not always trip in an overload situation which is thermal activated as opposed to the electromagnetic activation used on a short. This was back in the mid 70's.