TOPIC: Mandatory Inspections

We don't have any licensing requirements currently in Florida, but they have been talking about it.  Supposedly they are going to require this in 2010.

The structure of what is going on in NJ is why I am not up there anymore.  Lived in Bridgewater and moved 4 years ago. 

I agree that we need more structure, but with the state of the industry, I am not sure exactly what is going to come of this. 

Florida passed a HI licensing statute last year but with the shortfall in budget etc...we won't see them hit the 2010 implementation date. Besides, what was passed was a joke...no teeth...just a way to collect our money. It is up to us to police our profession. The good news is that the pretenders are all going away, leaving us to ride out the storm. We are still seeing buyers forgo the inspections and signing waivers...mostly because the realtors don't know the first thing about introducing and discussing the HI, plus a lot deals are bank owned with AS IS contracts with right to inspect. Buyers have no negotiating power and feel the HI is not worth it....their mistake (what they don't know CAN and WILL come back to bite them.) I feel a responsible license/regulation is called for with professional HI input and participation...unfortunately that usually won't happen when politics are involved. Time to get off and stay off my soap box....sorry.  :-\

I think "As Is" REO thing might vary from state to state as well.  For example, almost all transactions in California are "As Is".  The the buyer still has negotiation rights via advising the bank or seller that if the repairs aren't made or the buyer not compensated through credit or sales price reduction, said buyer will simply cancel the escrow.  There is always room to negotiate.  If the agents says no, time to get another agent.

On the HI state status discussion.  Isn't Drew asking if any state "Requires" a home inspection be performed on any and all transactions?  I believe many states have inspector license requirements, but I'm not aware of any state requiring home inspections on real estate transactions.  Is that not correct?

In PA its waether or not the bank requires one for the loan, most want to see an inspection report, PA just states what you need to do to be a home inspector.

We don't have any licensing requirements currently in Florida, but they have been talking about it.  Supposedly they are going to require this in 2010.

The structure of what is going on in NJ is why I am not up there anymore.  Lived in Bridgewater and moved 4 years ago. 

I agree that we need more structure, but with the state of the industry, I am not sure exactly what is going to come of this. 

Florida passed a HI licensing statute last year but with the shortfall in budget etc...we won't see them hit the 2010 implementation date. Besides, what was passed was a joke...no teeth...just a way to collect our money. It is up to us to police our profession. The good news is that the pretenders are all going away, leaving us to ride out the storm. We are still seeing buyers forgo the inspections and signing waivers...mostly because the realtors don't know the first thing about introducing and discussing the HI, plus a lot deals are bank owned with AS IS contracts with right to inspect. Buyers have no negotiating power and feel the HI is not worth it....their mistake (what they don't know CAN and WILL come back to bite them.) I feel a responsible license/regulation is called for with professional HI input and participation...unfortunately that usually won't happen when politics are involved. Time to get off and stay off my soap box....sorry.  :-\

I think "As Is" REO thing might vary from state to state as well.  For example, almost all transactions in California are "As Is".  The the buyer still has negotiation rights via advising the bank or seller that if the repairs aren't made or the buyer not compensated through credit or sales price reduction, said buyer will simply cancel the escrow.  There is always room to negotiate.  If the agents says no, time to get another agent.

On the HI state status discussion.  Isn't Drew asking if any state "Requires" a home inspection be performed on any and all transactions?  I believe many states have inspector license requirements, but I'm not aware of any state requiring home inspections on real estate transactions.  Is that not correct?

Know what you're saying! I guess I didn't finish my long winded thought but...I don't think a state can mandate inspections if they don't even regulate the inspector (ala Florida.)

Unfortunately I am going to start sounding like Norma Rae here but States can mandate or legislate  almost anything they want! YOU JUST NEED TO HAVE THE SUPPORT BEHIND IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Attorneys have lobbied themselves into all Real Estate transactions in NJ by LEGISLATION. Why can't Home Inspectors do the same.

I think its a great idea.  I also think its a great idea that anyone going through the school must work with a licensed inspector for X amount of time.  That's precisely what the home appraisal industry has done in my state.  And now the current licensed appraisers have all the say in who gets their license or not.  They typically wont take on new appraisers to complete their hours unless your family or buddy buddy with them.

Today I made three phone calls NJ Nachi, NJ ALPI, and NJ ASHI. I have positive responses from NJ Nachi and NJ ALPI, no response yet from ASHI. The first two will table the issue at the next meeting and discuss a petition. My plan is to then take that to the State Representatives.
Look out mortgage lobby here I come!

It's that easy.

Drew