Wednesday, March 16, 2011

"Out of Sight, Out of Mind"

When I take buyers house-hunting, it’s easy to get wrapped up in the physically visible aspects of the houses:  What kind of condition is the foundation in?  How old is the furnace and how much longer might it continue to work?  What kind of material is the exterior and what kind of maintenance might it require?  These are all important questions and buyers rightfully wonder about these things as they make their purchase decision.

Many of these questions we can answer on the spot.  It’s easy to spot horizontal shifts in the foundation, clear signs of wear to the furnace, or the degradation of the exterior material. Other questions require the expertise of a well-trained inspector, whose function is to provide an objective analysis for clients.  But one very important thing that many buyers overlook, and many REALTORs are guilty of as well, is the sewer system. 

In my mind, the sewer system represents one of these “out of sight, out of mind” situations.  Once you see the main sewer line go into the basement floor, you figure everything is getting to the main sewer line in the road and you have nothing to worry about.  But while the sewer system might be “out of sight, out of mind,” the problems that arise from a backup or clog are anything but. 

The dire consequences of a sewer backup are one reason that we are starting to see more and more cities require a televised viewing of the sewer line prior to listing a house for sale.  The city of Golden Valley has been the pioneer on this front.  When the city first began performing televised sewer inspections, everyone was mad.  Sellers didn’t want to pony up for the inspection, buyers were frustrated because their deals were falling apart due to the poor condition of sewer lines, and real estate agents saw it as one more in a long line of hoops to jump through in order to close.

Say what you will about requiring sellers to have a sewer inspection, but one thing is clear:  requiring a sewer inspection has prevented many, many people from expensive, disgusting, and humiliating sewer backups.  Buyers in Golden Valley now have peace of mind when they move in their new homes - they know that their sewer is cleared out, functioning properly, and that their is nothing “goofy” going on with their sewer system.

Do I think what the city of Golden Valley has done will spread to other cities?  Long-term I think it is inevitable.  Sewer systems fall into a strange gray area - should they be the responsibility of the city, whose job it is to manage the vast infrastructure of sewers?  Or should it be the responsibility of the homeowner, whose sewer hooks into the vast infrastructure?  Short term, I think the prospects are a bit more bleak.  Many cities already require extensive pre-sale home inspections and to add another would be to add more bureaucracy to an already bureaucratic system.

Although I don’t believe Golden Valley’s idea will spread in the short term, there is nothing that is preventing buyers from having a sewer inspection performed before the sale.  They might even negotiate to have the seller pay for the inspection.  There are a number of ways to approach it, but the important take away here is that although you might assume the sewer system is fine, never assume.  If you are worried, have an inspection done - it might save you a massive headache in the future.

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