Buying a house with original septic system to flip

Investor · trumbull, CT · Member since 2015 · 117 posts · 44 votes

I am looking to buy a house with the original septic system. I already know the tank is bad and needs to be replaced, the leaching field could not be easily checked being that they are deep under ground... would you stay away from a house with a septic system this old (house was built in 1972) ? Would you assume that the system is automatically going to go any second because of its age? Comparing this same house apples to apples to a house that has city sewer and city water, would the house with septic be worth less because the system is 50 years old? What are your thoughts?

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Megan Phillips

Rental Property Investor · VT · Member since 2017 · 233 posts · 147 votes

Could you get quotes for cost to do all new system + leach field? I think as long as you budget for it, you'd be okay.

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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
7y
Personally, I avoid them, even though I have a septic system at my own house. It's a little less of a worry on a flip if someone will certify that the tank is empty and functional, since you won't be taking care of it any more once you sell it, but all things being equal I will take city sewer all day long. I'd definitely take city water before a well. As for what the difference in value is, that really depends on where you are. Out here a lot of people don't care one way or the other if it's well or city water, septic or sewer. Other places it's a huge impediment. If it's expensive homes you're talking about, most people don't want to run their own water and sewer plants onsite.
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Megan Phillips
Rental Property Investor · VT · Member since 2017 · 233 posts · 147 votes
7y
Could you get quotes for cost to do all new system + leach field? I think as long as you budget for it, you'd be okay.
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Jesse Greider
Rental Property Investor · Lancaster, PA · Member since 2018 · 24 posts · 14 votes
7y
@Nelson Del Castillo Definitely get estimates on replacing the WHOLE septic system. In my experience they are extremely expensive. In my state, they require a permit (additional costs), and estimates can range from $2,000 to $20,000 depending if the system is anaerobic or aerobic! If the work fits in your budget then it may be worth it. I personally avoid septic systems. I would compare comps with other properties in the neighborhood with septic systems if possible, due to increased risk of problems with one, I would imagine the house is worth less when compared to city water & sewer. This depends on your local market of course.
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Nelson Del Castillo
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Investor · trumbull, CT · Member since 2015 · 117 posts · 44 votes
7y
@Megan Phillips well I know a new system cost about 25k. It would not be a deal if it needed a completely new system. I could have it checked with cameras for $1000 but I do not want to spend another 1k in, inspections. I would rather walk and spend the 1k in marketing.
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Brian Pulaski
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
7y
I have dealt with 3 septic systems in recent history, two in CT and one in NY... here is my take on it.
A house I had in Meriden had a septic set up with a separate grey water. We rolled the dice and when the buyer checked/tested it, it was good to go. I was nervous because 3 houses in that same neighborhood had recently failed and needed replacement.
I had a house in Middlefield which had septic. Rolled the dice and it bit me. The buyer had it tested and it failed. It needed a new tank (original tanks were usually undersized, this was 500 Gal and it needed 1000) and leaching fields. Ended up costing $12,100 to replace.
I recently put a house under contract here in NY. It was septic and I left inspection on my contingency. We dug to the tank and it was a rotted mess, and it actually collapsed a day or two later. The leach fields were nothing more than some old stones/boulders and the property isn't large enough for a correct standard replacement. I brought a company out and he said between $23 and $25,000. On top of that I spoke to an engineer and he was in the $5-8,000 range depending on findings and what the town required... Needless to say I basically backed out, as I would have needed a $30-35,000 price reduction on an already cheap house.
I will say this, who is charging you $1000 to scope it? I got it done for a few hundred. I would look into a cheaper inspection.
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Nelson Del Castillo
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Investor · trumbull, CT · Member since 2015 · 117 posts · 44 votes
7y
@Brian Pulaski thanks for the input! Would you do the flip if 80% of the property’s in the area are on public water and sewer? That’s more or less what it seems to be, only a small amount left on septic and well.
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Brian Pulaski
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
7y
If most houses were on public, then I would probably either pass or assume my house will sell cheaper. Personally I cringe when a house has septic that I am interested in. In towns where there are lots of septic systems, it seems to not matter (my parents, my father in law and lots of my friends/families live with septic systems). In towns with mostly public, I think septic would be a turn off.
My current house actually has an odd set up. We have a septic tank, that then feeds a sewer in the street. The town is responsible for the tank cleaning/replacement etc.
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