Whether you’re buying, selling, or refinancing a home, the electrical system is one of the most important parts of a home inspection.

And many homeowners are surprised by how often electrical issues come up.

Understanding what inspectors look for can help you avoid delays, failed inspections, and last-minute repair costs.

⚡ 1. Electrical Panel Condition

The panel is one of the first things an inspector examines.

They check for:

• Proper labeling of breakers
• Signs of overheating or burning
• Rust or corrosion
• Double-tapped breakers
• Correct breaker sizing
• Panel brand and safety history

Certain older panel brands raise immediate red flags, including:

• Federal Pacific Electric
• Zinsco
• Challenger

If one of these panels is present, inspectors often recommend evaluation or replacement.

🔌 2. Proper Grounding & Bonding

Grounding protects your home from electrical faults and surges.

Inspectors check for:

• Ground rods
• Bonding at water lines
• Proper neutral/ground separation
• Secure grounding electrode conductors

Improper grounding is one of the most common inspection findings in older homes.

💡 3. GFCI & AFCI Protection

Modern safety codes require protection in certain areas:

• Kitchens
• Bathrooms
• Basements
• Garages
• Outdoor outlets
• Bedrooms (AFCI protection)

These requirements are outlined in the National Fire Protection Association under the National Electrical Code.

Missing protection devices can lead to inspection repair requests.

🔥 4. Exposed or Unsafe Wiring

Inspectors look for:

• Open splices
• Exposed wiring in basements or attics
• Improper junction boxes
• Loose outlets or switches
• Overfilled electrical boxes

Even small issues can appear as safety concerns in an inspection report.

🏠 5. Service Size & Capacity

Many older homes still operate on 100-amp service.

Inspectors may flag concerns if:

• The home has modern appliances but limited capacity
• There’s no room for additional breakers
• The panel appears overloaded

With today’s electrical demand (EV chargers, HVAC systems, smart homes), panel capacity matters more than ever.

⚠️ 6. Aluminum Wiring

Homes built in the late 1960s and early 1970s may contain aluminum branch wiring.

Inspectors often recommend evaluation because improper connections can lead to overheating if not correctly terminated.

🧾 7. Permit History

If major electrical upgrades were done without permits, that can create complications during sale or refinance.

Unpermitted work may require correction or retroactive approval.

💰 Why This Matters for Sellers

Electrical issues are one of the top reasons buyers request credits or repairs.

Fixing problems before listing your home:

• Prevents closing delays
• Increases buyer confidence
• Strengthens negotiating power
• Protects your property value

🛠 Why This Matters for Buyers

An inspection report showing electrical concerns doesn’t always mean a deal breaker.

But it does mean you should:

• Get a licensed electrician’s evaluation
• Understand repair costs
• Address safety issues immediately

🔎 Final Thought

Your electrical system is mostly hidden — but it plays a major role in home safety and resale value.

A pre-listing or pre-purchase electrical evaluation can prevent surprises and give you peace of mind.