Real Estate Live

Welcome to Real Estate Live, an online discussion of the Washington area housing market with Post Real Estate editor Maryann Haggerty and author Elizabeth Razzi.

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.

Razzi has 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 discussed 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: Hello, everyone. Great to see you here again. Allow me to report the latest, decidedly unscientific poll result from the new Local Address blog. The poll asked for reaction to the new no-equity refinance program announced this week by the administration. More than half of poll participants said they were against the whole plan. About 35 percent want the refinances to be available only for a person's main residence. And about 12 percent want them available for principal residences, vacation homes and 1-4 unit investment properties. I encourage you to put your choices in the poll -- after the chat, of course.

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Maryann Haggerty: Greetings to you all. Thanks for joining us on this kinda-spring afternoon.

Lots of housing news this week, much of it revolving around the administration's new plan to halt foreclosures through refinancing and modifications.

So we'll take your questions on that, if you have some, as well as all your real estate related thoughts. The sooner you get your questions in, the better!

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Annapolis, Md.: We are getting ready to sell our house and my wife and I are trying to decide how to price it. She is leaning towards a slightly higher price, on the grounds that it will give us more flexibility to negotiate with buyers; it seems that in this market we have to assume that buyers will offer below the asking price and expect closing cost help, and she wants to preserve that wiggle room. I am leaning towards a slightly lower price, in order to make sure that buyers get to the table; we want to make sure they find the house and see that it is in better shape than other comparable houses, and once they make an offer we can always negotiate it back. ("Take your choice: our asking price with closing cost help, or your offering price with no closing cost help.") My wife and I aren't that far apart - $10-15K. How would you advise us?

Elizabeth Razzi: You can't negotiate if you don't get a nibble to start with. I'd try to grab buyers' attention with the lowest price that's at all reasonable. And then brace yourselves for them to push you lower than you think is right.

Maryann Haggerty: Yeah, my gut says go low enough to get their attention.

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Washington, D.C.: WOHOO... although I don't qualify for the Obama bailout, I just lowered my 30-year-fixed from 6 and 1/6 to 5 even!

Maryann Haggerty: I'll join you in that: WOOO-HOOO!!!

A bunch of our co-workers also closed their refis this week and were crowing about it...

Elizabeth Razzi: Good for you! Though my inner grump is thinking we darn well should not be paying more than 5 percent at a time when interest rates on deposits are close to nothing. Seriously, though, congrats on the refi!

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Arlington, Va.: Hello ladies. So, I just received a letter notifying me that my mortgage has been sold to Countrywide. Aren't they teetering on the brink of oblivion?

Elizabeth Razzi: Ah, they're past the brink. Countrywide was taken over by Bank of America. As someone mailing checks into the bank--any bank, you have little to worry about. Your loan is one of that institution's assets -- valuable stuff. You'll always have an address that welcomes your monthly check. Keep an eye on your escrows, just in case something gets bungled in the transition.

Maryann Haggerty: They do need to notify you when the loan is transferred; that's the letter you got.

Countrywide is still operating under its old name; I'm not sure when they'll take the BoA name. It may not be the best of times for a financial institution to switch the signs and logos...

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Vienna, Va.: Maryann and Elizabeth, I hear so much emphasis from people - including our elected leaders - on keeping home values from falling and putting a 'floor' on plummeting prices. Since by every account (OFHEO, Case-Shiller, etc) and in every market (except Detroit) home prices are still way too high compared to historical trends and inflation indexes, why is there such a push to keep prices artificially inflated? In the end they will meet their fundamentally supported levels. Do people not realize this? Or, are they trying to spread the pain to more people over a longer time, like what happened in Japan? It just sounds unbelievable that after eight years of soaring prices, nobody can accept that they're coming crashing down to Earth. People are blaming foreclosures for this phenomenon. Of course, foreclosures are the symptom and not the problem. D.C. area prices went up 2.5 to 3 times their value from 1998 to 2006 without any substantial household GDP increase. Are people just equity-greedy and ignorant about the numbers?

Maryann Haggerty: You say values are "still way too high" as if it were an indisputable fact. The reality is, plenty of sensible people dispute that.

Elizabeth Razzi: Well, I don't exactly see myself in the greedy or ignorant camps. And I don't agree that foreclosures are only a symptom, and not a great contributor to the problem. I see the government's goals not so much as setting a floor on prices, but to interrupt a downward cycle that is reinforcing itself. Increased numbers of foreclosures are driving down neighboring values, increasing foreclosures, and demolishing more equity. People lose jobs. That increases foreclosures, drags down equity, people quit spending, more people lose jobs. Repeat ad infinitum. That's the cycle the govt folks are trying to interrupt.

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Fairfax, Va.: I rent a house for $2,300 a month. I may have the opportunity to buy the house I rent and my monthly mortgage payment would be about $3,200 (assuming a $500,000 purchase price). My landlords would prefer to rent to me for another year rather than sell to me now, because they think prices will rise in that time and they will be able to sell the house for more than the current appraised value of $500,000. Any thoughts on my options, assuming I have the choice of buying the house now or renting for another year and buying it then?

Maryann Haggerty: Well, the key here may be "option": Would your landlord give you an option to buy at a set price a year from now? And could the two of you agree on what that price might be?

Otherwise, it's a bet: Your landlord is betting the price will go up in a year. If you think he's right, you buy now. If you think he's wrong, you wait. I won't guess, myself

Elizabeth Razzi: Well, if your landlord won't sell to you now, and your bet (that's solely on your head, not mine) is that prices will be higher in a year, it would seem that you ought to be shopping for other similar homes that you could buy at today's low price.

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Washington, D.C.: I have my mortgage with NFCU (Navy Federal). I am trying to get a refinance. The underwriter came back with a caviat the I remove all security bars from my windows or have them all refitted with quick release mechanisms. Did you ever hear of such a request? I am supposed to close on the 6th of March. I would appreciate your kind advice.

Elizabeth Razzi: I haven't heard of such a request on a refi, but it sounds extremely worthwhile to me. Those quick release mechanisms are there to keep people from dying in a fire.

Maryann Haggerty: Yeah, I'm betting that with the current security bars you don't meet fire code, and that might cause problems with resale of the loan (or maybe insurability).

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McLean, Va.: Is there a method/program by which a person/organization who made a lot of money selling their real estate in the years 2003-2008 for overwhelming profit to give back, e.g., the less fortunate?

Maryann Haggerty: There are plenty of organizations. The best known housing charity nationally is probably Habitat for Humanity, which works with families to build homes and self-sufficiency. Their donors can also get their hands dirty helping to build.

Locally, there are also many worthy groups that are doing their darndest to help those who don't have homes or food: Martha's Table and So Others Might Eat are just two well-respected local groups.

Elizabeth Razzi: Absolutely. Also, I'm sure any of the local charity organizations that works with the growing number of homeless families would be delighted to accept some of those old profits.

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Richmond: I wasn't going to refi because I want to move in a few years (preference for a change of scenery, not any particular need), but now I think I couldn't sell so soon, I might as well refi.

Elizabeth Razzi: I understand your thinking. Why refi if you're only going to be there a short time? There are costs associated with the deal, of course. But rates have declined enough to make it a worthwhile move for many more people now. If your emergency cash savings are well funded, and your retirement savings are on track, you might consider using the unexpected refi savings as a prepayment on principal--which will give you more buying power when you decide it's time to relocate.

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Woodbridge, Va.: I am looking at adding a deck or a patio. Which one is best for resale value of my house.

Elizabeth Razzi: I'm not sure either one will affect your value enough to enter into the decision. You should do the one that you will use more often.

Maryann Haggerty: Look at your neighbors' houses--if everyone has a deck (very common in much of the DC area) that's what you'll want.

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Arlington, Va.: Thanks for taking this question. My Realtor doesn't want to show me short sales: he says the sale will always fall through. I'm sure he's correct that short sales involve a lot of his effort with a low chance of return. On the other hand, since I only need one sale to go through, it seems like it's in my interest to pursue some. What's your take?

Elizabeth Razzi: My take is that if you want to pursue short sales, you need a different real estate agent. A lot of them avoid short sales because they are a lot of extra work, prone to falling through (which yields no payday for the agent). And, the banks often try to whittle away their commission. But some agents are more game to go after these sales. Find one!

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Burtonsville: I have what is sometimes known as a "good problem" -- choosing between desirable alternatives. My 5-year teaser expires in a couple of months, and my lender will let me lock an additional five years (for half a point) at their current teaser rate -- 4.5%; but my fully indexed rate for the next year based on 1-yr Treasuries would only be 3.2%! So it would cost about 1.8% to lock years #2-5. This is a poser.

Maryann Haggerty: It depends whether you're planning to move anytime soon. If you're going anywhere in the next year or so, take the 3.2%. If you're staying put for the long term, consider a fixed-rate mortgage. Interest rates are still very low; you might not be paying much more than that 4.5%.

Elizabeth Razzi: I agree. Ask that lender what the charge would be for a full refinance into a fixed rate. After all, the lender's already charging half a point to lock you in for five years. At least get a rate quote from a couple of sources--based on your credit rating.

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Alexandria, Va.: In response to "prices are way too high" actually in some areas it seems like there's a return to a defensible price based on market rents. I have a townhome on the market in Alexandria. Received a low offer, have countered, but will not meet seller's pricing. This is because I can make fairly decent money (incl. positive cash flow) each month by renting. Further, if someone bought at my asking price, put 20% down, their cost would be lower than renting. Another unit sale fell through because seller refused to sell at a low (too low - appraiser used bank owned comps in another zip code) appraisal. Maybe a fluke, or maybe things are improving.

Elizabeth Razzi: Very interesting. I've been starting to hear that the equation is changing.

Maryann Haggerty: A study out last week from Green Street Advisors found that rent-own cost ratios in the DC suburbs are more favorable toward buying than they have been in 18 years.

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Arlington, Va.: I have 30 years fixed 5.75% mortgage on my condo. The last appraisal-400000. The balance is 24K. My credit score is excellent. I'd like to get 25K fixed equity loan for 10 years with 4.5 -5.0 rate. But nobody gives it to me because the sum is too low. Do you have an idea of how to solve this problem? Thanks.

Maryann Haggerty: Actually, it is too low--many people set a $50,000 or so floor.

So--take the $50K loan. Pay off the old balance. Put the $26K in the bank, or under your mattress if you'd like. Then use it to pay off the principal on the new loan at an accelerated rate.

Elizabeth Razzi: Sounds like a plan. Have you looked into a cash-out (I know, the horrors!) refinance of your first mortgage?

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Washington, D.C.: Someone described D.C. as having a "glut of condos" in the comments section of an article earlier this week on stalled office construction. Where?! I'm a federal employee looking for something in the city, near Metro or walking distance to my Agency, and I can't find anything near my price range. Anything reasonable in terms of size and location is nearly $300K. I've looked on WaPo, and a couple of other local real estate sites but I'm not having much luck. Can you give me some suggestions (as well as suggested reading for a first time home buyer)? Thanks.

Maryann Haggerty: Well, my quick search just found 53 condos listed for sale in Zip 20001, which is about as downtown as you get. Then I put a ceiling of $300K on it--and that went down to 9 listings. So "glut" does not necessarily mean "hundreds of units in your price range in exactly your neighborhood," I'm afraid. So you need to widen your parameters. Maybe you will have to widen your area.

Elizabeth Razzi: I read that comment about the "glut of condos." But, as your experience has proven, there's no glut of big, roomy, convenient, affordable stuff. Size and Location are the Gucci and Chanel of real estate, and there's never a glut of that at a reasonable price.

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Lorton: In the new govt mortgage rescue programs, is there anything about mortgage insurance. A lot of people will have less than 20% equity when they refinance. Thanks.

Elizabeth Razzi: Fannie Mae and Freddie Mac have said that if mortgage insurance was required on the original loan, they want the same mortgage insurance on the new one. But they're not requiring new mortgage insurance, even if there's almost no equity in the home.

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Centreville, Va.: Regarding recently passed legislation, I am just wondering if loan modification applies for investment property. Thank you.

Maryann Haggerty: As we read it, modifications don't apply to investor property. However, small investors may be eligible under the refi portion of the plan.

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Fairfax County, Va.: I have just received the Real Estate Tax Assessment for my townhouse in Fairfax County. At a quick glance the value assessed by the County seems at least 25K and possibly up to $50K higher than a realistic sales price given the market conditions. I would appreciate your opinion-Is it worth the time and hassle to appeal?

Maryann Haggerty: Yes, it is. Yes, especially in Virginia, where there are no property tax caps. Appeal, appeal, appeal!

Elizabeth Razzi: Get some specific examples of recent sales for comparable properties and present them to the assessor's office. Nothing else makes a stronger argument.

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Sterling, Va.: What's the chances of Wells Fargo helping me with my 5yr. arm loan that expires in Oct. I need to get a fixed rate loan (30yr). I don't want to lose the house thank you.

Maryann Haggerty: Can't tell you the chances without a lot more info. But please call your lender and ask!

Elizabeth Razzi: If you're struggling with the payments and at any risk of falling behind, be sure to call Wells Fargo -- the number will be on your monthly statement. Ask for their loss mitigation department. You may also want to call the Homeowners Hope hotline, 887-995-HOPE.

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Springfield, Va.: What options are available to responsible home owners with ARM, who do NOT have FannieMae or Freddie Mac loans, but need to refinance (approximately 500K)without having to pay 20+%, because our homes are 20+% underwater?? We have never been late in our monthly mortgage payments, but it'd be financially difficult make up the loan to value dollars to Refi, under the "standard" refi conditions. We are very upset as tax payers, as we're being shut out of the help being offered to those who luckily are Fannie and Freddie loan holders! HELP! Can someone help us?

Maryann Haggerty: Some lenders may adopt the new standards, even for loans that aren't owned by Fannie and Freddie. Keep an eye on yours.

But the reality is that the reason the government can apply these standards to F/F loans is that the government controls those institutions. It has not (yet) nationalized other lenders.

Elizabeth Razzi: That's a very important point. The feds control Fannie and Freddie; that's why they're able to push these programs. A small comfort may be that the lower interest rates that prevail throughout credit markets right now will give you a break on your ARM adjustments. If you are struggling to pay, you should give your lender a call to see if it will approve any sort of modification for you.

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Washington, D.C.: I received my 2010 D.C. Tax Assessment last week for a condo that I bought in 2007. I noticed the assessment was approximately 5 percent higher than what it was assessed for in 2009, as were most of the other units in my building after referring to the D.C. Real Property Tax Database. Prior to this, I was somewhat hesitant about refinancing since I wasn't necessarily sure if I had enough equity in the unit. As a result of this assessment, it appears I have about 15 percent equity. Is something the mortgage company will take into consideration when they do their own assessment as part of the settlement process? Does this increased assessment help me in any way? I am employed full-time and have a credit score above 750, which I assume are factors that will concern the lender, but what are other key factors that they will look at as part of the refinance process?

Maryann Haggerty: The lender will want an appraisal. An assessment doesn't count.

I have never figured out a way a higher assessment does you any good.

Elizabeth Razzi: Hmm, maybe you want to challenge that tax assessment.

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Vienna, Va.: Thanks for taking my question, but which sensible people dispute what all economists are saying: that home prices are too high? I haven't heard of anybody worth their salt argue that. Per the last Case-Shiller housing report, prices are at early-2004 levels. This "spiraling" is nothing more than an asset correction. Look at the historical trends. Prices in our region are down about 30% from the peak, yet at the peak they had nearly tripled. There is simply no quantitative way to say that we have overcorrected. Yes, equity is being lost, but it's bubble equity. It's the price to pay and anybody that's a responsible homeowner and not using their equity to fund their lavish lifestyles won't be hurt.

Again, this is not a reinforcing cycle. People are being selfish about their equity and are clinging to an absurd vision of the bubble values of their houses.

Elizabeth Razzi: Thanks for your opinion.

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Washington, D.C.: I'm thinking about buying a condo and like the idea of new construction. I'm wondering how much room there is to negotiate prices when you're buying new construction. Usually you see something like, starting prices mid-300s or whatever. Are those typically firm prices? Thanks.

Maryann Haggerty: I've heard of people negotiating down the price (mostly on condos, though). The builder does have a floor he can't go below--land, materials, etc. If he is going to sell a property at below his real cost, he might as well let the bank have it instead.

Elizabeth Razzi: You never know how much room there is to negotiate until you hear "no."

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Fairfax, Va.: I have a condo in Arlington that I rent, at a substantial loss per month. Will Obama's plan allow me to refinance or is it only for primary residences?

Maryann Haggerty: As we read it, you may be able to refinance that loan, if it's help by Fannie/Freddie and meets the other requirements of the refi program. Here's a link to Freddie's version; you can find similar info from Fannie: http://www.freddiemac.com/sell/factsheets/relief_refi.html

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Martinsburg, W.Va.: I have an equity loan but have lost the equity. Would I be correct in assuming I will not be able to refinance the equity loan without risking them calling the whole thing due?

Elizabeth Razzi: Oh, I'd think so. You may want to lay low and just send your payments in on time.

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Kingstowne, Va.: Alexandria, yup there are TH's and condos popping up at rental parity now in our neck of the woods. But keep in mind that rents are falling. My apt. complex is listing my unit at $75/month under what I'm paying, and I signed in September. That changes the math for long-term landlords quite a bit.

Maryann Haggerty: Sure does.

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Annandale, Va.: Reminder about checking your credit rating. We were going to refinance our house and we were denied because of an error in our equifax record. Apparently a credit card company entered my social security number instead of the person they were reporting. We need to wait until April until we can apply again (and Equifax says it can take 90 days to make a correction). We already had appraisal and closing date.

So if we would have been smarter we would have checked credit reports first.

Elizabeth Razzi: Thanks so much for sharing that with us!

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Panicked in Lyon Park: Did you hear something about the Catholic cathedral at Glebe Road and Route 50 in Arlington using their parking lot to build a 10-story mixed income apartment building? I understand the land is sorely underused, but really, putting something like THAT up? I didn't think the Catholic diocese in Virginia did "social services", but with my house going up for sale I'd hate to have that kind of population pulling down my value in such a tough market.

Elizabeth Razzi: "I didn't think the Catholic diocese in Virginia did 'social services." Oh, stop! You're making me laugh. Wait 'till I tell the Bishop that one...

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Alexandria, Va.: This may be a heretical question, but for a good many of us, does it really matter that housing prices have gone down? It's a big "so what" if you're not planning to sell. For me, it means my property taxes will go down this year. Lower taxes are not something I will complain about. I bought my house 20 years ago, and even if I did have to sell at lower than the prices folks received a couple years back, I'd still make around $350,000 on it. Buy and hold generally works pretty well in real estate, doesn't it?

Elizabeth Razzi: Buy and hold is the classic model for real estate. During the boom, that got forgotten--or willfully ignored. And the idea of constantly refinancing to lower rates whenever they dip is a new concept, as well. (I'm not knocking that.) But there were many folks who just entered the housing market between 2000 and 2006, when they had to face hot competition just to get any home, only to have the floor fall out from under them. I know many of them were just trying to be prudent with their money, but they could be stuck for a long time.

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Washington, D.C.: I was checking out the Real Property Tax Database and noticed that the owners of a select few units that were sold in my building qualified for the Low Income purchase price. While I am aware that most buildings need to set aside a few units for this program, I assume there is some sort of extensive verification process that takes place in order to determine if one could qualify. I am curious in understanding if there are individuals who take advantage of this program when they really shouldn't be qualifying. Are there individuals who use illegal tactics to qualify for this exemption while they earn significantly more and/or have substantial savings? Is there an agency that monitors this program to ensure those who deserve to qualify continue to do so?

Maryann Haggerty: I'm sure some people try to bend the law--they do with everything. But yes, there's lots of income-verification for low-income purchase programs. In most cases, however, they don't keep going back to make sure you REMAIN poor. Part of the rationale behind subsidizing homeowership is that it helps lift families from poverty.

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Washington, D.C.: I recently received my 2010 city property assessment and my assessed value on my condo went up slightly from 2009, but is still about 2-3% under my purchase price in 2006. As a result, I have about 15% equity. Is it more likely I will have a better chance to refinance if I had at least 20% equity? What situation are lenders typically expecting (or would they prefer) customers to be in who are interested in refinancing?

Maryann Haggerty: 20% equity would be better than 15%--but it doesn't cost to ask. People are getting refis with less than 20% equity.

Elizabeth Razzi: The rates are a little higher, but you might be interested in refinancing into an FHA loan, which requires less equity.

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Alexandria, Va.: Good Day: I have been hearing that people are able to refi but the two places I contacted said they are not doing refis because of the housing market. I owe at least 70K less on my home than I have mortgaged and I have my new assessment to back me up. Am I missing something or did I just pick two bad places? Where should I go to get a refi?

Elizabeth Razzi: Keep searching for another lender.

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2010 Tax Assessment and Refinance: I am just responding to the poster who asked a question about the 5% increase in assessments in their building. Elizabeth mentioned you should challenge the assessment. A 5% increase seems pretty respective, what are the chances of having any success in challenging if most of the other condos in building reflect a similar increase in assessed value?

Maryann Haggerty: If they all went up, odds are you're going to have a tougher challenge. Because your assessment just might be right...

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Falls Church, Va.: I have the opposite of the poster who stated that her assessment is about $50K more than what she thinks her home would sell for. Our assessment came back about $100K less than similar houses are going for. A house assessed for $301K just closed for $450K. Should I be worried or just happy I will pay less taxes next year?

Elizabeth Razzi: Don't worry. Just welcome the lower tax bill (assuming your tax rates don't get raised.)

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D.C. Condo Question II: Any recommendations on reading for first time buyers?

Maryann Haggerty: "The Fearless Home Buyer," by Elizabeth Razzi.

also, "Homebuying for Dummies" is good, too.

Nothing that promises to make you a millionaire for nothing down, ok? (And there are still lots of them out there. They're just added the word "foreclosures" to the title."

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Washington, D.C.: Maybe the wrong forum, but... my neighbors tree overhangs my property and creates shade where I don't want it (have some nice plants there that need sun). Tried talking to neighbors - they could not care less!

The tree was planted just a few years ago, and, according to my gardening friends, it's the wrong tree - will grow much to high for its location (front yard of row house).

Can I trim the part over my property? They will call the police and I don't want to get arrested over this. Thanks.

Elizabeth Razzi: This is as good a forum as any for tree squabbles. Fighting over trees is not the path to happy neighborhood relations, of course. Generally, the rule about trees extending over a property line are that you can trim the part that extends into your space -- but not if doing so will harm or kill the tree. (I am not a lawyer, mind you.) You get no say in their choice of tree. If I were in your position I would transplant my sun-loving plants to another spot. Or plant a shade garden. Good luck.

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Arlington, Va.: I know you get these questions each week, but why won't the Obama administration reach out to those of us with good credit looking to buy. Regardless of what those with a vested interest in higher prices say, the general feeling is that prices are still too high. The only way to make it worthwhile to take the huge responsibility of taking a mortgage is to give a large tax break for a short term (such as the 15K previously proposed). I am sick of the billions of dollars only being used on the irresponsible.

Maryann Haggerty: That's what $8K first-time buyer credit is for.

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There is a "glut of condos": But they're all new condo developments, some of which haven't even come to delivery yet. The developers aren't putting them all out on the MLS and are still holding on to excess inventory in hopes that they can still get 2008 prices for them. Give them a few more months of carrying costs and eventually they'll give up and prices will come down.

Maryann Haggerty: I know would-be speculators who are counting on this one, big time. So far, most of those developers have more or less successfully moved units to the rental market. How long that can go on is anyone's guess.

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Kingstowne, Va.: Maryann, prices in the D.C. area are indisputably "way too high". The only people disputing that are members of NAR. But yes, Elizabeth has a point. Foreclosures are both a symptom and a mechanism through which the damage is being spread.

Maryann Haggerty: Obviously, this is an article of faith among many people. (We have a bunch of similar comments here.) Those people, however, do not at this point seem to include the chairman of Federal Reserve, the Secretary of the Treasury and many others who think that indeed the correction needs to be slowed or stopped. Who knows? Maybe they all have their real estate licenses, too.

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Washington, D.C.: I purchased a large (1400 sq. ft.) two-bedroom, two-bath cooperative apartment in 1990. It's located in NW D.C., near a Metro stop, and has 2 indoor parking spaces that convey with the unit. Since I have a lot of equity in the unit, I am wondering whether it makes sense for me to sell the unit and purchase a smaller condo or coop unit (most likely outside of DC), thereby capturing my appreciation. The last time I checked, my credit score was about 800, and I have worked for the federal government for over 10 years, so I think should be able to get a mortgage pretty readily. Do you think I'm taking unnecessary risk by buying and selling at this point in time? Thank you

Maryann Haggerty: This is not exactly the best of times to sell in order to capture appreciation. Doing so at this point is acting as if you believe that this market will NEVER come back. If that's what you think, well, act on it.

However, if I were you, I would enjoy my lovely apartment and its low monthly costs, as well as my stable government job, and offer up a little prayer of gratitude every morning.

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Upper Marlboro, Md.: What is the contact info for the organization that will handle the loan modifications. Are we the consumers to contact our mortgage companies directly or is there a government agency that is handling the process. I have been contacted by several companies like Payment Performance, LLc and First Universal Lending and they are charging fees to complete the process. What must we do?

Maryann Haggerty: Contact your servicer directly. That is the company to which you send your checks.

DISREGARD all solicitations from third parties offering to help.

Actually, can you e-mail me directly with names of these companies, how they contacted you, etc.? We should write a story about that. It's haggertym@washpost.com

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Frederick, Md.: I hope to purchase a home by Dec 1,2009 and take advantage of the First-Time Homebuyer Tax Credit. I sold a home in 2004 and lived in a home owned by my husband until October 2008, my name was never on the deed to that house. So I have not owned a principal residence for a qualifying 3 years, but I see the purchaser's spouse also cannot own a home for 3 years. We are getting divorced, but as of now we are legally separated, do we have to be divorced in order for me to take the credit? Do we have to be divorced prior to me purchasing the house? Thank you,

Maryann Haggerty: You want to check with a lawyer on this one, but the way I read it: Divorce first. Separated is the same as married, as far as tax law is concerned.

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Alexandria, Va.: I recently interviewed 3 realtors to come to my home and provide an estimate for what they think I could sell it for. The first two realtors gave me a low number($440K) even for the market, while the third told me that I should ask the regular asking price for my type of home and area ($485K) and that the other realtors intentionally gave me a low number because they didn't want to bother selling my home and were hoping I would be offended and not ask them back OR they wanted a sure profit and thought the lower number would result in a quicker sell even though it was less than I needed. Are you familiar with this strategy? I find it very dishonest and self serving. Since this experience I have found others who have had this same experience so it's not an isolated event.

Maryann Haggerty: This is why you ask for multiple bids. HOWEVER, if two agents gave you $440K and one gave you $485K, it's just as likely that the third agent was trying to "buy" the listing by flattering your ego. It works both ways.

In the current market, very few agents are so busy that they'll try to shoo business away. However, they may push to price on the low side for a quick sale, which is often the client's goal.

If you truly believe, however, that the first two agents lowballed you based on comparable sales, pick the third agent.

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Fairfax, Va.: What is a 1-4 unit investor property?

Maryann Haggerty: A rented house, one rented condo unit, a duplex, a little apartment building...

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Re-Fi vs Pay Off: Good afternoon ladies, I ran some numbers on my current mortgage at 6% with 25 years to go. It was pretty much a wash between adding an additional $800 per month on the current monthly amount vs refinancing to a 15 yr mortgage at around 4.85%. Seems to me that paying off my current mortgage was a better choice. I save refinancing costs and if things get tight, I can always drop back to paying the minimum monthly amount.

Maryann Haggerty: I decided that, too. There just doesn't seem to be enough spread to go down to the 15-year loans now.

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Upper Marlboro, Md.: I can't get a straight answer on this: Do we need a business license to rent out a house in D.C. as part of the Housing Voucher Program (Sect. 8)? I won't get started on how impossibly difficult this office has been to deal with.

Maryann Haggerty: Landlords in D.C. need a license, which includes a property inspection. Doesn't matter whether it's Section 8 or open market.

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Chantilly, Va.: Is it smarter to find a realtor first and then have them recommend a mortgage broker, or vice versa? Or, should I just find both on my own?

Elizabeth Razzi: Why not look around for both -- AND ask the mortgage brokers for referrals to the agents and vice versa?

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Herndon, Va.: I don't know if everyone can claim that people are being greedy by selling at high prices. I for one bought at the height of the market, and even though I am willing to loose everything I put into it (well over 20%), I will still have to put in additional money if I want to sell.

Elizabeth Razzi: Thanks for that thought.

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Elizabeth Razzi: Time to sign off. We had an abundance of great questions that we couldn't get to, so I encourage you to re-submit them for the next chat. And please share your thoughts with us on the new Local Address blog. See you there!

Maryann Haggerty: Please, please check out Elizabeth's blog, Local Address, at www.washingtonpost.com/realestate. Jump in, comment, suggest topics. We want to hear from you. Sorry we didn't get to everyone today.

In tomorrow's Real Estate section, we tell the tale of a young man who spent 4 years looking at local properties--and has now made up his mind about what he wants to do.

Sounds like it's going to be a beautiful spring weekend. We hope you can get out and enjoy the crocuses!

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