Choose A Home Inspector Wisely

Buying a home is one of the biggest financial decisions you may ever make.  You think you’ve found the home of your dreams, but is it really?  Do you know enough about the structural components that make up your new home to know if there is underlying damage?  Do you know how to operate the major systems of the house properly (heating, electrical, plumbing, etc.)  and are you trained to know if they were installed properly?

Most consumers rely on the expert advice of a professional home inspector to make sure that the home you are buying is free from structural issues and that you will be familiar with all its working systems.  Finding a competent home inspector is not as easy as letting your “fingers do the walking”.  Even “Googling” can only get you so far.

Home inspectors must now be licensed by the state in which they are providing services, and more states are in the process of passing legislation for professional licensing.  Home inspectors may belong to associations like NAHI, ASHI or NACHI most of which have minimum standards that are required for membership, but they do not regulate the industry and in some states anyone can call themselves a home inspector just by hanging out a sign.

In May of 2001, Massachusetts enacted new laws for home inspectors, requiring them to meet minimum standards for each home inspection performed.  They must also pass an exam, carry adequate insurance and participate in continuing education in order to renew a license.  The Board Of Licensure is also responsible for answering consumer complaints and providing appropriate measures against inspectors who violate ethics rules or perform below the standards that are set.  Slowly, the state is making progress in weeding out incompetence.

One of the other changes made in 2001 pertaining to home inspectors was to prohibit real esate agents, other than buyer’s agents, from referring home inspectors to buyers.  This was enacted in order to avoid consumers from receiving services from an inspector who might be thought of as “easy”, one who wouldn’t be apt to “kill the deal”.

If you live in a state where anyone can perform an inspection without a whole lot of training, be careful.  A trusted attorney, friends or neighbors who have bought a home may be able to give you a recommendation. As a local for-sale-by-owner service, we provide a direct link to the Commonwealth of Massachusetts website where buyers are able to look up inspectors by name, current licensing information, or area serviced as well as check to see if any complaints have been lodged against them.

A few years ago, a home inspector in Massachusetts formed IHINI, an organization dedicated to help consumers avoid the risk of self-interest and to learn more about the inspection process.  There is a lot of good consumer information on this website and should be mandatory reading for anyone before hiring a home inspector.

Home Buying Tips

1. Take a few moments to discuss what you’re looking for with your spouse or partner before you start setting up appointments to look at properties. Make a list of “must have” features together, then discuss other “would like, but can live without” features. After you’ve looked at a dozen or so properties, re-evaluate your criteria. Often priorities shift with time.

2. Have a realistic idea of how much you can afford before you start looking (most lenders will pre-qualify you for free). Not only will this save time, but will also avoid needless disappointment on everyone’s part.

3. Don’t sign a contract with an agent that locks you into looking with him or her, or guarantees them a commission even if you find the house yourself! Specify, instead, that a commission will be paid only if you buy a property shown to you by that agent. This enables you to look with others, and also at For-Sale-By-Owner properties, at your own convenience.

4. Don’t bring an agent with you to look at FSBO properties, or bring them into the picture when it’s time to draw up a contract, unless you are willing to pay their commission through either a higher sales price, or out of your own pocket. Otherwise, you may risk losing the house. (note: Contact your local For Sale By Owner magazine for help if you aren’t sure of the process)

5. If you find the house you want to buy before you’ve sold your home, and the seller is reluctant to sign a contract with you with the contingency that you sell your home first, you may draw up a contract that allows the seller to continue marketing and advertising the property yet gives you the “first right of refusal” should they receive another offer. This way you will be notified immediately if the seller has another offer, giving you an opportunity to re-offer if necessary. Another option is to put a non-refundable deposit on the property. This shows the sellers that you are serious about buying their property.

6. If you sell your house before finding a home you want to buy, be sure your sales contract is contingent upon you, the seller, finding suitable housing!! We have heard several stories of people frantic to find a home under pressure, and even having to rent after the closing, because they sold first. Remember, the seller is legally bound to sell once the contract is signed.

7. When presenting an offer, be courteous and respectful of the sellers. In general, avoid criticizing the property with statements like “we don’t care for the new carpeting, and therefore will have to replace it”. This will not justify a lower offer and may possibly insult the sellers, decreasing you chances of their accepting your offer.

8. If you feel the property may be overpriced, yet the seller refuses a lower offer: Make your offer contingent upon the property appraising for the selling price or higher.

9. Request that you be permitted to walk-through the house (shortly before closing) after the furniture is removed to make sure that some of the home’s faults weren’t covered with furniture, iugs, or wall coverings. It is far easier to request compensation for necessary repair work before the house is sold than afterwards.

10. Request that the seller complete a property disclosure or disclaimer form (will vary from state to state) before you make an offer. Agency listed properties carry no guarantees, and it is the seller who is legally bound to be truthful in reporting the condition of the property. We all recommend that any major deficiencies in the home are reported to the buyer regardless of the form being utilized. Also, be aware that in some states the disclosure/disclaimer form is not required and that real estate documents will vary from state to state.

11. Make the time frame of your offer short (24 hours or less) so the seller has less time to “shop the bid” among other interested parties, or to accept another offer. Also, don’t make the deadline time at midnight unless you usually are awake at that time!

12. If you don’t know much about building construction, don’t worry. Simply make your offer contingent upon the property passing a professional home inspection. This is also an excellent way to become more familiar with the upkeep needs of your future home.

13. Put everything in writing. Your sales contract should spell out whether the washer and dryer stay, etc.