Last year I wrote about Arcata's point of sale sewer lateral program, where any home that was sold within Arcata City limits and was 25 years or older, would have to have a sewer lateral inspection before the close of escrow. If the inspection showed that the lateral line was damaged, or made of clay, then the line would have to be replaced before escrow can close.

The city of Eureka is now taking on a similar approach, albeit with one major difference, their program is not tied to a point of sale. Instead, the City of Eureka is going block by block through the city and inspecting the lateral lines themselves. If the inspections show any damaged or clay

lines, then the city sends a letter to the property owner explaining the findings and the cost to fix. This has created a few different issues being that most people don't have tens of thousands of dollars laying around for a major renovation. We've also seen a few instances where someone spends the most money they've ever spent buying a new house, and then they receive a letter from the city a few weeks later demanding that they make a $12,000 repair. To avoid this dilemma I have been recommending that anyone who's buying in Eureka to get a sewer lateral inspection so that they know exactly what they're about to jump into. If the stars align and you're working with a reasonable listing agent and seller, then there's a solid chance that you can negotiate around the issue by including the costs within your request for repairs.

January Market Report for Eureka

January Market Report for Arcata

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