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Something Stinks in this Septic Estimate

By
Real Estate Agent with Berkshire Hathaway HomeServices New Mexico Properties 47726

Something Stinks in this Septic Estimate

I helped my Buyers find the perfect home but like many older homes in the Las Cruces area this one is on a septic system.

image of woman holding her noseYesterday I spent the better part of the afternoon calling two different septic companies with whom the seller requested estimates on work that needed to be done on their old septic system in order to close.

Septic systems are pretty common in this particular area of Las Cruces and I knew there would likely be some work that would need to be completed in order to pass inspection. However, I had no idea what was to come next.

A Tale of Two Estimates

The sellers Broker obtained two estimates from qualified septic companies. Great! Good practice. The sellers deserves to find the best price as these septic system replacements can be very expensive. What we weren't prepared for was the huge price difference between the two companies estimates on the work needed. 

The larger company, the one that most folks in our area are familiar with, came in at a whopping $7,424.98. Ouch. I know the sellers were not happy about that and I completely understood why.

Then, the smaller company came in at $3,442.00, an astonishing $3,982.98 difference! What the what?! So, the sellers broker and I sat on the phone trying to get clarification on this significant price difference as neither one of us are septic experts...far from it. (although frankly I now feel like I know just about everything there is to know about septic systems...okay, not everything but certainly more than I did before)

Who Won the Bid?

Both companies are basically preforming the same job. The only difference seems to be this - one is a larger company and one is a smaller company. Both companies work have to pass inspection from New Mexico's Environment Department. Which one do you think the seller will choose? I think we all know the answer to that one. Let's face it, something in one of these septic system estimates stinks. Peeuw!

Juan Jimenez
A House on a Rock Home Inspections LLC - Richmond, VA
The Richmond Home Inspector

Plenty of people will pay the higher fee, so the big company doesn't really care who won't pay it.

Oct 24, 2013 07:10 AM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

If they feel that you do not know what you are doing than you will be taken advantage of in most cases. Having a realtor there will help get an honest appraisal of the job becasue the realtor knows other people and may have experience in the matter.

Oct 24, 2013 08:18 AM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

The smaller company most likely really wants the business and knows they are under-bidding the larger company, who probably doesn't care if they get the job or not, otherwise they would have been more competitive in their pricing.

Oct 24, 2013 08:38 AM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

It always pays to shop. There must be issues with the septic because that seems pretty sporty for an inspection.

Oct 24, 2013 08:49 AM
Potranco Realty
Potranco Realty - San Antonio, TX
"Sold with Potranco Realty"

Jeffrey, that sounds like some steep estimates but at least your buyer will have peace of mind knowing that you helped have the seller repair before they close and move forward. Have a beautiful day my friend.

Oct 24, 2013 09:25 AM
Raymond Denton
Homesmart / Evergreen Realty - Irvine, CA
Irvine Realtor®

You may think you're receiving the same identical service - only time will tell.

Consumers think Real Estate Agents are the same too, performing identical services, so they price shop also.  If they select the Agent with the lowest commission, thinking the services are the same, they'll soon find out if they got a bargain - or not.

Oct 24, 2013 10:53 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

This is a good reminder of why it is a good idea to get 2 if not 3 estimates.  One is important thing verify is whether your are compariing apples with apples... I found with roofers, when I went into more detail, there was a reason for the difference.. eg. quality and life of shingles, warranties, expected life span, weather guard etc. etc.  It is good to ask each one for specifics.

Oct 24, 2013 11:16 AM
Mike McCann Nebraska Land Broker
Mike McCann - Broker, Mach1 Realty Farm & Commercial Land Broker-Auctioneer Serving Nebraska - Kearney, NE
Farm & Commercial Property For Sale 308-627-3700

Price does not determine a better or worse job.

The smaller company has much lower overhead and should be able to charge less.  The larger company is taking advantage of it's name recognition and charging way more.

Sometimes it is the opposite.  References help. Not sure what I would do.

Oct 24, 2013 11:58 AM
Gerard Gilbers
Higher Authority Markeing - Asheboro, NC
Your Marketing Master

It sounds like the larger company is just trying to make sure they can pay their payroll for a larger staff.

Oct 24, 2013 12:03 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Jeffrey, as a city girl, I don't get too many homes with septic systems among my transaction.  Once I did and had to call Lenn Harley for a crash course!  And it can get stinky.  The company Lenn recommended did a great job.

Oct 24, 2013 12:10 PM
Reuben Fine
Fill-In-The-Blanks PDF Flyer Templates www.TurnKeyFlyers.com - Rossmoor, CA

There is definetly a huge differences between companies. I agree it pays to get estimates. Having to pass the state inspection would ease my mind that the smaller company could do the same job.

 

Oct 24, 2013 12:57 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

love anf1Get good estimates! That's  a given

Oct 24, 2013 02:17 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Tesing my blogs comments. The last may not havve registared. :)

Oct 24, 2013 02:20 PM
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

I always advise people who get very different #'s to get a 3rd estimate.  Usually for larger jobs, 3 estimates is standard anyway.  I hope this one works out well.  It can swing either way when you have such a steep difference.

Oct 24, 2013 08:41 PM
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Hopefully both companies provide a detailed list of what they are going to repair? Maybe the health dept should inspect it first? We have several differnet types of systems here, and some systems require certifications above and beyond a basic conventional septic sytem knowledge.

Oct 24, 2013 09:03 PM
Bill and MaryAnn Wagner
Wagner Real Estate Group - Ocean City, NJ
Jersey Shore and South Jersey Real Estate
We find similar differences in our area. There are significant differences in engineering fees for the design or redesign. Installation costs differ substantially. It really has a lot to do with how experienced and how focused the installer is. We have a company that does our repairs and the owner is an extreme type A personality. He can complete a repair or installation in half the time of other companies and as a result his cost of labor is significantly less.
Oct 24, 2013 11:12 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jeffery, a very good reason why you should get more than one estimate from various companies.

Oct 24, 2013 11:12 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I had a scenario like this one and I asked the higher price guy...lots of questions. He broke it down into math, time and materials and stated...cant be done for less PROPERLY...I hired him

Oct 24, 2013 11:50 PM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Where we are $10,000 or less for the front end drilled well, plenty of H20 and a thousand gallon concrete septic system with leachfield for the er, other end.

Oct 25, 2013 12:46 AM
Jeff Stevens
Berkshire Hathaway HomeServices New Mexico Properties - Las Cruces, NM
Jeff Stevens, Associate Broker/REALTOR

Thank you all for the comments! I wish I had time to answer all individually but time will not permit this. Wishing you all a great weekend! 

Oct 25, 2013 12:53 AM