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Septic Tank Under Dwelling

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Neil (Texas)

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Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Texas
Lender wanted to know if having the septic tank under the dwelling would have an adverse affect on value. Apparently the owner moved and attached parts of 3 dwellings (has crawl space) onto the site and one section was placed over the existing septic tank.

My response was that I doubted there would be sufficient market data to make a value judgement for this factor, however, my gut feeling is that it would. Told the LO to run the scenerio by the county health department.
 

Willie

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Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Neil, at most wouldn't it alter the value by only the cost to install a new system as long as the soils will allow a new system. I don't know the rules in TX. Worst case scenario is that soils will not allow another system and home is stuck with the one it has. That would be a tough one but I guess the main problem would be whenever the system needed to be cleaned. Might be every several years or it could be never. Assuming that it is operating right.
 

Verne Hebert

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Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
It sounds like you are in a non-building code area. However the sanitation department surely governs setbacks on septic systems and this would certainly be in violation. Thats the first thing.

Secondly, it would be difficult to imagine that marketability would not be affected. But given this unusual non-compliant condition, one would expect to find no, or very, few sales to support a value or marketability conclusion.

In terms of practicality however, the septic could be pumped through the crawl space access-------if it ever needed it; and their is no reason that it cannot function properly over its physical life.
 

Mountain Man

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Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
My opinion is based on what I have run into myself, building and remodeling in GA.

We don't have any zoning in my area, but all improvements gotta have the blessing of the Health Dept. I think you are on the right tract. I would meet with the county Health Dept. to determine if a new service could be placed on the lot. If so, then I would adjust the comps based on the cost of a new tank and drain field. Since this is an existing service, they can't make you move it....... BUT, they could keep you from adding to the use demands (adding living area to the structure) or doing major repairs to the present system.
 

George W Dodd

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Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
It sounds like you are in a non-building code area. However the sanitation department surely governs setbacks on septic systems and this would certainly be in violation. Thats the first thing.

Don't know how the health department could not be involved. So if there is no permit issued the dwelling would be in violation, IMHO
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
In rural areas, for a loan, many times you have to get a septic inspection. This would not pass state health code, so you would have to replace the septic system. The field would probably be usable, so it would be the cost of installation of tanks and replacing the line from the house to the tanks. Much less than a full system, say $2000-2500.

Roger
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Neil:

I'm reasonbly familiar with this because I recently sold the old homeplace in East Texas and had to deal with a septic system issue.

Roger
 

Terrel L. Shields

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Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I think most secondary market lenders would frown upon such a condition and likely not accept it.

I am doing one that is 25 ac. + dwelling, barns, etc. They are taking 15 acres into Secondary Mkt. They expect smooth sailing. Hah! Besides being 50K overpriced, it has problems. There is a private cemetery on the property, about 20 feet from the well house, which is not a well, but draws water from a spring about 50 feet away. On the other side of the well house is the septic field - directly above the spring! The spring is not on the property but on the 10 acres not being taken. Wonnerful wonnerful. The property was on the market for $229,000 for over a year and expired a few months ago. FSBO is getting $250K....oh, gimme a break!
 
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