From: macrakis@osf.org (Stavros Macrakis)
Subject: Re: Your expertise required ...
Organization: OSF Research Institute
Date: 14 Sep 92 11:28:40

In article <5b22fc92.1b2f0@digital.sps.mot.com> vikc@digital.sps.mot.com (Vikrant Chaudhry) writes:

   ... I have seen couple of good houses which I like, is there a way
   to find out details about any recent sales in the neighborhood.
   What price were they sold for ?

Your real estate agent should be able to provide you with this
information.  Make him/her work for the 6%!

   How much was the appreciation of the property in last couple of
   years ?

Why do you care?

	   Are house appraisals fairly accurate in terms of market
   value of the house ?

If you mean appraisals by bank appraisers, I don't know; they tend to
be conservative, though.  If you mean assessments by city assessors,
from what I've seen around here, no.

   I am planning to go for a 30 yr fixed rate financing, how many
   points can I expect to pay for financing?

As many as you want, from -0.75% to 3.00%.  The higher the points, the
lower the interest rate.  You should get low-point loans if you plan
to move (or refinance) within a short time, and higher-point loans if
you're sure you're staying and not refinancing.  The 2-point loans
generally seem to be worthwhile for stays of 6 years or more.  The
1-point loans for stays of 4 years or more.  This is very approximate.
Detailed evaluation depends on such things as the particular rate
structure of the bank and your tax bracket.

   What should I watch for in a mortgage firm ? 

Good question.  I guess the same as in other businesses: competence,
honesty, good prices.  Many people worry about who will be servicing
their loan.  If this matters to you, be sure to find out early.

   Some time back there was a thread here about getting a home
   inspected for plumbing/termite/roof/structure/ etc..  How much
   should I expect to pay for such a service ?

Around here, $150-300.

   I am assuming that they give a report on the house - what would be
   some good questions (which they otherwise might not report) to ask?

You should get an inspector who will give you a written report, with
estimates of costs to repair.

   What would be some small hidden things I can look for ?

This is why you hire the inspector.  You might be able to find some
things, but they are more systematic that you or I would be.

	   I would appreciate any inputs from you and will try to 
   compile a guide for first time home buyers. Thanks in advance..

I suggest you get the book I review below.

	-s

----------------

House buying and building

I can highly recommend a book which covers both house buying and
working with contractors.  Do not be put off by its title; I would
recommend it even if you are buying a standard house or building an
addition to your existing house.

	Everything you need to know about Building the Custom House:
		How to be your own General Contractor
	by John Folds and Roy Hoopes
	Taylor Publishing, Dallas
	ISBN 0-87833-653-2, $15

Although it seems to be very specific to building a new custom house,
in fact it gives excellent advice on all phases of buying a house or
lot (including evaluating it, bargaining, financing, etc.) as well as
finding contractors, negotiating with them, etc.  It assumes you are
going to be your own general contractor, but even if you are not, its
advice is pertinent and useful.

Some of the discussions of contracts and payment schedules may seem a
bit nit-picky, but you ought to read "The Home Remodeler's Combat
Manual" to show why it can be necessary.

I find it much better than Bob Vila's book on house buying, and also
better than House Buying Step-by-Step (which was the best among the
other books I found at the bookstore).

It's unfortunate that its title makes its scope seem so narrow.
From: hmoss@hpnmdla.sr.hp.com (Howard Moss)
Date: Tue, 8 Sep 1992 23:43:20 GMT
Subject: Who do you hire?
Organization: Hewlett-Packard, Santa Rosa, CA