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. 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. 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.

Who Does What

Home Inspector Interview Questionnaire Ask potential inspectors the following questions, as well as anything specific to your situation, like whether the inspector has experience with historic or remodeled properties:Name of inspector and contact information (phone, email, etc.):Date of conversation:1. Do you work full time as a home inspector?

2. How long have you been in the home inspection business?

3. Are you affiliated with ASHI?

4. How many home inspections have you done in the past year in this area?

5. What kind of inspection report do you provide? Can I see an example?

6. Do you have current, active liability insurance?

7. What did you do before you were a home inspector?

8. Can I accompany you on the inspection? Can I take photos or videos?

9. Can you provide at least three names of recent clients who'll serve as references?

NOTES:.

Best Answers:1. Yes.2. The longer the better, but at least two years.3. Only acceptable answer is "Yes." ASHI is the national organization with the most stringent professional standards.4. Should be a minimum of 15.5. Many inspectors have sample reports on their websites; you want as comprehensive report as possible, versus a short checklist. And you definitely want to see a sample report if there isn't one on the inspector's website.6. Only acceptable answer is "Yes." Be sure to ask for a certificate of this compliance.7. Only acceptable answer is a building-related position, such as a contractor or building inspector.8. Only acceptable is "Yes" to the question of whether you can accompany the inspector. But whether you'll be permitted to take photos or videos is a matter of the inspector's own preference.9. Only acceptable answer is "Yes."

Home Inspector Reference Questionnaire Here's what to ask the inspector's references:Name of inspector:Name of reference:Date:1. How did you choose the inspector?

2. Did you know the inspector before you worked together?

3. What kind of inspection did you get and how much did it cost?

4. Was the inspector responsive? Did the inspector return calls and emails promptly, follow through on promises, and meet deadlines?

5. Did the inspector take the time to explain everything to you?

6. Did you go along on the inspection? If not, why not? If so, how long did it take?

7. What kind of report did you get?

8. Are you happy with the home inspection services and report you got?

9. Did the inspector keep you up to date, and explain everything in terms you understood?

10. Would you work with the inspector again?

OTHER COMMENTS:.

Your Big Picture Planner: The Closing Agent

A lot has to happen between signing the agreement to buy a house and closing the deal-it's a process that usually takes at least a few weeks. You want to make sure that the house is in good shape, your financing is squared away, and that the seller doesn't pull any surprises. And on the closing day, a number of documents need to be signed, and money transferred back and forth.

To take care of the many details, it makes sense to have a third party-in many states, a completely neutral third party-to make sure both of you are doing what you promised. That's where the closing agent (sometimes called the "escrow agent," "escrow officer," "closing officer," or "title agent") comes in. Every state's requirements for who can serve in this role are different. In states where attorneys handle the closing (such as Massachusetts and New York), you might not have one neutral intermediary, but instead two attorneys, yours and the seller's, sharing the tasks.

Who Closing Agents Are

Even though we call a closing agent a member of "your" team, the agent is really looking out for both you and the seller (unless you're each using your own attorney). The closing agent acts as a check on both of you, to make sure you complete the transaction according to the terms of the purchase agreement. The agent usually works for a title or escrow company.

What Your Closing Agent Does for You

Although you may not meet your closing agent until you're far into the purchase process-possibly until closing day-the agent will be working behind the scenes long prior to that. (You can meet your closing agent before then, if you want to-and if you have questions or envision some hairy complications, it's a good idea to get in touch.) Expect your closing agent to: * Arrange your title insurance. Arrange your title insurance. The closing agent will order or perform (if he or she already works for a title company or is an attorney) a title search. The resulting report will show whether the seller is actually in a legal position to sell the property to you and whether any liens, easements, or other encumbrances affect ownership of the property (we'll translate that gobbledygook in later chapters). After the seller clears up any title defects, the closing agent will help make sure you're issued a title insurance policy. The closing agent will order or perform (if he or she already works for a title company or is an attorney) a title search. The resulting report will show whether the seller is actually in a legal position to sell the property to you and whether any liens, easements, or other encumbrances affect ownership of the property (we'll translate that gobbledygook in later chapters). After the seller clears up any title defects, the closing agent will help make sure you're issued a title insurance policy.* Coordinate with lenders. Coordinate with lenders. The closing agent is going to coordinate with two different sets of lenders: the seller's lender(s), assuming the seller hadn't already paid off the mortgage, and your mortgage lender(s). The closing agent will make sure the seller's lenders are paid in full when the property is sold. The closing agent is going to coordinate with two different sets of lenders: the seller's lender(s), assuming the seller hadn't already paid off the mortgage, and your mortgage lender(s). The closing agent will make sure the seller's lenders are paid in full when the property is sold.* Establish an escrow or trust account. Establish an escrow or trust account. The closing agent will keep any money you deposit in a separate bank account, called an escrow or a trust account, until the closing date, when the money will be transferred to the seller. The seller may also agree to deposit money there, for repairs. In states where both parties are represented by attorneys, the seller's attorney opens this account. The closing agent will keep any money you deposit in a separate bank account, called an escrow or a trust account, until the closing date, when the money will be transferred to the seller. The seller may also agree to deposit money there, for repairs. In states where both parties are represented by attorneys, the seller's attorney opens this account.* Prorate expenses. Prorate expenses. The closing agent will figure out who, between you and the seller, pays what proportion of any tax, interest, and insurance payments owing or paid during the time period around the sale. The closing agent will figure out who, between you and the seller, pays what proportion of any tax, interest, and insurance payments owing or paid during the time period around the sale.* Follow instructions. Follow instructions. The closing agent will follow written instructions prepared by you and the seller and make sure that all these tasks are accomplished by the date of closing. The closing agent will follow written instructions prepared by you and the seller and make sure that all these tasks are accomplished by the date of closing.* Record the deed and pay the seller. Record the deed and pay the seller. At the closing, the agent will transfer payment to the seller. Afterward, the closing agent will publicly record the new deed that transfers the property to you. At the closing, the agent will transfer payment to the seller. Afterward, the closing agent will publicly record the new deed that transfers the property to you.

How You'll Pay the Closing Agent

The closing agent is paid a fee that's included in closing costs. In some locations, it's customary for the buyer to pay the fee; in other locations, the seller; and elsewhere the fees are split. Your real estate agent should know the local custom, though you and the seller can negotiate something different.

Getting the Best Closing Agent Out There

Who chooses the closing agent depends on local custom and how strongly you, as the buyer, feel about having a voice in the matter. The choice of a closing agent is usually made early on and spelled out in the purchase agreement. Often the closing agent is someone either the buyer's or seller's real estate agent knows, however. If you want to use a particular company or individual, mention it to your agent at the outset so it can be included in your offer.

Who Does What

TIP.

Choose a closing agent who's conveniently located. You'll have to drive there at least once, for the closing, and maybe more often, for example, to sign a power of attorney or deliver an old divorce decree. You'll have to drive there at least once, for the closing, and maybe more often, for example, to sign a power of attorney or deliver an old divorce decree.

To make sure you're choosing the best closing agent, get referrals from not only your agent, attorney, or mortgage broker, but from trusted family members, friends, neighbors, or colleagues. Adviser Sandy Gadow, an experienced closing agent, suggests making sure your referral source had a good experience with the closing and found the closing agent to be efficient, accurate, and able to handle the closing according to schedule.

Strength in Numbers: Other Team Members