Question: I'm planing on flipping a townhouse in Florida. Do you thing I will be able to make a profit on this property? I'm paying $340,000 for the townhouse.

Answer: I have no idea, but I'm discomforted by the thought of buying a property to flip in the current market without further information.

Flipping a home means buying and quickly re-selling. There's no sense re-selling unless you can make a profit

Is $340,000 well-below market value for similar properties? How have such properties been priced in the past few months? How are like units now priced? What selling price would you need to break even after marketing and closing costs? What is the rental value of the property? How will you finance this purchase? Etc.

Do not go further with this until you've spoken with local brokers. It's plainly a mistake to buy without a strong understanding of the marketplace -- and your question is just too big to ignore.

Question: I purchased my brick home in 1997, a house built in 1944. I now have a leak in my attic and have contacted several roofing companies. My problem is that I am cannot afford a new roof. I am a cancer patient living on Social Security. What can I do?

Answer: There are several alternatives: First, contact local community groups -- they may be able to help. Second, see if there's a chapter of Rebuilding Together in your area. This is a group that provides home repairs for the elderly and the poor. The group is active in nearly 1,900 communities nationwide.

Question: My husband and I bought a house with his credit because I filed for bankruptcy a few years ago and had a low credit score. Only my husband's name is on the deed, however I do provide money for payments. We will be separating soon, and I wonder if I will be responsible for the mortgage if he fails to pay.

Answer: You are not on the mortgage and you are not on the title. The property was effectively bought by your husband separately from you. The lender has no claim against you.

You may, however, have an "equitable interest" in the property if you have been contributing to the mortgage and other costs. In "community property" states you may actually be a part owner already.

If by "separating soon" you mean that you will be divorced, then a court will determine the ownership interest in the property. It may be that your husband will get the home and you will get a credit for your contributions. It would be good if you had checks or other evidence of your financial contributions to the home. For details, speak with an attorney.

Question: We have a contract for a new home with a $20,000 deposit. We thought our home would sell quickly and without a problem. We listed our current home in June of 2006. The new home has an October settlement date.

After three price drops ($30,000), we finally have an offer coming in on our current home.

If we do not sell our current home, we will back out of the contract for the new home (the developer may work with us, but if push comes to shove ... ). In hindsight, we think one should almost always sell their current home before contracting on a new home.

Assuming we come to terms on the offer and sign a contract with the buyer, do we want to settle on the current home first, and then two days later on the new home?

Answer: Settle on the existing home and go hang out in a bed-and-breakfast for two days.

The important point is: Settle on the existing home. If you do not settle then the new-home purchase will not go through, you are likely to lose some or all of your deposit and you could be sued for additional damages.

Question: Is an individual guilty of trespassing if they walk within a "right of way" easement on the property in order to view and take pictures of the property that's "For Sale?"

Answer: What, exactly, is the problem? Is the home visible from the easement? If yes, should walkers be required to turn their heads so the property is not visible?

The view here, for what it's worth, is that anything easily visible from a public area can be photographed. But plainly the general rule would not apply to telephoto lenses and advanced technologies.

Moreover, the people looking and photographing may be potential buyers, appraisers and brokers. These may be the very people a seller wants at the property, with cameras and without.

Question: Say a house is valued at $100,000 and the rent is $750 a month. Can you apply all of the monthly rent to the purchase price, raise the price of the house to $118,000 and then put the $18,000 towards the down payment? Would this work out or is this something an underwriter wouldn't approve?

Answer: When underwriters look at lease-purchase agreements they typically want to see two things: First, the rent must include a fair market rental for use of the property plus an additional amount that can be applied to a down payment. Second, they want the owner to hold that additional money in an escrow account.

As to the purchase price, lenders will make a loan decision based on the purchase price or the appraised value -- whichever is less.

Go no further with this until you speak with several lenders and brokers, and then sign nothing until an attorney or legal clinic has reviewed all the paperwork.

Question: My husband and I have a contract to buy a house. During final walk through we noticed that the pool has a major leak. We informed the owners. We were told the pool installer would take care of it. The pool is out of warranty.

To repair and try to find the leak would be like trying to find a needle in a haystack. We have no pool structural drawings etc. The pool installer will not assume the cost of the repair.

We no longer want to buy the house -- the pool repairs will be too costly. The sellers say we are in breach of contract and will not release our deposit.

What can we do to get our $1,500 back?

Answer: You shouldn't buy this house. Pools can have problems after homes have been sold -- and if the expense of pool repairs are an issue then this is not the house for you.

If you do want the home, then make the sellers back-up their promised repairs by setting aside money at closing in an "escrow" account. When the repairs are completed the money in the account will be released. If the repairs are not made by a certain date then the money in the account can be used to make the repairs. Any remaining balance will be returned to the sellers.

It will likely cost more than $1,500 to take the sellers to court. In court, you might win or you might not. In practice, why not settle with the sellers for half the deposit?

Question: I am new to a real estate market that has really slowed down in the past few years and has become a buyer's market. Sellers are having great difficulty selling their homes due to the high level of inventory. I am reading listing remarks that say things like "owner will finance with 20 percent down" or "seller willing to hold a second trust at very sweet terms." Why would I want seller financing?

Answer: Probably you don't. However, if you have credit that will not pass must with loan underwriters -- and if the price and condition of the property are attractive -- then you might want to consider an owner take-back. The terms of such loans can vary enormously and the sellers may not be regulated because they're not usually in the loan business. Have a real estate attorney review any purchase offer before signing.

Question: I'm on the verge of getting my real estate license. Is it okay to sell your own house? Can you list it with the brokerage that you work for, thereby making yourself the listing agent on your own home?

Answer: You can sell your home but there are several issues to consider.

First, as a real estate salesperson you work under the authority of a broker. Most likely your agreement with the broker requires that if you sell the property the home must be listed and sold through the brokerage. This makes you the listing agent -- and also assures some fee income to the broker.

Second, as a real estate licensee you must disclose your position in the marketplace. Thus the listing information, classified ads, online marketing, etc. must all show that the property is for sale by an "owner/agent" or a similar term plainly indicating that the owner is a licensee. Failure to disclose your licensee status could result in a fine, license suspension or the revocation of your license.

Question: I have a listing agreement on my home. The real estate broker brought me an option agreement. The purchaser is willing to pay my asking price but there are many clauses in the agreement I do not like. For instance, he wants 16 months to close. If I turn this down, can the broker require that I pay him since he "brought a willing buyer"?

Answer: The usual standard to collect a real estate fee as a listing agent is that a listing broker must produce a "ready, willing and able" buyer who meets all the terms of the listing agreement or terms which are otherwise acceptable to an owner.

You offered your home for sale with the expectation that a buyer would generally want to settle within four to six weeks. I would argue that this buyer is not ready to make a purchase and perhaps not able at this time and that this "purchase" really amounts to an option. It may be that the buyer wants 16 months to assign the contract to another purchaser at a higher price. By any chance, is there only a tiny deposit with the offer? Can the agreement be assigned? Without a substantial deposit, if the buyer does not purchase within 16 months your home would be unsold, you may have lost other buyers and prices may move lower.

A full price is not the only factor in a real estate agreement. There are other issues as well which must be addressed. For specifics, sit down with a real estate attorney and look at both the listing agreement and the purchase offer.

Question: I'm building a new house and trying to decide between using manufactured stone or brick for the exterior. They both are similar in prices (material & installation), I really love the stone look because it adds a lot of character to a home. Can you tell me as far as resale would using stone increase my homes value over brick? Also would it help selling my home faster, when I need to sell?

Answer: The sale value of a home is not determined by a single component of the property. As well, local preferences may influence home values -- stone may be more popular in some areas, brick in others.

You ought to build with the facade you prefer because it's your home and it's the place where you'll live. Enjoy.

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