Are End-Buyers Scared of Septic Tanks?

Question

Would you invest in a property with septic?...

Bill Gulley · Answer

Have with many, it boils down to what is common for the area. Comps can have a 5 to 10K adjustment (less) for a septic to a comp on sewer. A big spread.

If sewer is available, deduct the cost to hook up. If sewer isn't available, the cost of maintenance, pump outs and repairs will fall in that 5 to 10 K range, usually.

If it's common for the area and the comps are on septic, there is not a measurable difference.

I've found that most buyers don't flinch much on a septic as it's expected in rural areas, most who haven't had a septic won't balk at it, they may have questions, but if it's common in the area it's accepted. If sewer is available I'd guess that a half will make an offer with hook up being completed prior to closing.

FHA and some secondary market loans will require sewer if it's available, the appraiser will need to note on the appraisal that septic is common for the area and what adjustment was made, if any. :)

Brandon Sturgill · Answer

Thanks @Bill G. and @Paul Ewing . This is good information. My fear is that the leach bed (front yard) runs to close to the main road and is not large enough for a 3BR property...and good point about the availability of sewer, because the comps appear to be largely on sewer (recent hookups). I'll confirm hookup fees with the county utility. Much appreciated.

Paul Ewing · Answer

Not an issue for me.  Four of my five places and my personal house have septic systems.  I do have a septic system addendum for my lease that lists dos and don'ts since some renters haven't had them before.  I do much prefer traditional tank and leach field designs and try to stay away from places with the aerobic (s#$t sprinkler) design which is more costly to keep maintained and much more costly to fix or put in place.