Cost to Connect to Sewer

[ZZGAMAZZ]

Should the hypothetical cost to connect to a public sewer include the disposition of the existing septic system? Would a "typical" jurisdiction require permits to remove a private septic system?

 

[RSW]

Why would you be concerned with the cost to connect to sewer? That is the Lender's responsibility and not yours.

 

[Dublin ohio]

Should the hypothetical cost to connect to a public sewer include the disposition of the existing septic system? Would a "typical" jurisdiction require permits to remove a private septic system?

Most around here would require it be removed or filled. Safety hazard

 

[spittman]

Contact water authority to check and see if property is within service area first. If it is they will tell you what is required and give you a rough estimate. Their fees may even posted on their website.

 

[Sid Holderly]

We are asked if it is feasible! That depends on the price range of a house. A $5000 fee is not likely Feasible for a $100,000 house but might be for a $500,000 house. When a regional sewer district was started any home within 400 feet of their line had to hook up. For most Municipal systems is not likely feasible unless the line runs down the street and if it runs down the street you may be required to hook up by the Municipality & some cities require sewage line inspections, with a camera, on each property transfer).

Here if you connect to a sewer system the septic tank must be filled with sand and is inspected by the health department.

A more difficult question is are the well and septic separated the required amount!. Wellheads are sometimes visible, but a septic system may not leave the house in a straight line. Only bad septics are visible by sight or if one has an inspection hole raised to the yeard level. None of this data is online, to be precise you have to go the obscure building of the health department and for old houses, they may have no paper record filled away in some other obscure building.

Sorry for the rant, just came off of a problematic assignment.

 

[Russ Kitzberger]

Should the hypothetical cost to connect to a public sewer include the disposition of the existing septic system? Would a "typical" jurisdiction require permits to remove a private septic system?

I have seen a wide range.

Generally, though, residential sewer tie-ins are something you can call the municipal engineer about, they usually prefer them to septic and might have programs to help the homeowner tie in that will assess the costs to the property to make it affordable. If they received EPA grants, they might even cover some of the costs. If they have an ongoing program they can even refer contractors and you can avoid a lot of red tape. If this is a newer municipality-backed utility installation; they may even have a fixed fee system in place.

If you are out in the suburban or exurban fringe, the sewers are sometimes designed for new subdivisions or commercial development, and the mains are not setup for small connections. Some sewer tie ins are inexpensive at several thousand dollars, others are tens of thousands. It depends on the type, size, and location of the lateral line. Do they have to go under the street, etc.

Also, in bigger cities, only certain contractors are licensed to operate in the right of way or on sewer, water, electric lines. You might have to hire a general contractor to orchestrate three or four different contractors: public engineer to draw for permits, digging the right of way, licensed septic installer to certify removal/demolition, tap-in plumber, and then a landscaper. Add into that if you need an environmental assessment before, during or after. Usually, anyone operating in the right of way requires a standing bond (typically a few million) with the municipality/utility.

Construction can get complicated. That is why the general contractors have the nicest trucks and offices and construction litigators, litigation engineers, and value diminution appraisers are in demand.

 

[sputnam]

As the appraiser, your concern is the value (usually market value) of the property that is the subject of your appraisal. Do you think that not having a operating sewer would have an impact on value? If there is a functional septic system but, the jurisdiction is going to require the property to hook up to public sewer... is there a market reaction?

 

[glenn walker]

I would not go go down that path as each one is on a case by case basis. In my area each City-County is different Then it depends on how far and how difficult it is to connect ? And finally what kind of road or street is it located on ? A low to no traffic residential street ? Or a busy street ? where you are required to employ traffic guards who would stand out there for 24 hours directing cars. This is why the appraiser does not get caught in a trap of playing septic or sewer connection expert, because most have no idea as to cost or feasibility and even if they did it would require engaging a contractor to estimate costs to physically connect and estimates from City-County as to connection fees, permits etc. The general rule of thumb on FHA is typically around 3% of what property is worth. If cost is prohibitive in relation to value of property FHA DE Underwriter can waive the connection requirement. Note: The "appraiser " does not call for a connection - He/She only states if there is a nearby connection that's available and also to state if Septic Systems are common or typical in the subjects market area or neighborhood.

Handbook : Individual sewage systems may be acceptable when the cost to connect to a public or community sewage system is not reasonable as defined by the lender. As 3% or less of the estimated value of the property is the suggested benchmark and the "lender" is responsible for determining if the connection is financially reasonable.

Handbook: If the property cannot be connected to a public system, FHA will accept individual sewage systems that are acceptable to the local health authorities. This includes numerous types of sewage systems including cesspools, individual pit privies, and mound systems.

Handbook: Inspection and/or testing is not automatically required, but is required when such actions are customary in the area, when the appraiser suspects a problem with the system, or problems are common in the area. In these instances, the appraiser is to condition for a certification by a professional such as the local health authority, a licensed sanitarian or an individual determined to be qualified by the DE Underwriter.

 

[RSW]

We are asked if it is feasible! That depends on the price range of a house. A $5000 fee is not likely Feasible for a $100,000 house but might be for a $500,000 house. When a regional sewer district was started any home within 400 feet of their line had to hook up. For most Municipal systems is not likely feasible unless the line runs down the street and if it runs down the street you may be required to hook up by the Municipality & some cities require sewage line inspections, with a camera, on each property transfer).

Here if you connect to a sewer system the septic tank must be filled with sand and is inspected by the health department.

A more difficult question is are the well and septic separated the required amount!. Wellheads are sometimes visible, but a septic system may not leave the house in a straight line. Only bad septics are visible by sight or if one has an inspection hole raised to the yeard level. None of this data is online, to be precise you have to go the obscure building of the health department and for old houses, they may have no paper record filled away in some other obscure building.

Sorry for the rant, just came off of a problematic assignment.

Where in the 4000 1 handbook does it say the appraiser is to determine if it is feasible? It's not in there. It is the Mortgagee's responsibility to determine if it is feasible. This is taken from the 4000.1 handbook:

 

[Sadie]

Should the hypothetical cost to connect to a public sewer include the disposition of the existing septic system? Would a "typical" jurisdiction require permits to remove a private septic system?

Sometimes a municipality will require sewer hook up when the property sells or there is a title transfer. Not sure on the second question.