This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Buying a 'Bad' Home: What to Know in Case You Buy a House of Horrors

Juneau recalled a case where he was commissioned to inspect a brand-new home in the Bellingham, Wash., area. He discovered significant structural issues with the home. Despite noting that in the inspection report -- and advising his clients against buying -- his clients went ahead and purchased the property. ("Where else can you find these views?" Juneau recalled his clients saying.) A year later, his clients contacted him, complaining that their home had settled by three inches -- a problem Juneau had predicted in his initial inspection report.

And though some homebuyers just won't listen, Braun told AOL Real Estate that the most important tip for homebuyers is still to hire a trained, licensed and well-reviewed home inspector. This is absolutely necessary, Braun said, as the average homebuyer is not trained to look at homes the way a certified inspector is. Ensure that your home inspector is licensed if your state requires it. (Unfortunately, only about half of states require any kind of certification or licensing for home inspectors.) Also, make sure the inspector is affiliated with a professional inspection organization, such as the National Association of Home Inspectors, American Society of Home Inspectors or National Institute of Building Inspectors.

Juneau adds that homebuyers should interview their inspector on the phone for at least 15 minutes before hiring them. "Ask for his resume, ask for guarantees," said Juneau.





Most importantly, insist on attending the inspection.

"It will take them much longer to inspect the house -- they'll have to stop and answer your questions -- but you absolutely need to be there. You'll get a wealth of knowledge and information about the home just being present during the inspection," Juneau said. "If the inspector isn't willing to let you attend their inspection, then that inspector isn't for you."

Be Careful Whom You Trust

Also beware of inspectors recommended by the Realtor trying to sell the home, Justin Treher warned. While the Treher family did hire an inspector to look at their home before purchasing it, it was an inspector whom they later found out their Realtor knew -- and "knew was awful," Treher said.

3 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs