Question: I have been a broker since 1986. My most frequent listing struggle involves situations where the owners' debt is higher than the value. Sellers say they need a certain price to satisfy the first mortgage, the second mortgage and even car debt, credit cards, etc.

How can buyers justify overpaying to satisfy a seller needs?

Typically the seller is someone who purchased the home with over 100% financing and within a couple of years needs to sell. What are the options to the seller?

Answer: Sellers surely have a right to seek any price they like -- and buyers have a right to look at other properties. A major purpose of buyer brokers should be to provide pricing perspective to would-be buyers, to plainly state when given homes are over-priced relative to like properties.

As to what sellers should do or not do, the marketplace typically resolves the matter with brutal realism: Homes that are over-priced generally do not sell at original asking prices. Such homes just sit there for weeks or months on end until prices come down or listings are withdrawn.

Alternatively, the idea of an "over-priced" house is fuzzy. Some buyers seemingly over-pay for homes -- but after a few years many would be willing to pay far-more for that same property.

What makes a market are different perceptions of value. The catch for sellers who buy with nothing down and then rack-up enormous debts is that there are no guarantees which assure rising home values.

As with all commodities, it's possible for prices to rise -- and equally possible for prices to remain stable or fall.

Question: My uncle and father purchased five acres of property and split it. They had a well dug and it appears to be on the property line. My uncle passed leaving everything to my aunt. My father passed leaving everything to my mother. My aunt passed and her property is now in probate. If the aunt's property is sold and we are not able to purchase it, what can we do regarding the well?

Answer: If the well is exactly, precisely on the property line it's likely that both properties have a right to use it. Looking toward the future, however, you have to wonder about paying for repairs and maintenance, equal use of the water and the cost of any electrical service to operate a pump.

It would be wise before selling to have your mother and the estate complete an agreement regarding well use and access. This agreement could then be recorded for both properties so that future owners would be aware of the agreement. Speak with an attorney for details.

Question: I'm planning on selling my current home within the next six to nine months. The home is in very good shape except the furnace and roof need to be replaced. I have the money for repairs available without refinancing, should I do it before listing the home or have the new owners take care of it?

Answer: Why do the roof and furnace need to be replaced? Does the roof leak? Is there any health or safety problem with the furnace? If yes, you at least need to make disclosures.

Before going further, speak with local brokers about listing the property and get their advice -- advice which will reflect local market preferences and requirements. Are replacements needed? Repairs? Does it make sense to sell the home with a credit for repairs? That way the buyers could get the roof and furnace of their choice. Maybe it's best to do nothing and see how buyers react.

Question: I am a 65-year-old widow with a middle-class income. In other words I have a couple pensions and social security, enough to live nicely. I have owned a house in Florida since 1969. Since 1991 it has been a rental. I have decided to sell the rental and I am worried about how much I may lose to capital gains taxes. How do I know if I should sell it now? The rental was $14,000 at purchase and now is probably worth about $160,000 or more. At 65 I don't want to tie up my cash for 20 years in the investment plans I have been offered by financial advisers.

Answer: Why sell? You're getting monthly income and you have an appreciating asset. What are the fees and charges from the proposed investment plan? How would proceeds from the sale generate additional money? Given that the stock market has not seen levels reached five years ago, why are securities a great investment option?

Consider this alternative: Refinance the current rental -- and find another.

Question: I am in a joint tenancy with a friend and needless to say there has been some falling out in our relationship. If one thing led to another, what avenues can we take here?

We purchased the house at $242,000 about a year ago with a interest-only loan. We have an agreement to split everything 50/50, but no principal has been paid to the house.

If one of us wanted to sell what we would we do? I am assuming we would have to get the house appraised and one of us would have to "buy the other out" if it was not agreed to mutually sell the house. In this case, say the house appraised for $282,000. Would one of us be responsible for paying half that gain? Also, how would we change the paperwork to get it out of our names? Is there extra tax cost involved here.

Answer: Before buying real estate it is important to have an agreement addressing the very issues you raise -- and others. You now have a 50/50 agreement. What does it address or not address?

If you sold at $282,000 you would have $40,000 above the purchase price. However, you did not pay $242,000 for the property -- you paid the sale price plus closing costs. Did you equally contribute to the closing costs?

When you sell you will not receive $282,000 -- you will receive $282,000 less closing costs.

Do you now have a good relationship with your co-owner? If yes, now would be the time to assure that your written agreement covers all bases. An attorney can provide specifics.

Also, as you are now both owners do you both have wills and living wills? Without such paperwork you might wind up being a co-owner with someone you don't like -- or forced to sell.

Question: I'm a new agent and I have not had a listing or buyer as of yet. I would like to know if there is a book that would show you step-by-step what to do once you get a listing. I would like to know what my steps are, because you learn by doing, but if you have not done anything how will you know?

Answer: It is terribly difficult to start out in any profession because newcomers lack referrals from past clients as well as a bank of practical experience which makes things easier for those who have been in the field.

While you have a license, it's too early for you to list homes or represent buyers by yourself. Instead you need to get a practical education. Try working as an assistant with an experienced salesperson.

This will give you a detailed chance to see how homes are listed and buyers are represented -- and it will also bring in some cash.

Question: I rented a house last April with a one-year lease. In October the landlord informed me they wanted to sell the house, they are now putting it on the market. This is very upsetting to my children, as we will have strangers invading our privacy.

I am worried that they will list it below market value to unload it, thus bringing a lot of traffic through the house.

I know other people have been through this and I want to know how to get through this invasion and deal with it emotionally without having to move again.

Answer: It doesn't matter that the property is being sold -- the current owner and any new owner must respect the terms of your lease. Moreover, it may be that a new owner will want you to stay on and not move. For specifics, please contact a local community group, housing office, legal clinic or attorney.

As to showing the property, check the lease. Many leases require 24 hours notice before showing.

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