A new sewer line. That’s what 2020 gave my family as a parting gift before the year closed. Yep, just before Christmas we had to replace our entire line at a whopping $13,688. I know that sounds crazy expensive, but we had four separate bids and went with the most reasonable one. In part it was so pricey because we had one hundred feet of line under eighty feet of concrete.
The good news is my house is worth $13,688 more now, right?
THE SHORT ANSWER: No.
THE LONGER ANSWER: Buyers expect things like sewer lines to be in working order, so they aren’t prone to pay a premium for a new one. Would some buyers pay a little something extra? Maybe. But I’m not holding my breath for much of a value add because buyers get more excited and swayed by the bling in a house rather than boring adult stuff like sewer pipes. After all, we don’t hear buyers say stuff like, “I want an open concept kitchen, hardwood flooring throughout, but I’m walking if the sewer line isn’t new.”
IF IT’S BROKEN: But if a sewer line is broken, that’s where it becomes more of a value issue since a traditional loan shouldn’t be able to fund without a functioning sewer line. Moreover, in most markets buyers would likely deduct for the expense and inconvenience of having to replace a line.
CLOSING ADVICE: Sellers, don’t expect buyers to pay dollar for dollar for every repair you do. Seriously, buyers expect certain things to be present and working. This is why they’re not going to look at my house and say, “Whoa, there’s a new sewer line? Let’s offer $13,688 more.” This is just how it works. And frankly if we were the buyers there’s no way we’d be paying cost either, right?
Anyway, here’s to indoor plumbing in 2021.
Thanks for being here.
Market update at SAR: I’m doing a big market update at SAR on January 21st from 10-11:00am. Sign up here.
Questions: Have you done any similar repairs recently? Have you ever seen a sewer line increase value? I’d love to hear your take.
If you liked this post, subscribe by email (or RSS). Thanks for being here.
Did you look into trenchless sewer repairs? The costs for trenchless is fraction of that of what you pay to dig and replace.
I’m glad you mentioned that. I wish I would have said in my post that trenchless was not an option. Our big problem is there was a belly in the line, so going trenchless would have essentially followed the dysfunctional shape of the existing line and not really solved the problem. I wish. That would’ve been nice. 🙂
As a matter of fact, some buyers may believe that the new sewer line would decrease the effective age of the property . See George Dell charts regarding “Actual vs. effective age”.
Ha, the thought hadn’t even crossed my mind as a guy who just forked out good money for this issue.
LOL, It has to add at least 30k to my value, Right? As always another great article Ryan. Reminds me of back in the day, all the “extra”, high $$$ performance racing stuff I put on my stock 1970 car. It was fun, but then only could sell it for what I originally paid. LOL live and learn.
That’s a great example. Haha. Thanks Michael.
Upcoming retiree market watcher here…
Though I may not explicitly pay more for an updated sewer line, in my property decision consideration process, an updated line does add a positive lean . Our infrastructure in this country is ageing (aren’t we all 🙂 and I do think it is foolish for any buyer to not ask the question “has the sewer line been updated”. This is especially true if you have looked at the street view of a potential property on Google maps and you see city maintenance workers trenching on your perspective street.
So yes, in my mind an updated sewer line does add extra value and would impact my purchase decision between properties.
Thanks Patty. It’s certainly prudent to get a sewer scope when buying. My family did NOT do this when buying this house over five years ago. I can tell you if we ever move again we’ll be getting a scope. Of course in today’s climate so many deals are removing appraisal contingencies and other repair issues.
At the worst a home with a newer line is more marketable, and at best the new line adds some value.
I love the bows on the clean-out! Very clever and oh what a Christmas present. But now you don’t have to worry about “flushing your troubles down the drain.” 🙂
Haha. Yes, this was my way of bringing fun into writing a big check. I told everyone I bought my wife a sewer line for Christmas…
Hey Ryan, I think it also depends on the area and if this type of thing is a problem that other houses in the market typically have. Cities that have mostly older homes, lots of trees, etc., this could be something that you would see a lot in a concentrated area. So it may be a value add, IF the buyers in that market are aware of that this type of thing is an issue with a lot of the houses. Would it be a dollar-for-dollar value add? Probably not. However, I have seen cases where it’s close to a dollar-for-dollar decrease in value or accounted for in the concessions.
Thanks JF. I appreciate that. I think you have a point here of course. Each market is different. When there are known issues I suspect buyers will deduct if the market allows them to do so. But would buyers deduct if the sewer pipe was simply older instead of newer? It’s theoretically possible. This is where we have to know the dynamics of each neighborhood. Buyers would certainly have to be really informed about sewer issues too.
What is the typical life of a sewer line anyway? I guess it would depend on where you are and what materials were used. If most sewer lines should last as long as the house given a tree doesn’t grow into it or the ground otherwise shift, then I agree, the market would be unlikely to recognize any value for a new one due to no added utility.
Hi Gary. That’s a great question. My house was built in the 50s. I’m not sure when the pipe was installed but the material was very old per the installing company, so chances are it was original. I don’t know the lifespan, but there is a 30-year warranty with the one that was just installed.
Ultimately this is really only an issue older neighborhoods will tend to face as sewer lines these days should be able to withstand roots and such from my understanding. Thus a very discerning and informed pool of buyers could have this on their radar. But at the end of the day this is something buyers expect. Buyers also expect for pipes to be in working order in the house. And the roof to not leak. And…
I’d pay an extra $20 if you left the ribbon bows on the clean out.
My house had approved permits when the Loma Prieta hit and the city required an extra $52,000 in foundation work. (We are on the side of a hill) The added value is $0. I would have built somewhere else but the wife want it so it was worth it to me.
I took it off unfortunately. Yikes to the foundation work. That hurts. I’m curious if there was any stigma associated with the hill. Could foundation work help overcome any negative perception maybe?
No problem with nearby sales.
When there is a quake, I fell safe knowing that if we do slide, we will slide as one big unit.
The house next door, down hill a bit has a floor that bends with one end being about three inches lower that the other. It has sold twice with no corrective work. Some people and lenders just don’t care.
Interesting to hear. Thanks Paul.
Maybe nobody noticed and no appraiser said anything !!
Another great post. I had my sewer line replaced last year and thankfully it was a much lower cost than yours. I did check with my home insurance provider to see if it was covered. He agreed with you Ryan that a functioning sewer line is basic so it’s not covered. There is still a value in peace of mind.
Glad yours was less expensive. Our issue was having so much concrete to bust up and then replace. I also checked with insurance and our warranty, but this was our issue to own. Hope you’re well Sheryl.
Great article, Ryan. My dad and brother ran a small but highly successful company for over forty years which installed septic systems and then came back years later to hook them up when the sewer lines arrived. They often joked about being under-appreciated, as the homes were uninhabitable w/o their product, but there was never any thought of value-added. I’m curious about one thing ; how much of the $14k went to permit and local government fees?
Thanks Mark. That’s funny because it’s such an essential service, but it’s nothing anyone ever thinks about until there is a problem. I honestly don’t know how much of the fee went to the county. I didn’t see a breakdown. I just know it hurt to have greenbacks leaving my wallet… 🙂
I love how you always manage to keep it real Ryan. Happy New Sewer & New Year!
Thanks Traci. I thought this would open up conversation, so here we are talking about sewers and contributory value. 🙂 Happy New Year!!!
Ryan, congrats on the new sewer line. It’s a good feeling that there will not be a back-up of unmentionables into your yard. Total bummer about the price tag though. There is some intrinsic value here. 🙂
I can’t argue with that. And now I can go buy those toilets that promise to be able to flush down a bucket of golf balls in every flush. We’re going to be living like royalty… 🙂
Thanks Jamie.
Hi Ryan, great article! I happen to be a realtor as well as an appraiser and am in the middle of a sewer pipe nightmare. Turns out my seller had to replace their septic system prior to sale which eventually found a blockage and cracked pipe under the foundation due to someone flushing cigars down the toilet for years. The only way to get to it was knock down part of the house or tear up the foundation from within. They have dug through a good portion of the basement and made an absolute mess. When they pulled the old pipe someone questioned whether it was “Orangeburg” piping. I never heard of this and did some research……yikes! I have learned something that all appraisers should know about. Luckily, it was tested and was not this type of piping. They are putting everything back together and I am hoping the finished product will be good enough that we will be able to move forward with the sale. What an experience!
Wow TJ, that is a wild repair and I’m sure stressful. I know the market is hot, but sellers still need to make repairs like this. Maybe it’s possible to have something like this fly under the radar, but if there is a lender involved, I’m guessing it only goes that way if the issue is not disclosed. What a bummer for your seller, but the buyer sure is grateful I imagine.
Glad you got the deal done.
I had heard of Orangeburg pipe, but was not aware of how dangerous it is. I would say it was used because it was cheap. Perhaps appraisers and agents should mention it in your “hazards” caveat list, just for your own protection ??
Ryan, I think many people come up with the value or want they want to ask for their home this way: purchase price + 100% cost of ALL IMPROVEMENTS and repairs made to house = market value. Unfortunately, as you alluded to it does not work this way. I do think that if I were looking at two very similar properties the one with the new sewer line would probably play a part in which one I chose.
Thanks Tom. Well said. After having to replace a sewer line I can say for sure I’d prefer the one with the newer line. Would I really pay more though? Probably not. The other house would definitely be more marketable in my eyes though.