Question: I'm looking forward to searching for my dream home and beginning a family with my husband. If we were to sell our Florida home now we would have to sell for less than we paid, so our plan is to wait awhile. I know there's not any for certain way to predict when the market will change but I would like to know about how long I will need to wait before putting the house up for sale.

Answer: Your current home cannot be sold for what you paid, but can it be sold for enough to pay off the current mortgage? If not, selling makes no sense because you would have a loss on the property plus you would need to bring cash to closing to pay off the lender. If you do not pay off the lender, then financing a replacement home is out because lenders will want you to wait several years to re-establish good credit.

Would it make any sense to rent the property and then look for a replacement home? For specifics, speak with local real estate brokers. Ask for estimates regarding the potential rental value of your current home.

Question: I have a home on the market in Maryland due to job transfer. It's been on the market for almost nine months with only six showings. It's in an area that a lot of people were moving to because you get more house for your money, but you have to commute. Now with gas prices being high, I guess that has also impacted the market, in addition to other market problems.

I'm not totally happy with my broker's advertising and am wondering if I should change brokers, continue to keep the property on the market, try the FSBO route or rent it out and ride this storm out?

Answer: Maryland, a rich state with strong employment, is now ranked among the top ten jurisdictions for foreclosures. Figures from RealtyTrac.com show that in April foreclosures were up 479 percent when compared with a year earlier. A huge number of bank-owned and distressed properties have been added to the available inventory, thus giving buyers more options and pressuring prices downward.

When you listed the property the broker presented you with a marketing plan. Has the plan been followed? Does the plan need to be adjusted? Given that nine months have passed, you surely need to get a current comparative market analysis (CMA) to see if your home is properly priced in today's environment.

If the broker has been following the plan and making a good faith effort to market the property then the view here is that you're probably best served sticking with him or her.

If you are not near metro Washington or Baltimore, the odds are that the gas crunch has disproportionately impacted the value and salability of your property. Many people commute from distant, almost rural, areas to urban and suburban centers, a job strategy which depends on gas being affordable.

Alternatively, your home is perfectly competitive for those who do not have a lengthy commute. This suggests that your marketing plan should concentrate on nearby purchasers looking to change residences.

Question: I recently joined in an agreement to purchase a home at a price accepted by the seller. Now the seller has decided she doesn't want to sell property, because her live-in boyfriend who owns half of property will receive half of sales price. What recourse do I have if the seller refuses to complete sale of property?

Answer: I'm not sure what agreement you have with the "seller," but it seems unlikely that you have a valid purchase contract.

The problem is this: To sell real estate you first have to own it. Your "seller" does not have exclusive title to the property, she's merely a co-owner. Unless she has specific, written authority from the co-owner to sell under certain terms and conditions she can only market her interest.

You'll need to speak with an attorney to find out if you can obtain any damages. However, if you want the property the better approach would be to forget damages and get both co-owners to accept your terms.

In the future, before buying real estate, engage either a buyer broker or an attorney before signing any documents.

Question: What's a "VA" loan?

Answer: Since World War II the federal government has offered a variety of benefits for those who have served in the military. Among those benefits is mortgage insurance from the Department of Veterans Affairs, previously known as the Veterans Administration or "VA."

Under the VA program those with certain military service qualify for VA mortgage insurance, insurance which allows a qualifying vet to buy a home with nothing down. For specifics, see a base housing officer or contact the nearest VA regional office. In addition, be certain to speak with local lenders.

Question: How do new home sales figures impact existing home sales?

Answer: New homes and existing homes can be seen as competing for a limited pool of buyers. This is a healthy competition and provides more choices for purchasers.

In a sellers market the demand for real estate is strong so both new and existing homes can sell quickly and with good prices and few concessions. In such a market builders will ramp-up production to benefit from rising prices.

In a buyers market where sales have slowed and prices have stalled or fallen the situation is different. Builders will produce fewer houses, thus reducing overall inventory and reducing the pressure to push down prices. In a slow market builders will also market homes already under construction with significant discounts to clear inventory and avoid ongoing financing costs.

Question: What are the requirements for being a landlord?

Answer: In the sense of an occupational license there are normally no requirements to be a landlord. However, if you own rental property you must comply with all related rules and regulations.

For instance, you must maintain the property in a safe and habitable manner according to local building codes. In most jurisdictions you must hold tenant deposits in a separate "escrow" or trust account and not co-mingle tenant money with your own. When you finance you must clearly tell the lender that the mortgage is being secured by a rental property and not a prime residence.

If you have an interest in buying rental property and becoming a landlord you should speak with local real brokers in your community who specialize in real estate investments. Many can not only find properties for you, they can also provide management services.

Question: Can a broker represent both the buyer and the seller?

Answer: Real estate brokers are typically "agents" who serve either buyer or seller "clients." However, it is common for brokers to represent both buyers and sellers provided that both parties agree to such an arrangement in advance and in writing. This is generally called "disclosed dual agency."

Most states today require brokers to tell buyers and sellers who they represent up-front. In fact, in many jurisdictions a broker must provide a written form prepared by the state explaining what types of representation are available and who the broker represents. If you do not understand who the broker represents, be sure to ask and get the answer in plain language.

Question: What is a reverse mortgage?

Answer: Many long-term property owners have built up substantial real estate equity over time. Rather than sell their homes and move, they prefer to stay where they are and also to access that equity.

One way to take cash out of a home is to simply get a mortgage. However, a traditional mortgage -- or a "forward" mortgage -- requires monthly payments. That can be a problem when people reach retirement age because they may have less income than in the past.

A reverse mortgage is different. For those who are typically age 62 and above a reverse mortgage allows them to access the equity in their home in the form of a lump-sum payment, a monthly payment or a line of credit. There is no requirement to pay back the loan -- it is "nonrecourse" financing so the sale of the home always satisfied the debt.

Most importantly, a reverse mortgage does not require monthly payments and is not based on your income or credit. In technical terms, it's really an asset-based negative amortization loan.

Reverse mortgages are complex and borrowers are best served by speaking with various lenders who specialize in reverse mortgages. Always ask about fees and charges, interest rates and total costs.

In addition, if you have an interest in a reverse mortgage it's smart to meet with an attorney who specializes in "elder law" before signing any paperwork. This is also a good time to ask about wills and living wills.

Be aware that some "lenders" want borrowers to finance a home with a reverse mortgage and to then use the money borrowers receive to buy an annuity -- from the lender, of course. Such arrangements are almost always a great deal for the lender -- and a lousy deal for the borrower.

You can find more information regarding reverse mortgages at my blog, BestReverseMortgage.com.

Question: How can I tell if I'm in a buyers market?

Answer: Markets operate on the basis of supply and demand. If you have a local market where the supply of homes is significantly greater than demand, you will have a market where home sales slow, prices stall or drop, properties are more affordable and purchasers are typically able to negotiate significant concessions from sellers. And that, in a nutshell, is a buyers market.

Today many local markets favor purchasers. No less important, interest rates are at the lower end of the scale on an historic basis, and you can do well with conservative, reasonable financing such as FHA, VA and conventional loans. Relative to the past few years, now is a good time to buy in many areas.

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