On homes and real estate: If house isn't selling, lower the price

Q. My house has been on the market for many months, and according to my agent who is supposed to be “the best in the area,” it is priced properly. We had early activity, including an offer that didn't work out. There's been zero activity for weeks, and I want to approach my Realtor and bring this up. When he says the inevitable “What more do you want me to do … I'm doing everything I can,” what should my answer be?

A. Has your agent suggested lowering the listing price? If not, that's what he should do. Now that the buying public has voted that your place isn't worth what you're asking, it would appear he made a mistake with his recommended price. That happens.

Even the most skilled broker can't always anticipate market reaction perfectly. And no agent can hit buyers over the head and drag them to see an overpriced property. Whether you drop your price or wait to see what happens when the market gets a spring boost, depends on how badly you need or want to sell.

Q. If the seller holds the mortgage for a buyer, in other words you don't go through a bank, does the agent still get a commission?

A. Certainly. The seller's agent was promised a commission for producing a “ready, willing and able” buyer. How the buyer raises the money has nothing to do with it. Agents often do provide guidance to help the buyer obtain financing, but that's simply another part of the services they offer to help the sale go smoothly.

Q. My wife and I are close to having 20 percent of our home paid for. Our lender told us that our private mortgage insurance will automatically drop off when we are at 22 percent, but at 20 percent, we can have an appraisal done and send in a request to no longer pay PMI.

I've crunched the numbers, and it's worth it to pay for the appraisal in comparison to paying PMI for another year. How likely is our lender to reject our request (we have not been late or missed a payment)?

A. If the appraisal is satisfactory, the lender must cancel the private mortgage insurance. Double-check directly with your lender. While you're there, ask if you could provide a less expensive one-page broker opinion of value rather than a formal appraisal. Sometimes that's acceptable.

Q. If the property is mortgaged, does the mortgage company have to agree to the quitclaim transfer of property to another party? If not, is the original owner still responsible for mortgage?

A. No to the first question, but yes to the second. Mortgage holders can't forbid the transfer of property. But these days, most mortgages contain a clause that when there's a change in ownership, the whole remaining debt can become immediately due and payable.

If the property were sold, the original borrowers would still be bound by their personal promise to repay the loan and the debt would remain as a claim against the property. The new owners might have to pay off the whole thing right away or face foreclosure. Or particularly with an FHA or VA mortgage, they might be able to take it over if they can prove they're financially qualified.

Q. I own a condo with my soon-to-be-former significant other. The deed reads “joint tenants with right of survivorship.” Before we go our separate ways, I need to change that. I will be moving out and plan on paying taxes and insurance until the unit is sold. She can stay as long as she likes. What is the procedure? Do both parties need to agree on the change? Sorry, I'm uncomfortable giving my full name.

A. With the wording presently on your deed, if one of you died, the other would immediately become sole owner. It wouldn't matter what a will might say. State laws differ on how to terminate a joint ownership. You have always had the right to sell your share, which would end the survivorship situation. You don't need your co-owner's permission.

Depending on the law in your state, you might need to sell your share to what's known as a straw man and then buy it back. At that point, you and your ex-partner would be co-owners as tenants in common. There'd be no right of survivorship, and you could leave your share to any heir you chose.

Ÿ Edith Lank will respond to questions sent to her at 240 Hemingway Drive, Rochester, N.Y. 14620 (please include a stamped return envelope), or readers may e-mail her at www.askedith.com.

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