Q & A With Barbara Corcoran

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Q - I've been offered a job in Dallas, and live in Kansas City, Missouri.  What's my best way to sell my house and move?  I owe $104k on my mortgage.

A - There are lots of corporate transfers in and out of Dallas and Kansas City, and you might try to swap your house with someone who's moving in.  House swapping is new and it's a lot like an online dating service, but for houses instead.  Sellers around the country locate each other online on websites like OnlineHouseTrading.com and Pad4Pad.com and after visiting the house, arrange for a simultaneous closing.  You're bound to get a few kooks sending you some wacky emails, but house swapping is a new trend that's beginning to work well.  The websites charge about twenty bucks.

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Q - I've recently married, gained a stepdaughter and am expecting.  Our house is not large enough to accommodate all of us.  I'm trying to sell my house and it's already listed well below what I bought it for six years ago and I won't even break even on what I still owe on the mortgage.  Any suggestions to help sell my house?

A - If your house is overcrowded, chances are good it's also filled with too much clutter.  And as most buyers can't see past your stuff, you should get the help of your new husband and stepdaughter to clear out your clutter this weekend.  You should also rearrange the furniture to open up the rooms, clean all the windows and scrub the house from top to bottom.  Don't overlook the importance of light as buyers cite light as the most important attribute in a house after a good price.  And speaking of price, if you have to sell your home at a loss, remember that in a soft market you can buy your next bigger home at a discount too.

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Q - Can we interview agents within the same brokerage firm, or is this uncool?  We like the firm, but we're not happy with our agent. Terri in Washington

A - It's definitely not uncool and here's how to do it.  Call the brokerage owner or sales manager and tell them what you want to do.  Ask them to recommend the best agent for the job.  Owners and sales managers are typically paid on an override basis, so it's always in their best interest to recommend the absolute best person to get your house sold.

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Q - How can I really tell when prices have reached bottom?  I have enough money saved for a down payment, but I don't want to buy now if prices will be 20% or 30% lower next year.

A - Prices won't drop nearly that much by next year and I suspect they may already be on their way up by then.  Pinpointing the bottom of the market can't be done, but you can keep a close eye on the number of foreclosures in your town which is a reliable indicator of when the market bottoms out.  You'll find this information online at RealtyTrac.com just by typing in your town name or your zip code.  There's no charge for the service.  Once foreclosures start dropping off, you'll know you're near the bottom of the market.  You could also just count the for sale signs in your neighborhood this weekend.  Map out a five block radius, go on a Sunday drive, and if you see more than three houses for sale within those five blocks, you can be sure prices are still falling.  If next week there are fewer rather than more, you'll know prices are about to turn around.

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Q - I'm thinking of buying a bank-owned property at a great price.  The broker tells me we can't get inside to see it, but it looks pretty good from the outside.  I know the house is going to need some work and I've put aside another $5,000 for unexpected repairs.  I think it's a deal too good to miss, but my wife is really nervous.  What do you think?

A - I think you should go have another look.  Invite a shrewd broker and a competent contractor to go with you.  The broker can tell you what the house is really worth and can give you examples of what just sold for what, long before the deals become common knowledge.  You should bring a contractor along because he has a trained eye and while you're looking in the windows, he can check the foundation and the roof, look for signs of termites and whatever else might be potentially wrong with the house.  He's in a much better position to give you a reliable ball park repair estimate.  Getting those expert opinions will help put your wife's mind at ease and make for a happier marriage.

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Q - Me and my brother-in-law are looking at some property in a run-down area about twelve miles from where we live now.  Prices there are a lot cheaper than here and we plan to fix a few places up and maybe rent them out or sell them.  My brother-in-law's an expert roofer and a hell of a guy.  How long do you think it will take us to turn a profit?

A - Maybe forever.  Real estate prices eventually go up, but you need to buy smart in the first place.  Most guys who lose their shirt, lose it in the next guy's backyard.  Look at properties in your own town where you know the neighborhood well, know what houses should sell for, and where you're able to spot a good deal the moment you see it.  You'll pay more for the house up front, but you'll make a lot more in the long run.

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Q - I'm an actor/bartender considering getting into real estate as another part-time means of support.  In your expert opinion, is this feasible in today's market?  Or is real estate strictly a full-time career?  My credit isn't the greatest, but I'm hoping this might help me square off my debts and find a home of my own.  What do you think?

A - I think you're out of your mind!  Real estate's a full-time career in any market, even more so now.  The business is never just about showing a few houses to a few nice clients.  If real estate sales were that easy, even my ex-brother-in-law would be rich.  Most agents spend endless hours soliciting for listings, networking for customers, stuffing thousands of mailers and making cold calls and spend only a fraction of their time negotiating offers that rarely come in.  It's hard to become a good real estate agent, and on a commission basis, it's unrealistic to expect to square off your debts soon.  But if you have spare time during the day, you might offer to work part-time assisting a top agent.  You'll not only learn the business first hand from one of the best, but you'll also be better able to size up whether or not the business is for you.