Septic Surprises: Spend $500, Save Thousands

rosajaviersales
Jul 25, 2025
4 min read

There is one unpredictable, time-consuming repair that can derail a real estate deal fast: the septic system. It could be a quick fix, or a five figure nightmare. What is at stake? Unclear timelines, unknown costs, weather delays, soil conditions, local regulations, and contractor availability. All of which can get out of hand fast, turning a promising sale into a waking nightmare.

Some of my toughest deals fell apart due to three major septic related issues: timing, bureaucracy, and financial pressure. The timing was hard to plan out as the freezing weather made digging impossible. Navigating the bureaucracy between the local government and the HOA took major brain power with multiple permits required and confusion over who approved what. Finally, financial pressure weighs heavily on both the buyers and the sellers. As interest rises, the buyers’ loan qualifications drop. Meanwhile, the sellers faced the important question: how do you pay for this repair? Other inconveniences come into play such as looking for a reputable contractor who is honest, skilled, and fairly priced.

Take Control: Pre-Sale Septic Inspection

When a septic inspection is conducted before you put the home on the market, you stay in control. However, when buyers are the ones discovering the issues this often leads to tanking or delaying the deal. Eliminate the issues and be proactive. Have the report, receipts and guarantees ready before a single buyer walks through the home. This will set the home apart and will build buyer’s confidence, which is the secret behind high offers. All kinds of buyers will be attracted to your home including FHA, VA, USDA and conventional loan buyers that need to pass inspection standards. Investors and cash buyers will also offer more when the most expensive job is already done. Offers come in faster, stronger and earlier when buyer confidence is your leverage. All you need to get it is a $500 septic inspection.

What could happen if you skip inspection? Here’s what can go wrong and how fast it can get out of control.

Negotiations

If the septic system shows signs of failure, with costly repairs, buyers will use this fact as leverage: price will drop and/or they will insist for the system to be repaired before closing. A failed septic inspection will shift the dynamic completely in the buyer’s favor. Even in a seller’s market.

Small Buyer Pool

A failed septic system eliminates all government-backed loans such as FHA, VA, and USDA. As the seller, you drastically reduce your buyer pool. These loans primarily serve first-time homebuyers and families. Multiple offers and ‘highest and best’ bidding wars are unlikely. Even renovation loans such as FHA 203k or conventional renovation loans, often require a septic system to be operational before closing. Appraisers working for traditional lenders will flag a failed septic system during inspection. In short: no working septic equals no loan approval where the home is used as collateral.

When the pool of buyers is this small cash investors are often the only buyers left. These buyers are oftentimes flippers or landlords with the main goal of maximizing profit. They will factor into their offer not just the repair of the septic system, but any other repair that the home needs. On top of this, they are professionals within the real estate world, meaning that they are fierce negotiators and never budge. If investors become your only pool of buyers, be ready to net $50k-$100k less than what you could have sold for it if buyers who are financing were into play.

Last Minute Surprise:

If a buyer’s septic inspection reveals repairs or a full replacement, you will have little time to react. Suddenly, you have to scramble to figure out how to pay, deal with contractors, and weather delays. On top of that, you must disclose new information to future potential buyers, which means your home will stay on the market for longer than necessary.

The longer a home sits, the less confident buyers become, and the lower their offers tend to be. Hopefully you are working with a trusting professional that will help you brainstorm solutions. However, handling all of this last minute, stressed, and under pressure is not ideal. Adding the local government and HOA permits adds more stress to the process.

Conclusion

If you are thinking of selling your home with a septic system, the smartest first step is to get it inspected. For around $500, you can get ahead of surprises, give yourself more time and flexibility to line up reliable contractors, understand local and HOA permit requirements, and explore financing options for any necessary repairs.

This small investment can save you thousands. It gives you control, it inspires buyers confidence while increasing your odds of multiple offers and bidding wars that drives up your sale price.

Thinking about selling? Before you list, message me. I will help you avoid septic setbacks, attract serious buyers, and walk away with top dollar.

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