Ways to Sell a House with a Failed Septic System

- Thursday, August 05, 2021
Morse Engineering and Construction - Failing Septic System

If your septic system has failed and you are trying to sell your home, you have a couple of options.

Repair or replace the septic system

When it comes to achieving the highest possible sale price for your home, repairing or replacing your septic system will likely be your best option. However, you’ll need a decent chunk of change to be able to accomplish this. Septic tank cost can vary based on the size of your home and your location.

It’s also possible you could connect your home to a sewer line in your area, but this comes at a cost as well. However, keep in mind that a new septic or sewer system will be considered a capital improvement by the Internal Revenue Service, so you can add those charges to increase your cost basis. That means you may pay less in taxes on the profits from the sale.

While you can usually get a repair or replacement complete in a matter of days or weeks, it’ll require some time, energy, and money on your part. On the bright side, a new septic or sewer system will open up the pool of potential buyers considerably, and you should be able to get a fair offer price for your home.

List on the market in ‘as-is’ condition

If you can’t afford to prepare your home for sale, you can list it on the market in its current condition. Some buyers may see this as an opportunity to get a good deal, but most buyers want turnkey homes. There are pros and cons to going this route.


  • Save money on repairs
  • Save time on negotiations
  • Move quickly if you find a prospective buyer
  • Reach a smaller group of buyers
  • Receive a lower offer price
  • Potentially wait while your house sits on the market
  • Keep in mind that most lenders won’t provide a mortgage for a house with a failed septic system, so you’ll most likely be working with a cash buyer. Furthermore, you’ll still pay real estate commission fees and closing costs. You can avoid spending any money preparing your home for sale if you sell off-market.

For more information on septic tank replacement, contact Morse Engineering and Construction.

Source: sundae.com