Question: Do Polybutylene Pipes Decrease The Value Of A Residential Home?

[Denita Neuenhaus]

I recently found out that a residential property has polybutylene piping throughout the home. The seller does not want to replace the piping with cpvc or copper due to the cost of replacement. I have subsequently found out that this could be a huge insurance issue. Is it also an issue for an appraiser regarding value of the property? Is it worth less just due to the poly piping?

 

[Dublin ohio]

There is a documented class action suit concerning failure of polybutylene pipes. It was used from the 70's to mid 90's. But most of it was used between 1985-1995. Have seen a few cases in my market but that was quite a few years ago as it was not used extensively. Does have a history of failure. Still a chance some homes in area still have it. Used quite a bit in sun belt states between 1985-1995

 

[Denita Neuenhaus]

Well, you nailed the time frame and the location - the property is in Florida built in the time period you mentioned. Just trying to get a handle on how this affects property value.

 

[Dublin ohio]

Not being familiar with your market. I could not comment on value impact. But considering the history of polybutylene and the insurance issues you mentioned. I would think that any knowledgeable buyer would want it replaced. Could also see lender having problem with it.

 

[Howard Klahr]

Does it affect value - yes. How does it affect value - it depends. Do the other homes within the development still contain poly pipe? Are those the homes that are being compared to evaluate the value? If so, the influence is likely already incorporated into the pricing of the properties in the development.

If you use properties outside of the development then you would need to identify plumbing materials.

As you have already noted, insurance issues/costs coupled with the risk of future failure will be a factor.

 

[Dublin ohio]

What Howard said. You identify yourself as agent or broker. The information Howard references should be fairly easy for you to find being a RE professional in area.

 

[Riick]

....and the cost to cure <new copper or plastic water pipes throughout> is....?
If there are no numbers for depreciation you can tickle out of recent or historic sales,
(EG: When all else fails) talk to some *knowledgeable* Realtors, or, maybe better yet, Brokers in the area.
$5 says the amount of depreciation is significantly larger than cost to cure, and/or, the Seller is a Jerk.

 

[Denita Neuenhaus]

Have a couple of estimates for replacement ranging from $7k to $7500. Equity in the home is just over $100k to $120k based on similar homes in the neighborhood and the contract we just lost due to seller not being willing to replace the poly pipe . Seller fells like he is being 'robbed' of $7k. I know you don't do this side, I appreciate the answers so far. Naturally I am the bad guy for letting him know he needs to disclose it or replace it.

 

[Mr Rex]

They may be able to get in on the class actions suit. http://polybutylene.whocanisue.com/

 

[Denita Neuenhaus]

Thank you.