Federal Pacific Electrical Panels: Why You Must Replace Them Before Selling Your Home
If you're planning to sell your home and it was built between 1950 and 1990, there's something in your basement or garage that could tank your deal: a Federal Pacific Electric (FPE) panel. These breaker boxes look innocent enough, but they're a ticking time bomb and they will absolutely come up during your home inspection.
What's the Problem?
Federal Pacific made millions of these panels with "Stab-Lok" breakers. The company fraudulently certified them as safe when they absolutely weren't. Tests show that up to 1 in 4 breakers fail to trip during overloads meaning they won't do their job when you need them most. The result? An estimated 2,800 house fires and 13 deaths annually.
These panels don't announce they're broken. They sit quietly in your home, potentially for decades, until an electrical problem happens. Then instead of cutting power like they should, they just... don't.
Why This Kills Your Sale
Here's where it gets real for home sellers:
• Insurance companies won't cover it. Many insurers refuse to write policies for homes with FPE panels, or they add exclusions saying they won't pay for electrical fire damage. Your buyer's lender will require proof of insurance, so this becomes a deal-breaker fast.
• Inspectors will call it out. Every competent home inspector knows to look for these panels. It'll be front and center in their report, and buyers will either demand you replace it or walk away.
• You lose negotiating power. If the panel comes up during inspection, you're on the back foot. The buyer knows you have to deal with it. Better to handle it upfront on your timeline and budget.
• FHA and VA loans won't fund. If your buyer needs an FHA or VA loan (and many first-time buyers do), the appraisal will flag the FPE panel as a safety hazard. The loan cannot close until it's replaced. You'll either scramble to replace it last-minute or watch the deal fall apart.
How to Identify an FPE Panel
Open your electrical panel door and look for:
• "Federal Pacific Electric," "FPE," or "Stab-Lok" printed on the panel or breakers
• Breakers with a red stripe across the front
Not sure? Call a licensed electrician to check. Don't mess around inside the panel yourself it's dangerous.
What It Costs to Replace
Full panel replacement typically runs $1,300 to $3,000 depending on your location and whether you're upgrading your electrical service. Yes, it's a chunk of change but it's non-negotiable if you want to sell smoothly. And frankly, it's worth it for the safety of whoever lives in your home next.
The Bottom Line
Don't wait for the inspection to reveal this problem. If you've got a Federal Pacific panel, bite the bullet and replace it before you list. You'll avoid blown deals, panicked last-minute repairs, and buyer anxiety. Plus, you can market the new panel as a selling point because a safe, modern electrical system is exactly what today's buyers want to see.
Get ahead of it. Replace the panel. Sell with confidence.
