What Buyers and Sellers Need to Know About The Big Changes Coming to Home Inspections in Massachusetts

What Buyers and Sellers Need to Know About The Big Changes Coming to Home Inspections in Massachusetts

Are you sick and tired of your clients feeling compelled to submit offers without a home inspection contingency? Well, if you have clients planning to buy or sell a home in Massachusetts, get ready for a major shift in the home inspection process. A new law passed in August 2024 aims to regulate how buyers and sellers handle home inspections—but the details of how it will work are still in development.

What’s Happening?

While the law was passed as part of a larger housing bill, it won’t officially take effect until the Governor’s Executive Office of Housing and Livable Communities finalizes the necessary regulations. Originally, these regulations were expected by December 15, 2024, but the deadline has now been extended to July 15, 2025. The delay allows more time for industry feedback, public input, and adjustments to ensure the rules are practical and effective.

Why This Law Was Created

For years, competitive real estate markets have seen buyers waiving home inspections to make their offers more attractive. This practice, while sometimes necessary to secure a home, has led to cases where buyers later discover significant defects they were unaware of. The prime example of this is Pyrrhotite based foundations that are leaving homeowners facing crippling costs. It has been estimated that costs could run as much as $250,000 per unit, essentially erasing the value of many owners' homes in central Massachusetts. Consumer advocates pushed for legislative intervention to protect buyers from making such high-stakes decisions under pressure and ultimately being faced with a burden like this.

What Does the Law Say?

Although we’re still waiting for the fine print, the law already establishes two key rules:

1. Sellers and their agents cannot require buyers to waive their right to a home inspection.
• Sellers cannot condition an accepted offer on a buyer’s agreement to waive, limit, or restrict their ability to conduct a home inspection.
• This means buyers can no longer be pressured into skipping an inspection just to compete in a hot market.
2. Sellers cannot accept offers from buyers who preemptively waive their home inspection rights.
• A seller cannot accept an offer if the buyer indicates—either directly or indirectly—that they will forgo an inspection.
• Some exceptions may apply, but the intent is to ensure buyers maintain their ability to conduct due diligence.

How This Affects Buyers and Sellers

For Buyers:

✅ More protection from making rushed decisions in a competitive market.
✅ The ability to conduct a thorough home inspection before purchasing.
✅ Greater transparency about the condition of a home before closing.

However, buyers should still be aware that this law does not mandate home inspections—it simply ensures they have the option. Buyers should work with experienced real estate professionals to navigate negotiations and inspection contingencies.

For Sellers:

🚨 The process of accepting offers may become more complex.
🚨 Properties with deferred maintenance could face increased scrutiny from buyers.
🚨 Pre-listing home inspections may become more common as a way to reassure buyers.

Sellers should consider investing in repairs and maintenance before listing their home to avoid potential deal-breakers during the inspection process.

What Happens Next?

Until the final regulations are issued, there are still many unanswered questions about how this law will function in practice. A draft of the regulations is expected in spring 2025, which should provide more clarity.

Some potential issues that will need further clarification include:

• Will sellers be able to offer incentives to buyers who voluntarily waive inspections?
• How will this law affect transactions involving cash buyers or investors?
• What penalties will be in place for sellers or agents who violate these rules?

How to Prepare for These Changes

Both buyers and sellers should take proactive steps to adapt to this new landscape.

• Buyers: Work with a knowledgeable agent to strategize your offer without waiving your right to inspect.
• Sellers: Consider conducting a pre-listing inspection to address any potential red flags before going to market.
• Agents: Stay informed about how the final regulations will impact transactions and educate clients accordingly.

Final Thoughts

For now, buyers and sellers should stay informed and be prepared for adjustments in how home inspections factor into real estate transactions. If you’re planning to buy or sell a home in North Andover, Andover, or Greater Boston, let’s discuss how these upcoming changes may impact your strategy.

Stay tuned for more updates as this law takes shape!

📩 Have questions? Let’s connect and talk about how this might affect your next move!