Check with managing broker to learn about real estate as a career

Q. I was just laid off from my job and feel like doing a career switch. I thought of going into real estate and selling either in New York or Florida. I was wondering if this is a good idea at this time and what state has the better rate of success. Keep in mind that I only made $60,000 per year at my job, so I have nothing to lose, right?A. I suppose someone somewhere must have made that much in a first year at real estate, but you won't. According to the National Association of Realtors, last year's average income was $8,600 for salespersons licensed less than two years. Members with at least 16 years of experience averaged $53,900. Individual earnings vary widely, of course, and many licensees have secondary interests like investment real estate, appraisal or property management.In most states, to become licensed you must take specific courses, pass an exam, and then start under the sponsorship and supervision of a licensed broker. Phone several real estate offices near your home and ask for appointments with the managing brokers. Go in and see what they have to say. It's a good way to start finding out what's involved.Don't expect anyone to offer you a salary or benefits, by the way. In almost every brokerage firm, salespersons act as independent contractors, receiving simply a share of whatever commissions they bring in.In 2005, we purchased our home from a parent for the sum of $1. In 2011 or 2012, we plan to sell and relocate.Am I correct in assuming we won't have to pay capital gains tax on the home we sell? Also in 2011, we will be able to pay off the existing mortgage without depleting savings. Does this make sense to do?A. Depending on the amount of your profit, you may not owe any federal tax on your sale. You qualify for the home seller's tax exclusion because that will have been your main home for at least two of the five years before the sale. As a married couple filing jointly, you can take up to $500,000 gain with no tax due. State laws vary.Calculating your gain doesn't start from the $1 mentioned in the deed when you received ownership. The house was really a gift, and you took over your parent's cost basis along with the property.About paying off the mortgage: If you sell soon after, it doesn't really matter what you do; you'll come out the same anyhow. If you were going to remain in the home for some years, then paying off - for example - a 6-percent mortgage is like earning 6 percent on the money you use to do it, guaranteed, no-risk. Whether you'd want to tie up your capital long term by investing in your own mortgage is a personal decision.I have made a couple of offers on short sales, and in all cases I never received a counteroffer, even after several weeks and multiple calls to the agent that had the listing. Is this normal for short sales to take weeks or months to receive a counteroffer?A. Judging from my mail, yes it is. Short sales can evidently get complicated and frustrating.Actually, no law says you are entitled to a counteroffer at all. It's the same whether you're dealing directly with a home seller or when a bank already owns the property. Owners who receive a written purchase offer can accept it, reject it, or just ignore it and let it expire. I hope your offers contained expiration dates so you're no longer bound.Can the owner of a residential mortgage in good standing (no missed payments, no changes in employment, etc.) require full payment whenever they choose to?A. I haven't read the mortgage documents, so I don't know under what conditions the holder of the mortgage might have the right to declare the remaining debt immediately due and payable - "call in the loan." Many mortgages say it can be done when there's a change in ownership, and of course if monthly payments aren't made. A mortgage document might give the lender the right to call in the loan immediately if, for example, the borrower destroyed a building on the premises without permission.If you're asking out of curiosity, the answer lies in the mortgage document itself. Read it. If you're asking about a specific situation, consult a real estate lawyer.bull;Edith Lank will personally respond to any 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 ehlank@aol.com.2010, Creators Syndicate Inc.