The Gripe with Polybutylene Pipe

This summer, I represented two buyers who each bought homes in the Westminster, in the Arrowhead neighborhood.  Arrowhead is a Jefferson County neighborhood just north of 112th Avenue and west of Sheridan Boulevard.  The houses were built in the early 90s, and quite a few of them are plumbed with polybutylene piping, a material that was in use from about 1978 to 1995.  Because of its low cost and easy installation, it was used extensively to replace copper piping in areas across the United States.

Unfortunately, there have been incidents of system failure over the years, resulting in several lawsuits and a class action settlement.  The manufacturer has never admitted that polybutylene is defective, and indeed many homeowners have lived with with piping for decades without incident.  Nevertheless, once discovered by a professional inspection it can become a sticking point in negotiations.  Additionally, insurance companies are wary about issuing policies for homes that still contain polybutylene.

Pipes are typically gray or white with a dull finish

The first time I encountered this issue, neither the seller nor the listing agent were aware that the house was piped with polybutylene.  The seller was not in a financial position to have the entire house replumbed, which can be expensive for two-story homes.  We negotiated some money off of the purchase for some other repair items, but that still didn't resolve the plumbing issue.  Our inspector recommended an alternative - getting the piping certified by a licensed plumber.  We called the buyer's insurance company to find out what would satisfy the underwriter, and they echoed our inspector's suggestion.

As it turns out, over the course of the 18 years or so that polybutylene had been utilized, there were improvements in the material and installation methods that increase the integrity of the system, so the later installations have proven to be more reliable than the originals.  Still, certain insurance companies will not issue new policies on homes with polybutylene piping so it's very important to do an inspection and make the right phone calls.  Adding a home warranty into the transaction that covers the plumbing may also help give peace of mind.  And if your insurance agent says no problem, he's got it covered, make sure you get it in writing. 

Another consideration I point out to buyers when they are thinking about accepted something in a structure that is less than ideal - the effect the issue will have upon resale.  While one buyer may be willing to take on a certain amount of risk to get the house they really want, another may not touch it with a ten foot pole.  Even if the piping has no problems for the next decade or so, the subsequent buyers may insist that the house get replumbed as a condition of sale.  It's possible that potential buyers may not even consider the home if it still has polybutylene, increasing your time on market and possibly incurring a cost reduction.

Do your homework.  Ask industry experts about their experience with polybutylene, and not just the companies that are in the business of replacing it.  Find out from your Realtor if the material is prevalent in the area and what sellers have been willing to do for buyers in the past.  If you decide to move forward with the transaction, plan to build the replumbing costs into a future repair budget so that you can get top dollar when you decide to resell.

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I would love to help you with your real estate journey. 

Please contact me at 303-917-7143 or robbin@stauferteam.com

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