On homes and real estate: Fourth bedroom or master bathroom?

Q. We own a four-bedroom home with one bath upstairs and a full bath downstairs. Now that the kids have either moved out or are in college, my wife and I are considering converting one of the smaller bedrooms into a master bath. My question is: What is more desirable for resale: a four-bedroom home or a three-bedroom home with a master bath?

A. I suspect there’s no one clearly right answer. Call several real estate brokerages that are active near you. Ask to speak to the managing broker and explain that you’d like some free advice. Agents who know your street and deal with buyer expectations in your neighborhood can judge better than I can.

Or — as with that tub-or-shower question — we could ask readers about which they’d prefer if they were buyers. The tub thing turned out 50/50. I’ll bet this one also turns up differing preferences.

Q. I question the answer you gave a divorced man who wanted to be released from liability on a mortgage. I’m sure that each case is different, but my bank told me a quitclaim deed, proof of sole past financial responsibility of property, and future responsibility all don’t matter in removing one’s name from the mortgage.

The key is if there is an assumability clause in the original loan documents. Only one spouse has to qualify for it individually, and bingo: the ex is off the mortgage. That would also apply to a completely new buyer, and it wouldn’t cost as much as your reader said.

A. You are certainly right about the procedure for VA and FHA mortgages, which are all assumable. But with other mortgages that don’t include an assumption clause, sometimes a lender will agree to release one co-borrower anyhow. In those cases, the process is a bit more complicated and a bit more expensive.

Q. I am getting married in October. I own my own home with a small mortgage. This is the home I grew up in. It has extreme sentimental value to me and to the entire family. I need to use the equity in my house for a down payment on a new home for my new family.

My sister-in-law lives next door. She is interested in buying it as a rental property. My brother passed away several years ago, and she lives on a limited income. She cannot qualify for a conventional home loan. Her bank recommended that I quitclaim deed the property to her and they would be able to refinance it after that.

I would love to see my house stay in the family. The bank said they would lend her 70 percent of last year’s taxable value. The peace of mind is worth the money that I would give up. I would like to know what you think.

A. Work closely with your own real estate lawyer for protection in this unusual arrangement. Lots could go wrong.

Does your sister-in-law have the bank’s offer in writing? Where would you be if they ended up not giving her the loan? Could you pay off the present mortgage if, as often happens, it’s called in because there is a change in ownership?

Do you think she’s capable of being a landlord? It’s easy to get into trouble, particularly if one has no experience in tenant selection.

If she’s going to be an investor, she’ll need a tax professional. At this point, she should go over the figures with her own accountant. Do you — does she — know what average rentals are in the area? How does it compare with her projected expenses, including an allowance for maintenance and repairs? Does she know the state’s regulations on fair housing?

Rental real estate could be a good career for her, but it’s easy to get into trouble unless she does some research in property management. Libraries are a good resource.

Q. Our home has currently been on the market for two months. We’ve changed our minds and want to stay in our home possibly two more years. My wife and I haven’t retired yet and our plans are not quite set. How do we approach this?

A. You always have the right to take your property off the market. Your agent will know what paperwork is necessary to withdraw the listing. If there’s any question, talk with the managing broker in that office.

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

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