Do i need a real estate attorney and inspector to buy a new home in Southern CA?

Question

I'm about to sign a sale contract with a home builder, the house is in Riverside, CA. i heard some comment that i only need to have a real estate agent to take care and review my contract and escrow paper, not lawyer. is that true? somehow with all the research i've done online i'm not so convincing of that idea. this is the first time i buy a house so i have no clue at all who is better.please advise. and if i do need a real estate attorney, please give me some recommendation in Riverside,CA or around the city. It'd be nice too if you could give me an idea of how big the attorney charge will be.
I'm also being told that i don't need to hire a home inspector since the house is brand new and come with warranty.again i'm not very convincing. so i need more advise and opinion from more people and recommendation for home inspector too. please also let me know the inspection charge range if possible. thank you!

Answer 1

The State of California has building codes and builders are required to comply with them. Don't worry too much. Get a home inspector and he/she will tell you if the home you are buying is up to codes. A home inspection will cost you about $350. It depends on the size of the house. Attorneys charge a lot of money. $250 per hour seems to be a going rate. If you want an honest advice, hiring one would be a waste of money. You are buying a house for the first time and I understand your concerns. However, don't freak out too much over the process. Read the contract yourself and see if there is something that really bothers you. Then you can ask a Realtor. Make a use of free services you are getting from a real estate agent. Keep in mind that many buyers neglect to check the pre-payment penalty on their loan. It's something you should know about. I disagree with Clifford G. Since you are buying a house for the first time, you need a professional guidance. Congratulations on you purchase.

Answer 2

Don't be afraid or deterred from getting a new home, but remember this:
Sometimes, home builders go bankrupt and they don't always deliver on their promise. A contract and warranty is only as good as the person/company behind it.

Call the California BETTER BUSINESS BUREAU ask them if they have any complaints or bad reports on that particular builder. Then find out if there is an Association for Home Builders in your area. If yes, ask them about the builder you plan to buy from. Perhaps you can get some information from a Real Estate Broker. If the builder has been in business awhile, they may be familiar with his work and reputation.

Generally, a Real Estate Agent is not an attorney, and although they are familiar with contracts they may not give you the advice you need, and they may charge a fee. Usually there is a lawyer 'in the works' of such matters. Ask what attorney will be doing the legal work. Perhaps you can talk to him. Also, each person involved will probably charge a fee. Ask your contact in the matter what the fees and closing costs will be. You're entitled to know all this in advance. Tell them you want it in writing for your personal financial planning.

Lastly, ask if you can speak to a prior home buyer (someone who bought one of your builder's homes). Say you want to know about their satisfaction with their home. If the builder starts backing away from your probing and questioning. Maybe you should back away, too.

P.S. California has building inspectors that contractors must call to their sites at various stages of the construction. So if all else pans out an inspector should not be required. If you know someone who has bought a new home recently, ask them some of your questions. They probably can answer them best of all.
Hope all goes well. It's GREAT to be in a home of your own!!!

Answer 3

I live in Michigan and have bought many used houses without the benefit of an attorney or an inspector or a real estate agent. But I am a builder and know how to inspect a house. But your house is new, there should be nothing to inspect. It would be a waste of money. All the houses in your area are built according to generally accepted building practices. They are all essentially the same. In my state the builder is responsible (warranty) for the house for 18 months, so you would have plenty of time to call the builder and have him fix any problems. If he doesn't you have power through the state licensing board. He could lose his license and way of living if he monumentally screws up.

I don't think you need a real estate agent (societal leech) either. The title company does all the work. The title insurance underwriter has their butt on the line, not the real estate agent. All the agent does is make phone calls between you, the seller, and the title compny. Is that really worth 6%? Any title office has blank purchase offer forms, or even kits that are simple to fill out. Title offices can be very helpful if they think you will choose them for the closing/title work/underwriting. I bet that the builder has his own forms, too, in case a purchaser wants to buy directly from him.

Answer 4

The best window to the future is to look into the past. Seek out home owners that have had their homes built by this builder. Tell them that you are having a house built by him and ask them about the experience they had in working with them. Is the quality of work professional? Were there cost overruns or unexpected up charges that they felt were unfair? Is the area of the home you are looking at building in an area prone to mudslides, brush fires, etc....? You can also call the Better Business Bureau and check references. As for an attorney, I would at least consult with a couple of them and see what you feel comfortable with.

Answer 5

An attorney is always a good idea. Most of them do closings and their fees are generally comparable with the title companies fees. And you have the significant benefit of legal advice on YOUR side. Even if the fee is a bit higher, why risk hundreds of thousands of $$$ without someone on YOUR side?

Most lenders will require an inspection, even on a new property. There's no way out of that, but even if they don't require one you'd be a fool to proceed without it. I've bought many homes over the years and NEVER proceeded without an inspection. And I've passed on several based on the inspection results; it's money well-spent and dirt-cheap insurance compared to home prices today, especially in So Cal!

Answer 6

If you want answers pertaining to matters of the law, hire a lawyer. If you want answers pertaining to housing, hire a Realtor. And yes you should have your new home inspected by your own inspector. Do not use the builders inspector. Conflict of interest.

Answer 7

Check the homebuilder at bbb.org. Check previous work that he has done. While they are building, take video of tapes of the various stages and check if they are doing it properly. You might need this later if you need to take them to court. You can also check th contractors license number.