“Dear Gary: Is it true that once you moved out of your primary house and then you rent that house and then you buy a bigger house – that you have so many months so you can sell that primary and be able to touch the money w/o paying taxes on the profit I make?

“My wife and I currently own a 3-bedroom condo in Mission Valley and we really want a house with a nice yard and a garage. Our condo should sell for about $425,000 now, netting us $210,000. How much house can we afford to buy?” ***ANSWER: Down payment is but one factor in determining the maximum

“Hi Gary. When I refinanced my condo last October, I took out a large loan to pay off some debts. Now I just got laid off and can’t pay my mortgage. What’s worse is I can’t sell because I owe $495,000 and it’s only worth $475,000. I’m stuck and I don’t know what to do.

“I have two questions about prepayment penalties. How do they work? And how can I be sure I don’t get one?” ***ANSWER: Good questions. On a single-family home and 2-4 unit properties, the prepayment penalty typically applies the first one to three years after you get your loan. The penalty is typically 80% of 6

“I talked with one of those discount brokers and he said he does the same things that regular brokers do and charges less. He said he puts a house in the MLS system, puts up a sign, and that’s most of the work. Why should I pay more and use you?” ***ANSWER: Just his statement

“Hi Gary, I heard somewhere that it costs about 7% to sell a home: 6% for the Realtor and 1% for other costs like the title and escrow companies, etc. Are there any hidden costs I should look out for?” ***ANSWER: There are several categories of items that you be aware of: 1. Costs of

“Hi Gary. I saw a little condo near SDSU for sale. The agent was advertising it as being $35,000 under Zillow Zestimate. I’m not sure what they’re talking about. Does that mean it’s a good deal?” ***ANSWER: Nope. What that means is the agent is trying to sway anyone foolish enough to think that Zillow’s

“What is Fannie Mae?” ***ANSWER: Fannie Mae or FNMA, stands for the Federal National Mortgage Association. It’s a privately held corporation created by Congress to support the secondary mortgage market. It’s a major market for buying and selling home loans and they have certain critical guidelines. If a loan doesn’t meet FNMA guidelines, it’s harder

Hi Gary. Love your newsletter. I want to know, when you’re looking for a home and find one you really like, how long do you think it’s OK to think about it before making an offer. ***ANSWER: He who hesitates is lost. Even in today’s market, if a home is attractive &/or attractively priced, someone

“We interviewed two agents to sell our home in Alpine. We mentioned to the first one that we’re also talking to a certain well-known agent who has sold signs all over our area. That first agent said she could give me better service and do a better job than the other agent because she’s not