Danny Frank

You've done your homework by evaluating your finances and determined how much house you can afford. So, here's a hypothetical question: which costs more? A $150,000 house or a $165,000 house?

It seems like a simple question. Assuming similar financing arrangements, monthly payments are going to be higher on the higher-priced property. But that's not the whole story. It's just as important to think long term rather than just month-to-month-in other words, not only how much the house will have cost after one year, but after 10 years as well. You may find that over time that $15,000 difference between the properties evaporates; you may also find that the difference can double.

Moving in

Appliances can be pretty costly. Does one home have a washer and drier or a refrigerator that conveys at the sale? Purchase, delivery and installation of major appliances can add up quickly. What else about each house needs immediate attention? For instance, many older homes have non-standard size windows. If you need blinds for those windows, the blinds may have to be custom-made. Is that a back-breaker? Maybe not, but it's still a significant expense.

Drive time

Is one of the homes in a location that causes you to use just one extra gallon of gasoline per day on your way to work? If you commute five days a week, that's about 20 gallons each month ... just to get to work and back. At more than $3 per gallon, that could be close to $8,000 over 10 years-a substantial number and almost half the original price difference. Now factor in your trips to the grocery store, school, daycare and other places you regularly visit. How does the location of the home affect your gasoline consumption when you go back and forth to these other destinations?

Different needs

Does one house lie in an area, like a flood plain, that has different insurance requirements? Forty bucks a month may not seem like much, but multiply that by 120 months (10 years) and you get $4,800.

Evaluate the yard and the appearance of the exterior. If you find a home with a big tree that needs to removed, that is heavy-duty work-work that is better left to insured and bonded professionals. Maybe one of the homes will need a new fence in two years, whereas the other home has a brand new one.

What if one home is substantially older than the other? Older homes typically need more work than newer homes. Plumbing, electrical and HVAC components wear out over time and need to be replaced or repaired. Everything from the foundation to the roof can require attention. Resolving a major foundation issue can easily wipe out that initial $15,000 price difference. Fixing a big plumbing problem can be costly, too.

This is not to say that a newer home will not have problems or require attention. All homes require maintenance and repair. Upkeep on homes is a major factor in resale value. Little problems don't just go away, either. They can turn into big problems if they're not dealt with promptly.

This is not intended to scare you or dissuade you from buying a house-far from it. Take this as a piece of practical advice. After you figure out your price range, think about additional expenses not typically associated with monthly housing costs.

If you're trying to decide between two houses that have a substantial price difference, look beyond that initial difference. There's more to affordability than just figuring the mortgage payment and average utilities-there are factors that you may not consider and there are unanticipated expenses that will almost certainly arise.

While it's impossible to predict the future, and no one can guess if your plumbing or heater is going to fail this year, it's certainly possible to make an educated guess at how much living in a home will cost. Your Realtor can help you sort through these expenditures; this is the key to determining your buying power.

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

This column was published in the 28Dec08 edition of the Galveston County Daily News

You're only a couple of days from closing on your new house and everything is almost official. Buying a home is such an exciting experience. There's only one thing left to do - conduct a final walk-through inspection of the property. This allows you to reconfirm the condition of the house prior to closing. Don't let your excitement or the hectic pace of today's lifestyle deter you from performing this final task. Before you grab your pen and head to the closing table, spend an hour or so poking around the property.

The purpose of the final walk-through, which can take place anywhere from two days to a few hours before closing, is to make sure the property is in the condition you expected when you signed the purchase agreement. This includes verifying that all agreed-upon repairs have been made, no damage has been done to the property, and all items included in the sales price - sheds, draperies, light fixtures, fans, appliances, etc. - are present and in satisfactory condition.

Much can happen from the time your offer was accepted until closing-especially if the property has been vacant for long period of time. Uninhabited houses can quickly fall into disrepair if they're neglected. In addition, although unfortunate, vandalism and theft can take place in unoccupied houses. It may be vandals breaking windows, transients seeking shelter, or thieves checking for anything of value, like copper.

Even if the house has been occupied, you should not skip the walk-through. What if the seller removed a ceiling fan or left junk in the attic? What if a wall or the floor was damaged when the seller was moving out? The bottom line is it pays to do this walk-through because you don't know what you may find.

Many sellers willingly fix problems that they may have overlooked in the chaos of moving or during the time a home was vacant. It's beneficial for both parties to proceed with the transaction-and that's important to consider. Any snags with completing the exchange can add time and cost everyone money.

Delays may be more than just an inconvenience to both parties, though. As a buyer, you may have a lock on an attractive interest rate that is set to expire. The seller might not be able to buy their next home because they need the proceeds from this home sale to finalize the deal on their new home.

In some cases, the seller may still be in the process of moving out and could actually be there during your final walk-through. If this is the case, you may be able to get some valuable information from him. He may offer the product manuals for appliances, or suddenly remember a useful tip about the house or neighborhood. See if you can get the contact information of any businesses or contractors who have done work on the property.

When you show up to the walk-through, you should have a copy of your purchase agreement, the seller's disclosure form and reports about any work that was done as a part of the contract. It may also help to have a friend or your spouse with you. If two heads are better than one, then four eyes are better than two.

Don't neglect your final walk-through. Take the time and verify that everything's right with the house. If you do find something unexpected, talk to your Realtor. Some items may be taken care of at the closing table with financial considerations; in other cases, perhaps some other agreement can be reached.

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://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

This column was published in the 21Dec08 edition of the Galveston County Daily News

I find that some potential homebuyers are hesitant to make a home purchase right now. Is this with good cause?

The national scene

Real estate continues to dominate the news these days. We know that gloom and doom grabs attention, and to be honest, there are people in trouble, particularly in California, Florida, the Las Vegas area, and parts of the Northeast. Although these areas are outside of Texas, it has probably not escaped your attention.

There were several factors that played into the situation in these hard-hit areas: easy credit for high-risk borrowers, 100 percent financing, too much speculation/investment/quick flips, and too much new construction inventory to name a few. The real estate industry tends to be cyclical in nature anyway, and these factors exacerbated a mild price correction after many years of unprecedented growth in those areas.

So, is now a good time to buy here?

It's extremely difficult to outguess housing markets. Turning points are seldom evident until after the fact and national trends may be meaningless in local markets. You may wait for prices to go down, but prices might have already hit their lowest point. In the meantime, you could be costing yourself money, either by not building equity or not taking advantage of a very good interest rate.

So is it a good time to buy? It really depends on your situation. If you plan to be in your house for more than a few years, it's probably to your advantage to buy, regardless of the condition of the market. Remember, it's not so much what's going on in the market; it's more about what's going on with you.

Interest-ing

Interest rates are just as important as the sales price - maybe even more so. Consider that any reduction in interest rate provides you with more buying power. That means that someone who gets a lower interest rate could purchase a more expensive home and expect roughly the same monthly payment as someone who gets a higher rate on a lesser home. My point is that you can't look at only one factor. If the price of homes goes down, but interest rates go up, was it really worth putting off your purchase?

Why you should buy

Very simply, buying a home is the only investment that you can make while paying for a necessary expense - housing. Any other investment is financed with discretionary income. What do I mean by that? Name one other example of money you spend every month on which you'll see a return on investment. Gasoline? Food? Utilities? Rent? Not one of them. Putting money towards purchasing a home, instead of renting, will help you build wealth.

Are there fluctuations, corrections and short-term risks? Of course there are - as there are with any long-term investment. Historically, though, real estate has shown slow, steady appreciation, and we have absolutely no reason to think that will change.

In addition, there are tax incentives for homeownership. Mortgage interest deduction can be significant, especially in the first few years of a loan. Additionally, in late 2007, lawmakers extended a tax deduction for private mortgage insurance, which lets homeowners take an itemized deduction for PMI on a personal residence.

Homeownership has obvious financial benefits, but there's more to it than that. There are strong non-financial benefits to owning a home for you and your family. It's positive for our communities and our nation as a whole. Many studies confirm that communities with high homeownership rates have lower crime rates, higher student test scores and more involvement in local affairs. Being a homeowner provides stability and gives you a strong stake in the future of your neighborhood.

Realtors know the value and joy of owning a home and we understand the financial advantages, as well. If you have any questions or are hesitant about taking the leap, contact a Realtor for professional advice and representation. You can learn more about why buying a home is a shrewd and sensible investment for most people.

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

This column was published in the 14Dec08 edition of the Galveston County Daily News

If you don't have a dog, send it to your friends who do....because even tho the product is off the pet store shelves, you may have an old one at home.

On Sunday, June 22, 2008 a 1 0-year old lab mix, Chai, sustained a severe injury from a product that the company Four Paws Inc, produces. The toy I'm referencing is the pimple ball with bell. (Item #20227-001, UPC Code 0 4566320227 9)
.

While chewing on the toy, a vacuum was created and it effectively sucked his tongue into the hole in the ball. From speaking with my vet, this likely occurred because there is not a second hole in the ball preventing the vacuum effect from happening. I became aware of this when Chai approached a friend at my home whimpering with the ball in his mouth. She tried unsuccessfully to remove the ball but the tongue had swollen and could not be released.

Chai was taken to the Animal Medical Center (an emergency care facility in New York City ) and was treated by Dr. Nicole Spurlock to have the ball removed. Because the size of the opening on the ball was so small, all circulation to his tongue was cut off. The doctors had to sedate him in order to remove it. Once the ball was removed, his tongue swelled to the point that he could no longer put it in his mouth. Chai was sent home with care instructions and to be observed overnight for any changes.

By the following morning Chai¢s tongue had swollen even more.

He was taken to his regular vet, Dr. Timnah Lee, for treatment. He was admitted and kept sedated for a period of three days during which time they were treating his wounds and waiting to determine how much of his tongue could be saved. On June 26, 2008 Chai had his tongue amputated.

He was kept in after-care for an additional three days. On Sunday June 29th Chai went home from the vet with a barrage of home care instructions, to last for an additional 7 days. His next visit was to have his mouth re-examined and have the feeding tube in his neck removed.

On the way home from the vet they stopped at Petland Discount where he purchased their product to speak to the manager on duty. Upon meeting Chai and seeing his condition, he removed all of the balls in question from the shelves. He also gave them the customer service number to their corporate headquarters to request that they refuse to continue purchasing all Four Paws products, but we have not called them as of yet.

Houston Association of Realtors^® Announces Support for

Joan Huffman for Texas Senate, District 17 for the December 16 Runoff Election

HOUSTON - (December 3, 2008) - The Houston Association of Realtors^® Board of Directors announced its support for Joan Huffman for Texas Senate, District 17 for the December 16 Runoff Election.

"Joan Huffman is a very thoughtful and caring person who shares Realtors^®' concerns about the effect runaway property taxes are having on Texans being able to purchase a home and having the ability to stay in it after they have purchased it," said HAR's Political Affairs Advisory Group Chairman John Nichols of Prudential Gary Greene, Realtors^®-Stacy Mathews. "She is also pro small business as are the vast majority of our Realtors^® members. We believe that she will always have an open door and will be receptive to our concerns on real estate issues and private property rights."

Brazoria, Chambers, Fort Bend, Galveston and Harris County area Realtors^® are involved in the political process at all levels, promoting policies and supporting candidates who advocate for private property rights and homeownership in the greater Houston area, including Brazoria, Chambers, Fort Bend, Galveston and Harris Counties. Texas ranks 45^th out of 50 states in homeownership while Houston ranks 71^st in homeownership out of the 75 largest metropolitan areas. Electing lawmakers who understand homeowners' concerns and act accordingly is the Association's top priority.

Early Voting is from December 8 thru December 12, 2008. Election Day is Tuesday, December 16, 2008.