Description: When it comes to unpermitted work that has been done on your home, it’s better to know than to not know. If you have an unpermitted septic system, there are still ways that you can interest buyers and eventually sell the property. Here’s what you need to know.
When you’re looking to sell your home, you want the process to be as smooth and easy as possible. You might update some things, add a fresh coat of paint, and stage the place to look better than ever. That might sound great – but it’s not always that easy. Unfortunately, things tend to pop up at the worst times that cause extra stress when it comes to selling your home.
Your septic system is one of those things. When it’s working properly, your septic system safely treats wastewater that comes from the plumbing in your home. Through a combination of natural and chemical processes, your septic system takes the water produced inside of your home and breaks down organic matter while sorting it from grease and oils.
When your septic system is working well, you should hardly even notice it. However, maybe somewhere along the way, your septic system had some unpermitted work done to it. End of the world? No. Can you still sell the property? Yes.
Unpermitted work on a home can get you in some trouble if you don’t take the right steps in disclosing it to any potential buyers. Whether you want to make repairs and get permits to update your septic system or try to sell as is, you have options. The most important thing to know is that unpermitted work can really come back to bite you – so you need to decide what your plan is before listing the home for sale.
Here’s what we think you should know when it comes to selling your home with an unpermitted septic system.
- Repair / Replace Your Septic System
Since the septic system is one of the most important systems in a home, potential buyers are going to expect it to be up to code and working well when they make an offer on the property. It’s so important, in fact, that most lenders won’t even consider approving financing of a home without a properly working septic system.
One of the best options when it comes to selling your home with an unpermitted septic system is to just go ahead and do the repairs or get it replaced. Though it’s not the most extravagant thing to put some money into, it could actually get you a better, more competitive price for the house whenever you do decide to list it.
Now, pricing will vary depending on your location, how much work the system needs, and what types of permits you’ll need to get. You can expect to pay somewhere between $10K-$30K to fully replace the system, if that’s what needs to happen.
- Use Escrow to Replace the System
Instead of repairing or replacing the system yourself, you can choose to put money into escrow to cover the costs of repairs or replacement. An escrow, in real estate, is a neutral fund used in a real estate transaction meant to protect both the buyer and seller during the home buying process.
In order to do this, you will need to obtain repair/replacement/permitting estimates then negotiate with the buyer on the amount to offer for the repair. When you go through this process, the new owner can feel confident in the repairs and that everything was taken care of to the level required.
- Sell the House As Is
This is going to be your most difficult option when it comes to selling your home that has an unpermitted septic system. Why? Because unlike other problems around the house, unpermitted work can actually come back to bite you in the long run. Even if the buyer knows about the issues before the sale, they can still come back and pursue legal action down the road.
Inspections are a mandatory part of almost every real estate transaction. When you have an unpermitted system, it’s going to show up on the inspection report. Most buyers will be extremely hesitant if they see a major problem like this arise on an inspection report. Knowing this ahead of time can save some unnecessary conflict or negotiations.
If you decide you want to sell your home as is, it’s going to require a pretty heavy discount on the price. Most homeowners won’t want to deal with something as serious as an unpermitted septic system – not to mention having to go in and get it replaced before they can even move in. A large discount might appeal to some buyers that won’t mind having to pursue permits and get extra work done on the house.
The Bottom Line
When it comes to dealing with an unpermitted septic system, you’re going to want to tackle this major issue as soon as you can. Though it’s not fun to shell out extra money to get permitting done or get the system replaced, it might be necessary before you are able to list your home on the market.
Taking care of unpermitted work will not only allow you to be completely honest and confident that all is “good-to-go” to potential buyers, but it could also save you some major headaches in the future, avoiding legal fees and other costs that buyers could request. When in doubt, do your research and ask a professional. It could make all the difference!