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Welcome to Real Estate Live, a biweekly discussion of the Washington area housing market. Post real estate reporter Daniela Deane takes your questions and comments about Washington's real estate market.

This week, Deane hosts Long & Foster real estate agent Anita Tauber. How's the local real estate market doing these days? Has it cooled off? Are houses staying on the market longer? Do buyers still have to offer more than the asking price? How about new homes? Ask Anita and Daniela.

Submit your questions and comments before or during the discussion.

Deane has been a Post real estate reporter since April 1999. Previously, she was a reporter for more than 20 years -- mostly overseas.

Editor's Note: Washingtonpost.com moderators retain editorial control over Live Online discussions and choose the most relevant questions for guests and hosts; guests and hosts can decline to answer questions.

Daniela Deane: Hello everyone!! Welcome to Real Estate Live. I've got a lot of questions here already and Anita is sitting at a computer next to me! So, we're going to dive right in. Remember that whatever we tell you here is just our opinion, although an opinion based on experience. Here we go!

Washington, D.C.: What's the best way to figure out if its better for you to buy a place or continue to rent? I'm 27, single, and paying about 35 percent of my salary in rent. I've heard that paying rent is like "throwing money away," but also that buying a condo isn't necessarily better for long-term finances. Any thoughts on how to figure it out?

Daniela Deane: Well, anyone who has tuned into my chats before know what my opinion is on this question. I firmly believe that buying your principal residence rather than renting it is the way to go. For me, there's very little discussion there. I think you answer your question in your own question: You are spending about 35 percent of your salary in rent. Wouldn't you rather be spending that on paying down a mortgage? Buying condos is much better than it used to be, it seems. They have also risen in value during these last few years of a great real estate market, although not as much as single family houses. Younger people who have been priced out of the townhouse and single family market are looking increasingly at condos. I personally have bought two condos in the District as investments over the past couple of years, and I'm happy I did. Anita? I can imagine what your opinion is on this. But let's hear it anyway!

Anita Tauber: I agree purchasing real estate is a good long term investment which you also can enjoy on a daily basis. The decision to purchase a condo, townhouse or single family home depends on your needs for space and the amount of money you want to spend. Condos have been a good investment recently and I believe that trend will probably continue.

Vern, Upper Marlboro,MD: Why has the popularity of condos improved greatly when compared to 10 years ago? Do you forsee the popularity taking a back-slide? Wouldn't a condo make great rental property, since some areas that you normally worry about with a single or townhome (roof,outside structure) are already covered through your condo fees?

Anita Tauber: The demand for condos has improved recently because both young buyers and empty nesters want the easy care of living in a condo. I believe that trend will continue. Also condos are terrific rental properties. Make sure you purchase at market price and that the relationship between purchase price, condo fees, and rental value work before you purchase an investment property.

Bethesda, Md.: Do mortgage loan officers get paid a salary or commissions?

Daniela Deane: Usually mortgage brokers don't charge commissions to the customer, but rather the bank pays them. But certainly the bank pays them a commission. That's what it's all about for them. I thought they mostly worked on commissions rather than salary. Anita? Do they also get salaries?

Anita Tauber: My understanding a mortgage broker receives both a salary and a commission. If you are interested in that field you should speak directly to a mortgage broker.

Alexandra, Va.: On an average, how many houses will a full-time real-estate agent sell in a period of a year?

Anita Tauber: Every agent sells a different number of homes depending on their experience and how many hours they want to work. An experienced agent can sell from $10,000,000 up to 100,000.00 million.

Gaithersburg, MD: My husband and I are looking for a house in Montgomery County. What is the best city to consider to get the most for our $$$.

Anita Tauber: I suggest you meet with both a real estate agent and mortgage lender to learn about the variety of neighborhoods which meet your housing requirements and how much you can afford to spend. My first meeting with a buyer is always in my office so that we can learn about their needs and I can make suggestions as to neighborhoods I think they will like. Working with a real estate expert and mortgage lender will help the house shopping process move quite easier.

Bethesda, MD: So, why are there so few condos in downtown Bethesda? There's a -lot- of residential development going to happen in Bethesda in the next few years, but it's almost all rental.., no?

Anita Tauber: There is a mix of rental and purchase condos on the planning board for Bethesda and Chevy Chase. If you do some research at Montgomery County Park and Planning you can get some insight into what's happening in both areas.

Jason, N.W., DC: Last Summer we bought a home and we used the Mortgage Company that our agent suggested. Do you think she recieved some type of kick back for that. I am almost sure it is illegal. But if I am a mortgage officer, and I get paid on a commision basis, who is to say I don't give some of my commsion to an agent?

Anita Tauber: Real Estate Agents do not receive fees or kick backs from lenders. Usually, a Real Estate agent will recommend a mortgage broker or lender they enjoy working with or their company has a mortgage company to work with.

Daniela Deane: BAck to Alexandria's question on how many homes will an agent sell in a year. I need to put my two cents in!! Some agents will sell dozens of houses a year, others might sell only one or two. Some agents do $100 million a year in business (not that many), others will do $1 million. Agents range from starting out to wildly successful...Anita is in the latter category, I'll give you a hint....During the first year of being an agent, you may only sell a couple properties...It really depends...

Daniela Deane: I hate to say this, but I bet some agents do get commissions from mortgage brokers...I'm sure it's not common, as Anita says, but I bet it does happen. Let's face it: Almost everything happens.

Arlington, Va.: I bought my house in July and still haven't received a copy of the deed. Is this unusual and should I be worried? It makes me nervous but the attorney's office that handles this says the delay is not unusual, that they have a backlog, and they will get to it when they can. I did get a copy of my title insurance.

Anita Tauber: It usually does take several months to receive back a copy of the deed. However six months is a bit long. I would call the attorney's office again to receive the papers. You should not worry because except for having a copy you really don't need to review these papers again.

Daniela Deane: Anita just told me she DOES NOT agree with me...that no agents get commissions from brokers. I just thought I'd tell you!

Arlington, Va.: My husband and I bought a home in Arlington a little over a year ago. It seems that since we bought, the prices in our neighborhood have really been skyrocketing and recent sales have been between $40-60K more than we paid for our home.

If we were to sell in the next couple of years, would we get to keep the difference between what we paid and what the home was sold for? I don't understand how this works.

The reason I'm asking is because we may be starting a family in the next couple years and may need to move into a larger house.

Thanks.

Daniela Deane: The tax law was changed a few years ago. Now, a married couple who has lived in a residence an aggregate of two years over the last five years can pocket up to $500,000 profit without paying any capital gains tax. So if that's what you're asking, yes, you can keep the money...If you want to move up to a bigger place, you can use some of the profit you've made for the downpayment on your new place. Congratulations on buying a good investment in Arlington! It widens your options, as you can quickly see.

Anita Tauber: There are costs of selling before you receive all your profits. Transfer taxes, some home repairs, and if you hire a professional to sell your home there is a fee. It's nice to see home values continuing to go up. Good luck.

Paul,Alexandria, VA: What is the best state to be a real estate agent in, Maryland, Virginia, DC? In terms of highest sales, potential homeowners,etc.

Anita Tauber: There are agents licensed in all three jurisdictions. I would suggest starting in the area you live in and know well. All three areas are good to live in with both affordable and expensive housing.

Bethesda, Md.: A friend of mine in the real estate biz says that she's got lots of buyers, but there aren't any sellers out there. Is this what you hear?

Anita Tauber: There is a need for more sellers. We are fortunate in this area that there is still a strong demand for home ownership from the first time home buyer to the move up buyer. Yes if you know of anyone thinking of selling this is still a very good time to sell.

STILL Trying to Buy: Cooling off? Not for a nice property in a good area. Last Saturday we placed an offer on a house on its first day on the market. Our offer was highest, but was not accepted. The seller (Cendant Company selling on behalf of a transfered employee) wanted no inspection contingency in the contract, and we had one, so they took the lower offer without the contingency. My question: How can a buyer have an "out" while appearing to comply with this insane request?

Anita Tauber: You're absolutely right. There is still a very strong demand for the well priced home in a sought after neighborhood in good condition. I suggest you look at some of the overpriced homes where the seller may have become more realistic after a period of time trying to sell. I believe the "hot" properties as I described above will still make it difficult for buyers to purchase without a way out.

RE:Jason NW DC: Our realtor suggested a mortgage broker because the one we went through orginally was hard to get a hold of and our first loan fell through. We went with the guy she recommended because she had worked with him and his company for years and knew he was dependable. No one wants the loan to fall through at closing!!!! It is in the realtors best interest and yours to make sure this doesn't happen.

Daniela Deane: Yes, Jason, you're absolutely right....It is in everybody's interest to ensure the deal goes through...Thanks for your comment.

Anita Tauber: I agree.

Arlington, Va.: How much can I expect to pay a property manager to manage my already tenant occupied home in Arlington?

Daniela Deane: Property managers usually charge a month's rent to find a tenant and then anywhere between 6 and 10 percent of the rent to manage it. Is that your experience as well, Anita?

Anita Tauber: I don't know the exact fee for property management. It is a difficult job and certainly worthy of hiring someone to receive those calls in the middle of the night that the heat does not work.

REAL Real Estate Agent, Md.: In reference to R.E. agents getting kick backs from mortgage brokers......it does happen. I am a agent that has been in the business for 3 years. I will honestly say that I do recieve about 5 "kick-backs" a year from referring clients to a mortgage officer. Mortgage officers get paid well, and if you bring them clients that they did not have to actively market or work to get, then I see nothing wrong with the officer giving a gratuity!

Daniela Deane: Thank you for your comment! And your honesty! And your reasoning...

Anita Tauber: Did you disclose to the buyer that you are receiving a fee.

Daniela Deane: Just a note to my readers: We have a ton of questions today, perhaps because I've been on vacation and there's a lot of "pent-up demand" as they say in the real estate biz....So don't get discouraged, or offended, if yours isn't there...We're trying...

New Hampshire: We're having trouble getting the seller to actually sell the house and I'm a little confused. I thought you might have some insight here.

They are having trouble finding a place to move to, so they have asked to make the closing 2 weeks later (last week they wanted 1 extra week). Last Monday, I told them they could have the 1 extra week, but they
would have to give us $500 (I based this on the fact that there are $4000 worth of structural problems on the house and they will only pay $500 toward what they should have had repaired long ago - I was hoping
they'd try to sweeten the time delay by upping the amount they would pay toward the structural fixes). Well, now they want 2 extra weeks and they'll only give us $250.

So, there are no other houses on the market, no rentals we can afford,and they are having problems finding a place to go. Our realtor says that if we push too hard they may walk out on the deal totally (even though they signed the contract to sell way back in December). He also tells me that they suffer no penalty for having bailed on the deal. Could this be so? What keeps people from backing out of real estate deals at the 11th hour all the time? Does this sound right to you?

Anita Tauber: What about your contract. The Real Estate contract outlines the terms of the sale. Contact a real estate attorney and let them review the contract. I would expect the seller to be out of the property on the settlement date.

Arlington: To ensure that you don't buy a home that is beyond your means, what percentage of your income should your mortgage payments be? I would assume that this should take into consideration minor home repairs, upkeep etc..

Anita Tauber: I suggest that you speak with a mortgage lender. Usually you can borrow more than you may be confortable with. A combination of your own budget and what a lender will loan you will give you that special number. I do suggest you keep some money in the bank in case of known and unknown future repairs.

Alexandria, Va.: Can you give me an estimate of how much money it takes to get started as a real estate agent ($5,000, $10,000 etc.)? And approximately how much can a new agent expect to net in their first year ($20,000, $40,000??). Thanks.

Anita Tauber: Working with buyers is not as expensive as working with Sellers. With buyers you need a clean car and gas money. The Real Estate Company you are associated with will provide computers to search for the houses on the market. Working with Sellers is much more expensive because of the cost of marketing and advertising. A new agent who works hard can definitely make more than $50,000.00.

New Orleans La: Where can I find a 2 bedroom home in the seventh ward?

Anita Tauber: I suggest you start with the internet. Find a real estate agent who is an expert in that area and make an appointment to see homes.

Arlington, Va.: I'm tired of paying rent on my apt. and am thinking of buying my first place in the next 3-6 months. I'm trying to learn about the mortgage pre-approval process, so that if my dream apt. comes up, I can make an offer quickly. I just checked my credit score online, and shouldn't have a problem getting a mortgage on that front. However, I'm 23 and have been working for 2 years so not much employment history. Where does one go to get pre-approved for mortgages? A mortgage lender? A bank? Does it pay to shop around a lot, or will most places offer fairly similar on rates in the end? Thanks!

Anita Tauber: I would search for a real estate agent who is an expert in the area you are looking to move to. The agent should recommend a lender who will preapprove you for a loan. As soon as a property becomes available which meets your requirements the agent should call you and you're all set to purchase. Good luck.

Alexandria, Va.: Where could I find a link to the December 10 transcript? Thanks in advance?

Daniela Deane: Actually that discussion was December 13th. Here's the URL: http://discuss.washingtonpost.com/wp-srv/zforum/01/realestate_121301.htm

Anita Tauber: I have nothing to add.

Alexandria Va: Why do all the realtor websites require registration to use the new MRIS Bridge program (allows you to see the MLS real-time)? And require you to say that that broker represents you? Is this legally binding? Why not link the information without the broker agency agreement?

Anita Tauber: I believe this would not be enforceable. Brokers and Realtors are always looking for ways to meet the buying public. The information is free of charge. The Brokers hope you will work with one of their agents in purchasing a home. Enjoy the information. It's great information for the buying public.

Re: New Hampshire: That question was not clear, and neither was the answer. A buyer can sue the seller for specific performance on a duly ratified contract. Has the settlement taken place? If not, what is the seller paying the buyer for? Delays in the settlement date? The settlement should never take place unless the seller is out of the house. If the deal does fall through, I am not sure what the buyer has lost, however. There may be no affordable houses on the market, but the buyer doesn't have this one, either, if the seller won't vamoose.

Daniela Deane: Thanks for your comments...

Anita Tauber: My understanding was the settlement had not taken place and the Seller wanted to delay for whatever reason which was not clear. You are right the settlement should never take place unless the Seller has moved or their is a preagreed to post settlement occupancy agreement. Since it was unclear why the Seller was not moving and there was a contract I suggested the Purchaser seek legal consul.

Arlington, Va.: We are planning to buy are first home (townhouse) in either Herndon or Reston -- especially because these areas are close to our workplaces and also because of the price range we have in mind. What is your "feeling" about these areas? Is one of these areas better than the other? What do you think of the property appreciation in these areas given the fact that a lot of telecommunications companies in these areas have collapsed or on the brink.

Thanks for your help.

Daniela Deane: Virginia has been hard-hit by the implosion in dot-coms, as you mention...But in general, I still believe in the upward potential of real estate, especially if you hold for 5 years or more...What I would look at is what area suits you better. Which one do you like living in? After all, that's the most important consideration, isn't it? Your own happiness...We're talking several years of your life here...

Anita Tauber: I am not an expert in Virginia and I suggest you find an expert to work with in the area you are interested in. However, I do believe if there is a slowdown in real estate in Herndon or Reston now would be a particularly good time to buy before prices go up again.

Washington, D.C.: Is there a way to find out the addresses of properties for sale listed on websites, such as realtor.com, without calling the listing agent?

Anita Tauber: The Long and Foster Web site provides the addresses of properties without having to call an agent.

Mt. Rainier: I am a single woman in my twenties. I would really like to buy a house, but it's probably more space than I need. Condo's seem too confining. How hard would it be to find a house that was a duplex so I had the freedom of a house but the space of a condo? How do you find homes like this? I'm thinking of moving into the district or Takoma Park if that makes a difference.

Anita Tauber: I always suggest you find an expert in the area you're interested in. The agent should be able to help you define your needs and desires and whether they are affordable. Good luck.

Please answer!!: Where can a buyer register to see MRIS in real time?

Anita Tauber: I don't believe mris is on real time but pretty close. The Long and Foster Web site provides addresses and information about every home on the mls.

G'burg: I live in the Muddy Branch/Shady Grove area of Gaithersburg. I have a nice, basic townhouse, lots of new appliances, etc. which I think will help with the appraisal I am going to have before I put it on the market in early March.

Now the question -- Kentlands, a development near me, is, well developing. Large expensive homes. On the otherside, the Rio development--Kohls, Borders, movie theatres, Target, restaraunts, etc., has been completed.

Would 'building up around the area' affect the selling price?

Anita Tauber: I believe the development of Kentlands and Rio has helped the selling price of the entire area.

Arlington: How long should you be planning to stick around if you buy a condo?

Daniela Deane: I'm not sure what you mean by "sticking around." You should plan on holding real estate at least five years to see a decent appreciation. The longer your hold the better, most investors say. Some go as far as to say, never sell! But if you're planning on leaving the area, or moving somewhere else before that time, you can always rent...

Anita Tauber: Remember there is a cost of selling such as real estate fees, transfer taxes, and other minor selling costs. I suggest holding a home a couple of years before you sell. Remember real estate is also good as a rental property if you need to leave sooner.

Daniela Deane: Folks, it's past 3 already and Anita has a listing appointment to go to...My apologies for not getting to all your questions...We got a whopping 62 questions today! Don't worry, it's not personal...As Anita said, these are all GOOD questions! Thanks for tuning in and please come back in two weeks. Talk to you then!

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