Understanding Septic Systems for Real Estate Agents (Nick Schwedock)

Septic systems are a crucial component of many Texas properties, particularly in rural and non-urban areas. A lack of understanding or proper maintenance of these systems can lead to significant, costly issues for both buyers and sellers. As real estate agents, having a solid knowledge of septic systems is essential to guide clients through transactions smoothly. Based on Nick Schwedock's insights, this guide aims to provide agents with practical information on septic systems, enabling them to address potential challenges effectively and confidently.

A detailed write up is below the video!

Overview

• Septic Systems in Texas: Two primary types:
  • Conventional Systems: Basic gravity-fed systems with a drain field. Cost-effective but often restricted for new installations due to environmental concerns.
  • Aerobic Systems: Advanced systems requiring electricity, more common in modern homes, and environmentally friendly.
• Key Maintenance:
  • Pumping schedules:
    • Conventional: Every 3–5 years (more frequent for larger households).
    • Aerobic: Annual servicing to inspect electrical components and ensure proper function.
  • Service plans are highly recommended to extend the lifespan and reduce unexpected costs.

Buyer Agent Perspective

• Pre-Showing Preparation:
  • Review the septic disclosure addendum in MLS or other platforms.
  • Check details like system type, location, and recent maintenance records.
• During Showings:
  • Look for potential issues:
    • Standing water near the drain field (could indicate failure).
    • System age and signs of wear.
  • Confirm septic tank location (especially if it's not visible).
• Inspection Process:
  • Recommend a specialized septic inspector in addition to the general inspector.
  • Ensure inspections cover system stress tests (faucets, toilets, drain field checks).
  • Discuss pumping requirements, especially if the local market norms necessitate it before inspections.
• Buyer Tips:
  • Understand expected maintenance costs and schedules.
  • Review local ordinances for service contracts or documentation requirements.

Listing Agent Perspective

• Preparing the Home for Market:
  • Gather and organize documentation:
    • Maintenance records, service contracts, and receipts for repairs.
  • Address potential buyer concerns by providing clear, upfront information about the system's condition.
• Seller Communication:
  • Inform sellers of their responsibility to disclose all known material defects in the septic system.
  • Encourage sellers to ensure the system is in good working order before listing.
• Proactive Steps:
  • Verify if pumping is required before inspections in your market and negotiate this during contract terms.

When handling transactions involving septic systems, attention to detail is key. Contracts should clearly outline responsibilities for pumping, inspections, and compliance with local regulations. Before closing, ensure that all inspections, maintenance records, and disclosures are complete. By asking the right questions, gathering documentation, and maintaining clear communication, agents can safeguard their clients from unexpected surprises and potential liabilities. Successfully managing septic system properties not only protects clients but also enhances the agent's reputation for professionalism and reliability.