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

[Denita Neuenhaus]

But it is difficult to obtain insurance and what is available is at a higher cost.

I spoke to an insurance broker that represents 35 insurance companies and asked a hypothetical question about a property having poly pipes and she said that 33 of the 35 companies won't insure a property with poly pipes at all (this is in S Florida). The other two will insure but exclude water leaks. She also mentioned that the insurance applications have a specific question asking if the property has poly pipes and if the seller/owner has responded 'no' without having accurate information, that any damage done by water leaks 'most likely' will not be covered and it could be construed as fraud. Pretty serious consequences especially since I am pretty sure the seller was totally unaware.

 

[Michael S]

I'm in a rental house and a few months ago there were several instances of leaking poly pipes underneath the slab in the garage. The owners planned to just replumb the entire house as there had been a couple of earlier leaks a few feet away. Luckily when they got into it they found that the house was all copper and the poly piping was only from the meter to the house. I'm sure it still cost quite a bit to just redo that as there were a couple of guys working 2-3 days. I found out that pretty much the whole neighborhood and several others nearby had the same issue. Some houses had all of the poly replaced, some had not. No idea what (if any) price differential there was but odds are if the other nearby homes were built at the same time by the same builder they will have poly as well. Some might have had it all replaced and made note of that in the MLS comments. You might be able to find some paired sales that will show the market reaction. It could be minimal if most buyers/sellers/brokers in the area are ignorant of it.

 

[Noreen]

Down here with the minerals, it is not unusual to have to replumb the homes, especially well water. Replacing the copper with modern plastics, same stuff used in new homes.

And up here in my "Neck of the Woods" it's becoming more popular again because it does not burst when it freezes like copper/metals do

 

[Mr Rex]

And up here in my "Neck of the Woods" it's becoming more popular again because it does not burst when it freezes like copper/metals do

And the new Pex is cross linked polybutylene, not the old regular polybutylene "Quest" and has eliminated alot of the issues. There has been another issue that has come up with Pex called de-zincification that involves the brass fittings used in the newer Pex piping. Brass is essentially copper and zinc, but the ratios are important. Some manufacturers have used too much zinc in the fittings and the zinc leaches out causing the "brass" to weaken and eventually leak. Zinc is cheaper than copper... It is usually easy to identify, it leaves a bluish residue behind as the zinc leaches out and the leaks develop. There are class action law suits related to this as well, but is mostly limited to a few manufacturers of the fittings.

All that said and after all I've seen as a Home Inspector, Pex would be my water piping choice. CPVC would be next but it is rigid and less forgiving than pex but since its chemically welded to cvpc fittings for the most part it eliminates some of those issues. Copper has always been the "king" but as I noted, copper has its own issues with municipal chemicals and naturally occurring alkalinity that have lead to statewide studies of the pin hole failures etc.

 

[Denita Neuenhaus]

Thank you for the information about PEX Mr Rex. One of the bids just came in from a well respected plumbing co and it is just under $6k to re-pipe with PEX.

 

[Tom D]

everything being rehabd or built new in this big city has the poly water pipes, not sure their composition. seems like one good reason for them, the copper cutters breaking in to steal all the copper. i personally don't like that system, god knows in 30 years what they will find ti doing to you.

 

[bnmappraisal]

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.

I agree with Howard.

Sorry to hear you lost the sale, though, Denita. Hopefully a new buyer will come along soon or the seller will change their mind/agree to make the necessary improvements.

 

[Denita Neuenhaus]

Sold it to another buyer with an appropriate credit by seller at closing to change out the poly pipes after closing if the buyer chooses to change the pipes. The credit shows as a credit toward buyer closing costs because we aren't allowed - per lender rules - to show it against a repair item for the property. All disclosures made well before the offer was made. Actually had two offers from two different buyers, but one of the buyers just didn't have the money to purchase (makes you wonder what their agent is thinking). Seller accepted the offer by a buyer that can actually close.