Value for septic to sewer conversion

[RobinStewart]

Hello - I am trying to get a rough estimate of the value added when a property converts from septic to sewer. This property is waterfront on the Texas Gulf Coast. The Appraisal District says the lot value should increase 200% which seems very high to me.

Thanks in advance.

 

[Walter Kirk]

There are lots of factors to consider when changing from septic to public sewer.
Will the public sewer connection increase the size or amount of improvements allowed on the subject property?

Is the current septic system of adequate size and is it operating properly?

What is the cost of connecting to the public sewer?

What are the fees and costs of the public sewer system?

Is there any effect on the well water? etc,etc,etc.

There is no hard and fast rule, this will take lots of analysis.

 

[Mr Rex]

Robin, probably the biggest factor will be that when on public sewer, the size of the home and the number of bedrooms will be dictated by zoning etc versus the capacity of the septic system. Along NC's coast, areas with public sewer often have 10-12 BR homes that are really mini-hotels for rent by the week etc. versus areas with septic that will only support 2-3 BRs, due to the wet nature of the soils etc.

As mentioned, the answer you seek is not a simple one.

 

[xm72mhd]

I work in area where there are quite a few sales of properties that are similar other than septic/sewer connections. The market does not indicate an adjustment is required for that alone. In most areas, if the sewer can be accessed it must be and that eliminates choice which may explain the lack of adjustment.

 

[Otis Key]

As the others posted, it's not as simple as 1 plus 1 equals 1,000. There are many factors that fall into play and your best bet is to consult with a local appraiser who has experience and has delt with these situations before.

Now, along the same line as Edd posted, which tends to be area specific, I don't see much, if any, impact upon property values. However, it might be different in your area. I might also put it from this point of view, do you really care where that stuff goes as long as it's out of the house when you flush? Would a typical buyer care either?

 

[Randolph Kinney]

I agree with Otis and Edd.

In Escondido, CA septic systems were acceptable until 1980. All septic properties were grandfathered without any condition upon resale to connect to the sewer. The only problem with underwriters when you mark septic, they want a statement in the addendum that the market accepts this. Something like:

SUBJECT IS CONNECTED TO A SEPTIC SYSTEM. THIS IS TYPICAL FOR THE MARKET AREA.

If you have a difference in market value because of septic versus sewer, you are going to have to show how "typical" is the septic system and the market acceptance of it.

 

[RobinStewart]

Thanks for the quick responses. I will try to answer the questions raised as follows:

Will the public sewer connection increase the size or amount of improvements allowed on the subject property? ANS: Yes, from the standpoint that we could now have a larger house with more bathrooms.

What is the cost of connecting to the public sewer? ANS: There was no charge if you sent in a map with where you wanted the lines run prior to a certain date (we did). After that date, the charge is $2000.00.

What are the fees and costs of the public sewer system? ANS: I'm not really sure about this. I think our cost will be about $35.00/month.

Is there any effect on the well water? etc,etc,etc. ANS: N/A as we are already on city water.

In our subdivision (which is mainly a vacation community), there is a HOA rule which states that a house must be built on two lots because of the septic tanks. Our house is 30 years old and is built on a single lot so it was grandfathered in. While we could increase the size of our house if we wanted once the sewer is operational, we could not subdivide the lot. And the lot is too small to put in a 10-12 br house. Once the sewer system is complete, you must connect to it and the septic tanks have to be removed. In other words, there will be no choice as to septic v. sewer. And, there is no zoning requirements re: size of house and # of brs.

All that being said, it sounds to me like the installation of the sewer system should not have increased the value by 200%. If I am incorrect, please jump in.

Thanks again for all the help - it's really appreciated!

 

[xm72mhd]

All that being said, it sounds to me like the installation of the sewer system should not have increased the value by 200%. If I am incorrect, please jump in.

A 200% increase for converting from a septic to a sewer system? What is the support for that? That is huge and wouldn't happen here. Who ever decided that must think your house is an interim use, and something bigger and better could be there because of the sewer. I have the feeling now that you have yet to tell us the rest of the story. Why not let the other shoe drop?

 

[RobinStewart]

I've told you the story as far as I know it. Our house is in a sleepy coastal town about 1-1/2 hours outside of Houston. It is one of the last coastal regions close to Houston where you can get waterfront property at a decent price. I have no idea why the Appraisal District thinks such a huge increase is warranted unless they have visions of this sleepy little town one day being another Galveston (which I don't want). Regardless of what they want, I haven't been able to find any comps which support their numbers.

 

[xm72mhd]

Well then appeal it. Now we find you are talking value for taxes. Geez, they gotta pay for that sewer, don't ya know. I think your suspicions are well founded from what you have said. There are appraisers in Texas, and you might need one.

Tim Hicks is down there, but he's just flying over. Try Bobby Bucks. Nobody knows where he is, but I heard he hates Texas for some reason.