Selling A House With Sewer Problems

Published on April 3rd, 2023

Home buyers are searching for their perfect forever home in today's market. Is your home the perfect home? If you have sewer issues, septic system issues, plumbing repairs that need to be made, or leaky pipes, the answer is probably not. What can you do as a seller to attract more buyers?

Sewer line issues, a failing septic system, and plumbing issues all have one thing in common - they have high repair costs. Your best bet in securing a good offer on your home with any one of these issues would be to repair them if possible. Home buyers will want to see that a house with a failed sewer inspection can pass local law ordinances surrounding efficiency and water pressure and a basic home inspection. If you can't make those necessary repairs when selling your house - then what?

Throughout the course of this article, we will discuss five different options for you to sell a house with a failing septic system or a sewer line issue.

Selling To A Real Estate Investor That Specializes In Homes With Septic Or Sewer Issues

Selling your home as is to a real estate investor might allow you to get a fair cash offer considering the extent of repairs that your home needs. Investors go into a situation like this, understanding that they will be cash buyers and will encounter plumbing problems such as a failed septic.

Many of these investors will be looking at the potential reasoning behind the damage to the septic system when visiting your home to assess how much money repairs might cost when selling your house as is.

For instance, in rural areas, septic systems are often damaged due to large tree roots that grow into the leach field. This can be damaging to your pipes, house, and drain field as a whole. Typically repairing the problem and rethinking the existing outdoor landscaping by removing trees can fix this issue.

In other instances, investors could see that the property was grossly neglected and wasn't in good shape. The plumbing issue at this type of house could cost much more, and they might not have enough money to invest in fixing it. Each real estate investor is different, and their level of comfort surrounding damage varies.

Selling Through A Real Estate Agent On The MLS

Real Estate Agents see all kinds of plumbing issues on a daily basis when showing homes, including low water pressure, too much water pressure, standing water in the basement, and septic problems. 

Finding a real estate agent who specializes in problem homes and can help you sell your house on an open market to potential buyers will prove to be invaluable. 

To start, if your home has septic issues, your realtor might suggest finding a copy of your septic design by visiting your local municipality and pulling your property file. You can find this by providing the clerk with your property address and tax ID on the town maps. This will help future buyers during their option period when they bring in an inspector to review the septic problem.

An inspector will confirm whether your entire system was installed correctly or not and have your septic system inspected. Oftentimes these inspectors will use tools such as a camera on the end of a long tube that snakes through your pipes. The camera feed will Bluetooth with the inspector's iPad or tablet and displays images that can show where the plumbing problem might be. Many buyers will request that this is done if you sell your home with septic issues because many lenders won't finance a home or property with plumbing damage or in need of plumbing repairs. 

If the damage is extensive enough, your might need to sell your home at a lower sale price or have a buyer pay cash - then what?

Private home buyers will be willing to pay cash in the right situation for your home. They generally are aware that when they purchase a home that there might be issues such as a failed septic system, a faulty water heater, or slow flushing toilets.

All of these issues can be fixed. With proper disclosure, private buyers love to buy houses with these issues at a lower price since a traditional home buyer can when going through mortgage companies.

Selling At An Auction

When selling your property at an auction, you need to be aware that a potential buyer will see a small flaw and run with it. With plumbing issues left unchanged, the buyer can over exaggerate the issues and the costs associated with fixing them. If you stated in your disclosure that there are damaged pipes, an auction attendee might wonder what exactly is damaging the lines are - is something the wrong size in your plumbing? Is there a proper flow of the liquid wastewater, or is there a more serious issue?

If you're planning to sell your property at an auction, consider the cost of the minor repairs for the overall bigger picture. Will it present your home in a better light and allow you to get more money for your home? If the answer is yes, then you should consider those repairs.

Local home buying companies will purchase a distressed property with the intent of fixing it and then reselling it for a profit. These types of companies work hand in hand with other professionals to access your failed septic, drain fields, and other issues with your plumbing to give you a fair cash offer.

Deciding which of these five options is the best for you and your home with a failed septic system is up to you entirely. Consider the extent of the damage, your current financial situation, and how much you want to be held liable for during a sale.

For more information on selling homes with property damage, check out some of our past posts.