Are End-Buyers Scared of Septic Tanks?

[Brandon Sturgill]

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

[Bill Gulley]

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. :)