BOSTON — Buying a home is a challenging and sometimes risky endeavor.
Every buyer is worried about finding expensive problems after all the paperwork has been signed.
A new state law goes into effect regarding the use of home inspectors on Friday.
Supporters of the measure believe it will help home buyers, particularly those in the market for the first time.
Some real estate professionals feel it will put unworkable limits on both buyers and sellers.
The new law comes at a time when it has never been more challenging for first-time homebuyers in eastern Massachusetts.
The Greater Boston Association of Realtors says the median price for a single-family home in the region is now $988,000.
It’s a frustrating situation for people like Tina Shukar. She has unsuccessfully been trying to buy her first house for several years now.
She has a good career in sales.
“The problem is that I am competing against companies that do home flips, and they use cash to buy properties, and skip inspections and all that.”
The new law will make it against the law to condition the sale of property on a waiver of an inspection, said State Senator Will Brownsberger (D-Suffolk/Middlesex).
This law is part of the Affordable Homes Act, which was signed by Governor Maura Healey last August.
It’s one of about 50 housing initiatives in the $5 billion dollar plus law.
Brownsberger was part of the Senate conference as the bill went through the legislature.
“The first-time homebuyers, the people we are trying to help in the housing market, are especially disadvantaged by that market dynamic of private equity... Coming into the local real estate market and snapping up properties.”
Brownsberger says those types of buyers are better suited to handle the risks of foregoing an inspection.
One reason the senate got involved was because of a wide scale problem with concrete in central Massachusetts.
25 Investigates first reported on how concrete was compromised with pyrrhotite and was susceptible to crumbling.
“We recognize that rules can have unintended consequences, so we left the details of this bill to the Executive Office of Housing and Livable Communities to put out some regulations.”
“What happened here isn’t right,” said Anthony Lamacchia, the CEO and also a broker, at The Lamacchia Companies. “It takes away rights from buyers and sellers and it’s a real problem.”
Lamacchia isn’t opposed to home inspections. In fact, he often thinks they’re a good idea.
But it’s the part of the new law that really bothers him.
It would prohibit the sale of a property, or “accepting an offer if the seller has been informed in advance that the prospective buyer intends to waive their right to an inspection.”
Lamacchia added, “It is literally going to prohibit realtors from doing things that they are supposed to do. You are supposed to convey what a buyer is trying to achieve. You are supposed to advocate for the advantages of the seller taking your buyer’s offer. Now if a seller hears that or a listing agent hears that, they’re not supposed to accept that offer. It doesn’t make sense.”
Brownsberger believes it will help “remove some of the advantages that those cash buyers have.”
Lamacchia said, “Listen, this is capitalism, and in capitalism, there are highs and lows in all kinds of ways.”
The Housing Office will report out their final regulations, and they will become law, on June 6th.
Senator Brownsberger said it’s common for the legislature to approve of an outline of their intentions and then have the appropriate agency fill in the specifics.
This is a developing story. Check back for updates as more information becomes available.
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