FAQs

  • Q
    Can a home depreciate in value?
    Generally, real property never depreciates in value, or more so, it is not very common for property to depreciate. This is why it's a great investment. Make sure you carefully consider location and community when choosing a home, it can effect the homes future value greatly. If you are in a newly developed area, do some research on the construction of the surrounding areas being developed to determine if they may effect your homes value.

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    Q
    Is an older home as good a value as a new home?
    This is really just a matter of preference, but both newer and older homes offer distinct advantages, depending upon your unique taste and lifestyle. Older homes can generally cost less than new homes, however, there are many cases where new homes can also cost less then older homes. Most new homes will not have any backyard landscaping and some don''t include any front landscaping either. With an older home, the landscaping is normally already completed and could have 10''s of thousands of dollars in landscaping done, which is included in the purchase price.

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    Q
    What are closing costs?
    Closing costs are expenses incurred by buyers and sellers in transferring ownership of a property.

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    Q
    What's the Difference between a 'Listing Agent' and 'Selling Agent' ?
    Listing Agents usually deal with sellers, and are the ones who will list a property for sale on the Multiple Listing Service. Selling Agents (also Buyers Agents) mostly deal with the homebuyers, usually only listing just a few homes for sale. They will sell the homes (which have been placed in the MLS) via the listing agents. The majority of agents will focus on one or the other. Some agents will also divide their time between sellers and buyers and are usually regarded as the best ones since they are dealing with both sides of the coin. If you phone an agent from a magazine or newspaper ad, you are usually contacting the listing agent. These agents will place ads to show the seller that they are making an effort to sell their home. Also their advertising efforts can draw others who may decide to sell their homes.

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    Q
    Why should I use a real estate agent?
    A real estate agent is more than just a sales person.  A real estate agent may act on your behalf, providing you with advice and guidance when buying or selling a home. Due to the constant changing of the market, the information available on listings is not always 100% accurate.  There are times when you need the most current information about what has sold or is for sale, and the only way to get that is with a real estate agent. If you are in the market to buy, it would be advisable to use a Buyer's Agent.  They can make recommendations on what terms and prices to offer as well as negotiating a deal with your best interest in mind.

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    Q
    Want to sell your House for more?
    Below steps may help you achieve that goal; 1) Repair/Clean up house, Simplify furniture arrangement, 2) Contact reliable/professional real estate agent(seller agent), 3) Discuss/negotiate market price, listing fee, listing period, 4) Cooperate with showing while keeping the house clean, 5) Discuss incoming offer(s) with agent, 6) Proceed with attorney review and 7) Allow buyer's home inspection and negotiate for any issues.

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    Q
    Home inspection should be performed by a third party licensed inspector ?
    The following areas must be inspected; 1) Heating system & A/C system(Central, Wall mount, Window A/C), 2) Hot water system and furnace, 3) Cold water system and sewer system (If septic, refer to professional), 4) Water leakage/damage, 5) Termite/Wood destroying insects, 5) Radon test, 6) Any structural issues need to be referred to professional and 7) Any oil tank issues need to be referred to the professional

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    Q
    If home owners fail to make monthly mortgage payments ?
    The lending bank(s) is forced to take a legal action namely foreclosure.  Before the lending bank(s) takes a legal action - a sheriff sale, the home owners can voluntarily initiate the selling process of their house. For many cases the sales price of such house is lower than the amount home owners owe to the lending bank hence the name short sale. If the house fails to sell within a given period then the lending bank has to sell the house through a sheriff sale. If failed, the bank takes the possession of the house. Such houses are called REO (Real Estate Owned).

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    Q
    What are the documents required for a short sale?
    1) 2 year tax return reports, 2) 2 month bank statements, 3) 2 period pay stubs (W-2 income case), 4) Profit & loss statement (Self employee case), 5) Financial statement, 6) Hardship letter, 7) Sales contract and short sale addendum and 8) Estimated HUD-1

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    Q
    Necessary parties in a real estate transaction
    Seller: Seller real estate agent and Attorney, Buyer: Buyer real estate agent, Attorney, Title company, Mortgage broker (Loan case) and Home inspector

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    Q
    What are the documents needed for a mortgage process ?
    1) Secure down payment in advance (In general, W-2 income: 20%, Self-employee: 30%, Possible no income verification:40%, FHA loan: 3.5%), 2) Secure contract deposit money in advance (Usually up to 10% of sales price), 3) Keep down payment in a buyer personal account for at least 2 -3 months before applying for a  mortgage, 4) Prepare 3 months bank statement, 5) Pay contract deposit from the buyer’s personal account  where down payment is deposited and 6) Consult with mortgage broker before seeing the houses

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    Q
    Am I eligible for 'FHA' loan ?
    For people who cannot afford the huge down payment but have a steady income, FHA loan may be a great solution if qualified. The followings are needed 1) as low as 3.5% down payment, 2) Credit score as low as 640, 3) income verification by W-2 or equivalent

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    Q
    What should I do before purchasing a commercial property ?
    Before purchasing a commercial property as an investment, the following areas must be reviewed. 1) Rent roll of tenants, 2) Estoppel certificate, 3) Proforma income statement, 4) CAP ratio (N.O.I/Purchase price), 5) G.R.M for residential investment property – apartment complex and 6) Environment inspection for contamination

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