Question: There's a home that my parents wanted to purchase for their retirement. It was on the market for two or three days, priced at $200,000 but selling "AS IS."

We asked a selling agent to make an appointment for my father and I to see the property, which was vacant. There was no lock-box and the listing agent was late, but the listing agent did arrive and did show us the house.

We liked the house and asked the agent to wait at the property so my mother and wife could see it. They liked it and we decided to make a full-price offer with an inspection contingency. The offer was written, a deposit was given and all disclosures were read. Sounded like a done deal.

Later we stopped back at the agent's office to get the contract and she informed me that the property was being re-listed at a higher price, almost double the original price.

She said the original price was entered incorrectly by an assistant.

I was puzzled. At first I could maybe see an error in price but not for the period of time that we spent faxing, talking and phone calls.

What should we do?

Answer: It can be terribly difficult to lose a home bid, an event that can raise many questions.

Oddly enough, I ran into a similar pricing situation a few weeks ago. A property was listed well below local values, we spoke to our broker about it, he said to make an offer, we didn't (the property was way beyond our geographic area of interest) and later that day the listing price was raised by roughly $100,000 to a level more closely aligned with local market values.

In another case, we saw a home on the local MLS that was priced at $4.5 million. The real price was $450,000 but someone added a zero when the form was transmitted to the MLS. I believe the erroneous number was on the system for several days.

So, yes, mistakes happen.

In your situation, I would want to know if the new price is reasonable when compared with recent sales for like properties in the immediate neighborhood. Also, did something happen to the sellers? An accident, job loss, etc?

There are some other issues to consider:

The property was not on the market very long -- check and see the typical "DOM" (days on the market) for like properties in the same area.

A pricing error might not be instantly noticed, especially in a slow period. (In my area, that would likely be a property listed on a Friday night.)

A listing agent should be timely, but people do run late for various reasons. I had a would-be tenant who was better than an hour late to an appointment. Why? She was speeding to meet me (a fact she readily admitted) and was stopped by a policeman.

Salespeople who trail buyers around a property are discomforting because such closeness does not give buyers an opportunity to speak candidly among themselves or with their broker. This may be the way the listing broker deals with all buyers.

When you made a bid with a structural inspection, you rejected the seller's offer if it did not include an inspection option. If that was the case you made a counter-offer by adding the inspection contingency and actually rejected the seller's original offer. A seller has no obligation to accept a counter-offer -- or to continue with the original offer once it has been rejected.

Was something said or done that was inappropriate? Were you treated unlike other buyers?

If you have additional questions, you should speak with the selling broker or with an investigator for the state real estate department. A list of such agencies can be found at ARELLO.com.

Question: How is it possible for someone to sell their home when there's a lien on it?

Answer: It's done every day. The real question is not whether there's a lien on a property but how it will be handled. For instance, Smith sells a residence that has a $200,000 mortgage -- that mortgage is a lien. The sale is made subject to removal of the lien by the owner

Homes are typically -- but not always -- sold subject to the removal of all liens. Sometimes, though, a title search finds a lien that's contested. To protect the buyer in such situations the seller can obtain an insurance policy to cover the cost of the lien if it proves to be enforceable.

Some liens, however, are not enforceable. For details, consult with a real estate attorney.

Question: I have my home for sale. The broker said it sold and would close in a week, but it didn't happen. We sold our belongings and had to be out in two days. My wife of one year -- we are now being divorced -- said she wanted $10,000 from sale. The first lender for the buyer didn't come through. They tried another, but the property has still not closed after two months. Is there a way not to pay the ex-wife and not lose the property in a foreclosure, as I can't make payments?

Answer: Where to begin?

First, why would a property close in a week? By any chance did you sell to an all-cash investor? Did you want to vacate in a week?

Second, is the sale agreement still valid -- has this house actually sold given that the initial closing did not take place on time or at all? Please consult with an attorney or legal clinic for specifics. Ask if you are entitled to keep the buyer's deposit.

Third, as to what the wife is to receive or not receive, that's a matter for a court to determine. Before giving anybody anything, speak with an attorney to establish your rights.

Fourth, has your broker given you a written competitive market analysis (CMA) to establish a selling price? This would help justify the sale value of the property.

Fifth, if you're having trouble meeting mortgage payments, contact the lender immediately -- or have your lawyer call on your behalf. In many cases lenders will try to help borrowers. In your situation, since the property is already for sale, it would do a lender little good to foreclose and possible face a loss when the property is likely to be sold and the lender fully repaid.

Question: My wife and I purchased a new home two years ago. Two months after we purchased the home our basement began to flood. After further review with the township and an independent engineering firm we realized that the grade for the property did not allow for our walk-out basement.

We are now stuck with a home utilizing two external sump pumps to prevent the flooding of our basement. What recourse do we have against the builder, township, etc.

Answer: You're goal in this matter should be to have a home which is safe, habitable and above water. Toward that end, most states require builders to be bonded and insured and, often, to carry a state-mandated warranty.

The purpose of these programs is to assure that money is available for repairs and such even if a builder goes out of business.

Your first step should be to contact the builder by certified mail with a return receipt requested and demand whatever repairs are required to resolve the problem. If the builder does not cooperate, then contact the regulator who licenses builders in your state.

As to the local government, building codes exist to protect the public. If they are not properly and reasonably enforced, then the public can suffer. Perhaps the local newspaper would be interested in your story.

Question: The residential real estate market where we live is still booming. My husband and I are in the process of building a small retirement home on a lot near our current home.

Our intention is to get our small retirement house built within a year, move in, then sell our current house to have cash to pay off the existing mortgage and invest elsewhere.

We are confident we will sell for our asking price when we finally put our current home on the market. However, friends are now encouraging us to keep our current house as a rental investment.

We're in our late 40's and don't want to mess with being landlords. What are your thoughts on this? Are there tax breaks that would make it worthwhile? Especially as we reach retirement age?

Answer: When you sell a personal residence, up to $500,000 in capital gains ($250,000 if single) can be sheltered from federal taxes. This is a huge benefit, one that makes it difficult to justify keeping the property as a rental.

In your case, however, tax issues and rental income are irrelevant. You don't want to be a landlord. That's the decision-maker.

Question: I'm currently interested in buying a south Florida retirement home (single-family house) for my wife and myself.

We would like to purchase a new house before next winter and we understand that the housing market is becoming very favorable for buyers. How can we get expert advice before going further?

Answer: Your first step should be to find a furnished rental in an area you like so you can get a better sense of the property values and options.

Once you have a general understanding of homes and values and the particular areas which would be most interesting to you, get a buyer broker -- but make sure the buyer brokerage agreement is limited to the county or area where the buyer broker has expertise, not the entire state.

Question: How much does it cost to demolish and remove debris from a 1,200 sq. ft. 1950's home? I'm thinking about it.

Answer: Wood or brick construction? Basement or slab? Near other homes or isolated?

Costs vary extensively according to location, construction and local regulation. However, you may be able to gain a tax deduction if you allow the local fire department to burn the place down before it's demolished. It's good practice for them and a possible tax break for you. For details, check with local fire officials and a tax professional.