Water, Septic, and HOAs: Words That Trip Up Every Out-of-Town Buyer
Most buyers moving to Northern Arizona from a city have never once thought about where their water comes from or where it goes after a shower. That's about to change, and it's better to learn it now than during your first winter here.
Well Water/Hauled Water: What You're Actually Signing Up For
A well means you're responsible for the system, not a utility company. That includes maintenance, occasional repairs, and understanding what happens if the water table shifts. It's not a dealbreaker. It's just a different kind of ownership than most buyers are used to, and lenders and insurers look at it differently too. Many wells are private, but if they’re shared, there’s probably a buy-in that will come with the purchase of the property. It’s generally a one-time fee, but I have seen it as high as $40,000. Hauled water is even more foreign to many of the buyers I speak with, and they are often immediately against it. Hauled water really shouldn’t be a deal breaker in my opinion. There are several really special properties that include hauled water and guess what? All you have to do is schedule a regular fill-up from a water hauling company, which is very reasonably priced! Most people who haul water also supplement with a rain catchment system, which is a great way to be environmentally friendly and utilize the natural resources at our finger tips.
Septic vs. Sewer: The Assumption That Trips People Up
A lot of buyers assume septic is rare or outdated. In parts of Northern Arizona, it's simply how homes are built. A septic system, when maintained, works fine for decades. Thankfully, it’s the job of the seller to have the septic cleaned, inspected, and certified before close of escrow. If the septic doesn’t pass inspection or a repair is needed, boilerplate language of the On-Site Wastewater Treatment Facility Addendum states that the seller is responsible for repair or replacement of the system up to 1% of the purchase price of the home. Pro tip: if the home is under $1.5M, ask your realtor to bump that number up to $15,000 in the addendum submitted with your offer so that if replacement is needed, it will likely be fully covered by the seller without back and forth. The current going rate (with most companies in Northern AZ) is about $15K to fully replace a septic system. Keep in mind if the property has an alternative septic system, that cost can easily rise up to the $50K mark.
HOAs Are Not One-Size-Fits-All
Flagstaff and the surrounding communities each handle HOAs differently, from strict architectural guidelines to none at all. Some buyers want that structure. Others specifically want to avoid it. Neither answer is wrong, but you need to know which one you're walking into before you fall for a property. Your agent should able to help you discern which CC&Rs (Covenants, Conditions, and Restrictions) each HOA has and what that could mean for your future plans. Something else to look out for when making an offer? Always have your agent double check with the HOA that the transfer and disclosure fees are accurate before signing the HOA addendum with your offer as well as double check that there aren’t any special assessments coming down the road, those can incredibly pricey and you’ll need to budget for that if so.
The One Question Every Buyer Should Ask
Before you tour a home, ask your agent: what's the water source, what kind of wastewater system is there, and is there an HOA? It takes thirty seconds and it can save you from a very expensive surprise later.
None of this is meant to scare you off. Some of the best properties in this area run on wells, hauled water, and septic, and plenty of buyers end up preferring it once they understand it. The goal is simply making sure you know what you're buying, not just what it looks like.
Relocating from out of state and want the full breakdown before you start touring? Let's talk before you book flights.
928.853.7176