NEW YORK (CNNMoney.com) -- I have some doubts about the integrity of my real estate agent. He said the standard commission rate was 7%. How can I find an honest agent? -- L.M. Georgia

Forget the "standard commission rate." The average commission across the country is about 5%. You may want to start shopping around. Make sure you have three or four other offers from real estate brokers in your back pocket before you start negotiating.

The best way to find an honest broker...it's still word of mouth. Ask your friends and family for references. If you're thinking about using a real estate broker make sure they provide a list of references so you can contact their former clients.

What does homeowner's insurance cover? What about burst pipes, mudslides, volcano up the street, other Acts of God? --Steven

Great question. Here's the low-down. Your standard homeowners policy will cover burst pipes if it's sudden and accidental, but not if it's a maintenance issue. In other words, if you have a burst pipe as a result of cold weather, it's covered. But if you've been ignoring a leak in a pipe, that's not covered.

You won't have coverage if you've sustained damage from a mudslide, flood or an earthquake. But if lightning strikes or a volcano erupts down the street, you will be covered. That's because historically homeowner's insurance generally always covers fires, according to the Insurance Information Institute.

I've been thinking of looking into foreclosures as a first time home buying option, but my friends caution me with, "buyer beware." Any Tips? -- Anonymous

Proceed with caution, especially if you're a first time home buyer. It takes a lot of time and patience to buy a foreclosed property. Foreclosure proceedings can be complicated. Make sure you're up to speed on your state's legal procedures.

Since foreclosed properties are sold "as is," you'll want to inspect the property before you make a bid. You should also be aware that there may be a redemption period in which the previous owners can make payment in full and get their property back, says Todd Beitler of the Real Estate Library. Unless you have a lot of time you're willing to invest, stay away from the auction block.

I'm currently self-employed. Should I take a position with a company I do work for that offers a 401(k) ? What are the advantages or disadvantages of being self-employed? Cynthia, N.Y.

If you stay self-employed, you'll miss out on your company's 401(k) match. But if you are committed to being an entrepreneur, you can still put away at least $15,000 a year with an Individual 401(k). As a self-employed person, you're also paying more taxes to Social Security and Medicare.

But the upside is that you may pay less in federal taxes because you can write off a lot of stuff, like your home office or your health care costs. Of course, remember you're the only one footing your health care insurance.

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