Welcome to Real Estate Live, an online discussion of the Washington area housing market with 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.

Haggerty is joined by Washington Post columnist Elizabeth Razzi. Razzi is the Local Address columnist for The Post's Sunday Real Estate section in Business. She's written about real estate and other personal finance topics for magazines and newspapers since the days of double-digit interest rates. She is also the author of two consumer-advice books, The Fearless Home Buyer (2006) and The Fearless Home Seller (2007).

Today, they'll discuss 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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Elizabeth Razzi: Hi there! I'm back from a week renting someone else's lovely vacation house near the beach. As always, the mind wandered to the what-ifs of actually owning such a place. And then I snapped out of it and came home. Let's dig in...

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Maryann Haggerty: Thanks for joining us. We'll get started...

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Washington, D.C.: I'm not seeing many good buys in the D.C. rental market, although I can't imagine there's much demand, are they waiting for something to lower from the $2,000 range?

Elizabeth Razzi: It's Friday. Look around tonight at all the young folks zipping around town in search of fun. They're mostly renters. Notice how many, many, many of them there are. That's one big reason rents stay high around here. Lots of renters chasing the supply.

Maryann Haggerty: People who might have been in the home-buying markt a couple years ago are staying in the rental market for now, too.

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Washington, D.C.: What percent commission should a seller expect to pay for a buyer's agent when the house is "for sale by owner?"

Maryann Haggerty: In this market, 3 percent.

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Arlington: May I offer some advice to sellers? Check out the online profile for your house that your agent has created. I'm a first-time home buyer and some of them are laughable. One had a photo of the kitchen posted sideways. Another had rooms in such soft focus they looked like they were foggy. Yet another had a dog running through the living room and a large guy in a tight shirt in the dining room. My favorite was the profile that had nine photos, and seven of them were close-ups of flowers and butterflies from two years ago. THESE are the best pictures you've got of your property? It's funny to me, but after my laugh I move on to the next house because these profiles sure don't make me want to buy.

Elizabeth Razzi: Very good advice. I remember when a real estate agent ran a classified ad for my open house...and called it the entirely wrong neighborhood. One open house wasted. When looking at online pics of a home, I always note what's NOT photographed. If there's no shot of kitchen, master bedroom or bathroom, they're likely pretty homely.

Maryann Haggerty: It is SOOO easy to take and post good photos these days! I just see no excuse for this. The agent's job is to market the property, and that includes presenting it at its (honest) best.

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Alexandria, Va.: I have a charming and nice 70-year-old brick colonial in a great neighborhood. But it only has 2 bedrooms. I want to sell in a year or two and the 2 bedrooms is making me nervous -- It will be very hard to sell, won't it? It's a neighborhood with lots of small kids and all the other houses are 3 or 4 bedrooms. (I think lots of buyers want 3 bedrooms but then turn around and use one of the 3 for an office. I do have an office as well but it doesn't meet bedroom code, so I've only 2 bedrooms.) Thanks.

Maryann Haggerty: Thats' too expensive to change in this market, so you'll have to market it well. It's a two-bedroom with a charming home office... And also, of course, your price may be lower than your competition, which is a big selling point.

Elizabeth Razzi: A two-bedroom, 70-year old house might actually be bought with the intention of replacing it entirely with new construction. Sorry -- I know that's a lousy thought.

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Alexandria, Va.: I'm thinking about renting a room of my house to cope with the rising taxes, gas costs, etc. Where do I start to find great candidates and do "checks" on them?

Maryann Haggerty: Start small and local--the bulletin board at your office, nearby campus housing offices, friends of friends, etc. But if that doesn't work, you'll likely branch out into the the deep waters of craigslist and the like. Just be very very careful about checking references, credit, etc.

There's a very helpful book called "Every Landlord's Guide to Finding Great Tenants," by Janet Portman, whihc outlines credit checks, etc.

Elizabeth Razzi: If you're renting a room under your own roof, you need to get character references to people who know that person well. Old roommates, for example. Of course, you should have all the roommate discussions about things like smoking, loud noises, fridge priveliges (or the lack of 'em). Trust your gut...and ask for a security deposit.

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Anonymous: What are your thoughts about the problems facing Fannie Mae and Freddie Mac? I don't own a home, not because I couldn't afford one, but because I had other priorities. I'm in the highest tax bracket, and was ok with not benefiting from the same tax breaks afforded to home owners or this summer's rebate check. But, what I'm not ok with though, is using my tax dollars to bail out the GSEs and folks who weren't as conservative as me. I keep hearing how these companies cannot fail and now I'm wondering if I should become a homeowner, just so I can benefit from my own tax dollars. Thanks.

Elizabeth Razzi: My thoughts about Fannie Mae and Freddie Mac are this: What the heck is in my mutual funds? How much money have I lost? Will I ever be able to retire? What I'm not okay with is seeing my retirement savings evaporate because some free-market fanatics want to let the financial system crash and burn.

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Arlington, Va.: Can a bank withdraw its mortgage commitment because of changing market conditions? I can't believe that I am starting to get sucked into what is likely an irrational fear about the housing market and banking industry, but please reassure me that in two weeks I will not arrive at the closing table to find out that our approved loan has been withdrawn. Thanks, and love your chat!

Maryann Haggerty: Yes, the bank can indeed back out, as many did during the initial period of fear uncertainty and doubt in the mortgage market a year ago. I don't recall which loophole they used, but they did.

Elizabeth Razzi: Or they can go out of business. That's a worry these days, too. If a lot of time has passed since the appraisal, they might have another one done--and ask you for more cash if the value has declined. BUT...don't get your stomach knotted over nothing. If your appraisal wasn't more than a few weeks ago, if you haven't lost your job, if the neighborhood hasn't completely gone to seed, you'll probably be fine. And...if the deal falls through, maybe that's fate doing you a favor. Maybe.

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Northeast D.C.: A friend recently told me about the Neighborhood Assistance Corporation of America (NACA) program. They apparently offer a no-money-down mortgage and no fees. It sounds too good to be true. Have you heard of the NACA program? If so is it a worthwhile program?

Maryann Haggerty: NACA is a well-known, well-established nonprofit that works closely with some big lenders to help encourage homeownership in previously underserved areas. You have to go through credit counseling, take homeownership classes, etc. But it's worth looking into!

Elizabeth Razzi: NACA has a big emphasis on community organizing, lobbying Congress and badgering banks that it thinks are taking advantage of the little guy.

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Re: 2-bedroom in Alexandria: As long as you aren't asking for $500,000 or some other ridiculous amount for it, you may be surprised in the interest. I know a lot of younger couples looking in Alexandria, who aren't having kids any time soon and aren't ready for big homes. However, they like the idea of having a yard and their "own house." It's all in the pricing.

Maryann Haggerty: Yes, good point. We hear A LOT from folks who want small, cute and close-in....

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Falls Church, Va.: Hi Maryann and Elizabeth,

I hope you pick this question and help some of us understand the current market.

We're looking for our first home and having been priced out for the past few years we are trying to do a search based on specific areas. Every weekend I try to pick all the listings for a given area of interest, categorize the listings by pricing, features and in some cases find neighboring houses to have a difference of about $200k esp. when one of them is bank-owned. When I contact the listing agent to try and see if I can view their property, I try to determine their viewpoint of the difference in the pricing. In many cases, the realtor simply states, you will not understand and says there is no point in showing you the house they are listing.

From the responses I get most realtors in the D.C. area seem to have grown accustomed to the boom time where buyers had no choices and no ability to compare or ask any questions.

Overall it is very frustrating especially when people say it is a buyers market and when sellers say they are anxious to sell and looking for buyers.

My honest opinion is that sellers are eager and anxious but their listing agents just don't care and have a view only on their commissions -- they just let the property stay at the asking price and do not even disclose the fact that conditions have changed in the neighborhood - may be the sellers don't want to hear that either -- may be they are just anxious to sell at or near the peak prices.

This has now gotten to the point that we have now given up hopes of home ownership and stopped looking for the past few weeks...

Any thoughts, comments, suggestions or tips?

Maryann Haggerty: Actually, my experience is that the agents are the MOST eager to cut prices--and that's usually a rap against them by the agents-are-evil folks. If there's no sale, they get zero percent.

It sounds weird that agents are refusing to even SHOW you properties. I must be missing something.

Elizabeth Razzi: You should understand that if you're looking at foreclosures or short sales, the banks are trying to get the agents to slash their commissions. That could explain their lack of interest in showing the homes to you. I suggest you find an energetic buyer's agent to represent you. It won't cost you extra, as the agent typically gets a split of the listing commission. It will make you appear to be a more serious buyer. And they can help advise you on prices. Maryann is right -- a lot of agents are pushing for price cuts. Part of it is them being sensible about the market. But I suspect some of it is just them pushing to get a deal--ANY deal--to close.

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Quit claim deed for mortgage title?: Mortgage is in my name and we're divorcing. Can my ex-spouse give me a quitclaim deed to the house? It's an amicable split and she wants to do it, but we're not sure how to proceed.

Maryann Haggerty: If the mortgage is completely n your name, then yes, a properly recorded quitclaim deed will do it. But you want to talk with your divorice lawyers and make sure everything you do is recorded as part of the separation agreement, as silly as that sounds. With an amicable divorce, it shouldn't be a big problem.

(For years after my divorce, would-be creditors kept asking to see my settement agreement just to be double-dog-sure about everything. My agreement was written out by hand on yellow legal paper, with a line drawn down the middle for his and hers. But they still wanted to see it.)

Elizabeth Razzi: It should only cost a couple of hundred dollars for a lawyer to make sure the transfer is done correctly.

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Fredericksburg, Va.: Hello. Do you think it's a good idea to invest in a foreclosure or two? We're looking in Prince William to invest. We would use a home equity line of credit for the down payment and then get a renter ASAP. Thanks.

Maryann Haggerty: I really can't address timing questions--who knows what the future will bring? Nonetheless, the secret to success in investing is to buy low. Then you need to have enough capital to carry you through until the time comes when you can sell high. (Yes, it sounds pat, but it's good enough for Warren Buffett, so it's good enough for me.)

Elizabeth Razzi: I'd say the secret to success is to have a business plan. Draw up two scenarios for yourself. The one you think will happen, factoring in the interest rate, mortgage payment, taxes, insurance, depreciation, advertising for tenants, expected rent; the possibility that it will be vacant 10 percent of the time. Do you have the cash flow? Then do a second plan, assuming some bad breaks, like lower rent, a deadbeat tenant, etc. How long could you carry that out of your current income? Keep in mind that by using a home equity line of credit, you're placing your home at risk in this venture. It could be a great investment--if you can carry it.

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Arlington, Va.: Good Afternoon Ladies,

The financial/insurance company I have done business with for 30 years recently canceled my HELOC. In the letter they claimed that my house had declined in value to a point where they no longer felt it was a good risk, I guess. I had no balance on the HELOC and promptly paid it off the one time we used it for a complete kitchen renovation. I could tell from their calculations that they just took what my house was roughly worth when they issued the HELOC almost 3 years ago and using the average percentage of housing value decline for the entire D.C. metro area. I was pretty miffed for their shoddy approach since they really do not know what my house could sell for in Burke, Va.. And I let them know it.

Maryann Haggerty: Yup, that's happening to people. Lenders are cancelling HELOCs because they have too many of them on their books in Zip codes they believe have soft prices. The small print gives them the right to do so. A HELOC is not secured by your credit rating (ie, your record of good payments.) It is secured by the portfolio of the house that's not encumbered by other debt. Yes, you can be miffed. Yes, you can pull all of your other business away from that institution.

Elizabeth Razzi: A pox on them! That felt good, didn't it? Seriously, they are entirely within their rights to do that. But keep it in mind when the market recovers and they start sending you letters about their wonderful home equity products.

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Washington, D.C.: Is the condo market still a buyer's market (in D.C.)? I'm thinking of buying, but can probably only afford the low $200s (for a one-bedroom).

Maryann Haggerty: Yes, I think most peopel would call it a buyers market, with about 5 months supply on the market in the city at the end of June, it's really not overwhelmingly so right now. (Those are MRIS numbers, so a lot of new supply isn't counted.) But there's not a heck of a lot at the lowest price points, so you're going to have to shop around to find what you like.

Elizabeth Razzi: The weak market gives you time to put off the purchase a while and save for a downpayment. If you're able to increase your budget a bit, you'll have more choice--and a better likelihood that you'll buy something that you like for a long time.

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RE: Investing in Foreclosures: Seriously: make sure that whatever you buy, you would live in if the house of cards collapses. 'Cuz it probably will, at some point, become difficult to support all of those houses. We may sell our nicer, more expensive house and move back to the rental for a while if we can get out cleanly.

Elizabeth Razzi: Thanks for the advice.

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Fairfax, Va.: I need to know what your latest outlook is for the housing market. my 5/1 arm is up in less than 3 years -- my condo has depreciated over 10%. i have no equity in my home. I am struggling, but thankfully can pay my mortgage. I want out, but I guess I just am playing a waiting game. Any thoughts? I know you can't make predictions, but is there any hope??

Elizabeth Razzi: Well... you have almost three years with an interest rate locked in, right? The market may indeed be healthier then. (I sure hope so.) Review your loan docs to see what the maximum would be during that first year when it has switched to a one-year ARM. Might not be so bad. With luck, your income will have increased a bit by then, too. Make sure you don't have a prepayment penalty--or at least see when it would expire. Don't move before then. Good luck.

Maryann Haggerty: Take a deep breath, examine your finances, and take another deep breath. You have a roof over your head, and three years is a reasonably long time.

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Re:Looking at houses: Hi Maryann And Elizabeth,

I am a Realtor, and would like to mention what the problem likely is for the poster that can't get agents to show him their listings. The feeling I get from his post is that he is a "looker" not a buyer. It's all in the approach. I go second your recommendation for a buyer's agent. Your average Realtor won't answer the "How did you arrive at that price" query from Joe Public, but a fellow Realtor will either have better success, or run their own CMA to determine the correct offering price. I have even made the CMA part of an offer to justify to the seller and their agent the reduction in offering price. Thanks for the chats!

Elizabeth Razzi: And thanks for the comments...

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Anonymous: Related to Arlington's thoughts on positioning a property online... I can't believe that sellers and agents think it's a good idea to leave taxidermied fish bodies and deer heads mounted on the walls of for-sale homes. Seems like a potential major turn-off to see dead animals nailed up as decor - why not go a step beyond decluttering and take potentially offensive exhibits down?

Also, why do so many shots show a "bedroom" which consists of, perhaps, two walls coming together and shows nothing of the actual layout? Or, I have seen many photos labeled "bathroom" which, basically are pictures of a toilet with lid up.

Why not take six or eight representative shots that hopefully include a property's best feature(s) and let the photos attract a buyer to want to see more by scheduling a showing?

Honestly, dead animals on the wall and pictures of toilets are not the way to attract buyers...

Maryann Haggerty: Geez. Not sure how to take pictures of rooms? Buy a couple home decorating magazines. Look at the photos and the angles they use. Maybe even borrow a couple of extra lights from a photographer friend.

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Woodbridge, Va.: "What I'm not okay with is seeing my retirement savings evaporate because some free-market fanatics want to let the financial system crash and burn."

And yet people were just fine with a free-wheeling market when it was over-inflating the value of their homes.

Elizabeth Razzi: Actually I have long thought there should have been some grown ups chaperoning the trip. The free-market maniacs said deregulation would breed creativity in the market. Did it ever. We got such wild creativity as no-doc, interest-only balloon mortgages with prepayment penalties, which went into mortgage-backed securities that no one understood.

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Alexandria, Va.: More advice to people who are selling from someone who just bought her first house in Alexandria City, CLEAN UP! If you don't do it then have a housekeeping service into the house. Nothing is more off-putting than your cat's hair all over appliances. Also, while you may love, love, love your "updates" to your house, they may not be worth as much as you think (this is speaking to the guy who made a huge kitchen at the expense of having a dining room but then put in cheap formica and those faux wood floors, forgetting the name here) or as much as you spent especially if it does weird things to the floor plan. Make sure that your real estate agent is making your house available for show even to people who don't have agents. My husband and I didn't have an agent and there were several properties that listing agents wouldn't show to us because we wouldn't sign them as our agent. Please remember that this is a down market, while you may need to break even, if your house has been on the market for 90 days or more and you haven't had an offer or the offers you have had are hovering below your price, maybe it is time to accept some of the lower offers or rent your house. The house I ended up buying is one that was beautiful on the inside with 3 bedrooms (and yes, for the woman who has 2 bedrooms, it will be a problem unless the market goes way up again or there are some really charming things about the house and neighborhood where a couple without kids or with grown kids would want the house), with 1.5 baths, and room in the basement for a 2nd full bath. I don't need to do anything to the house to move into it (though there are some things I want to do anyway that are personal touches). It fronts a busy street and the backyard needs some work which is why we got it for $359K, but it is in Alexandria City, right on the bus line 10 - 15 min. to downtown DC driving (depending on how fast you drive) and on the edge of Del Ray. This house would have been at least $50K more 2 - 3 years ago (it is assessed at $414K which doesn't really mean anything since it obviously couldn't sell for that much). I can't tell you how many houses I have been in for around the same price or even a bit more where there have been smells, or no parking, or minor broken items (like closet doors) where small things done by the seller would have made all the difference.

Maryann Haggerty: Thanks for some front-line perspective here.

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Washington, D.C.: This is a bit off topic. But... do you think it would be okay for me to withhold rent if my apartment is only 99% complete but 100% useable? I hear there's a big name tenant in D.C. who's basically doing that.

Maryann Haggerty: I would suspect your lease is a lot simpler and more straightforward about these things than the lease on Nationals Stadium.

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Washington, D.C.: Regarding online pictures, this is a huge frustration of mine. I've mostly been browsing realtor.com, and the photo quality is terrible. I can often fare better with Google Street View. Is there a better Web site for getting an actual sense of what a place looks like?

(If it matters, I'm looking on the other side of the country, so driving around isn't an option just yet.)

Maryann Haggerty: Well, you can try flickr and youtube to see if the neighbors have posted anything. But othrwise, no. Also, Google Street View is not much good in the Washington area, because they don't cover us.

Elizabeth Razzi: I've found that the listing agent's site often has more (and better) photos than you see on Realtor.com. Click through to the agent's site; see if you can find better shots. But please don't base decisions on Google Street View! Come to town, drive around. Rent a bicycle. Ride the metro. Check out traffic. Maybe rent for a year until you learn the area better.

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Alexandria, Va.: I used NACA and it is great as I was able to use money that I would have had to use for a downpayment (which still wouldn't have been enough to avoid PMI) to buy my rate down to 4 percent from 5.5 percent and only a $50/month (for 10 years at my mortgage amount) charge to support NACA's programs, continued counseling for you if you need it, and to provide an emergency fund for distressed NACA homeowners to help them avoid losing their homes in case of great personal catastrophes (very strict limits on its use). The process can be lengthy (it is less so if you have your financial ducks in order), they are a non-profit so everything seems to take longer, and there is a limit to how much you can spend ($362.5K in this area though they are trying to get that raised to $417K). BUT they will help you make sure that you aren't buying more house than you can afford, you will get a low rate 30-year fixed loan with no PMI, and they will help you make sure that the house you buy is not "craptastic" (they require home inspections and repairs made to major items before they will sanction the purchase).

Maryann Haggerty: It sounds like you had a good experience. Thanks for telling us about it.

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McLean, Va.: Hi Ladies, thanks for doing the chat.

My wife and I just bought our first home. It is in the process of being built in Ashburn and I just had a preconstruction meeting. When asked if I was planning on having an inspection done before the drywall was put up, I said yes (honestly, I hadn't even thought about it but figured by saying yes it may encourage them to do a good job). He seemed annoyed and told me that it was my right to have an inspection. He said that I would be given 24-48 hours notice prior to the predrywall meeting and that I would need to have the inspector on call and out there 24 hours prior to that meeting. Do the math... it seems virtually impossible to get an inspector out there 24 hours before when I'm barely given 24 hours notice myself. What are my rights here? Should I be concerned? Do people even have inspections done on newly constructed homes?

Maryann Haggerty: Yes, people have inspections done. Yes, you should have them--at several stages in construction. Homes are built by human beings, and humans make mistakes. Call around and explain the situation to the inspectors you interview. Most of them can be very flexible about scheduling--they are USED to working under deadlines.

A request to all you folks out there: Did you forgo a home inspection, particularly at the top of the market. If so, are you willing to talk with a reporter about how you feel about it now? Then drop me a line directly at haggertym@washpost.com. Thanks!

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Alexandria, Va.: My wife and I own a 2br 1 bath condo in Kingstowne, Va. Our Zillow home value shows that our condo's depreciated by about $20,000 since June 2006 when we bought it -- quite depressing! If I'm considering selling in the next 2-3 years, with the market being what it is, I will be happy to just break even. Should I be paying attention to the Zillow number and for comparable sales in my neighborhood? Don't updates and renovations (say, installing a 2nd bathroom and updated kitchen) count for something? And what are your overall thoughts on how the condo market is doing in Fairfax and Northern Virginia?

Elizabeth Razzi: Check again. Zillow could be saying your value is up $10,000. It's a very imprecise estimate. Very imprecise.Take a look at the listings on brokers' web sites and see what recent homes like yours are fetching. Overall condo market? Overall, values are down. By how much depends on the microclimate for your neighborhood.

Maryann Haggerty: Zillow prices are just for fun at this point. Perhaps some day their estimates will be good enough to be taken seriously, but they just aren't yet.

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Washington, D.C.: Just my 2 cents.

The U.S. and Finland are the only two countries in the world that have 30-year fixed mortgages available and we have them because of Fannie Mae and Freddie Mac -- in most countries you can only fix your rate for a maximum of 2-3 years. So, before folks go all giddy at the prospect of the demise of big, bad Freddie and Fannie, consider what your monthly mortgage payment would be like if it fluxuated with interest rates.

Elizabeth Razzi: Good two cents. Fannie and Freddie have done wonders to even out the availability of mortgage money throughout the country. It wasn't always so. In small towns where the savings and loans didn't draw big deposits, it used to be harder to get affordable mortgages. Also, Fannie and Freddie's "conforming loan" standards have been very beneficial to consumers. Those loans have protections (such as reasonable interest-rate caps on ARMs) that are valuable to consumers. We need a viable, financially sound, properly regulated Fannie and Freddie.

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Arlington, Va.: The current housing rescue bill -- do you consider that a bailout?

Elizabeth Razzi: No, I don't. And I don't think it's simply a housing rescue bill. It's an economic rescue.

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Re: When I contact the listing agent to try and see if I can view their property, I try to determine their viewpoint of the difference in the pricing. : She's not just asking to see the property, she's asking them to cut the price by $200,000. No wonder they don't want to talk to her. The time to start haggling is WHEN you make an offer, not while you're trying to schedule a view.

Maryann Haggerty: That would be one way to interpret that, I suspect.

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Arlington, Va.: I live just outside of D.C. and work in D.C. I am not willing to pay for the still way over-priced houses/condos in and near the D.C. area. But I still want to plant roots and buy a home (not an investment, but my first home I will have for at least 25 years). How is the Baltimore real estate market? Is it worth checking out and worth the commute?

Maryann Haggerty: Things have slowed up there, too.

A lot of people regularly make the Baltimore-DC commute, and many of them are fanatics about it. They rave about the train ride, their lovely homes, the community spirit. Other people just can't stand it; they think that two hours a day of commuting is a time sink rather than a time to decompress. This is a know thyself thing.

Elizabeth Razzi: Baltimore and DC are such different places. Only you can decide where you'd like to live. You might even want to branch out your search to other cities. I mean, why not?

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To sell or not to sell?: Am I correct in saying that in today's market, if you don't have to sell your house, don't? What are some factors that you would think would make a good case for deciding to sell your home, and what are some -- bad -- reasons to sell your home in today's market?

Maryann Haggerty: A good reason: You need to move for job-related purposes, or health concerns.

A bad reason: You're so scared that the prices will continue to drop that you panic and sell, even tho you can afford your current payments. (Remember: BUY low, sell HIGH.) Another bad reason: You don't like your neighbor's new boyfriend. They'll probably break up eventually...

Elizabeth Razzi: Another good reason: You want to move up to a better home. It's lower price is enough to offset the lower price you have to accept on the old home. It's a wash--and you get the house you want. Bad reason: Everybody else seems to be trying to sell, and it's tough to resist the herd.

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Washington, D.C.: Could you please explain the details of a FHA loan?

Maryann Haggerty: I'm not sure which details you need. But the basics are that you can get a loan at a lower downpayment, with slightly looser credit requirements, than you would othrwise. Instead of paying PRIVATE mortgage insure, you pay a Mortgage Insurance Premium. You can find lots of info at www.fha.gov, and even more from a lender. Just plain old regular lenders do FHA--you don't get a loan directly from the government or anything like that.

Elizabeth Razzi: An important thing to remember is FHA loans can now be for as much as $729,750. That's a big change from the past.

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Maryland: I second the idea that Falls Church needs to get a buyer's agent. There's no substitute for seeing a house yourself - no seller's agent is going to tell you their house is cheaper because it backs to I-95/smells funny/the owner is desperate/etc. With a buyer's agent you can check it out yourself. Sellers agents also aren't likely to want to show a house for someone who's just trying to get familiar with a neighborhood. That's a lot of time for them with minimal chance of reward. And no, I'm not a realtor. But am looking to buy and can't imagine doing it w/o a buyers agent. It's frustrating enough these days given how delusional sellers are about their home values.

Elizabeth Razzi: Thanks, Maryland.

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Chevy Chase: "A two-bedroom, 70-year-old house might actually be bought with the intention of replacing it entirely with new construction. Sorry -- I know that's a lousy thought."

Not a lousy thought at all! I sold a 2 bedroom, 75-year-old house to someone who tore it down -- I made a bundle and used it to buy a much nicer home. In the end, it's just four walls, after all.

Maryann Haggerty: Reasonable point.

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Anonymous: So then let the people who got tax breaks for there mortgages bail out Freddie Mac and Fannie Mae. Why is this everyone's problem when some of us showed restraint?

Elizabeth Razzi: Because we don't get government on the cafeteria plan. (If only we did. I'll have some National Park Service funding and a side of infrastructure investment, please.)

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Washington, D.C.: Just a clarification on my streetview comment -- currently living here in Washington, looking to buy on the other side of the country. Not any time soon, which is the point when I think good online pictures are SO useful... I just want a sense of where to begin!

Also, it would be great if Google could streetview Washington -- it's really useful.

Elizabeth Razzi: Oh, gotcha. Thanks for the clarification. Google told me they've taken the pics for the Washington area, but can't commit to when they'll be online.

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Alexandria, Va.: Want a laugh? My apartment building, which is a garden apartment in Alexandria, is converting to condo. Now, in this market. And their incentive price for current renters is $300k for a two-bedroom that is in such horrid disrepair that it is laughable (two different floors, stove that leaks gas, no central air, overlooking a very loud auto dealership service bay).

We are refusing to even negotiate with them, and are happily moving out and taking our $300k (which we can easily afford) and buying a townhouse. When they said incentive pricing, we actually imagined something that would be a percentage below market, rather than something that would have been optimistic in early 2006.

Maryann Haggerty: Obviously your landlord has a different read on the market than you do. Good luck in your new--hopefully nicer--home!

Elizabeth Razzi: Sounds like a big win for you. Apartment conversions to condo aren't my favorite, anyway. The soundproofing, insulation and overall construction doesn't seem to translate well to individual owners.

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Arlington, Va.: Hello. This is D.C.-Baltimore again. My family and friends live in the D.C. metro area, so I would like to stay close. Anyone out there have any other suggestions for a great place to live within a reasonable price range for a woman who makes 70K a year with ZERO debt?

Elizabeth Razzi: Anyone? Frederick, Md., is nice.

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Philadelphia: I have been saving for five years for my first house. I have $45,000 saved. I've broken it down: 10 for emergency funds, 10 for closing costs and the remaining 25 for a down payment. I'm looking to buy a house at $200,000. However, I am finding a lot of houses a little bit higher that seem more my style (say around $230,000). I have been living with my sister for a year, and am eager to start my life under my own roof (I'm 32 years old). However, if I wait nine months, I should be able to save $15,000 more. This is of course living on a shoestring budget, which I've been doing for a long time and I assume I'll also be doing when I get my house. I'd love to not pay the PMI if I can get 20 percent down payment. However I guess, long story short, I'm wondering: Is it better to wait nine months to a year to get the desired 20 percent down or perhaps a bigger house? I'm also nervous about interest rates -- just going up one point would negate nine months of saving. What is your advice? I have been looking, but I keep hesitating to make an offer becuase I think if I just had $5,000 more, etc...

Maryann Haggerty: This is tough--it's the situation in which you really wish you did have a crystal ball. But you can't, you relaly can't, predict short-term shifts in things like prices and interest rates. (Well, you can try, but even the shrewdest investors are wrong somtimes.)

Try this bit of math: Find out how much PMI would cost you if you had ALMOST 20 percent to put down. Is it too much? Then you'll have to keep saving.

And remember this: Just because someone is asking for $230K doesn't mean you have to offer $230K. Bid what you think is fair, taking comparables into account. You may be pleasantly surprised.

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Takoma Park, Md.: Hi. I have a few questions if you don't mind.

First, we have our house on the market. We are selling it ourselves through Save6 however we are offering the customary 3 percent commission for a buyer's agent. One Realtor emailed us asking for information on the house saying that she took her clients only to Realtor listed properties first and only if nothing from that inventory fit the bill would she bring someone to a FSBO. Is this ethical? She's not necessarily working in her clients' best interests by avoiding certain houses? Though we do not have an offer yet, we have received nothing but positive feedback from those realtors who have seen it.

My other question is, if we do not get an offer soon, we have considered renting the property though we would prefer not to do that. Do you have advice as to what to pursue in this market -- a buyer or renter?

Ultimately, how do you turn a lovely house that receives lots of compliments into a sale?

Maryann Haggerty: It always seems slightly seamy that agents refuse to show fsbos, but that's simply the way it is.

And rent vs. sell? You have to look at your house, your neighborhood, etc., and see what the rental market is like. But you shold at least explore.

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Fairfax, Va.: Hi Maryann and Elizabeth,

I am entering my senior year of college. After I graduate I'd really like to start looking to move out of my parents' house within a year, and get out on my own. Assuming I have a job in the Washington, D.C. area, how do you suggest I begin looking? I'd like to stay away from renting (and not paying someone else, but start owning my own piece of property), and would love to invest in a condo or townhouse with a roommate or two, location is not fixed, just close to a metro would be ideal.

I've gotten some ideas, but am thinking now so that I can be fully prepared when the time comes, only about a year or so from now! What tips do you have for young, first time buyers, in this expensive market?

Maryann Haggerty: You need to start saving, BUT... don't jump too quickly into homeownership. It's a long-term proposition, not a short-term fill-in. When you're just out of school, you have absolutely no idea what the job markt and your social life will bring you. Renting gives you much greater flexibility. And you can use that time to save, save, save--and protect your credit rating-- for when you're ready to settle down.

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Elizabeth Razzi: That's it for this time. Thanks very much for some great contributions to the chat. This Sunday's column will talk about ways to cut winter heat bills now. I recommend a tall iced tea to wash it down. See you soon!

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Maryann Haggerty: Thanks so much for joining us.

In Saturday's Real Estate section, we have a helpful article on how to save money on closing costs, and another helpful article on how awnings can help you save money on energy costs. On Sunday, Elizabeth tells you even more about what to do around the house to save on that big looming heating building.

So, enjoy a frugal weekend...

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