There are programs available other than a FHA203K. I would advise avoiding a 203K as it will cost the Buyer an additional significant amount of money to finance the property. It could cost them upwards of $10,000 out of pocket for a problem that wouldn't cost much more than that. If the septic is the only "rehab" issue, avoid a 203k. Also, 203k's are harder to qualify for. Mortgage Brokers have programs available whereas if the septic is actually still working, but just failed the Title V inspection, the Buyer can still get a conventional loan with a hold back in escrow at closing. They must provide the lender with a town approved septic design and usually one bid for installation. The lender will usually hold back anywhere from 1.5% to 2% of the cost of the septic and give the Buyer 30 days post closing to get the septic installed. The best benefit to this, the Buyer is entitled to the $6,000.00 tax credit! For details on this program call Jeff Pilon at Radius Financial. He can be reached at 781-742-6500 or toll free at 877-223-4800.... more
It depends on many things, if you're getting any utilities (like heat) it can really skew the numbers (Heat itself can be a $500 swing on a house that size, depending on how expensive it is to heat the home. Also, location matters, and condition matters greatly as well. Also, a 5 bed home - with just two baths - makes me think you're looking at a home that's been expanded, and may not work for many people. Anywhere from $2200-$3000 would be in the ballpark, but without seeing the property and knowing the particulars, that just an educated guess.
Matt Heisler is a real-estate professional and owner of Heisler & Mattson Properties. He has been selling residential real-estate for over 10 years. He has given several talks on real estate, including presentations on first-time buyer tips & tricks, and profiting in real estate investing in Massachusetts. As a Vanderbilt University alumnus, he is proud to serve the communities of Natick, Framingham, Medfield, Millis, Holliston, Hopkinton, Southborough, Westborough, Northborough, Grafton, Marlborough, Shrewsbury, Worcester, Milford, Charlton, Northbridge, Sutton, Hudson, Sudbury, Clinton, Boylston, and West Boylston. His company website can be found at http://www.bjheisler.com, and his Metrowest Blog can be read at http://HomeSellingInMass.net.
*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.... more
Lot of good advice below. If there was no indication on the MLS listing, disclosure, etc., then you might have a very good case. Yes you need to speak with an Attorney. If you have any questions regarding the inspection report (if one was performed) feel free to contact me if the Inspector refuses to work with you.
Yes, DON'T FORGET THE INSPECTOR! If it was inspected, and nothing mentioned, it sounds as if this might have been a "Minimalist" Inspector. If he was not aware of the area he should have performed a little research on it. Sounds like Green's area is rural, or at least semi-rural and the Inspector (if one was used) should have expected septic to be there. After all (depending on the system) it is kind of hard to miss that large sand mound in the yard with the pipes sticking up, or the nice lush and green area when everything else pales in comparison.
Emmanuel J. Scanlan
PS Inspection & Property Services LLC
TREC License # 7593
International Code Council, Residential Combination Inspector #5247015-R5 (Electrical, Mechanical, Plumbing and Building)
Certified Infrared Thermographer (ASNT-TC1A Standards)
Texas Residential Construction Commission, Third Party Warranty Inspector #1593
Texas Residential Construction Commission, Inspector, County Inspection Program
Texas Department Of Insurance, VIP Inspector # 08507061016
Hayman Residential Engineering Services, Field Technician
CMC Energy - Certified Energy Auditor
Knowledge is power, but sharing knowledge brings peace!!... more