user: Real Estate Live

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

Maryann's 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.

Today, we discussed the specifics of the market, from condos and investment properties to contracts and mortgages.

Rockville, Md.: Actually Maryann -

I have a house I'm selling in metro Detroit, Michigan. I know from reading your discussions (but many of your readers may not believe this) that it is possible for real estate to lose value.

I hope to at least sell my house for what I paid (I'm not counting the improvements I've made). I can't afford to buy in DC so I rent.

I guess my question is, what should I do if (God forbid) I have to come up with cash at close. I hardly have any savings.

Maryann Haggerty: In a falling market, sellers do sometimes have to write checks at closing. There's no magic way around it. Do your best to sell at a price where you can at least break even. Sorry.

Maryann Haggerty: Greetings, all, on this steamy August day. It's so hot out that--well, that it's like August in Washington.

That means the sidewalks downtown are about as empty as they get all year, because everyone is gone (except us.) Last weekend, I did manage to get away to a friend's lake house. As usual, that gave me a roaring case of weekend-house-envy. Eventually, my rational side will reapper. After all, I can barely keep up with the one house I have now. Why would I ever want two? What do you think?

Now, onto your many good questions. I'll do my best to answer, but here's my regular reminder: I do not have a crystal ball...

Silver Spring, Md.: What's a good way to get comparables for single family rents other than contacting a real estate agent? I've tried that and the results were worthless. Thank you.

Maryann Haggerty: Read the classified ads. Most landlords in this region don't bother wth real estate agents.

Purcellville, Va.: Out here in Loudoun, 90 percent of the new homes being built are enormous. The median price of a home has gone up tremendously as a result. Is there any way to get a true idea of the house appreciation rate that is not tied to the median house price? Thanks!!

Maryann Haggerty: The house-appreciation numbers that OFHEO uses (www.ofheo.gov) are tied to same-house sales over time. (It's a complex formula that I do not want to explain.)So they smooth out differences in housing stock. That contrasts with the aggregate sales used in The Post's weekly Zip code maps & the appreciation numbers prepared by Realtors, etc.

rent or sell, va: everyone says it's a mistake to sell. that you should always hang onto your house, hire a property mgr and rent it out. but if it's SO easy, why do so few people do it?

Maryann Haggerty: Why isn't everyone a landlord? Because lots of people would prefer to roll accumulated equity into a move-up house. And because dealing with tenants can sometimes be absolutely no fun.

Bethesda, Md.: I bought a pre-construction condo in Silver Spring -- not many frills, 2BR, 2BA, 1200 sq. ft., near the metro, for around $350,000 just over a year ago. I heard that similar pre-construction condos in the area are now selling for $550,000 plus - but can't find anything to verify this. Is it true? Is my long wait for my still not delivered condo really worth the investment? I would feel so much better knowing that this is the case...Thanks!

Maryann Haggerty: You "hear" this it what condos are selling for? Why not just go out Saturday afternoon and do a little shopping on your own? Or even just cruise a few Web sites for pre-construciton condos that are marketing in the neighborhood? Sales prices of new condos are not a state secret!

I'm between a rock and a hard place. Is it better to sell first and then look for a new place to live, or find a new place and then sell? I've been in my current home for almost 3 years and have no idea what the current selling price would be, so it's hard to know how much I can afford. Please advise!

Maryann Haggerty: It's easy enough to figure out roughly how much yourplace will sell for. Just ask real estate agents. They would be happy to tell you.

Now, buy or sell first? Depends on your needs. If you absolutely need the cash from the sale to afford to buy, then there's your answer. Perhaps you can negotiate a rent-back in the contract, or arrange a bridge loan. Or perhaps you'll find yourself in a position where you have to rent for a while in between houses, which is a royal pain, but not necessarily the end of hte world.

Mortgage question: Hi, is a $7,500 salary increase worth mentioning to my mortgage guy, to discuss refinancing? I recall he said I was "on the bubble" of another financing program when I got my first one, back in March, but didn't quite qualify. Thanks.

Maryann Haggerty: $7,500 more per year may indeed be enough to get you off that bubble. So call the mortgage guy. And congratulations!

Vienna, Va.: I'm over a year out of college, making close to 55K (and more with overtime), and want to move out of my parents house, where I have been my entire life. I want to use the money I have saved to BUY something. Given my salary, about how much money would I have to put down to afford a condo around 275K. Does it make sense to hold out and keep saving even more for a downpayment (so the mortgage is lower) or get in now with less, if I'm even in the ballpark? I have at least 25K saved up right now that I'm saving to use to get in this terribly foreboding housing market.

Maryann Haggerty: Those numbers may be a bit tight. (Remember, you will need several thousand for closing costs, etc.) However, I just ran some numbers through the "How Much House Can You Afford" calculator on Fannie Mae's Web site, & it could be do-able for you. (http://www.fanniemae.com/homebuyers/calculators/index.jhtml?p=Resources&s=Calculators)

You might find, however, that making those hefty mortgage payments wll be a shock after you have been living in parent-subsidized housing. You'll likely have to tighten your belt some.

Alexandria, Va.: At what point should one hire an attorney? Before you make an offer or just before you go to closing?

Maryann Haggerty: A lot of people buy & sell without any lawyer at all, letting the real estate agent & title company deal with hte details. I'm gonna upset my lawyer friends by saying that in most cases, that's just fine. BUT BUT, if you're involved in a for-sale-by-owner transaction, I would hire a lawyer, & I would do so before the contract offer.

Fairfax, Va.: I am a tennet currently leaving in a building that is being sold to new investors. The current landlord has been very accomidating and respectful. So how does one deal with real estate agents who aren't? I can't tell you how many times I have come home to discover they have been in my home without permission or even letting anyone know. It is very clear that they are to get permission, but they never do. All of us who live in the building are getting more hostile over the situation and one other got into an argument with an agent who was standing IN HER BEDROOM when she got home. What exactly are the laws here?

Maryann Haggerty: They're supposed to give you reasonable notice. Period. But what are you going to do? Have them arrested for trespassing? That's not gonna happen. So lock up your valuables, & politely insist, EVERY time this happens, that you receive proper notice. And every time it happens, notify your landlord AND the listing agent of the problem. Listing agents are well aware of the passive-aggressive ways that aggrieved tenants can complicate sales...

Silver Spring, Md. : I bought a house in SS in June and paid full price. I was the only offer. Now I see the market may turn and I feel like I made a mistake. What is your opinion about the SS market in the next couple of yerars. Can I lose money?

Maryann Haggerty: You have buyer's remorse. It's common. Of course you could lose money--or you could make money. No one knows. If the market softens considerably, & you have to sell at a soft time, you may lose. (Especialy because transaction costs can really mount up.) That's why the standard advice is to buy only when you have good reason to believe you'll stay in the house at least 5 years. That's generally enough time to weather swings in the market, & to recoup transaction costs. In the meantime, live your life.

Alexandria, Va.: Is the 6% (or so) commission to the realtors from the seller taken off the purchase price of the home? I've been asked to sell my house directly to a broker and she wants me to reduce the price of my house 6% from the going rate. I think I would reduce it 3%, since my realtor would want her piece of the pie.

Maryann Haggerty: I'm not sure precisely wha you mean by "taken off." So, to be clear: The price a buyer pays includes the 6% commission. Then that 6% is deducted from the amount the seller receives (along with any other closing costs paid by the seller.) There's no rule that if you sell to a broker you need to deduct X from the price. In fact, you likely have agreed to pay that 6% or whatever directly to your listing agent, & then the listing agent would separately split it with htebuyer's agent. So look at your contract with your agent vis a vis commissions, etc. But, more important: The broker is simply using a negotiating tactic with you. Decide whether you want to go along with that tactic, or hold firm to your price. Your call!

Alexandria, Va.: This is the first time I'm selling a house. The literature I've read suggests renting a storage unit to put your personal belongings. Is that necessary in this market? Thanks for this chat!

Maryann Haggerty: Depends how much junk you have. If you need that space to declutter, maybe. (I mean, you can try selling the place when old magazines are stacked to ceiling, but you may get an appreciably better price if the place looks better.)

Montgomery County, Md.: Can you tell me about title insurance? I know the lender requires it, but what are the advantages of me getting an additional policy for me?

Maryann Haggerty: Title insurance covers some big, big unknowables. You will almost never actually use it. But if you are in one of the situations where you need it, there is no replacement. It's not that expensive; you only pay it once (not every month.) I've always bought it; I know people who refuse. Your call, as usual.

Burke, Va.: A couple of days ago I ran into a Web site that displayed real estate market sentiment by surveying real estate agents across the country. I can't seem to find the web site again. Would you know of any such Web sites?

Maryann Haggerty: Hmmm, I've seen that one, too, but now can't remember where either. A quick Google brings me just commercial market results. Anyone else have this answer?

Springfield, Va.: Do you know of any sources to keep updated on new residential housing development in DC? I'd like to move back to the city at some point and wanted to keep tabs on new home construction, such as around the new baseball stadium.

Maryann Haggerty: The Post's District Extra section prints a (monthly, I think) map of what's proposed for construction where. You can also find rumors, etc., on just about any neighborhood listserv. And one of my colleagues/neighbors actually follows development in near-Southeast in obsessive, interactive-map-detail on her blog. It's www.jdland.com; click on the green column to the left to see much, much info...

RE: Home in Mich.: If the poster cannot afford to sell it, s/he could try to rent it to cover expenses until the market starts back up there.

Maryann Haggerty: Of course. If rents come anywhere near covering operating costs. Gotta do the math...

Washington, D.C.: Hello! A 33-year-old apartment renter here now looking into buying. I have checked out the D.C. housing Web site and the Montgomery county Housing Web sites, but am left wondering -- do if I found a home in MD would I have needed to be a resident of MD for a certain amount of time to get first-time homebuyer benefits or sign up for any assistance programs? I have the same question about DC, in case I end up renting for a year in MD, but want to buy a home in DC. Thanks!

Maryann Haggerty: The big benefit in DC--the $5,000 federal tax credit--is NOT restricted to current residents. The idea of it is to draw new people to the city, after all.

Some Montco benefits are indeed restricted, tho. Check with the county Housing Opportunities Commission for more info.

Cranston, R.I.: I own a house in D.C. that I've been renting out for many years. I would like to let one of my adult children live in it. I understand that to vacate the house (the tenants are on a month to month basis) I must submit an affadavit to the D.C. housing authorities affirming I plan to take back the property for my 'personal use'; would use by one of my children qualify, or must I move into the property myself? Can I or must I charge my child rent? If I do take the house off the market, at what point is it no longer investment property eligible for a 1031 swap?

Maryann Haggerty: At least once a week, I try to quote my long-time columnist Bob Bruss, and this is one of those times. "For more information, please consult your tax adviser." I'm sure I would mess up this answer!

Washington, D.C.: I've noticed over the past few weeks that LOTS of properties around the area are coming down in price. But why? To spark a bidding war? Overpriced in the first place?

Maryann Haggerty: Who knows? If someone cuts a price, odds are they aren't trying to spark a war; odds are they came in too high in the first place. But war might break out anyway. It could be a sign of that long-foretold softening in the market. Or it could simply be that it's AUGUST...

Alexandria, Va.: The PMI risk index (in CNN/money) predicts only a 20 percent chance of a downturn in the D.C. real estate market. Compared to Boston and parts of California that have more than a 50% chance, we seem to be doing well.

Then again, California real estate is downright scary right now.

Bourgas, Bulgaria: I read lately that the Bulgarian real estate market is as intense and profitable as the U.S. real estater market in the main cities. Is that true and why?

Maryann Haggerty: OK, you really don't expect me to know the answer to this one, do you?

Staunton: Hi. I will be selling my house early next year. I have been in my house for 22 years. Do you suggest getting an appraisal to help me with how much to list it for? I will be doing FSBO initally. And typically how much more (percent-wise) is usually asked for above the appraisal amount?

Maryann Haggerty: There's no percentage formula based on appraisal for setting an asking price. After all, a good appraisal is AT the market price, not below it. Even if you're going FSBO, still do the interview-three-agents routine. Tell them right up front that you'releaning FSBO. It's up to them to tell you why they think it's worth your while to pay them. It's up to you to decide whether to do so. In the process, you will receive three educated estimates of what your house is worth.

Alexandria, Va.: Thanks, Maryanne. By "off the top" I meant if I sold the TH for $400K, as the seller I'm responsible for 6 percent (or so) commission which is deducted from the $400K. So if I go the FSBO why would I pay 6 percent instead of 3 percent?

Maryann Haggerty: I thought from your question that you already had a contract with a listing agent. In which case, you aren't FSBO. If you are a true FSBO, the buyer is being very logical in asking for a 6% price cut, because no agents at all will be involved. Of course, your counter-negotiation-point should be that you have ALREADY asked 6% below market, because as a FSBO you set your price at an attractively low level, right?

Re: Lawyer: If you choose to use a lawyer, you can save money by just having your documents read over before closing. You'll get charged a lot less for an hour or so of document review than if you have the lawyer attend settlement, and will still have the peace of mind.

Baltimore, Md.: My husband and I are building a new home but in order to get a mortgage for this new house we have to already have our old house 'listed' with a realtor. Our new house won't be ready until next summer. What are we supposed to do!

Maryann Haggerty: Shop lenders to find if everyone levies that same requirement. Sounds pretty illogical to me, because there's at least a year to go, AND, as everyone knows, new houses have been known to deliver late.

Leesburg, Va.: Will the Washington market see a drop in prices?

Maryann Haggerty: More on this theme: Who knows?

Washington, D.C.: I'm trying to have my mortgage bank cancel the PMI on my condo. I've owned it for 2 years and within those 2 years the value has incresed enough that my loan to value ratio is at 60%. So, since since that ration is below 80%, what's the best way to get them to cancel the PMI? Can I send them my DC property tax valuation (which is actually below the market value)or should I have it professionally appraised? The bank has itself has been less than helpful. What have other people done in similar situations?

Maryann Haggerty: The bank WILL require a professional appraisal--& it will require that the appraiser will be on its approved list. So don't waste your money up front getting your own appraisal. Ask them to give you their policy on dropping PMI. (These days, most reputable lenders have a policy in writing.) That will let you know how they deal with increases in value vs. loan pay-down. (The law doesn't require them to take increases in value into account at your point.) And sometimes they become a whole heck of a lot nicer when you remind an individual bank officer that the easiest thing for you to do is just to refinance with a different lender.

Crime in PG: Do you think the recent "crime wave" in P.G. County will hurt the real estate market? I am thinking of buying there.

Maryann Haggerty: Crime, real or perceived, is one of those things that has held down prices in PG compared with the rest of the region. But it's a big county.

Virginia: If I want to live in a neighborhood with particular demographics, e.g., Irish or catholic or asian....is it against fair housing to ask the realtor this?

Maryann Haggerty: It's not against the rules for you to ask. It's against the rules for them to answer!!!

Alexandria, Va.: Do you know the average percentage of your gross income that lenders will allow you to spend on housing around here nowadays?

Maryann Haggerty: Some lenders have totally blown out the traditional ratios & will give anyone a loan for anything. This upsets the bank regulators no end. (See Ken Harney's column in the Real Estate section tomorrow for a look at some of the ways lenders are being made to tighten up on some of their riskiest product.)

Despite that, the ratios remain the same: Conventional: 28/36

Let me explain that: The first number is the percentage of your gross (ie, pre-tax) income that you can spend each month on housing (principal/interst/taxes/insurance). The second number is the total percentage of your gross that can go to all debt, ie, housing, car, credit cards, school loans. "Conventional" are mortgages that fit the rules set by Fannie Mae & Freddie Mac for basic white-bread loans. FHA is set by the feds, for loans intended to help first-time buyers. A lot of other first-timer programs follow those ratios instead of the conventional.

Bowie, Md.: BTW, on the intro question about weekend homes.

Sometimes I fantasize about it, but one of the things I really love about living in this area is the terrific variety of weekend destinations. I can't think of any one of Rehoboth Beach, Front Royal, Deep Creek Lake, Gettysburg, Lancaster, Philadelphia, Richmond, or Solomons Island that I'd want to sacrifice the others for more of.

Maryann Haggerty: Thanks you. That's the way I tend to look at it.

Catonsville, Md.: Ok, I know I'm late on this, but I tried to e-mail you several times after reading the last chat, and it kept bouncing. I had to tell you my "bad house" tale. Last spring, we heard about a FSBO -- 125 yr old Victorian -- that would be going on the market soon. We wait for weeks, watching dumpster after dumpster being filled up and removed. Our Realtor says don't even THINK about looking at it yet, because even she, with her 20 yrs' experience, had trouble seeing past the mess.

We finally get in, 6 weeks, FOUR dumpsters, and a month of garage sales later. Several rooms are STILL so full of boxes that you can't step more than five feet into the room. We are not allowed to enter one room, because that is where she has shut up the six cats. Part of the sunporch has been enclosed as a birdcage. The two giant dogs have been relocated, but have left reminders by way of large black stains on the wood floors. The entire house smells. The kitchen is a teeny "L" that used to be a back porch, with one window, dark oak cabinetry, formica countertops that have been repaired (as best I can tell) by squirting epoxy into the holes and covering the edge with masking tape, and a side panel on the washing machine that is held on by duct tape. Oh, and we can barely walk into the carriage house, because it is also completely full of stuff that the owner claims was there when SHE bought the house 18 yrs before. Including a hanging bicycle that has a bird's nest in it - which couldn't be moved, because there were two chicks living there!

Believe it or not, we bought the house (and I now owe my husband an unbelievable number of brownie points). There just aren't that many great old houses around, esp that are affordable. And you know what? Once she got all of that crap out of there, it turns out that the house is large and gracious and truly lovely -- and even the smell is gone! Sometimes, it's worth taking a flying leap. . . .

Maryann Haggerty: Here you go, folks. A woman married to a man with the patience of a saint--and everything turns out well in the end.

And poster, can you try e-mailing me again? It's haggertym@washpost.com. [NOT washingtonpost.com]

Bowie: Have you read anything about foreigners buying up large amounts of US real estate, because the current high prices are largely the result of the weak dollar, so that current prices are not high when denominated in Euros, for instance?

Maryann Haggerty: Yes, I've read that a number of times. Odds are, that the really big spenders are buying in the commercial market. Individuals are likely buying in the markets that have traditionally attracted foreigners--California, Miami, New York. And, I guess, Washington to a degree.

Washington, D.C. wannabe: Hi Maryann, Thanks for taking my questions. I feel like a sitting duck: We own a condo but with the 2nd baby on its way we need to trade up for more spaces very soon. I know this market is near-peak but I don't have much time to wait for it goes down or level off. Renting a space for a family of four isn't cheap either. I think people here are paying too much for housing. Do you think it will come to a point that most households' disposable incomes are tied up by mortgage which lead to spending declines and then economic reccession?

Maryann Haggerty: That is indeed the worst-case fear. And I wish I could tell you what will happen. But DON'T feel under pressure. YOu don't want to move in the last months of pregnancy or those first few months of a sleepless infant, anyway, right?

Washington, D.C.: I recently entered into a sales contract on a condo (I'm the seller). Shortly before closing, the buyer backed out because she lost her job. She had put down $10K in earnest money. What recourse do I have to tap into this funding for losses/costs on my end, etc.?

Maryann Haggerty: Read your contract. Odds are that's your money, but both sides will have to sign to release it from escrow.

San Diego, Calif.: I wanted to amend your comment about CA real estate. I moved from Northern Va=irginia in November with a 225K downpayment in my pocket. With 90K income, I qualified for 500K here in San Diego. 500K buys you NOTHING unless you want quite a commute. I ended up in a 2 bed/2 bath condo for 485K. I love my new house but. . . median home here is 650K. Enjoy living in D.C., people!

Maryann Haggerty: Thanks for the perspective

San Diego, Calif.: Oh, and I mean to add, lenders here will go as high as a ratio of 60. You heard me, 60 percent of your gross to be spent on housing. My lender told me seriously that with my 90K income, she could qualify me for a $1 million house.

Maryann Haggerty: And from the same poster, I think.

Fairfax, Va.: We love your column. Could you explain what a 1031 Tax Exchange is? We are selling a condo and the purchaser has mentioned that he was using the transaction as a 1031 Tax Exchange.

Maryann Haggerty: Read Benny Kass's column in tomorrow's Real Estate section. It goes over some of the basics of 1031 exchanges. Essentially, it's a way an investor can defer capital gains taxes. Fron your perspective, it doesn't mean much, except that the buyer faces time constraints on when closing muct take place.

After renting in Dupont Circle for the past couple of years I had decided to take the plunge and buy a house. Seven months later and eight unsuccessful offers, I've finally had my last offer/contract accepted on a semi-detached colonial house across from Fort Chaplin Park in southeast DC.

I could only afford a home priced at $300,000, which meant that my search would be limited to certain neighborhoods in the District. It would have been nice to stay in northwest DC, however, most homes and many of them fixer-uppers were way above what I could afford. To my surprise there are many nice homes and nice neighborhoods in Ward 7 & 8.

Many of my colleagues and friends were surprised that I would venture to the other side of the river to buy a house. I think people are missing out on good affordable homes by limiting there search to one particular area. From your experience, do you see more and more people looking to buy in Southeast DC? Your comments are appreciated.

Maryann Haggerty: Prices in Southeast are indeed lower than in the rest of the city, & there is some nice housing stock. Numerous new developments have been built there in the last 5 years or so, attracting new people, so yes, that's "more" people buying. Of course, if you're buying an occupied existing home from a seller, the net number of households does not increase.

Takoma Park, Md.: Maryann, thanks for chatting with us today!

I recently put a deposit on a condo conversion. In Takoma Park, $260K 2 bedroom 1 bath brand new kitchen and bath and refinished floors.

However, like most area's it will cost me an additional $1k a month instead of renting in the same area nad same size and place. Should that be a concern to a 24 year old first time home buyer?

Maryann Haggerty: An extra $1,000 a month? That is a sign that purchase & rental markets are truly out of whack, & indeed it has become more common. It is one of the macroeconomic indicators of an overinflated market. But if you can afford it, you like the place, etc...

Washington, D.C.: I have a TH I'll make over $250K in profit on, so I think it's best to sell now and put that $$ into a SFH. I'm worried though that this "frothy" area will have a correction and my new house will be worth less than the loan. Justified worry?

Maryann Haggerty: Again, that's always a concern. Maybe the market is frothy. Or maybe the job growth here will continue to support the housing market, as an entire other group of economists thinks. But you can't take advantage of the froth on one hand, as a seller, and not face dangers from it on the other, as a buyer. Unless you realy really really think the froth is gonna go flat, in which case, you may want to rent. But do put that extra $1,000 a month (see above) into your savings account, please?

Alexandria, Va.: Is it standard practice in this area to NOT have any contingencies? I really want to put an appraisal and inspection contingency in my offer, but my realtor says if I do that, the seller will pick a contingency-free offer. Are most buyers really forgoing these type contingencies?

Maryann Haggerty: For the last year or two, contingencies have become rare in some segments of this market. (Not "standard practice," rather, a sign of the raging seller's market.) Recently I was chatting with a group of agents, however, who told me that contingencies are creeping back into contracts. If you do indeed make an offer without appraisal & inspection contingencies, you are taking a big risk & you better be comfortable with it.

Anonymous: "The second number is the total percentage of your gross that can go to all debt, ie, housing, car, credit cards, school loans."

I'm curious about this: is the monthly credit card debt amount in this formula the minimum payment? The amount you regularly pay?

Maryann Haggerty: Minimum required payment.

Alexandria, Va.: If FSBO sellers should set their price 6% below the value, what is the point of FSBO? Why do the work yourself? I thought the whole point of FSBO was to pay yourself the 6% instead of a couple of agents...

Maryann Haggerty: Actually, I exaggerated. You likely want to set the price somewhere in between. Enough lower to make your place attractive. Enough higher to put the money in your pocket. But there is some market leeriness toward dealing with FSBOs, & you have to take that into account.

Alexandria, Va.: I'm planning on staying in my next home for at least 10 years and am more comfortable knowing what my mortgage payment is going to be -- so I'm leaning towards a 30 year fixed loan. My friends say I'm nuts to not take advantage of the arm or interest only loan and just pay more than the minimum. Aren't interest only loans dangerous?

Maryann Haggerty: Ten years in place, and buying when interest rates are near the lowest point in decades? As opposed to an ARM that has nowhere to go but up? Honey, I'm conservative. I know which one I would pick.

Re: Ratio question: Maryann, Is there any good way to figure out if the traditional ratios you mention leave enough room for the high cost of living in this area?

Maryann Haggerty: They really don't. However, they do reflect the relatively high incomes, too.

Baltimore, Md.: Ms. Haggerty --

On the second home lust: I got it really bad a couple of years ago when we were in New Mexico, started dreaming of a place in Taos. We fought it by doing the math: how much would a mortgage be, how much could we rent it out for. THEN we took that difference and calculated how much extra vacation that difference would buy us if we didn't rent. Turns out the money we'd lose per month could have "bought" the biggest room in our favorite B&B for one weekend a month, year round. So my "dream" vacation home would basically trade maid service, great free food, and all the amenities for DIY, hassling with tenants, and not even being able to use the place in high season! Not surprisingly, that kinda took the bloom off the rose for us.

Maryann Haggerty: Yes, that is the calculation I do when I'm rational. A B&B, with a nice hot tub.

Folks, it's 2pm & I have to run. Thanks so much for spending time today. There are dozens of questions I didn't get to; I'm sorry.

Please pick up the Real Estate section tomorrow. We answer a lot of your questions--& I hope we give you some enjoyable surprises, too. In the meantime, whether you're buying, selling or just taking a walk around the block--stay cool!

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assistant: Join Post Real Estate Editor Maryann Haggerty as she discusses all aspects of the local real estate market.