Real Estate Advice

[Redskins8588]

Originally Posted by Sheriff Gonna Getcha

So I'm buying my first home within the next few weeks. I've done a TON of research into the housing market (particularly mine), financing options, etc. But I've still got a few questions and, given the number of highly intelligent and successful people on this site, I'm looking for advice from some of my warpath brothers.

First, is there any sort of generalized formula for determining whether a house is a "good buy" based the home's assessed value?

Second, to what extent are buyer's agents useful? I know that buyer's agents owe fiduciary duties to their principals, but do such duties actually compel the agent to do what is in the principal's best interests given that their commission is based on the home's purchase price?

Third, how many home inspectors do people typically retain? Is there any way to determine if a home inspector is qualified, other than asking friends? For example, do they have certifications that might indicate that certain inspectors are more qualified than others?

Fourth, what is a good percentage of your gross income to spend on mortgage payments (including escrow)? I know this percentage will vary based on the individual and his outstanding debt, but is there a range for the "conservative" buyer and the less risk-averse buyer?

Finally, what kind of "hidden costs" can I expect to incur? Obviously there is the down payment, loan origination fee, and inspection fees, but what other fees can I expect to pay?

I am not sure on the first 2 questions, but on the third question, when I bought my home 4 years ago, I needed to have it inpected by atleast 2 inspectors. One was a pest inspector, he just checked for termites mainly. The second inspector was a contractor. He basicly looked over my wireing, plumbing, and the foundation of the house. Unless the bank wants a certian type of inspection (e.g. pest controll) a contractor is pretty much all you need. As for being able to tell if one inspector is more quillified than another, I am sure that they may have certificates, but I am sure the certificates are pretty much the same no matter who has them. I would look to see which inspector has the most experinece or a fair amount of experinece.

And the only other hidden cost, or expected cost would be for a lawyer to research the deed to make sure that their is no lein or debts against the house. And depending on where you are buying(e.g. out in the woods or a place with alot of land) as the buyer you may need to pay to have it re-survayed.