FAQ

Buyers

1. I am getting ready to purchase my first home, what is the first step?

   You need to get pre-approved for a mortgage before you make an offer.

   In this competitive market, your offer to purchase should contain as few conditions as possible. An offer that is conditional on obtaining financing is always a deal killer. The seller may accept a competing offer for less money rather than take the risk that you won’t be able to raise mortgage money. A pre-approval letter from your lender tells the seller you are ready and able to commit. At CalStar Mortgage Services we will help you with obtaining the pre-approval letter.

2. I don’t know when to quit or stop bidding.

   Don’t act on emotion; you may end up paying too much money. This can happen when you fall in love with a particular house and start fantasizing about how great it will be to live there. Another reason you may be driven to pay too much is that a bidding war triggers your competitive instincts and you must buy the house at all costs – which you will regret later.

3. How much money should I set aside for closing cost?

   Be aware that there is also a long list of expenses you may have to pay at closing, Closing costs can add up to between one and six percent of your loan, always ask your lender to give you a Good Faith Estimate of the loan-related fees you’ll have to pay and your real estate agent to compile a list of other expenses.

4. Do I need a home inspection?

   The most important condition you should put in an offer to purchase is a home inspection. Always include and Find out about all the damages and the cost to fix any defects and have the seller fix them before you agree to buy. If the seller won’t help bear the costs, and you want to go ahead with the purchase, make sure you can afford the necessary repairs on top of your mortgage.

Sellers

1. Which are the main factors that influence the value of my home?

   • Interest rates: The lower the interest rates, the more buyers can afford to pay.
   • Supply and demand: If there are a number of homes similar to yours on the market, consider them your competition. What are the things you can do to set your home apart and make it desirable for a majority of potential buyers? On the other hand, a small number for sale can result in competing bids that send prices up.
   • Economy: Is the economy improving or sliding? This will affect buyers’ confidence in their ability to manage debt.
   • Location: Are you in a desirable neighborhood; is your house close to key services such as schools, doctors, and shopping? Are there factors that make your neighborhood less desirable, such as environmental issues or traffic problems, airport and etc?
   • Condition of the house: Is your house updated? Painted recently? Have you kept up with repairs? Does your house make a good first impression?
   • Timing: Do you need to sell quickly or can you choose your time? Can you wait for a higher offer?
   • Amenities: Does it include features that are popular, such as low-maintenance landscaping or granite counter tops?
   • Terms: How flexible are you with respect to the sale? What’s excluded? If you are downsizing and have substantial equity, have you considered offering financing? Carrying financing can make your home very appealing and help you sell for the maximum price.

2. How should I determine my home’s value?

   • Research the housing market in your area. Check the value of your property using our website and other internet sites and newspaper ads. Try to Visit open houses in your neighborhood to get a general idea of the current market.
   • Get a comparative market analysis (CMA) from us: To compare homes that are currently available and those that have sold in your neighborhood in the past few months. The more similar the features -- square footage, number of rooms, lot size, pool & etc.

3. How should I maximize the value of my home?

   • Eliminate clutter and clean the house. The more you can clean your home and keep it organized, better and larger it will be to show.
   • Paint and repair. Improve the appearance of your home with a coat of fresh paint. Take the time to fix any dripping taps, broken tiles or cracked window panes.
   • Consider hiring a home stager. Sometimes it pays off if you hire a professional home stager can help you enhance the selling potential of your home by showing you how to arrange your home to appeal to buyers. Most of the time all it takes is rearranging furniture, and to clean the house, paint and some minor repairs.
   • Maintain the landscaping. Cut and rake the grass and water frequently enough to keep it green; fill the bare patches with nice flowers and greens.
   • Clean all windows and doors. Repair any cracked or broken pieces.
   • Clean up the porch or deck. Clear all the bikes, toys and gardening tools from the porch.
   • Keep the pool immaculate.
   • Front door. Make sure the front door opens and shuts smoothly and the doorbell functions.
   • Messy closets. The buyers are going to try to imagine their things fitting into them. Remove excess stuff. The fewer things you have in those closets, the bigger they’ll look. You can also add features such as drawers, belt racks and shoe shelves.
   • Realtors. You can always ask Calstar Realty Inc. or the listing agent for any advice or hire extra help to bring up the best value of your home and good luck!