Q & A: Are Reverse Mortgages a Good Strategy?

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My parents are living in Florida and they are talking about a reverse mortgage. I don't know much about it and how can I know if it is the right decision for them?

You need to do some research. Reverse mortgages can be a good thing for some people, but you need to know what you are getting into. The idea with a reverse mortgage is that, when the time comes to sell, it is likely there won't be money left because the loan amount does go up pretty quickly [??]. If the plan is to use a reverse mortgage for a couple of years, and then sell, that's not a great idea. If your parents are staying in the house, and no one is depending on selling the house for financial gain, a reverse mortgage can be great as it will let them stay in the home.
 
If I am paying higher property taxes on a finished basement and additional full bath in the basement, but why is that not considered added value to my house when selling? And why can't I advertise such when selling?

I'm not sure where you are getting your information, but in most cases a finished basement does add value to a house compared to a house with an unfinished basement. However, it is generally not considered equal in value to the living areas above it, so it generally should not be included in the total square footage or the total room or bathroom count of the house. That does not  mean that the amenity didn't add value. Think of it as a separate amenity that has the potential to provide additional value to your home.
 
I recently put an offer in on a home and the engineer came and found many issues with the house. There wasn't any major structural issues but these are very expensive to fix. How do we go about having the seller fix some of these? I can't purchase the home and then make all of these changes but we love the property.

It will be helpful to your negotiation, to get quotes from experts for the necessary repairs so that you have a clear idea of the costs and the scope of the work. Sellers are often reluctant to do the work, but may consider a price adjustment to accommodate these necessary repairs, especially since they are serious enough to not pass an Inspection. After you have the quotes in hand, you are in a good position to bring them to the negotiating table.
 
What is the general lead time you need to start looking for a rental? My son is graduating college, has a job in NYC and will need to move sometime over the summer. We do not know when to start.
 
Working with a Real Estate Professional will expedite the Rental Process and will also help you choose neighborhoods, price points and, what credentials/finances Landlords will require for a first time Renter. Beginning your search on line should be helpful. If you need a July or August Move-in, give yourself at least three-weeks so that you can Sign a Lease immediately. If you need further assistance please let us know.


Dottie Herman is CEO of Douglas Elliman. If you have a real estate question for Dottie, please send it to: Reporters@WPCnews.com