City Water vs. Well Water: How It Affects Home Value
The real estate implications of being on municipal water versus a private well.
Buyers prefer city water
Homes on municipal water systems typically appraise higher than comparable homes on private wells. Buyers perceive city water as more reliable, regulated, and hassle-free. The premium varies by market but can be 3-8% in areas where both options exist.
Well water considerations for sellers
Most lenders require a satisfactory water test for well water properties. FHA and VA loans have specific requirements. A failed water test can delay or kill a sale. Proactive testing and treatment before listing prevents surprises. Provide buyers with recent test results and documentation of any treatment systems installed.
The maintenance factor
Well owners are responsible for all testing ($100-300/year recommended), pump maintenance ($200-500 for repairs), and treatment equipment. City water customers pay a flat utility rate. Factor ongoing maintenance costs into your home buying decision. See our well vs. city water comparison.