Nolo's Essential Guide to Buying Your First Home (24 page)

Read Nolo's Essential Guide to Buying Your First Home Online

Authors: Ilona Bray,Alayna Schroeder,Marcia Stewart

Tags: #Law, #Business & Economics, #House buying, #Property, #Real Estate

BOOK: Nolo's Essential Guide to Buying Your First Home
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CD-ROM
 
For a handy set of questions to use in your interview and reference checks:
Use the “Attorney Interview Questionnaire” and “Attorney Reference Questionnaire” in the Homebuyer’s Toolkit on the CD-ROM. Samples of these forms are shown below.
 
 
TIP
 
You can look up an attorney’s bar record.
Attorneys who violate ethics rules may be disciplined by the state bar (the organization in charge of licensing and regulation). Many states have online tools that allow you to check records. Type “[
your state’s name
] state bar” into a search engine.
 
Your Sharp Eye: The Property Inspector
 
Before you buy a property, you’ll have it inspected at least once (per a contingency you’ll put in your contract, as discussed in Chapter 10). The purpose is to make sure that you’re getting what you pay for—namely, a house in as good a condition as it appears to be. Suppose you make an offer assuming a place is in tip-top shape, then discover that the bathroom needs to be redone because of a mold problem? The value of that property suddenly plummets—you might not even want to buy it at all.
The typical inspection contingency allows 14 days for inspections to be completed, and three days after that for you to approve them. That’s not much time—and in some U.S. regions, the best inspectors have a waiting list. So it’s good to choose your inspector before agreeing to buy a house.
Who Inspectors Are
 
A general home inspector visually examines your potential home, inside and out, for mechanical and structural flaws that could impact its value. Then the inspector prepares a written report summarizing the findings. General inspectors usually have a background in general contracting, residential homebuilding, or engineering. Some states require home inspectors to pass a test and be licensed, while others do not. The more specialized inspectors have other areas of expertise and backgrounds and may need a state license (licensing is fairly common for pest inspectors, for example).
Attorney Interview Questionnaire
 
Ask the following questions, as well as any specific to your transaction—for example, regarding the attorney’s experience with condo, co-op, or newly built house purchases.
 
 
Name of attorney and contact information (phone, email, etc.):
Date of conversation:
1. What percent of your time do you spend helping residential real estate buyers?
2. How many years have you been handling residential real estate legal matters?
3. Do you charge hourly rates (if so, at what rate) or flat fees for services?
4. Are you an active member of the state bar association?
5. Have you ever been subject to any bar association disciplinary proceedings?
6. Have you ever been sued for malpractice? What was the result?
7. How many individual home buying clients have you represented in the past year?
8. Can you provide the names of three recent clients who will serve as references?
 
NOTES:
 
Best Answers:
1. More than 50%.
2. The longer the better, but at least two years.
3. No one right answer—you’ll want to compare fees between attorneys. But try not to base your decision solely on how high or low the fees are.
4. Only acceptable answer is “Yes.”
5. Only acceptable answer is “No.”
6. Only acceptable answer is “No.”
7. Should be a minimum of seven.
8. Not all attorneys will provide references, but if one does, it’s worth your time to follow up.
 
Attorney Reference Questionnaire
 
Here’s what to ask the attorney references. You can add any other questions that interest you—for example, if you’re seeking a particular type of legal help, such as with buying a co-op.
Name of attorney:
Name of reference:
Date:
1. How did you choose the attorney?
 
 
 
2. Did you know the attorney before you worked together?
 
 
 
3. What kind of legal services did the attorney provide?
 
 
4. Was the attorney responsive? Did the attorney return calls and emails promptly, follow through on promises, and meet deadlines?
 
 
5. How long did you work together?
 
 
6. Are you happy with the attorney’s services?
 
 
7. Did the attorney keep you up to date, and explain everything in terms you understood?
 
 
8. Would you work with the attorney again?
 
 
OTHER COMMENTS:
What Your Inspector Does for You
 
A general home inspection is usually limited to areas that can be seen during one visit without disturbing or damaging the property, such as viewing the condition of the roof, visually inspecting the electrical system, and examining the integrity of the house’s foundation. This inspection may also reveal that other inspections are needed, for example, of the chimney or foundation.
A pest inspection, which most lenders require, is more limited in scope. The inspector looks for any damage-causing insects, such as termites or beetles, as well as dry rot.
Getting the Best Inspector Out There
 
When choosing a general home inspector, look for one who’s been in the business for many years and is not only licensed (if that’s available in your state), but affiliated with a professional or trade organization, most notably the American Society of Home Inspectors (ASHI). Ideally, you also want someone who has been a residential homebuilder or contractor.
Many buyers use a home inspector recommended by their real estate agent. Be careful: Inspectors who rely too much on agent referrals may be reluctant to find problems that could end up scuttling the deal, thus disappointing the agent. That’s why it’s worth getting independent recommendations from your friends, coworkers, and recent homebuyers.
 
TIP
 
The general inspector won’t do the repairs.
A general (not pest) inspector evaluates problems and recommends solutions. But no ethical inspector would say, “And guess what, I can fix that for you, at this price.” That’s a conflict of interest, violates the standards of the main industry trade groups such as ASHI, and is prohibited by law in many states.
 
When choosing a pest inspector, you can give greater credence to your agent’s recommendations. Pest inspectors traditionally are the ones who do the extermination and fix-up work. Yes, it’s a conflict, but that’s the way the industry works, and the good news is that they actually have an interest in finding problems. For that reason, the remainder of this section will focus on general, not pest, inspectors.
To find a general inspector who will give the house a thorough going-over, interview two or three, asking questions about their experience, price, and scope of services. Also ask any questions specific to your situation, like whether the inspector has experience with historic remodeled properties. Then request the names of three recent references, and follow up to make sure they were impressed with the inspector’s eye for defects and communication abilities—and haven’t found subsequent problems!
 
CD-ROM
 
For a comprehensive set of questions for both the inspector and his or her references:
Use the “Home Inspector Interview Questionnaire” and the “Home Inspector Reference Questionnaire” in the Homebuyer’s Toolkit on the CD-ROM. Samples of these forms are shown below.

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