2025’s Most Inspected Rehab Item: Electrical Safety and Panel Upgrades

If you rehab houses (or list them), you already know the pattern: a few items get “eyeballed,” but electrical gets inspected. Hard.

And in 2025, inspectors and insurers have gotten even more serious about panel condition, service size, and obvious safety hazards—because electrical problems are one of the most expensive, most dangerous, and most liability-prone surprises hiding behind drywall.

This isn’t meant to turn you into an electrician. It’s meant to help you spot red flags fast, ask the right questions, and avoid buying a rehab that turns into an unplanned electrical rebuild.

A Brief History of Home Electrification (Why Old Homes Look So Weird)

Early 1900s: Knob-and-Tube (K&T)

• Wires run through ceramic “knobs” and “tubes”

• No ground wire

• Was fine for lights… terrible for modern plug-in loads

  Problem today: insulation breaks down, splices get hacked, and the system wasn’t designed for today’s appliances. Many insurers hate it.

1920s–1950s: Cloth-insulated wiring

• Rubber + cloth insulation that gets brittle over time

• Often still ungrounded, or partial grounding

  Problem today: cracking insulation + overloaded circuits.

1950s–1970s: Aluminum branch wiring shows up

• Used heavily due to copper prices

• Can be safe if properly terminated and maintained

  Problem today: loose connections, overheating at outlets/switches if wrong devices or terminations were used.

1960s–1990s: “Modern” panels expand, but not all are equal

• Breaker panels become standard

• Service sizes increased gradually

  Problem today: some legacy panel brands have known failure modes; older service sizes (60/100A) don’t match modern loads.

2000s–today: Homes became power-hungry

• Bigger HVAC, more electronics, more kitchen demand

• Code requirements expanded (GFCI, AFCI, grounding, bonding, smoke/CO, etc.)

• EV chargers and heat pumps are now common upgrades

Bottom line: electrical systems weren’t designed for how we live now. A 1940s house might still “work,” but it may not be safe, insurable, or expandable.

Fast “At-a-Glance” Clues of Outdated or Risky Electrical

These are the things investors and agents should look for on the first walk-through.

1) Screw-in fuses (not breakers)

If you see round fuse sockets (often with glass fuses or “penny” hacks), you’re in older territory.

What it suggests:

• Old fuse panel, often 60A service

• Higher chance of ungrounded circuits

• Higher chance of overloaded circuits

2) Two-prong outlets everywhere

Two-prong outlets often mean no equipment ground in the circuit. Sometimes they’ve been swapped cosmetically—so don’t assume.

Watch for:

• Three-prong outlets with no ground (common “lipstick fix”)

• GFCI outlets used as a workaround (sometimes acceptable if labeled properly, but still not the same as a true ground)

3) “Warm outlet / buzzing switch / flickering lights”

These are not cute quirks. They often mean:

• loose connections

• overloaded circuits

• failing devices

• panel issues

4) Extension cords as permanent wiring

If you see multiple extension cords “solving” power needs, it’s a demand signal:

• not enough circuits

• poor outlet placement

• insufficient capacity for modern usage

5) Open splices, messy junction boxes, or missing covers

Electrical must be contained in boxes with covers.

Any visible open splices screams: unpermitted work or DIY.

6) Aluminum wiring clues

Look for “AL” markings on cable jacket, or ask the seller.

Also look at:

• outlets/switches that look newer than the house (possible retrofit)

• scorched outlet covers or discolored receptacles

7) Panel red flags

• rust, water staining, corrosion

• double-tapped breakers (two wires under one breaker lug where not allowed)

• missing knockouts (open holes)

• melted insulation or scorch marks

• a panel that’s full with lots of tandem breakers (can be legitimate, but can also signal “we ran out of room”)

How to Identify the Home’s Amperage at a Glance

You can usually determine service size in under 60 seconds. Here’s how.

Method 1: Look at the Main Breaker

Open the panel door (not removing the deadfront—leave that to a pro).

Find the main breaker, usually at the top.

It will typically say:

• 60

• 100

• 125

• 150

• 200

• 400 (often two 200A panels or a larger service)

If the main breaker says 100, you have a 100-amp service.

Method 2: Read the Meter Base / Disconnect Label

Sometimes the panel is messy, but the meter base or exterior disconnect has a label like:

• “200A rated”

• “100A max”

  This is helpful, but the main breaker size is usually the quickest.

Method 3: Clues from the Service Entrance Cable

Not foolproof, but older services often have:

• smaller gauge wires

• older conduit setups

• older meter cans

  Again: the main breaker number is the cleanest answer.

Why Modern Homes Need at Least 200 Amps

For a basic older home with gas heat and modest appliances, 100A might survive.

But most buyers—and most upgrades—push beyond that quickly.

Here’s the real-world load story:

Typical modern demands

• HVAC systems (especially if electric heat strips exist)

• Electric water heater (if present)

• Electric range/oven

• Microwave + dishwasher + disposal

• Washer/dryer (electric dryer is a big draw)

• Multiple refrigerators/freezers in some homes

• Home office / gaming / networking gear

• Hot tub, pool equipment, workshop tools

• EV charger (often the elephant in the room)

• Heat pump conversion / electrification trend

A 200A service isn’t “luxury.” It’s breathing room. It gives you:

• safer capacity (less overload risk)

• room for future circuits

• easier permitting for upgrades (EV, hot tub, addition)

• fewer deal-killing inspection issues

And from a resale perspective: 200A is a comfort signal.

Buyers may not understand amperage—but their inspector and insurer do.

Investor and Agent Guidance: The Smart Way to Handle Electrical in a Rehab

1) Treat electrical like structure: budget and verify early

If you suspect the service is 60A/100A, or the panel is obsolete, don’t “hope it’s fine.”

Get an electrician to assess:

• service size adequacy

• grounding/bonding

• panel condition and capacity

• visible wiring issues

• likely code triggers

2) Know the likely rehab domino effects

A panel upgrade might trigger:

• service mast / meter base work

• grounding electrode updates

• bonding corrections

• GFCI/AFCI upgrades depending on scope and jurisdiction

  Translation: in some areas, “just swap the panel” is not the real cost.

3) Understand the buyer’s lens

Even if a system technically “works,” buyers and inspectors often judge electrical by:

• safety

• insurability

• expandability

  You can win by making the invisible reliable.

Bottom Line

If you want fewer surprises in 2026, put this on your first-walk checklist:

• Fuse box? Two-prong outlets? Flickering lights? Warm outlets? Messy panel?

  Assume the electrical is part of the rehab until proven otherwise.

And if the home is 60A or 100A, understand what that means in today’s world:

Modern living expects 200 amps.

Anything less becomes a bottleneck—safety, resale, and upgrades.

Personal Note From Roger

Let’s get your new year started in the right direction.
As we head into year-end, I’m opening 10 private strategy calls for real estate professionals and small business owners who want clarity going into 2026.

Click here for more information and to schedule a call.