The Attic Told the Real Story
I always start Minneapolis winter inspections in the attic. With snow on the roof, you can't see shingle condition from outside. But the attic shows you everything the roof is doing to the house.
Terri and James's bungalow had a classic Minneapolis problem: about four inches of blown fiberglass insulation in the attic floor. That sounds like something, but the current recommendation is R-49, which translates to roughly 16 inches of fiberglass. They had maybe R-13. The rest of the heat from the house was going straight through the ceiling and melting snow on the roof deck.
The evidence was everywhere. Water stains on the underside of the roof sheathing, particularly near the eaves. Dark streaks of mold on the north-facing rafters. And frost. Actual frost crystals growing on nail tips that poked through the sheathing. In a properly insulated and ventilated attic, you don't see frost because the attic temperature stays close to the outdoor temperature. This attic was warm enough to grow frost patterns like a science experiment.
Ice Dams in Action
I pointed out to James where the ice dam damage was happening. Along the north eave, the soffit was visibly water-stained from below. Inside the second-floor bedroom closet that backed up to the eave, I found soft drywall and a faint musty smell. Classic ice dam water intrusion. The snow was hiding the exterior ice, but the damage trail inside told the story.
Proper fix: blow the attic up to R-49 (about $2,500 for a house this size), seal air leaks in the attic floor around light fixtures and plumbing penetrations, and improve soffit ventilation. Maybe $3,500 all in. Not a deal-breaker, but something that needed doing before next winter.
Electrical: The Knob-and-Tube Situation
I expected knob-and-tube wiring in a 1926 house. What I found was a patchwork of three different eras of electrical work. The original knob-and-tube was still active in the attic and parts of the second floor. Somebody had run Romex (modern cable) to the kitchen and bathroom, probably in the 1980s based on the cable style. And the basement had a mix of armored cable from what looked like the 1950s and some newer circuits for the laundry area.
The panel was a 100-amp Pushmatic breaker panel, another relic from a 1960s-era upgrade. Pushmatic panels have known issues with breakers that don't trip reliably. Between the active knob-and-tube and the panel, I recommended a full electrical evaluation by a licensed electrician.
The Insurance Factor
I mentioned to Terri and James that some insurance companies in Minnesota won't write policies on homes with active knob-and-tube wiring, or they charge significantly higher premiums. This turned out to be the deciding factor in their negotiation. They got quotes for a partial rewire and panel upgrade: $8,500 from one electrician, $11,200 from another. They used the lower quote in their repair credit request.
The Basement: Wet, As Expected
Minneapolis bungalows from the 1920s have poured concrete basements with no waterproofing membrane on the exterior. After a hundred years of freeze-thaw cycles and clay soil movement, every single one of these basements I have ever inspected shows water intrusion to some degree. This one was no exception.
The walls had efflorescence (white mineral deposits) on about 60% of the surface area. There were active water stains along the base of the west wall. The previous owners had installed a sump pump at some point, which was working when I tested it. But the floor drain in the corner was partially clogged and the concrete floor had multiple patches where cracks had been filled with hydraulic cement over the years.
Foundation Condition
Structurally, the foundation was in reasonable shape for its age. I found hairline to 1/8-inch vertical cracks in three locations, consistent with normal settling and freeze-thaw cycling over a century. No horizontal cracks, no significant displacement, no signs of active structural movement. The floor joists above were solid, with good bearing on the sill plates.
The honest assessment: this basement was typical. Not great, not alarming. The kind of basement you live with in a 1920s Minneapolis house. Budget for interior waterproofing if you want to finish the space ($8,000-$15,000), or just keep the sump pump maintained and live with a utilitarian basement.
Heating Under Real Load
The one genuine advantage of a January inspection in Minneapolis: I got to see the furnace working at full capacity. The house had a 2009 Carrier 80% efficiency gas furnace. At 17 years old, it was past the midpoint of its expected life but still running. The temperature differential across the heat exchanger was within spec, the burner flames were clean, and the flue was drafting properly.
But I noticed the house was only reaching 64 degrees with the thermostat set to 68. On a day when it was negative eight outside, a four-degree gap between setpoint and actual temperature told me the furnace was undersized for the conditions, the insulation was letting too much heat escape, or both. Given the attic situation, I was pretty sure it was mostly the insulation.
I flagged the furnace as "functional, aging, plan for replacement within 3-5 years" and noted the temperature gap as evidence of overall insulation deficiency. Terri wrote in her notes: "House is cold. Attic needs insulation. Not a surprise."
The Plumbing Nobody Wanted to Hear About
Original galvanized steel supply lines from 1926 were still serving most of the house. Galvanized pipe has a functional lifespan of about 40-70 years, and at 100 years these were living on reputation alone. Water flow at the second-floor bathroom faucet was noticeably low, which is the telltale sign of interior galvanized corrosion restricting flow.
The drain lines were a mix of original cast iron and replacement PVC. The cast iron sections showed heavy external corrosion and I could hear slow drainage at a couple of fixtures. A sewer scope would have been my recommendation, but the scope company couldn't get scheduled for two weeks and the inspection contingency deadline was approaching. Terri and James decided to proceed without it and handle any sewer issues post-closing. That was their risk to take.
How the Negotiation Went
The inspection report gave Terri and James real numbers to work with. They asked for $18,000 in credits based on: electrical panel and partial rewire ($8,500), attic insulation and air sealing ($3,500), deferred exterior maintenance they would address in spring ($3,000), and plumbing evaluation budget ($3,000).
The sellers countered at $10,000. They settled at $14,000, which Terri and James felt good about. They closed in February, moved in during a snowstorm (naturally), and started the electrical work the following month.
Two Years Later
They have done the electrical panel and partial rewire, the attic insulation, and had the galvanized water lines replaced with PEX (about $4,800). The sewer scope they eventually did showed the main drain was in acceptable condition with some root intrusion that a plumber cleared for $350.
Total spent beyond purchase price: roughly $17,000 in upgrades and repairs over two years. The $14,000 credit covered the lion's share. The house appraised $42,000 higher than their purchase price at their most recent refi. Minneapolis bungalows in good neighborhoods hold their value extremely well, and putting money into mechanical and structural improvements pays off.
Would I have recommended this house to a buyer who wanted move-in-ready? No. But for Terri and James, who understood what they were getting into and had the budget to address things systematically, it was the right call. That inspection in the freezing cold gave them the information to make that judgment with confidence.