This is short-sale speak for a market analysis. A Broker Price Opinion is ordered by a bank that is considering the acceptance of a short sale offer. A broker or independent agent will evaluate the home (in person) and check comps in the area to provide feedback to the bank on their opinion of the current market value. This is done before a bank will approve the short sale and respond to prospective buyer.

A prepayment penalty is commonly charged by lenders if a loan is paid off before a certain date. It will vary based on the loan terms, so it's always a wise thing to specifically look through the docs and note that date. Having this sort of a surprise when you're about ready to close escrow has happened to more than a few sellers!

More often than not the prepayment penalty would be prorated based on when the loan is paid off. For instance, if you purchase a house this year to flip and resell, and your loan has a prepayment penalty in the first two years of $15,000, that will significantly cut into your profits. There are some loans with no prepayment penalty, though rates may not be as attractive. If you plan to invest in a property for short-term profit (less than 5 years), make sure you discuss with your lender the penalties that may affect your bottom line.

BTW, paid off equals selling the house or refinancing.

People are concerned if they should sell now while they still have equity in their house. It might be a good option to consider if you have a sound reason to move — upcoming relocation, job transfer, enlarging family, downsizing income. If you would probably sell the house regardless of the economy, putting it on the market now to hit the peak buying/selling season might be a better plan than waiting until fall or winter. Who knows how the economy will factor in nine months from now? Yes, values may fall further. Or, they could rise. It will take longer to sell your home this year, unless you want to significantly price it under the market and liquidate. Either way, budget extra time to avoid a financial crunch.

If you are thinking to dump the house because your investment isn't paying off how you hoped, remember real estate traditionally will pay off over an extended time. If you've been in the industry for 30 years, you will remember other times when values dropped or interest rates peaked. Values being down this year doesn't mean they'll be down five years from now. If you can afford your mortgage and the home meets your needs, I recommend keep the house and over time you should see it pay off.

Traditionally the seller pays the commission to the agents involved in a transaction. This is how it goes: The seller lists the property and agrees to pay a commission for the sale. That amount is agreed to between the listing agent and seller. The listing agent then offers a portion of that commission to the "selling" agent (or buyer's agent). Often the two agents split the comission 50/50, but that is up to the listing agent. The listing agent may have a 6% commission, but offer 2.5% to the selling agent. Or, the listing agent may offer more commision to the selling agent in hopes of attracting more agents to show the property.

Therefore, as a buyer, the agent you select to work with is compensated by the seller. So there's really no reason to enter a real estate transaction without an agent representing you.

Well, from my chair it looks like the market is picking up. We are getting a good response from people intrested in listing their homes this year, and those buyers as well wanting to take advantage of FHA, low interest, and affordable properties!