Here in Sonoma County, California we frequently sell country properties which require MORE detailed and thorough inspections/reports than a property in the suburbs. With Country Property the "Systems" are originated and ended on the home site. Sewer and Water are contained ON the property so making sure these systems are in solid, working order is absolutely essential to the functionality of the home. Buying a fixer-upper in the country is fraught with many dangers for a prospective home buyer and the reports become super critical if NOT performed and interpreted just right--your lack of judgment could cost thousands of dollars to remedy in the future and might end up coming out of your E&O insurance!
I recently had a contract accepted on a bank owned, fixer in the country. Built in 1965 and with only 2 bedrooms and 1 bath, many red flags went up immediately on this property. Many Realtors and Buyers don't realize a septic system is finite. It can run its course and useful life. They often need repair but sometimes can NOT be repaired without resorting to an "alternative" system which could cost $20,000 to $40,000! This property, just 2 bedrooms, told me the system had initial limitations for disposing of the household sewage as the home didn't have the norm of 3 beds and 2 baths which dominate the area. The lot size, a third of an acre, also raised some concern as this amount of land is a tad small to be not only disposing of household sewage but ALSO generating household WATER!
The house also needed a thorough home inspection report and pest control report. We could see obvious issues in this regard but our BIGGEST concern was the septic. NO septic--no deal! Banks are not want to install NEW septic systems. My client, a licensed contractor, is pretty hip when it comes to structural issues so the price we had negotiated he felt would accomodate his home improvement costs. But he doesn't know squat about septic systems. The costs of all the reports; septic, well, home inspection, pest control would be over $1500.00!
So I prioritized our reports. The two biggies would be the septic and well and in THAT order. If the system checked out in good working order then the well report would be vital as the distance between the two might cause some contamination issues. So instead of ordering ALL reports back to back in two days I got the septic report coming up first. If it fails and we need to go BACK to the lender for help I want to get this out of the way immediately. This report is $425.00 and entails digging up the top layer of soil to expose the tank lids for inspection. We may also have to "probe" for leach lines and see how many are installed. Unfortunately the age of the house 46 years, was built in a time where records for septic and wells plus construction were hardly permitted and records kept.
I'm using a top rated inspector with a great background in septic systems. He can refer us to contractor's for repairs and pretty much knows costs for tank and leach line replacements plus if they CAN be replaced due to lot size constraints. So I'm pretty well good to go if we have issues and he will issue a report I can present to pleade my case. My only issue is dealing with the bank seller. I usually like to get ALL my reports and then present my findings. Sure they ALL say they are selling, "AS-IS" but I've found them somewhat pliable in this regard. So my strategy if the septic looks o.k or in need of minor repair to then get the well report done. If that looks good then on to the pest report and contractor's reports. If the septic is a disaster then everything halts for reports until I get movement on the septic. No movement--we're outta here!
So remember, plan and prioritize your reports.
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