When should you convert to sewer when buying, selling or refinancing a home?

Many homes in parts of your city and usually on the outlying areas of town offer sewer, but your still hooked up to a private septic system. When should you convert? The answer is it depends? If you’re planning on selling your home soon, it may be a good time to make sure you have what is conforming to your market area. Let me explain.

The other day I appraised a home on the outskirts of town. In this area, all of the homes have converted to public sewer except for this home. Now you have a functional issue and possible a value issue. You see, all of the homes in the area offer similar conforming sewer except for your home. Now when the appraiser goes to pull comparable sales, they will have to locate homes that confirm marketability for your area and homes that offer private septic systems as your home. Sometimes, it is no big deal and there is not time constraint placed on your property. In this case, the buyer may like this, especially if the owner just put in a brand new septic system that will not need to be replaced for 20 years. But in many cases, the owner has a time limit or restrictions as to when the septic needs to be changed and hooked up to the public sewer system. I’ll give you three different cases that will allow you to understand how an appraiser will determine your home value in regards to septic vs. sewer.

Three cases will occur.

In the first case, the appraiser will find sales in the market area that offer similar support for other homes that offer a sewer or private septic system. If your neighborhood is in the process of converting over, there will be a mix of sales and there will usually be no major difference of homes that offer sewer vs septic.

In the second case, as time progress and most of the home owners' switch over to sewer and your home is still hooked up to private septic system it may begin to influence the value of the home and a possible sale of your home.

If you have the same home as your neighbor except for a sewer hookup that cost $5000, which one would you choose? You would choose the home that has already paid for the sewer hook up. This is because the city will have a time frame when the sewer will need to be installed. In my areas it is usually within five years. The closer to five years, the more the buyer will be concerned about this, because they will not want to front the entire bill to hook up to the sewer line right when they move into their new home.

In the third case, your home may be a private septic but the surrounding homes have hooked up to the public sewer system and you had an option to hook up. In this case, it will depend on your market area and the lot size and many other factors. If this is common in your market area, then you will not need to hook up to public sewer. In fact, some buyers may prefer to have a septic system, as long as it is in good working order. This way the new owner will not have to pay the monthly fees for the public sewer system.

Refinancing a home

Buying a home

If it is a buyers market, have the seller hook up the sewer line. If not, there will be plenty of other homes that have already hooked up. If this is a home that you must have, negotiate the cost of the hook up. First try and get the owner to pay the full cost. If this doesn’t work, try to split the cost of the hook up. If this doesn’t work, you’ll have to decide if you are willing to fit the entire bill to hook up to the public sewer and if it is required and when. Be sure to make the call yourself. The owner or the Realtor might tell you anything to sell the home.

Selling a home