Home Inspection Waiver Ban Delayed
Greater Boston Monthly Market Report | New Hampshire November Real Estate Market Report | Rhode Island Real Estate Market Report
MAR Prioritizes Delaying Pro-consumer Home Inspection Law
The law that essentially prohibits waiving a home inspection in Massachusetts will not take effect for at least another eight months, and the Massachusetts Association of Realtors (MAR) is taking credit for stalling the pro-consumer piece of legislation.
In a unanimous vote (39-0) in late June, Massachusetts state senators adopted an amendment proposed by Millbury Senator Michael Moore that disallowed waiving home inspections. The amendment specifically directed the Executive Office of Housing and Livable Communities to establish regulations stating that home purchases cannot be contingent upon the buyer waiving their inspection rights. The House's housing bond bill did not include any such language.
The state Senate and House of Representatives needed to reconcile their differences before sending the final housing bill to Governor Healy for consideration. That happened on August 1, 2024, and included the Senate home inspection language [See housing bond bill]. Governor Healey signed the bill.
On December 4, 2024, MAR called delaying the implementation of the home inspection law a priority.
"One of MAR's year-end priorities was recently included in the closeout supplemental budget that was just passed by the Legislature: the extension of the deadline for the Executive Office of Housing and Livable Communities (EOHLC) to promulgate regulations mandating a right to conduct an inspection. The requirement for EOHLC to issue the regulations was included in the Housing Bond bill that was passed this summer. EOHLC now has until July 15, 2025. MAR will be involved in the regulatory process and will promulgate any recommended practice and forms changes once regulations are finalized."
The state Senate language is straightforward and doesn't allow sellers and agents to skirt the prohibition. The following is the full text of the amendment:
Section 101. The executive office of housing and livable communities shall promulgate regulations to ensure that no seller of a residential structure or a residential condominium unit, or agent thereof, shall: (i) condition the acceptance of an offer to purchase on the prospective purchaser's agreement to waive, limit, restrict or otherwise forego any prospective purchaser's right to have the structure or unit inspected, except when the sale of the structure or unit is to occur at an auction conducted by an auctioneer licensed under chapter 100; or (ii) accept an offer to purchase from any prospective purchaser, or agent thereof, who, in advance of the seller's acceptance of said offer, informs the seller, either directly or indirectly, that the prospective purchaser intends to waive, in whole or in part, the prospective purchaser's right to inspection; provided, however, that the seller may accept such an offer without violating this section when the prospective purchaser is: (A) the spouse, sibling, child, parent, grandparent, grandchild, great-grandchild or great-grandparent of the seller; or (B) the former spouse of the seller and the sale of the structure or unit is being made pursuant to a judgment or order under chapter 208; provided further, that other limited exceptions may be provided for by regulation."
Groups opposed to the law will undoubtedly focus on the law's last 12 words to water down the law.
In July, Moore told Real Boston that home buyers should know what they are buying before committing to one of the most significant investments in their lives.
"This amendment will curb the practice of making offers that waive the right to a home inspection, something that's become increasingly common in this ultra-competitive real estate market," Moore said. "Buyers must not feel obligated to waive inspections, risking their most important investment, in order to find their forever home. In a Commonwealth where we have long taken a strong approach to consumer protections, this is an obvious step to protect families from financial ruin due to costly undisclosed repairs."
Anyone involved in residential real estate knows the concerning number of prospective home buyers making offers that waive the home inspection contingency. While the number of offers without a home inspection contingency seemed to have decreased in recent months, it's likely still around 50 percent.
There's no doubt most listing agents are encouraging home sellers to prioritize offers without home inspection contingencies, even if the amount of the offers is slightly less money. Listing agents often tell buyer agents that a seller is looking for a "clean offer." Home buyers are also frequently encouraged to waive appraisal contingencies.
Greater Boston Monthly Market Report
The median price of a single-family home in the 64 cities and towns that comprise the Greater Boston Association of Realtors territory rose 3 percent in October compared to October 2023 and less than 1 percent from September 2024. The median house price in October was $855,000.
There were 885 houses sold in October, a significant increase of 18 percent from September's 751 sales, likely due to a brief but significant dip in interest rates in September. Sales were up 12 percent from 790 in October 2023, when interest rates briefly reached 8 percent for the first time since 2000.
The median condominium price in October increased to $700,000, less than 1 percent compared to October 2023 but 4 percent higher than September 2024. Through October, the median condo rose about 2 percent compared to the same 10-month period in 2023.
Condominium sales increased about 4 percent in October to 718 from 692 in October 2023.
New Hampshire November Real Estate Report
The Granite State's real estate market remains strong. The median price of a single-family home in November rose 11 percent on a year-over-year basis to $500,000, and sales increased by 2 percent to 1,071.
The number of houses for sale increased by 8 percent in November from November 2023; however, there was less than two months of supply.
New Hampshire condominium buyers got some relief in November, with the median price dropping more than 4 percent to $410,000 compared to $429,000 in November 2023. Condo sales fell 8 percent to 314.
There also was only two months of condominium supply in November. The number of available units rose nearly 9 percent.
Rhode Island Real Estate Market Report
The median price of a single-family home in much more affordable Rhode Island rose more than 11 percent in October to $485,000 from $435,000 in October 2023. The median price stood at $405,000 in October 2022.
House sales rose about 5 percent to 680 compared to 645 in October 2023 and 777 in October 2022.
Condominium prices dropped nearly 7 percent in October to $355,000 from $380,000 in October 2023. The median price in October 2022 was $319,000.
Condo sales jumped 15 percent to 183 compared to 159 units sold in October 2023 and 172 in October 2002.