By Sandra Miller
Daily Evening Item
More than half of Americans between the ages of 18 and 34 and a quarter of those aged 35-54 have not begun to save for retirement, according to reports. Perhaps those people behind the statistics reasoned that when they first entered the workforce, it was more important to buy furniture for the new apartment. Then it was time to get married, buy a house, have kids, start an education fund, get a bigger car, take the kids to Disney World … and when things settled down, that’s when they would start putting money into their retirement. But that’s a bad spot to be in if you’re 20 years or less from retirement.
If you want to retire comfortably, and have accepted that you most likely are not going to win the lottery, then it’s time to take control of your destiny, preferably yesterday. Social Security will most likely provide for the basics: groceries, shelter and a little clothing, but not much else.
The problem with Social Security is that it is about to be crushed by the number of baby boomers nearing retirement. When Social Security was established in 1935, the system worked because the average life expectancy was 62. Today’s medical miracles are keeping us alive 30 years after retirement age. You do the math. Oh, you haven’t, and that’s why you’re reading this article.
This article won’t do the math for you; instead, it’s to get you thinking about your retirement plan, or lack thereof. So how much does the average person need to retire? It’s hard to predict how much a person who is 40 today will need at 70, but if you use current inflation figures, many reports are saying you should have at least a million dollars in the bank before retiring. A million dollars?
“I have clients with portfolios that large,” says David Whelan Jr., CPA, who is president of Eaglerock Investment Strategies Inc. in Swampscott. “However, the vast majority of people are not heading in that direction.”
Set your goals
Your goal is to avoid living out your retirement years with a cat food diet and a social calendar consisting of watching TV on a tattered recliner. However, you should also expect to live more frugally.
One rule of thumb is that you’ll at least 75 percent of your current income. “It depends on lifestyle, if a client wants to travel around the world once a year, if golf is in somebody’s plans,” says Whelan. “But people who retire at 65 can conceivably live another 20 years, so whatever people set aside needs to last that long.” Also factor in medical expenses not covered by Medicare; retirement community or assisted living costs; and helping out any family members in need.
Expect to contribute a minimum of 5 percent if you’re in your 20s, at least 7 to 10 percent in your 30s, and 15 to 20 percent if you’re just starting to save for retirement in your 40s and 50s.
“I’d tell my 35-year-old best friend to pick a portfolio of well diversified mutual funds, put as much as he could into it, and not do anything with it,” says Whelan. “He will be very happy in 20 years.” As you near retirement, shift more of your retirement nest egg into more stable bonds to ride out another economic downturn.
However, there will be some hard choices to make.
“The 40-something crowd is dealing with planning for retirement and their children’s education, which is often competing for the same dollars,” says Whelan. He and many other financial planners urge that your retirement takes priority. Worst case, junior can get loans or go to a fine state school. You aren’t being selfish – you are trying to protect your kids from having to care for you when you’re older and penniless.
On the other hand, you can use those Section 529 education savings accounts for yourself – name yourself the beneficiary and use those funds in your retirement for tuition, fees, supplies, books, room and board to study literature in London, or learn Italian in Rome.
Also, some plans will let you borrow from the account balance for a downpayment, education expenses, emergency medical expenses and disability.
Diversify your savings
Workplaces will offer a 401 (k), Individual Retirement Accounts (IRAs), pensions, annuities, or Keogh, and if you’re lucky your employer will contribute to it. You’ll then have Social Security and savings.
Many Polaroid employees are looking at empty retirement accounts; meanwhile, many who thought they could retire soon are looking at mutual funds sagging from the economic downturn. The key to safer investing is diversification – don’t put all your eggs into one basket.
“In a 401K the biggest mistake people can make with Polaroid and Enron is having 100 percent of your portfolio in one stock,” says Whelan, who recommends no more than 10 percent in any single company.
However, this is also a time to be brave. “I think the biggest concern I have these days is hearing people say that investing in the market these days isn’t safe; but historically it is still the best way to save for retirement,” says Whelan. “People have to keep the discipline and focus.”
General Electric worker Joe Cahill of Lynn has been setting aside 7 to 10 percent of his salary since he started 26 years ago, and he is fully invested in his GE pension. His 401(k) consists of all GE stock, and GE matches up to 7 percent. Considering what happened at Polaroid, he adds nervously, “I have to do something about that. But GE is somewhat like a mutual fund, because they are so diversified. And they’ve done really well in the past 5 or 10 years.”
“When I was younger I never thought I’d get to the point where I’d be in retirement,” says Cahill, who now finds himself listening to financial programs on talk radio for advice. “I feel most people retire into poverty.”
Good financial planning also includes investing in non-tax-sheltered mutual funds, preferably with no custodial fees and no commissions, called loads. “There are some real good no-load mutual funds out there – Janus and Vanguard offer a couple of investment families that have no-load products,” says Whelan.
You may also want to tune up your retirement planning with a well-recommended certified financial planner. A planner charges about one to two percent of the portfolio, up front or based on commission.
“We’re an independent firm,” says Whelan about his Eaglerock services. “We have in excess of a thousand funds available. If you go to Smith Barney you’re apt to end up with Smith Barney funds. Some people work on a fee basis, a lot of it is commission-driven. Nothing is for nothing.”
Sandra Miller is a freelance writer. She is hoping that her Partridge Family lunch box and original Star Wars figurines will fund a comfy retirement.
Sidebar: Last-minute retirement fixes
If you’re nearing retirement age and didn’t save enough:
• Extend your planned retirement age. Plan for a second career that you can foresee yourself doing past 70, even if only part-time. Take advantage of 401(k) plans or health benefits.
• Turn a hobby into income. Golfers can skip the fees in exchange for a part-time job on the greens. Sell your baked goods to the local grocery store.
• Consider a reverse mortgage, where you get a monthly income while building a loan balance against your home equity.
• Maintain your health. Stop smoking (you’ll save loads of cash), exercise (walking is free!), keep your weight down (save on groceries). Eat less meat (veggies are cheaper, and cholesterol takes its toll). Brush and floss daily (or are dentures cheaper in the long run?)
• Look for cheaper cable and Internet plans. Better yet, cancel those services and volunteer your time. (Bonus: A social life.)
• Buy a multi-family home that generates rental income, or take in a boarder.
• Barter your babysitting and cooking skills for a bedroom and kitchen space in your kid’s home.
Resources:
Some good books for beginners:
• “Personal Finance For Dummies,” By Eric Tyson
• ”The 9 Steps to Financial Freedom” by Suze Orman
• “On Your Own: A Widow's Passage to Emotional and Financial Well-Being,”
Alexandra Armstrong
• 25 Myths You've Got to Avoid If You Want to Manage Your Money Right: The New Rules for Financial Success, Jonathan Clements
Websites:
• www.Motleyfool.com
• www.bankrate.com
www.quicken.com
• Social Security benefits calculator: www.ssa.gov/retire/calculators
Thursday, April 25, 2002
Sunday, April 14, 2002
Doing the Homework
What to consider when hiring a house inspector
By Sandra Miller
Daily Evening Item
Home inspector Dennis Robitaille gives second opinions all the time, often for lawyers’ clients with a dog of a house on their hands. One home inspection report made Robitaille laugh out loud. “Under “Foundation,” the comments said, ‘Yes, under perimeter of dwelling’… under “Roof,” the inspector wrote ‘OK.’ When I went into the attic, there was daylight shining through it, like someone took a shotgun to it.”
The house also had extensive termite damage, a broken sewer line, torn and damaged asbestos materials in the basement, and old wiring, yet none of this was reported by the inspector, who claimed to have more than 35 years of experience.
The client eventually won his case in court, but what really gets Robitaille is that the home buyer had called him for a home inspection in the first place, but rejected his $400 fee for the other inspector’s $150. “I want to tell them, ‘You can pay me now, or pay me later,’” says Robitaille, who runs Able Home Inspections in Saugus.
“My job is to protect the buyers,” says Robitaille. “Buying a house is emotional. You probably assume there’s nothing wrong with it. It’s like going to the doctors -- do you really want to find out what’s wrong?”
Years ago, an inspection was an afterthought. Many home buyers will give a thorough once-over to a used car, but not to a half-million-dollar money pit that will clock in as the biggest investment of their lives. If a homeowner hired one at all, they often opted for “bargain” inspectors recommended by their real estate agents – who represent the seller, not the buyer. But what they don’t always realize is that was often in the agents’ best interests to provide fast, easy inspectors.
A state home inspection law passed last year prohibits real estate brokers and salespersons from directly recommending a specific home inspection company or home inspector, unless they are officially the buyer’s broker. It also requires that all inspectors to be licensed by the state.
“Ten years ago there were no standards. Anyone could be a home inspector,” says William Goddard, an inspector in Marblehead. “Today, the reports are far more extensive. We’re doing efficiency tests on boilers we didn’t do 10 years ago, using moisture meters to check for moisture behind walls.”
Whether you’re a first-time homebuyer or are buying a home for the first time in several years, there’s a lot to know about the home inspection process.
How to hire an inspector
• Pick one BEFORE you find a house. Today’s home sales can be very fast-moving process, yet finding the right inspector can take research. And spring is busy time for the state’s mere 500 licensed inspectors. Upon request, agents can provide a list of licensed home inspectors prepared by the Board of Home Inspectors. Better yet, get referrals from those who do not have a vested interest in the sale, such as your attorney, and past clients of the inspector. Look beyond a guy wielding a flashlight and a license, and check experience, credentials, association membership, and special training in such areas as asbestos, lead paint, and pest control.
• Do the homework. “Educate yourself about houses and the systems in a house before you start looking for a house,” says Bridget McGuiness, a rare woman inspector who runs Corrosion Check in Swampscott. “As you attend open houses, you may be able to bypass houses that require more work than what you can afford.”
• Look over the P&S. Some purchase & sales (P & S) agreements allow the buyer only 5 days from the signing of the P & S to obtain an inspection, but you can try for 14 days from when the agreement is signed -- many good home inspectors are booked more than 5 days in advance, and you may want some wiggle room. Also, a buyer wants a clause that allows them to cancel an agreement for any reason if not satisfied with the inspection findings, and get the deposit back. More restrictive clauses may try to limit this to "major defects and/or hazardous conditions...". Ask your attorney to review this.
• What will the inspector do – and not do? A standard inspection covers areas such as foundation, sills, beams, support columns, sub-floor, basement, attic insulation, roof structure and covering, walls, doors, floors, windows, electrical, plumbing, central heating and cooling systems, fireplaces, and chimneys. But ask how long will they spend on an inspection? Will they climb on a ladder to inspect the roof, or use binoculars from across the street?
• Be prepared to hire licensed specialists to cover questions about structural integrity, termites, land composition. “I always check for pest activities, rot and so forth, but most inspectors are not licensed exterminators,” says Goddard, of Goddard Association Home Inspections.
• Fees. An average 2000-square foot home inspection will cost around $175-$500, more if it’s an older or larger home, less for condos. Fees are based on house size, style, age, location, type of structure & optional services requested. “If it’s an antique home, I have to check out the mortars and timbers for powderpost beetles and rot,” says Goddard.
• Hire experience. You want someone trained in construction and building maintenance standards, and licensed by the state Division of Professional Licensure. He or she should be a member of affiliations that require certification, such as American Society of Home Inspectors. Robitaille, who is a member of ASHI, also founded the Independent Home Inspectors of North America, which requires members to sign a pledge stating they do not actively solicit real estate agents for home buyer client leads.
• Ask for a sample report. A simple checklist may lack the details and advice of a narrative report. Is the information thorough and clear? Does it cover potential safety hazards?
• Check references. Ask for the names and telephone numbers of clients who used that home inspector more than 3 months ago – some problems can take a while to surface. And also check with the Better Business Bureau or attorney general’s office.
• Ask about their policies on errors or overlooked problems. Does the company have insurance for mistakes and omissions? Will the individual inspector ask you to sign a waiver limiting liability? Will they refund their fee if you are dissatisfied?
Once you’ve hired the inspector:
• Attend the home inspection. Not only will you be armed with your own questions about the house, you’ll learn first-hand about your future home’s quirks.
• Inspectors should be loaded for bear. Check whether your home inspector is equipped with such tools as a flashlight, level, an inspection mirror, and a ladder, gadgets such as outlet testers, gas and carbon monoxide detectors. Robitaille says most good inspectors can now only do one inspection a day. “Now I’m using expensive carbon monoxide detectors, electrical circuit analyzers, and electronic moisture meters; then it’s back to the computer to write the report, and include some digital photography.” But, he adds, “The most important thing an inspector can bring to the inspection site is experience.”
• Ask questions. Basically, you want to know whether the house is safe, and if it’s a money pit. Everything else can be fixed, but it’s still wise to prepare a list of questions in advance.
• Be sure the inspector checks EVERYWHERE. For example, the electrical outlets should not only be tested, but the plate unscrewed to check for older wiring and insulation. Are they shying away from the spooky corners? McGuiness recalls one “boy, I’m glad I entered that crawlspace” situation where she crawled into a two-foot-high area that was “dark, damp, and full of spider webs. I went up to the end of the crawlspace where the house sill was located and found that several feet of sill was significantly rotted. A contractor estimated the damage would cost about $20,000 to repair.” The owner’s inspector a few years earlier didn’t catch the damage, and so the seller agreed to pay for the repair. “The seller then hired me to inspect the house he was buying.”
After the inspection
• At the end of the inspection, get a full verbal report from the home inspector. The written report may be due as early as the next working day, and it should tell you the good and not so good aspects of the home, safety factors, the repairs that will be needed, and possible hidden deterioration.
• The report may estimate life left on systems and components of a house.
• Most home inspectors also include photos of problem areas.
• The home inspector should answer any questions you may have, immediately or down the road.
You should not expect the home inspector to:
• Offer to repair, for a fee, any uncovered defects
• Advise either way whether to buy the property. Says McGuiness, “That decision is up to you. “
• Perform certain tests, such as for underground storage tanks, lead paint, drinking water, radon gas, urea formaldehyde foam insulation, asbestos, septic systems and pest control, unless previously agreed. These are often specialty areas requiring separate and additional licensing or certifications.
• Give an appraisal of the value of the home, or even the cost of the repair. “It really irks me when a home inspector says this problem will cost x amount of dollars to correct,” says Kathryn O’Brien, an agent for ReMax on the River in Ipswich and Newburyport. “I’ve actually heard home inspectors say to the buyers, ‘The seller should take x amount of dollars off to repair this problem.’ This is not appropriate.”
• Scare you with horror stories from past inspections. “I’ve had inspectors scare the bejesus out of my clients,” says O’Brien.
• See through walls, lift heavy furniture or make their way through rooms cluttered with items. Says Goddard, “They can’t go inside walls or behind aluminum siding. We’re not supposed to move furniture, although in the bathroom or on hardwood floors I will lift a rug. Sometimes you go into a basement loaded with storage, and we aren’t required to get around that.” If a cluttered room prevents a good inspection, 24 hours before closing you can do a final walkthrough in the now-empty house to check for damage.
• Be perfect. “Inspectors are generalists,” says McGuiness. “Sometimes we know a lot about a few things. Inspectors are human and may make mistakes. Work with the inspector if a problem arises.”
Hire a buyer
Still not sure who to hire? Cautious buyers spend the extra money to hire a buyer’s broker, usually a small percentage of the home price, in addition to a real estate agent.
“A buyer’s broker can do a lot of the work for you,” says Tom O’Donnell, who used Hunneman as his broker to find an inspector and help him buy his first home, a six-room cape on Walnut Street in Lynn, two years ago. “I was paying more attention to the paperwork and making all the deadlines,” says O’Donnell.
“There were no major problems … it needs a vent up in the attic so the heat doesn’t build up, something to do with the drain spots, but those are easily fixed.” In the two years since he’s owned the home, he’s only had a little plumbing done.
As a broker, Kathryn O’Brien often refers Robitaille, who she used on a recent sale on Neptune Street in Lynn, as well as for her own home, a circa 1790 home in Newbury. “I want my home inspector to find every single solitary thing with a house.” O’Brien also swears by home inspectors Jim Tebo in Rockport, Skip Telli in Byfield and Dale Pope in Gloucester. “They are not inexpensive, but you get what you pay for.”
“It’s to the seller’s advantage to hire an inspector,” she adds. “When the buyer moves in, they aren’t going to discover something they don’t like and say, ‘I didn’t know it had x, y and z.’ “
And even new homes come with problems. O’Brien recalled a brand new home in Groveland where the builder did not want a home inspection. She insisted upon one on behalf of her buyers, and Robitaille found two gas leaks.
Many buyers feel pressured to skimp on the inspection to speed up the sale, especially in today’s fast-moving home market. “There’ a lack of inventory which means high demand.,” says Goddard. “When I do an inspection for a client, the seller says ‘Take it or leave it.’”
It’s a seller’s market. “Don’t expect that the inspection will allow you to muscle the seller to reduce the price of the house,” says McGuiness. “If a home inspection discovers unknown or unanticipated problems or issues with the house, then, maybe a seller may be open to negotiating. But that depends on a lot of factors.”
Sandra Miller is a local freelance writer. She bought her home two years ago before the consumer laws went into effect, and is now nervous about those spooky crawlspaces in the basement.
By Sandra Miller
Daily Evening Item
Home inspector Dennis Robitaille gives second opinions all the time, often for lawyers’ clients with a dog of a house on their hands. One home inspection report made Robitaille laugh out loud. “Under “Foundation,” the comments said, ‘Yes, under perimeter of dwelling’… under “Roof,” the inspector wrote ‘OK.’ When I went into the attic, there was daylight shining through it, like someone took a shotgun to it.”
The house also had extensive termite damage, a broken sewer line, torn and damaged asbestos materials in the basement, and old wiring, yet none of this was reported by the inspector, who claimed to have more than 35 years of experience.
The client eventually won his case in court, but what really gets Robitaille is that the home buyer had called him for a home inspection in the first place, but rejected his $400 fee for the other inspector’s $150. “I want to tell them, ‘You can pay me now, or pay me later,’” says Robitaille, who runs Able Home Inspections in Saugus.
“My job is to protect the buyers,” says Robitaille. “Buying a house is emotional. You probably assume there’s nothing wrong with it. It’s like going to the doctors -- do you really want to find out what’s wrong?”
Years ago, an inspection was an afterthought. Many home buyers will give a thorough once-over to a used car, but not to a half-million-dollar money pit that will clock in as the biggest investment of their lives. If a homeowner hired one at all, they often opted for “bargain” inspectors recommended by their real estate agents – who represent the seller, not the buyer. But what they don’t always realize is that was often in the agents’ best interests to provide fast, easy inspectors.
A state home inspection law passed last year prohibits real estate brokers and salespersons from directly recommending a specific home inspection company or home inspector, unless they are officially the buyer’s broker. It also requires that all inspectors to be licensed by the state.
“Ten years ago there were no standards. Anyone could be a home inspector,” says William Goddard, an inspector in Marblehead. “Today, the reports are far more extensive. We’re doing efficiency tests on boilers we didn’t do 10 years ago, using moisture meters to check for moisture behind walls.”
Whether you’re a first-time homebuyer or are buying a home for the first time in several years, there’s a lot to know about the home inspection process.
How to hire an inspector
• Pick one BEFORE you find a house. Today’s home sales can be very fast-moving process, yet finding the right inspector can take research. And spring is busy time for the state’s mere 500 licensed inspectors. Upon request, agents can provide a list of licensed home inspectors prepared by the Board of Home Inspectors. Better yet, get referrals from those who do not have a vested interest in the sale, such as your attorney, and past clients of the inspector. Look beyond a guy wielding a flashlight and a license, and check experience, credentials, association membership, and special training in such areas as asbestos, lead paint, and pest control.
• Do the homework. “Educate yourself about houses and the systems in a house before you start looking for a house,” says Bridget McGuiness, a rare woman inspector who runs Corrosion Check in Swampscott. “As you attend open houses, you may be able to bypass houses that require more work than what you can afford.”
• Look over the P&S. Some purchase & sales (P & S) agreements allow the buyer only 5 days from the signing of the P & S to obtain an inspection, but you can try for 14 days from when the agreement is signed -- many good home inspectors are booked more than 5 days in advance, and you may want some wiggle room. Also, a buyer wants a clause that allows them to cancel an agreement for any reason if not satisfied with the inspection findings, and get the deposit back. More restrictive clauses may try to limit this to "major defects and/or hazardous conditions...". Ask your attorney to review this.
• What will the inspector do – and not do? A standard inspection covers areas such as foundation, sills, beams, support columns, sub-floor, basement, attic insulation, roof structure and covering, walls, doors, floors, windows, electrical, plumbing, central heating and cooling systems, fireplaces, and chimneys. But ask how long will they spend on an inspection? Will they climb on a ladder to inspect the roof, or use binoculars from across the street?
• Be prepared to hire licensed specialists to cover questions about structural integrity, termites, land composition. “I always check for pest activities, rot and so forth, but most inspectors are not licensed exterminators,” says Goddard, of Goddard Association Home Inspections.
• Fees. An average 2000-square foot home inspection will cost around $175-$500, more if it’s an older or larger home, less for condos. Fees are based on house size, style, age, location, type of structure & optional services requested. “If it’s an antique home, I have to check out the mortars and timbers for powderpost beetles and rot,” says Goddard.
• Hire experience. You want someone trained in construction and building maintenance standards, and licensed by the state Division of Professional Licensure. He or she should be a member of affiliations that require certification, such as American Society of Home Inspectors. Robitaille, who is a member of ASHI, also founded the Independent Home Inspectors of North America, which requires members to sign a pledge stating they do not actively solicit real estate agents for home buyer client leads.
• Ask for a sample report. A simple checklist may lack the details and advice of a narrative report. Is the information thorough and clear? Does it cover potential safety hazards?
• Check references. Ask for the names and telephone numbers of clients who used that home inspector more than 3 months ago – some problems can take a while to surface. And also check with the Better Business Bureau or attorney general’s office.
• Ask about their policies on errors or overlooked problems. Does the company have insurance for mistakes and omissions? Will the individual inspector ask you to sign a waiver limiting liability? Will they refund their fee if you are dissatisfied?
Once you’ve hired the inspector:
• Attend the home inspection. Not only will you be armed with your own questions about the house, you’ll learn first-hand about your future home’s quirks.
• Inspectors should be loaded for bear. Check whether your home inspector is equipped with such tools as a flashlight, level, an inspection mirror, and a ladder, gadgets such as outlet testers, gas and carbon monoxide detectors. Robitaille says most good inspectors can now only do one inspection a day. “Now I’m using expensive carbon monoxide detectors, electrical circuit analyzers, and electronic moisture meters; then it’s back to the computer to write the report, and include some digital photography.” But, he adds, “The most important thing an inspector can bring to the inspection site is experience.”
• Ask questions. Basically, you want to know whether the house is safe, and if it’s a money pit. Everything else can be fixed, but it’s still wise to prepare a list of questions in advance.
• Be sure the inspector checks EVERYWHERE. For example, the electrical outlets should not only be tested, but the plate unscrewed to check for older wiring and insulation. Are they shying away from the spooky corners? McGuiness recalls one “boy, I’m glad I entered that crawlspace” situation where she crawled into a two-foot-high area that was “dark, damp, and full of spider webs. I went up to the end of the crawlspace where the house sill was located and found that several feet of sill was significantly rotted. A contractor estimated the damage would cost about $20,000 to repair.” The owner’s inspector a few years earlier didn’t catch the damage, and so the seller agreed to pay for the repair. “The seller then hired me to inspect the house he was buying.”
After the inspection
• At the end of the inspection, get a full verbal report from the home inspector. The written report may be due as early as the next working day, and it should tell you the good and not so good aspects of the home, safety factors, the repairs that will be needed, and possible hidden deterioration.
• The report may estimate life left on systems and components of a house.
• Most home inspectors also include photos of problem areas.
• The home inspector should answer any questions you may have, immediately or down the road.
You should not expect the home inspector to:
• Offer to repair, for a fee, any uncovered defects
• Advise either way whether to buy the property. Says McGuiness, “That decision is up to you. “
• Perform certain tests, such as for underground storage tanks, lead paint, drinking water, radon gas, urea formaldehyde foam insulation, asbestos, septic systems and pest control, unless previously agreed. These are often specialty areas requiring separate and additional licensing or certifications.
• Give an appraisal of the value of the home, or even the cost of the repair. “It really irks me when a home inspector says this problem will cost x amount of dollars to correct,” says Kathryn O’Brien, an agent for ReMax on the River in Ipswich and Newburyport. “I’ve actually heard home inspectors say to the buyers, ‘The seller should take x amount of dollars off to repair this problem.’ This is not appropriate.”
• Scare you with horror stories from past inspections. “I’ve had inspectors scare the bejesus out of my clients,” says O’Brien.
• See through walls, lift heavy furniture or make their way through rooms cluttered with items. Says Goddard, “They can’t go inside walls or behind aluminum siding. We’re not supposed to move furniture, although in the bathroom or on hardwood floors I will lift a rug. Sometimes you go into a basement loaded with storage, and we aren’t required to get around that.” If a cluttered room prevents a good inspection, 24 hours before closing you can do a final walkthrough in the now-empty house to check for damage.
• Be perfect. “Inspectors are generalists,” says McGuiness. “Sometimes we know a lot about a few things. Inspectors are human and may make mistakes. Work with the inspector if a problem arises.”
Hire a buyer
Still not sure who to hire? Cautious buyers spend the extra money to hire a buyer’s broker, usually a small percentage of the home price, in addition to a real estate agent.
“A buyer’s broker can do a lot of the work for you,” says Tom O’Donnell, who used Hunneman as his broker to find an inspector and help him buy his first home, a six-room cape on Walnut Street in Lynn, two years ago. “I was paying more attention to the paperwork and making all the deadlines,” says O’Donnell.
“There were no major problems … it needs a vent up in the attic so the heat doesn’t build up, something to do with the drain spots, but those are easily fixed.” In the two years since he’s owned the home, he’s only had a little plumbing done.
As a broker, Kathryn O’Brien often refers Robitaille, who she used on a recent sale on Neptune Street in Lynn, as well as for her own home, a circa 1790 home in Newbury. “I want my home inspector to find every single solitary thing with a house.” O’Brien also swears by home inspectors Jim Tebo in Rockport, Skip Telli in Byfield and Dale Pope in Gloucester. “They are not inexpensive, but you get what you pay for.”
“It’s to the seller’s advantage to hire an inspector,” she adds. “When the buyer moves in, they aren’t going to discover something they don’t like and say, ‘I didn’t know it had x, y and z.’ “
And even new homes come with problems. O’Brien recalled a brand new home in Groveland where the builder did not want a home inspection. She insisted upon one on behalf of her buyers, and Robitaille found two gas leaks.
Many buyers feel pressured to skimp on the inspection to speed up the sale, especially in today’s fast-moving home market. “There’ a lack of inventory which means high demand.,” says Goddard. “When I do an inspection for a client, the seller says ‘Take it or leave it.’”
It’s a seller’s market. “Don’t expect that the inspection will allow you to muscle the seller to reduce the price of the house,” says McGuiness. “If a home inspection discovers unknown or unanticipated problems or issues with the house, then, maybe a seller may be open to negotiating. But that depends on a lot of factors.”
Sandra Miller is a local freelance writer. She bought her home two years ago before the consumer laws went into effect, and is now nervous about those spooky crawlspaces in the basement.
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