Danny Frank

The rising cost of energy is a concern for all of us. And I'm not just talking about what we pay at the pump. Energy prices affect how much we spend on almost everything we buy. That includes the electricity and natural gas we use to power, cool and heat our homes. It even can play a role in the price you pay to purchase a home or how much you can fetch when you sell.

For buyers
Buyers are still looking at all the usual factors in selecting a home; considerations like schools, bedrooms, bathrooms, and closet space - those things won't change. Recently, though, increasing energy costs have prompted consumers to place more emphasis on the proximity to desirable locations and the energy efficiency of the homes they find.

For many families, utility bills and pressure at the pump amount to substantial expenditures that are often overlooked in affordable housing decisions. Choosing a less expensive home that's 10 miles farther from work or one with lower energy-efficient qualities may actually cost you more over time and could even jeopardize your ability to afford the home. Talk about diminishing returns!

If you find a home that piques your interest, see what you can find out about the average energy costs for that property. Two seemingly similar houses can have large discrepancies in heating and cooling costs, especially if one was remodeled with energy efficiency in mind.

What about transportation costs? How would living in this home affect your commute and errands? Is public transportation available? Living just 10 miles farther away from a five-day-per-week job adds up to 100 miles per week. That's at least one extra tank of gasoline per month. These days, that can add up to a few thousand dollars over the course of a year.

For homeowners and sellers
Energy-efficient homes are less expensive to run, more comfortable and have a higher resale value.

If you're interested in making energy upgrades to your home, consider having a Home Energy Rating audit performed. A home energy rating system (HERS) report is a review of your home's efficiency prepared by a trained professional.

In this audit, a certified home energy rater will check insulation levels, window efficiency, the integrity of the ducts, ventilation, weather stripping, the HVAC unit, the water-heating system, appliance efficiency, climate considerations and other components of energy efficiency. The results of the report show opportunities to increase efficiency.

Is your home already energy-efficient and on the market? If so, you have an attractive selling point. If you're trying to sell your home and haven't made any energy improvements, it's possible the house down the street has that advantage over yours. A prospective buyer may feel she's getting more for her money at the other house, due to the anticipated savings of a smaller utility bill.

Energy-efficient mortgages
A HERS rating can also be used to help a buyer or homeowner qualify for financing options like an energy-efficient mortgage.

In new construction, the HERS rating verifies that the home and appliances are energy-efficient, and the borrower qualifies for a higher amount based on projections of low energy consumption.

For existing homes, a buyer or owner can use an energy improvement mortgage to purchase or refinance the property. After the certified rater makes suggestions for efficiency upgrades, the estimated costs of these improvements are rolled into the loan. Once the projects are complete, the lender pays for the work out of an escrow account. So, even though the monthly payment to the lender is slightly higher, you would realize an advantage through lower utility bills.

Who can help?
There are Realtors who specialize in "green" real estate. Many of them have earned the EcoBroker designation, which teaches real estate professionals innovative energy, environmental and other green strategies. Additionally, some Realtors have attained an affordable housing certification - Texas Affordable Housing Specialist - which includes a course on green technology's effect on housing affordability.

Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.

Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com

My column was also published in the 17May09 edition of the Galveston County Daily News

You've finally arrived at the decision to buy a home. Now you face the choice between buying a newly-constructed or an existing home.

There are advantages and disadvantages to each option, so the decision may not be an easy one. No matter which way you go, you'll probably end up making a few tradeoffs. In the end, choose the type of home that makes the most sense for you, your lifestyle and your upcoming plans.

You will sell someday

From an investment standpoint, it's wise to think about the future when you're buying. After all, you'll be the seller one day and you want to get the largest possible return on your investment.

What if, for example, a home is one of the first in a new subdivision. As other houses are still being built, short-term resale of a two-year old house can be difficult. Given two similar choices in the same neighborhood, most buyers opt for a brand new house as opposed to one that's been lived in. Additionally, builder incentives can make the new home down the street more attractive to buyers.

This typically changes as the neighborhood matures and the builders clear out.

That's a big closet

It's not all about the investment, though. You have to live in this home. Central air, large pantries, walk-in closets, multi-car garages, more and bigger bathrooms and other contemporary amenities are more common in newer homes. There are not many 40-year-old homes featuring a master suite with a spa and two walk-in closets.

New homes are also built with infrastructure tailored to modern life - like having more electrical outlets or being pre-wired for security or Internet.

Additionally, there are stricter building codes and significant advances in construction materials and techniques. These improvements result in safer and more energy-efficient homes.

Also, the builder may offer customization options, like color schemes, flooring, kitchen cabinets or appliances, that allow you a degree of personalization. Existing homes were built and designed to someone else's standard and taste, which is bound to be different from yours.

On the flip side, many older homes have a charm from the period during which they were built. That's not easily replicated in a new home. Some older homes sit on larger parcels of land than the lots common in most new subdivisions. You also may find an existing home that has been remodeled in a way that suits your needs perfectly.

New doesn't mean perfect

Home maintenance comes with homeownership. There is no house that is maintenance- or defect-free - ven brand new homes. In fact, it's not uncommon to find at least one construction defect that must be addressed in a brand new house. So, if you do opt for a new home, make sure you understand the warranty and the process for identifying and fixing problems.

If the 'hood fits …

The neighborhood should be a significant part of your decision. Think about what you value - school district, proximity to your workplace, and day-to-day convenience are common concerns for most people, but your list may vary.

You'll find that many residential builders acquire large tracts of land (usually far away from the center of the city) and starting a subdivision from scratch. It's more cost-effective to lay infrastructure and build if there are no obstacles. So, if you happen to be partial to large trees lining the streets, an older neighborhood may be more your style.

Some new communities also initially lack services like nearby grocery stores, shopping or other things that you take for granted in established areas.

When can I move in?

If you purchase a home before it's completed, builder delays or other holdups could prevent you from moving in on schedule. This may end up being no big deal, but if the timing's wrong, you may have to find a temporary solution while the setbacks are resolved. This may mean delaying closing on the sale of your current home, finding a place to rent, staying with friends or family or placing your belongings in storage.

Talk to someone who can help

When you're deciding between a newly built home and an existing home, decide based on your family's needs. A Realtor can help you sift through the options. Sit down with him and let him know what's important to you and your family.

Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.

Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com

My column was also published in the 17May09 edition of the Galveston County Daily News

Houses include many complicated systems. They have heating and cooling systems, electrical wiring, plumbing, a roof, siding, windows - you get the idea. No matter how careful you are, you're not going to be able to assess each and every item and system before you buy a home. However, a qualified home inspector can give you a pretty good picture of the overall shape of the home and its parts.

Armed with a report from a qualified inspector, you can make a better-informed decision about your purchase of a home. You can proceed with the transaction as planned, ask the seller to make some repairs or concessions, or terminate the sales contract.

What does an inspection cover?
A home inspection is a visual examination of the structure and systems of your home. A typical home inspection covers the electrical, heating, and air-conditioning systems; plumbing; roof; interior walls and ceilings; insulation; windows; doors; and foundation. It usually does not include septic systems, swimming pools, and hot tubs. Keep in mind that if an inspector cannot access a particular area, such as a very steep roof, he won't be able to inspect it.

Time it right
Most buyers contact a home inspector immediately after signing a purchase contract in order to have the assessment completed before the contract's termination option period expires. That way, you can further investigate any problem with the home and, if the problem is a deal-breaker to you, kill the contract without penalty. Because of timing involved with the contract and the inspection, do some research and identify more than one potential inspector before you sign a contract on a house in case your first choice is unavailable.

What should I ask?
When looking for a home inspector, start by contacting those recommended by friends and family. No matter how you get the name of a home inspector, you'll want to ask him some questions about his services. Here are some suggestions:

• What is the fee?
• What will the inspection include? Ask for a list of items that are included and excluded.
• How long will the inspection take, and can I attend it? Be wary of an inspector who doesn't want you around.
• What type of training and licenses do you hold? Make sure he's licensed in Texas.
• Will you provide a written inspection report?
• Do you climb onto the roof to inspect it?
• Can you provide a list of references?
• Is there an additional fee to re-inspect the house after repairs have been completed?

Talk to a specialist
A home inspector's job is to find problems, not fix them. If your inspector finds a problem with a house's wiring, call an electrician. You can get an estimate of the cost and severity of the repair and decide how to proceed with your purchase. Be wary of any inspector who finds a plumbing problem and immediately tells you that he's a licensed plumber.

Money well spent
Inspection fees vary depending on the home's location, systems and size. Don't let cost be the sole determining factor. It's more important that the professional you hire has the skill and experience necessary to do the job right.

Talk with your Realtor about the timing of your home inspection and any questions you have about the termination option in your contract. It's unlikely that you'll find a home without any problems - even newly constructed ones typically have flaws - but a home inspection can make you a better-informed homebuyer. Once you know the condition of your dream house, you and your Realtor can discuss how to proceed.

Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.

Danny Frank is a local Pearland TX Real Estate expert!

My column was also published in the 17May09 edition of the Galveston County Daily News