What to do if You Want To Sell a House with a Failed Septic System

So, your septic tank is acting up, and you’re wondering, Can I sell my house with a failed septic system?. It’s a stressful situation, especially when you’re picturing your buyers running for the hills or imagining th nightmare of wastewater backing up into your home.

In New York, where many homes, especially in suburban and rural areas rely on septic systems, a failure can be a challenge when looking to sell quickly. The septic tank and the drain field (also called a leach field) are essential for managing household wastewater. But when they fail, they can lead to environmental concerns, potential health risks, and serious turnoffs for potential buyers.

Septic systems in areas like Long Island, the Hudson Valley, and upstate New York are subject to strict environmental regulations, which can make selling with a failed system even more complicated. But at the end of the day, you just want to hand over the keys and move on, without a mountain of hassle.

That’s where we come in at Leave the Key. We’ve worked with plenty of New York homeowners looking to sell for numerous reasons, septic issues included. Selling a house with a failed septic system isn’t easy, but it’s definitely doable. In this guide, we’ll walk you through what to expect, what to look out for, and how to move forward with as little stress as possible.

While a septic system might fail for numerous reasons, at the end of the day, you just want to hand over the keys and move on without the hassle. And that’s what we’re here to help you with. This article will guide you through the steps to take if you’re looking to sell a house with a failed septic system. 

Can I Sell My House With a Failed Septic System?

The straightforward answer to your question, “can I sell my house with a failed septic system?” is, ‘Yes, you can.” However, it comes with certain caveats that you should be aware of. Selling a home with a problematic septic tank isn’t straightforward like selling a fully functional sewer system. 

There are a few sings to look out for when your septic tank fails. It often results in slow flushing toilets, gurgling sounds, clogging due to a build-up of solids, standing water, and an unpleasant odor, all of which can be off-putting to potential buyers. In the worst-case scenario, a failed septic system can lead to wastewater backup into your home, which can cause significant damage and pose health risks.

It’s important to note that most home buyers and mortgage companies will require a septic system inspection during the home inspection process. A failed inspection can lead to delays, lower offers, or even sale cancellations. Buyers, especially those not used to rural areas with common septic systems, might be hesitant to take on a property with a major issue like a failed septic tank.

Local laws may even require the homeowner to repair or replace the failed septic system before selling the property. The estimated cost for repairing or replacing a septic system can vary greatly, potentially reaching tens of thousands of dollars, which could impact your sale price and the overall value of your property.

But don’t let this information discourage you. There are still ways to sell a house fast in New York, even with a troublesome septic system. It’s all about understanding your options and strategizing your sale accordingly. 

Cash home buyers in NYC, such as real estate investors or companies that buy houses in Brooklyn, often purchase properties as-is, including those with a failed septic system. But before you decide to sell, it’s important to understand the laws in your local New York municipality.

Selling a House With a Failed Septic System: What Are the Laws?

Knowing the local laws and regulations governing such sales is essential before deciding what to do with your house with a failed septic system. This can vary widely, but some general principles usually apply.

Most states have health department regulations that necessitate the disclosure of any known issues with a property, including the status of the septic system. If your septic system has failed, you must legally inform potential buyers that the house is currently uninhabitable. Transparency is key in real estate transactions, and the principle of ‘buyer beware’ doesn’t absolve sellers from the responsibility of full disclosure.

New York Septic Systems Disclosure Laws

In New York State, sellers are legally required to disclose known issues like a failed septic system or offer a $500 credit at closing instead of completing the disclosure form. While that may sound simple, hiding major problems can still leave you open to legal trouble. That’s one reason many homeowners choose to sell to a company like Leave the Key, here’s how:

1. A homebuyer might not require you to make any repairs or upgrades.
2. When selling to a homebuyer, you could completely skip the home inspection process, leading to a faster cash sale.
3. You don’t need to worry about your septic system backing up in the of a showing, because with a homebuyer there are no showings, agents, or fees.
4. Experienced homebuyers will be familiar with New York’s disclosure rules and won’t be scared off by a smelling, failing septic system.

Are There Any Long Island Laws I Need To Know About?

On Long Island, environmental concerns have led to stricter regulations regarding septic systems. For instance, Suffolk County has implemented initiatives to replace outdated cesspools and septic systems with advanced wastewater treatment systems to protect groundwater quality. While these programs primarily target new constructions and major renovations, sellers should be aware of any local requirements that may affect the sale of a property with a failed septic system.

Huntington Local Ordinances Are More Strict

In Huntington, local ordinances prohibit the construction or maintenance of any facility intended for the disposal of human excreta, such as a septic tank or cesspool, without proper authorization. This means that if a septic system has failed, the property owner may be required to repair or replace the system in compliance with current health and safety standards before selling the property.

In these situations, Leave the Key can help you fast-track or even take care of any of septic repairs before the sale officially goes through.

Riverhead Is Proactive With Septic Systems

Riverhead has been proactive in addressing wastewater management due to its proximity to sensitive water bodies. The town encourages the upgrade of failing septic systems to newer, more efficient models. While specific mandates may vary, sellers should consult with the Riverhead Building Department to determine if any local regulations require septic system inspections or upgrades prior to property transfer.

In most cases, local laws prohibit the transfer of property with a failing septic system to protect groundwater sources from contamination. That said, some exceptions can be made. For instance, it might be possible if the property is being transferred to a cash buyer who agrees to fix the issue post-sale.

It is important to note that septic tanks are typically mandatory if your house does not have access to the public sewer. If your area recently got connected to the sewer line or will do so before you sell your house, repairing the septic system failure may not be necessary. 

Remember, the laws surrounding the sale of a home with a failed septic system can be complex and vary by location, so it’s always a good idea to consult with a knowledgeable New York state homebuyer or attorney. Understanding these laws is one of the most important home repairs considerations when dealing with a property with a failed septic system. 

Regardless, having a comprehensive selling-a-home inspection checklist can help ensure you’re not overlooking any other potential issues that could complicate the sale of your home.

Should You Replace the Failed Septic System Before Selling?

If your septic system has failed, one of the first questions that may come to your mind is whether to replace it before selling the house. The answer isn’t straightforward, as it depends on factors like local laws, market conditions, the cost of repair or replacement, and your willingness to deal with the hassle.

If local New York laws require a functioning septic system to transfer property, replacing or repairing your failed system becomes necessary. But even when it’s not mandated by law, a functional septic system could significantly increase your property’s market value, make it more appealing to prospective buyers, and speed up the sale process. 

On the flip side, septic system repairs or replacements can be costly. The average cost of a new septic system can be high, which does not account for the potential damage to landscaping during installation. So, you’ll need to consider if the increase in the sale price would cover these costs.

Since many lenders might also not approve loans for houses with a failed septic system, selling your Riverhead house as-is to a cash buyer could be a good option. Cash home buyers on Long Island often buy properties in their current condition, which means they’ll handle any necessary repairs, including a failed septic system. That way, you can sell a house fast in New York, avoid upfront repair costs, and leave the headache of fixing the septic system to someone else.

So, deciding to replace or not replace a failed septic system before selling your home comes down to a balance of costs, potential returns, and personal circumstances. It’s best to discuss this with your realtor or real estate investor, who can provide guidance tailored to your specific situation.

How to Sell a House with a Failed Septic System

Selling a house with a failed septic system might seem daunting, but it’s not impossible. Here’s a step-by-step guide to help you navigate this process.

Want to learn more about selling your house as-is in New York? Click the link for a step-by-step guide!

1. Understand Your Local Laws: First, familiarize yourself with the local laws regarding septic systems. Some areas require that you disclose any known issues with your septic system to potential buyers, and others might mandate a working septic system for property transfer. Be sure to comply with these laws to avoid legal troubles.

2. Get a Septic System Inspection: Hire a professional home inspector to check your septic system or call up a local homebuyer to give an informal inspection. This will provide an objective assessment of the issue and an estimated cost for repair or replacement and help you decide the best course of action.

3. Consult a Homebuyer: A licensed real estate agent might not know what the potential impact of a failed septic system on your home’s market value is. A homebuyer deals with these kinds of issues daily, and can advise you on whether it would be more beneficial to repair the system before selling or reduce the asking price to account for its failure.

4. Disclose the Issue: If you sell your house as-is, disclose the septic system’s failure to potential buyers, including your cash homebuyer. This honesty will build trust and can prevent potential legal disputes in the future.

5. Consider a Cash Offer: Companies like we buy houses in Brooklyn or Cash Home buyers on Long Island often purchase properties as-is, meaning they take on the responsibility of major repairs. This option could be a fast and hassle-free way to sell your property without worrying about the septic system.

6. Prepare for Negotiations: If you’re selling to a regular home buyer, be prepared for tough negotiations. Home buyers may request a lower price to account for the cost of repairing the septic system, or they might ask you to fix the system before closing the sale.

7. Create an Escrow Account: If you agree to repair the septic system after the sale, an escrow account can be set up to hold the funds needed for the repairs. This assures the buyer that the repair work will be done.

8. Finalize the Sale: If all goes well, you’ll finalize the sale by repairing the septic system or selling the property as-is and adjusting the price accordingly.

Remember, selling a house with a failed septic system can be challenging but not impossible. And the most important home repairs, including the septic system, can be handled with the right strategy, support, and patience.

At the End of the Day, It Doesn’t Hurt to Ask a Pro!

Selling a house with a failed septic system in New York may initially seem like a formidable challenge, but it’s not impossible. You have options, from repairing or replacing the system to selling your home as-is. 

Cash buyers, like Cash home buyers in New York, are also a viable option as they purchase properties in their current condition, simplifying the process for you. Be prepared for negotiations around your sale price, considering the replacement or repair costs. An escrow account can provide security for both parties if you address the septic system issues post-sale.

Just remember, it doesn’t hurt to ask a local homebuyer “can I sell my house with a failed septic system?” – they have the proper knowledge, support, and strategy to help you out of a tough situation. Happy selling!