Real Estate Live

Maryann Haggerty
Washington Post Real Estate Editor
Friday, April 21, 2006 1:00 PM

Welcome to Real Estate Live, an online discussion of the Washington area housing market featuring Post Real Estate editor Maryann Haggerty .

Maryann has been with The Post for 18 years and has served as real estate editor for the last five years. She's been a business and real estate editor and reporter for about 25 years. In all that time, she still hasn't figured out where you can find a lovely but inexpensive house in a charming neighborhood.

She answered your questions about the local housing market -- from condos and investment properties to contracts and mortgages. For more on local real estate, visit washingtonpost.com's Real Estate section .

The transcript follows.

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Maryann Haggerty: Hello everyone. Thanks for joining me on this gray spring day. I've got questions backing up here, so I'll dive in, but I really, really want to hear your observations, etc. let's go!

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Adams Morgan, Washington, D.C.:

No one will say it, but the fact exists: Home prices are falling in D.C. Seller lists houses for $500k. Weeks go by, seller receives no offers. Seller takes house off market, puts it back on for $450k. House sells. That's a drop in prices. The prices are falling but no one (certainly no one at The Post) seems to want to put it in print.

Maryann Haggerty:

Is that a drop in price or a drop in expectations? I say prices are the amount of money that changes hands, not the amount that people hope will change hands.

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Washington, D.C.: Maryann: I've been on the hunt to buy my first place in the District for about six months now, and (surprise, surprise) I've had no luck finding anything in D.C. that is priced below $400,000 and is also larger than my dad's garage. Last week, however, I looked at a one-bedroom in a new building selling units as co-ops. The neighborhood (in the new "Near Southeast") isn't my favorite, but size, convenience and price are all on the money for me. I guess my biggest hang-up is the co-op part, as I'm completely unfamiliar -- as are my parents -- with how it works and any potential repercussions or drawbacks. I know several people in N.Y. who own co-ops, but my parents still seem hesitant. What is your advice on investing in a co-op, and why are they so rare here? Thanks!

Maryann Haggerty: Condos are more common here than co-ops. (It's a historical function of local laws. That's why they're so common in N.Y.C.) But they AREN'T unheard of here, and you CAN get financing. You want to look closely at your monthly fees, at how the building runs itself, etc.-- as you should with a condo, too. But it's not such a strange beast that you should be afraid.

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Dunn Loring, Va.: My condo community is considering whether we should implement a shuttle bus service to the metro. We're unsure as to whether this will boost the attractiveness of the community to potential buyers and potentially raise values. Some residents think we should charge per use, whereas others think that we should make it part of the condo fees. Those who don't use the metro argue that we shouldn't charge all the residents, as that would be subsidizing our commute when they have to drive via the toll road. We would love to know what you think about this, especially since there are so many condos right at the metro in Dunn Loring, and many more planned.

Maryann Haggerty: I think it's a great idea, but I don't know the financing ins and outs. Perhaps you could hook up with other condo associations that have considered this? I'm guessing this will be a contentious political issue in your condo, though, because of exactly the reasons you point out.

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Laurel, Md.: I currently have a five year ARM that will expire in two years. When I refinance, will I be expected to pay all those closing costs again, or is there a way around it? Thanks!

Maryann Haggerty: The way around it is to wrap the closing costs into the new loan. Often you can do that on a refinance, because you have built up equity.

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Gaithersburg, Md.: How soon do you think before Baltimore city takes a turn for the better, like D.C.?

Maryann Haggerty: It all depends on jobs, and that has been a big struggle for Baltimore.

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Alexandria, Va.: What seminars or resources are available for first time home buyers?

Maryann Haggerty: Plenty. Read up on the subject, both in the newspaper and in books. Check with your county housing office for specific programs that are offered in your area.

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Fairfax, Va.: My husband and I are trying to move from an apartment in the Fair Oaks/Fairfax area into a townhome. We have a young daughter and schools, safety, etc., are extremely important to us. We are trying to figure out if we are better off going for an older (1980s or early 1990s) townhome in our current area (which we love) or going for a new, all the bells and whistles townhome that sells for comparable prices in Loudoun (especially South Riding or Brambleton). We anticipate we will most likely move again in about five years. Which is the better route for reselling down the line -- closer in, but older (and maybe no garage) or South Riding/Brambleton new, but quite a hike to the District; my husband works in D.C.

Thank you very much for doing these forums -- this market is so confusing right now.

Maryann Haggerty: Those are lifestyle choices, not market choices. It's quite simple: Where do YOU want to live? I bet schools, safety, etc., will be great in either location. So do you want that big house with the yard? Or do you want that shorter commute? Commutes are so, so important here, because they can be a misery --or, to many, a welcome chance to decompress between home and work. As a rule, close-in neighborhoods around here have generally retained their value. It's tough to say whether the newer ones will, because they have no track record. But they sure are pretty, comfortable places to raise a family, and that counts for a lot.

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A Mess in Manassas: What's going on with the local real estate market? Our house has been on the market since mid-March, and so far, only three or four realtors have come by with interested buyers. We get positive comments from visitors during open houses, so there's nothing wrong with the house itself. We're the lowest-priced house of similar homes in our subdivision, even with all of our upgrades that the other homes do not have, so realtors all agree that we are priced"aggressively." The main problem is that THERE ARE NO BUYERS! Where are the buyers this spring? And can anyone give me hope -- does anyone expect this market to pick up anytime soon? I'm not expecting multiple bids on our house, but it would be nice to get some serious buyers to just walk through the place every now and then. Any thoughts?

Maryann Haggerty: I suspect a lot of those buyers are looking closer in, as they hope to be able to pick a house with a shorter commute. Manassas is one of those areas with a lot of houses for sale. If the buyers don't find what they want elsewhere, they'll likely come looking at you eventually.

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Alexandria, Va.: In order to not get nailed by the Cap gains tax, I can't sell my place until February '07. Is there anything I can/should be doing now to prepare to buy and sell at that time? Is the market so different at that time of year that it is worth waiting till the spring/summer? Thanks

Maryann Haggerty:

--To prepare to buy, get your finances in order, check out any dings in your credit, etc.

--To prepare to sell, give the house a good hard-eyed going over. Any necessary repairs? Any yard work?

--In the meantime -- hey, you have a year. Nobody knows exactly what the market will be at that time. In the meantime, enjoy your house!

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Leesburg, Va.: How low will a new home builder go to sell a house in this market? Would they go lower if their finance company is used?

Maryann Haggerty: Builders as a rule are nervous about cutting their base prices, though obviously some are doing it now and calling it a special sale or whatever). They would much prefer to throw in some free options. As far as putting a dollar value on it, get familiar with competing subdivisions, and use that as asking leverage. But don't get your hopes up too high. These guys aren't all that easy to negotiate with. And yes, they generally go lower if their finance company is used.

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Sterling, Va.: Hello, Maryann. A mortgage company recently advised us to pay off all our bad credits before a loan can be offered to us. Our credit reports shows scores of 601 for me and 595 for my wife.

Meanwhile, to date, most of our creditors have been paid except the two largest ones that totaled $8,000 and are both six years old. Having to pay these creditors will leave us with less money in the bank for a down payment and a closing cost.

We need a home now and are there other mortgage companies that will give us a loan with such a negative record?

Maryann Haggerty: Those are not great scores. They make you shark bait. Yes, there are mortgage companies that will lend to you. But they will charge you and charge you dearly.

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Fredericksburg, Va.: Hello, Maryann! My wife and I own some property and want to do a lease option with young couple that we know. What is the best set of forms that I can get to make this legal? My lawyer wants to charge me almost $3000, which I think is ridiculous, so where can I find this kind of contract. No, we will not transfer the title until they get their own financing after two years. Thanks!

Maryann Haggerty: You can find a zillion web sites that sell legal forms. Take a look. But the most complicated thing with a lease option is determining how the money gets split (i.e., how much goes toward the rent, how much toward the eventual down payment, etc.) Read up on that first, so you know what you want that form to say. If you won't pay a lawyer to do the studying, you need to study hard yourself.

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Indianapolis, Ind.: Hi, Maryann. We are getting transferred to Columbia, Maryland. We will probably make 35k on our single family home in Indy. We have sticker shock big time! We were approved for $350 and made two offers in the Crofton and Odenton area, but the home owners countered with wanting to immediately close, we can't. Are these areas going to stay stable or possibly dip in price, there is a lot out there. We are sick, any comments would be helpful about the market and what you think about renting vs buying right now.

Maryann Haggerty: Welcome, and sorry about the sticker shock. This is a tough place to come in to, especially if you come from one of those places where house prices are so, so much more moderate.

But you know what I'm reading between the lines here? If the only difference is closing date, there are sellers out there who want your money. Keep looking. One of them may give you the time you need (or you simply will tick-tick-tick the time away naturally.) And who knows? If those two houses are still on the market in a month, I bet closing date becomes more negotiable.

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Washington, D.C.: In response to the question about co-ops, you can get financing, although only a few lenders offer it. The hardest part is finding a title company that actually does closings on co-ops. A lot of title insurance companies have backed away from insuring co-ops, so therefore, the title companies can't close them.

Before signing a contract for one, make sure the co-op has a title company that they use.

Maryann Haggerty: Good point. But there are such title companies out there.

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Largo, Md.: Prices on the Increase.

Nervously I signed a contract for a two bedroom condo to be built across from the Largo Metro Station. My friend thought I was nuts. "Over 350K for a two bed condo!" Well it's been about six months since signing my contract any my exact unit is now selling for 42K more, so it seems that prices are still on the increase.

Maryann Haggerty: Yup, that's an increase.

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Bethesda, Md.: I know this isn't a local question exactly, but maybe you can answer more generally about the length of time one should own a house for it to make sense to buy instead of rent.

My husband and I are moving to a midwest university town while he goes to law school. The town is cheap to live in -- we are looking at adorable three bedroom, homes at around $85-$90,000. But although our mortgage payments would be fairly low, I'm worried that we might lose money on the house since we would only be there three years. I'd be willing to rent it out after we moved away, maybe for a year or two, and therefore hold on to it for a little longer. The area hasn't had the huge appreciation in real estate that the D.C. area has had, so I don't expect the value to rise by more than 2-3% a year.

What do you and any other readers think? Is three years too short-term to buy a house?

Thanks for any comments!

Maryann Haggerty: Rule of thumb is five years, so that selling costs don't eat up your profit. But at those prices, even a student can afford it, I'd say. If you can rent it out for a year to other students, that makes it easier. And in that kind of stable slow-growth market, you may not face the severe swings of more effervescent markets. So if you really like the place, you may want to go for it, not counting on a long-term profit. Flip side: If you can rent a similar house for noticeably less than your ownership costs, then maybe there's not such a great rental market there after all, and you want to be on the tenant side of it.

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Gainesville, Va.: Hi, Maryann.

There seems to be so much negativity surrounding the new home market. My husband and I went out last weekend and felt quite the contrary. In Prince William County the builders where very progressive in their pricing. We can now get a better deal building a new home than any of the resale that we have seen. We are actually writing a contract tomorrow. I just want to tell people not to be scared and to get out there. It is not how it was in the spring. We can actually afford it now.

Maryann Haggerty: Great to hear that! "Negativity" almost always depends on where you're standing, doesn't it?

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Alexandria, Va.: Hello! I'm contemplating the switch from renting to buying, but have little (maybe 1%) to put down on a house, and am not even sure I could afford any of the high home prices. I saw a Homestead program on the D.C. government website that allows you to buy homes for $250 and up, if you agree to bring them up to city code, but there was no other information. I also read an article from a few years ago that hinted that the program has problems. Do you know if this is a good program for new home buyers, and if there are any homes in safe neighborhoods?

Maryann Haggerty: You're dealing with the D.C. government. What else can I tell you?

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Vienna, Va.: My husband and I bought a townhome in a small neighborhood near the Vienna metro station about a year ago. We have noticed quite a few townhomes in our neighborhood now on the market and looked up their list prices out of curiosity. My confusion comes from the range of prices. The prices differ almost as much as $100,000. True, some of the townhomes are maybe one or two years newer than others, a block or two closer to the metro, and different floor plans, but I cannot understand how the prices can be that different throughout the neighborhood. Can you lend any insight as to why this might be? We are thinking that the sellers at the top end of the range are just out of their minds... and the low end people are really motivated sellers? We are nervous about the market and what our investment is really worth. The current prices don't help much!

Maryann Haggerty: Yes, prices can be all over the place, for the reasons you cite. But don't let this worry you, please, unless you need to sell now. Sit back, relax, enjoy your house. Market cycles come and go.

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Adams Morgan, Washington, D.C.: Maryann: Why do you seem so reluctant to express an opinion in these online discussions? Other online discussions are rife with opinions; we readers log on because we want to read your opinions. We understand that you don't know what will happen in the D.C. real estate market; we just want to know what you think will happen. For example, I think prices in the District, particularly in the condo market, have already begun to fall. I base this on the open houses my wife and I visit. I think prices will continue to fall through the rest of this year. What do you think?

Maryann Haggerty: Why don't I express lots of opinions about specific subjects such as how much prices will go up/down/sideways? Because, believe it or not, I'm not in the business of forming hasty opinions based on a narrow knowledge base, nor is it my goal, oh, say, to produce definitive rulings about what is humorous and what isn't. There are plenty of folks out there who are willing to do that. I'm in the business of gathering as much actual real information as I (and the folks who work with me) can find, and disseminating it as widely as possible. I'm in also in the business of pointing out the information that will help people make their own decisions rationally.

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Arlington, Va.: I am putting my one bed/one bath condo on the market tomorrow in Clarendon. What is the average days on the market for condos in Arlington right now? What would you speculate?

Maryann Haggerty: In March, average days on market in Arlington was 58, according to the multiple listing service. The info I can look at quickly doesn't split between houses and condos, but more than half of the units sold in the county last month were condos.

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Ocean City, Md. Can you provide the pros and cons of purchasing a second home with another party (50%/50%)? Or maybe items of concern which should be discussed between the two prior to purchasing a second home. My parents currently own a second home in Ocean Pines. They are refinancing the home and my husband and I are interested in going in with them 50%/50%. Please advise. Thanks.

Maryann Haggerty: With your parents, it should be pretty easy, assuming you all get along nicely. Just work out a partnership contract in advance, in writing, please, that examines how you are holding title, what rights you each have to use the house, who is paying for upkeep, what happens if one party wants to sell, etc. These things are worth paying lawyers for, because you do NOT want what should be a happy place to turn into an occasion for family wars.

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Gaithersburg, Md.: To the person in Alexandria, Va., who is wondering whether to buy. You might want to consider special home-buying programs Baltimore might have, depending on your job location. A friend of mine purchased a home at auction for $25,000 10 years ago, got some grants/loans through the city to fix it up, and resold it recently for around $250,000. (He had to keep it for 10 years or else repay the loans.) He had a great experience with Baltimore City.

Maryann Haggerty: Good point. Baltimore is offering lots of incentives these days, and prices are quite reasonable compared with here. Look at www.livebaltimore.com. I think they may have an outreach program coming up in Washington next week.

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Alexandria (Del Ray), Va.: The conventional wisdom seems to be that selling a home during the spring is the best bet since that's when many buyers are looking. But if the market price is determined by both the demand and supply, it seems that selling at other times of the year (maybe except for December and August) might be just as good since there may be fewer houses on the market. What's the truth?

My family is likely to move from Alexandria (unfortunately to another high price area -- Boston) for a job change, but my job search is going more slowly that I expected, so I think we'll miss the spring action. We may not put it on the market until June or July if we spend time and effort to spruce up the house. Or should we just do a rush job and try to put it on the market as soon as possible, like late May, even if we aren't able to paint, landscape, etc?

Maryann Haggerty: The most houses get sold in the spring. You may also get a blip in buyers in July, as people try to nail down their lives before the kids start school. Builders/agents also talk about a fall selling season, but it is quite, quite a bit slower. But, indeed, houses are sold at every time of the year, even over the Christmas holidays, because there are people who want/need to move. Just don't expect the same volume of would-be buyers.

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Washington, D.C.: My boyfriend is looking into buying his first house, a fixer-upper. While he has great experience and skills working on houses, he does not have a lot of cash to put down. The mortgage people he's talked to have suggested an 80-20 loan, with 80% in a fixed-rate 30-year mortgage, and the 20% in an interest only loan. We both are fairly skeptical about the interest only loan, but if only 20 percent is financed that way and he's going to be making some major improvements to the house, this seems less risky. Do you have any thoughts on this? Almost everything I've seen on interest only loans seem to cover 100% of the loan.

Maryann Haggerty: It does seem a lot less risky on the face of it, though of course you want to look closely at the terms. But it also sounds just about ideal for a fix-up situation. If you indeed are going to be making enough improvements to substantially increase the value, you could be looking at something you can refinance out of relatively quickly. (Make sure you have enough cash to actually make those improvements, OK?)

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Getting worried in Alexandria, Va.: Help! Our townhouse is for sale, along with about 10 others in our development. It is priced extremely competitively compared to the others, yet none of the townhouses has sold in the past several weeks. In the full week our place has been on the market, only two people have even come to look. (Admittedly the one week spanned Easter and the tax deadline.) How do we decide how much to drop the price and how often? We want to offer a reasonable price, and are very motivated to sell since we close on another home soon, but on the other hand how do we make sure we aren't dropping too low too fast? We could rent the place out if we had to, since our new home purchase is not contingent on a sale. Thanks in advance for any advice you can provide.

Maryann Haggerty: It's only been on the market a week, and that included Easter? Patience, patience! And pay attention to your curb appeal, especially this time of year, when landscaping can really look its best.

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Alexandria, Va.: Our solid three bedroom townhouse in a nice Alexandria neighborhood has been on the market now for 40 days. We reduced the price from $450K to $435K last week, but still no offers. We've done a lot to enhance the curb appeal, new neutral paint, etc., but can't afford to go below $435K because that's what we need to buy our HOC. With similar properties on the market for the same price or slightly less, I'm afraid we won't get a contract in time to complete the contract on our HOC. Besides more costly and time-consuming renovations, what else can we do?

Maryann Haggerty: (I'm reading HOC as "house of choice", right?)

It sounds as if you have done what you can do. You can't magically wave a wand and bring a buyer willing to meet your price when there are similar and less expensive properties competing with you. Perhaps you can step up the marketing a bit. Consult with your real estate agent, please. See if she has any advice. (And I'm sorry to say, you may need to investigate a bridge loan that will help you own the two at the same time. Ouch.)

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Anonymous: I agree that prices aren't falling unless you can see a home sell for price x on one date and subsequently see an equivalent home sell for a lower price. We bought our Silver Spring home for $280k in 2000 and sold it for about $550k (just over asked price)last year. Pretty good in my eyes, but if we had first asked $600k (as my wife suggested), and then gotten $550k, some might count that as a drop in prices. Prices may not be rising as fast as before -- are they rising slower on higher-priced properties? I'd think the market for lower-priced properties could still rise (i.e., absolute dollars being more important than percentages).

Maryann Haggerty: Higher mathematics.

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Germantown, Md.: I've been working at refinancing. When I do my applications over the phone, the lenders seem to be able to pull my home's approximate value from somewhere. Is it based on tax assessments? Sales of other homes? I'm in Montgomery Co, Md. if it makes a difference

Maryann Haggerty: There are computer-based appraisal files out there, based on comparable sales. Lenders use them all the time.

And no, not based on assessments. Assessments are a laughably inaccurate way to determine value.

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Washington, D.C.: Maryann,

Thanks for doing these chats. I wanted to offer up a story idea for you and the Post's other Real Estate writers.

The media has reported on the jump in monthly payment amount that many holders of interest-only mortgages will see in the next few years. The general line seems to be that many of those mortgage holders do not have a good understanding of what their payments will become, and are therefore in for a shock. However, that lack of understanding appears to be mostly speculation at this point.

So, the Post could do an article to answer the question: Are interest-only mortgage holders truly in the dark about what their monthly payments will do, which could portend a jump in desperation sales/foreclosures? Or, do many holders actually have a pretty good handle on things, and are we therefore unlikely to see an associated spike in homes for sale? The Post could identify some of those mortgage holders, get their take on what they're in for, and then could conduct its own analysis of what each holder's mortgage is likely to do.

Maryann Haggerty: Good idea, and one that is on the list, believe me.

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Jessup, Md.: I have a friend is waiting for housing prices to fall. He's been waiting for four years now. He tells me that my 300,000 dollar house will decline in value and that I'll wish I never bought. What he doesn't realize is it doesn't matter if my house drops by 10,000 or 20,000 or 50,000 dollars. I plan on staying put for a while. He spends $1200 a month on rent. 12 months times 4 years equals 48. 48 x 1200 dollars equals 57,600 dollars. He has wasted over 57,000 dollars by renting. If my house declines by 50,000 dollars, I am still ahead of the game. I win. Not him. And we all know that prices will eventually go up again. If you plan on staying put in a house for over five years than have no worries about a housing market crash. Enjoy home ownership. I am with no regrets. Have a great day.

Maryann Haggerty: And you have a nice day, too!

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Anonymous: What Comes first the chicken or the egg? Hi there. My husband and I have a nice townhouse which has appreciated. We brought really low five years ago. Now, we are looking to move but what do we do first sell our current house or buy another house then sell our house. It doesn't seem like we will be in a win/win situation no matter what we do. Please help.

Maryann Haggerty: It depends on your financial situation and tolerance for risk/annoyance. If you sell first, you risk spending time in temp housing. If you buy first, you risk not being able to sell in a timely fashion. A bit of cash in the bank makes either one more palatable. Many, many people are able to pull off the simultaneous closing thing, though.

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D.C. Neighborhood Tampering: Maryann,

It perplexes me how realtors or property owners (depending on the guilty party) can get away with changing the name of a community for higher prices.

For example, Stanton Park, Lincoln Park Kingman Park are now Capitol Hill. Fairlawn is now Hillcrest. Edgewood is now Brookland. How much can a realtor ethically stretch the truth about the neighborhood?

Maryann Haggerty: That's not an ethical question, it's a marketing one! There's a long-standing legal principle that marketers/advertisers can engage in "puffery." That is, they can tell you things that any reasonable adult would recognize as exaggeration. As far as I'm concerned, calling something that's in the shadow of RFK "Capitol Hill" is puffery.

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Re: Co-op buying: Don't be scared away just because co-ops are unfamiliar, but do talk to your realtor about the tradeoffs -- my first home purchase in D.C .was a co-op apartment and I loved it, but the financing tends to be different (in part because not many lenders do co-ops), so you need to make a bigger downpayment and at least for me, the interest rate was higher than it would have been for a condo loan. Co-ops also tend to forbid their owners to rent their places out long-term, because co-ops pay property taxes for all the owners and add it to the co-op fees (as compared to condos, where everyone pays their own), and they need to be able to classify the building as "owner occupied" to avoid a steep hike in property tax rates. All that makes co-ops bad as investment properties, but good as places to live (more space for the money, the building is owner-occupied so often better maintained, etc.)

Maryann Haggerty: The voice of experience

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Northern Va.: Maryann:

I'm a prospective first time home-buyer in the D.C./Alexandria area and as an observation about the spring market, I've found that 2/1 THs are more reasonably-priced than they were last fall, however, they are on the market longer and I've seen some big incentives and/or price reductions, e.g., $15-30k after three weeks on the market. However, rather than induce me to buy, it only makes me want to wait as I see inventory increasing and think that prices will come down even more. just an observation from out 'in the field.'

Maryann Haggerty: A glimpse into the psychology of a home shopper.

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Alexandria, Va.: I am looking to buy my first home, a townhome in Alexandria. I am seeing growing inventory, with attractive townhomes sitting on the market for several months. Asking prices are being slashed. Some sellers are also offering help with closing costs. But rising mortgage rates make me nervous. Do you think there is any chance that rates will drop later in the year, or should I jump at this slowing market now? I would ideally like to see if prices drop further, but if rates will only continue to rise it probably doesn't make sense to wait.

Maryann Haggerty: I haven't heard any economists predict falling interest rates. The Fed is still thinking in terms of raising rates, and only serious inflation is likely to change that thinking.

Of course, interest rates are a big big part of the affordability equation.

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Alexandria, Va.: My wife and I paid $320K for our townhouse back in mid-2000. Other similar townhouses are selling for about $720K now. Assuming we pay a real estate agent 5% commission -- what other costs should we expect when we sell our house? (Bottom line: how much cash will we have to put down on a new home?)

Thanks!

Maryann Haggerty: There's the commission, which you've figured on. Obviously, you pay what you still owe on your mortgage. In most of this area, you pay part of the recordation tax, the termite inspection and a few other odds and ends. Any real estate agent or title company can tell you what precisely is customary. (I don't have an up-to-date Virginia settlement statement in front of me, sorry.) And of course, the big thing is what you DON'T have to pay -- capital gains tax on that big lovely profit, because you have lived in and owned that house for more than two out of the last five years.

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Gaithersburg, Md.: Another comment on rising prices -- we bought our townhouse/condo in August 2004 for $250K. A comparable unit across the street is now listed at $335K, and I wouldn't be surprised if it sells for that amount. Needless to say, we're glad we bought when we did.

Maryann Haggerty: Prices up...

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Prices are falling: I bought a new townhouse last year for 500K. My next door neighbor had to sell his for an unexpected job change. He sold it last week after being on the market for three months. It sold for 60K less than what I paid for mine, and the houses are identical.

Maryann Haggerty: ...and prices down...

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Washington, D.C.: I just sold my Dupont condo this week. Several realtors said prices had dropped by 5-10 percent since the peak last year, so I priced conservatively and took the first offer I got for $10,000 over asking, which is about what I think it would have gone for last year. I might have been able to hold out for another $5,000 but was happy to take my huge profit. Another unit in the building that went on the market several months ago was overpriced by $20,000. It's now priced appropriately, but is still sitting. So I think the lesson is that things are selling, but that being really greedy doesn't pay off the way it would have last year.

Maryann Haggerty: ...and up...and down...

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Arlington, Va.: Re: opinions

Also in chats, opinions won't have financial consequences. A lot of questions I noticed ask your opinion on the market seem to be asking your advice on whether or not someone should sell or buy.

Maryann Haggerty: This is a good part of my thinking...

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Laurel, Md.: I have to agree on what the previous poster said about your hesitance to express an opinion. In addition to that, you seem to only touch Prince George's with a 10 ft pole. You usually provide only a one line answer. You have written off the entire county.

Maryann Haggerty: ...but it's not enough to make everyone happy.

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Maryann Haggerty: Sorry, folks, I have to go. It has been nice chatting with you, and I hope you have a great weekend, even if the weather is uncooperative.

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