Pearland Real Estate Expert

You found a home you'd like to buy. Now how do you put together an offer the owners will accept?

Start with a number

Obviously, the amount you initially write into the contract has much to do with whether the seller looks favorably on your offer. How do you come up with that figure? There are several factors to consider.

You will want to determine how the home compares to similar properties in the area. The most reliable way to make this evaluation is to look at homes that sold recently in the same neighborhood. Market conditions and property values can change rapidly, and what a home across town fetched has little to do with what this property may be worth.

You would expect to pay less for a home that's smaller than the neighborhood average, but there may be other variables to take into account. A smaller property with desirable upgrades can be worth more than a larger house that needs significant updating.

What type of market you're in also plays a part. If you've lost out on three bidding wars because of a strong seller's market, you will be more likely to make an offer at or above the asking price. A buyer's market gives you a little more leeway. Keep in mind, though, that it only takes one other offer to knock you out of contention.

The amount is just the starting point

Hitting the seller's "magic number"-the amount at which he or she is willing to sell-does not guarantee he or she will accept your offer. Several other aspects of your offer can improve or sink your chances.

For starters, the homeowner will look at the amount of earnest money in the proposed contract. A higher number shows your seriousness about this purchase and may place your offer above other similar offers.

Some sellers may have a strong preference for when they close on the sale. If you can meet their timeline, your offer gains strength.

When you can help it, stay away from contingencies. When you can't help it, make those contingencies as moderate as you can. Why? Put yourself in the seller's shoes. Even a slightly lower offer may be more attractive than a higher offer that's contingent on the buyer first selling his or her own home.

The more you ask for from the seller, the weaker your offer. That's not to say that you shouldn't make a purchase contingent on selling your home first, or that you shouldn't ask for the patio furniture to convey if that's important to you. Just know that each request may take a bit of luster out of your offer.

Give yourself options

There's a provision in the standard residential contract that enables you to pay an amount for an option period. This period gives you the ability to conduct inspections and otherwise evaluate whether you want to proceed with the transaction. If you choose, you can terminate the contract for any reason during the option period. The amount of the fee and the length of the option period are negotiable.

While you don't want to propose an option period that's so long the seller will turn down your offer, be sure to give yourself enough time to schedule inspections and weigh your decision before moving forward.

Many factors combine to make an attractive offer. Your Realtor can help you determine how to put together an offer that gives you the best chance of buying the home you want at terms that are favorable to you.

Whether you're interested in buying your first home, your next home, or just want to know more about homeownership 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 27July08 edition of the Galveston County Daily News

What to avoid when pricing your home

People often make a critical mistake when deciding on a price for their home. Rather than answering the question What is my house is worth?, they answer What is my house worth to me?. The difference between those questions is more than two words. Focusing on the correct, objective factors to determine the value of your house will yield a price that's in line with what the market will bear - and usually results in a quicker sale.

So what doesn't matter when you price a home?

What you paid

Unless you bought your home a month ago, your sales price has no bearing on what a buyer should pay. The real estate market changes constantly.

How much you spent on repairs

You just paid $2,000 to fix the plumbing? Good for you. Buyers will no doubt appreciate that there is now hot water in the master bathroom. That doesn't mean, however, that you can add the cost of your repairs to your asking price. Running hot and cold water in a home is generally considered a given, not an enhancement that increases the price.

What a home just like yours sold for ... in a different location

The same builder who constructed your house may have built 300 identical ones across the state. However, unless the other 299 are on your block, their sales prices do not affect the price of your house.

What a home just like yours in your neighborhood sold for 18 months ago

Again, real estate markets change constantly. It's useful to know the sales price of that house, but take it in the context of what's going on today. Maybe your area was a seller's market then, and that price was the result of a bidding war. If your area now is a buyer's market, you likely won't approach that price.

How much you need to purchase your next home

Whether you're flush with cash or broke, your home is worth the same. Your financial situation isn't relevant to a buyer.

Your 25 years of memories in the house

Those memories are priceless to you and worthless to everyone else.

What the Web says your home is worth

Web sites that estimate your property's value offer a good starting point when you're trying to decide on an asking price. Most home-valuation Web sites will tell you the same thing themselves - that their information is just a starting point and no substitute for specific market knowledge in the area.

So, what does matter when pricing your home? Among other things, the condition of your home, any recent upgrades, and the prices of comparable properties selling in the area all affect what you can ask for your property.

The best way to determine what to ask for your house is to do some homework, get as much information as you can, and sit down with a Realtor to help you arrive at an accurate valuation.

Whether you're interested in buying your first home, your next home, or just want to know more about homeownership 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 20July08 edition of the Galveston County Daily News

I think this has to be on of the best Ideas of the year....  We are all fed up with both parties and really have little to chose from if you are a true conservative...  But I digress.. Vote your heart and we will make it through it no matter what...

There are two times when you should pay particular attention to home maintenance: before you buy the home and when you're selling it. Oh, and all the time in between as well. Yes, taking good care of your home is essential if you want to preserve the highest possible value of your property and ensure that you get the most utility and comfort from your residence.

Start before you begin

What's this about maintaining a home before you even own it? The point is to factor in maintenance decisions when searching for a property. Decide early on if you want to spend time and money to keep up elaborate landscaping or if you prefer something that practically takes care of itself. You may find that a condo suits you better if you want a low-maintenance lifestyle. If you want a house on a large lot with lush gardens, make sure you are prepared to spend what it takes to water it and keep it looking good.

Also make sure to have the property professionally inspected. You will get information on what systems need repair or attention right now. You can make your own observations and ask questions to ascertain what expenses might be necessary in the future, too. Take into account the lifespan of various materials and systems as well. For example, some roofs are meant to last 15 years, others are intended to hold up as long as the house. Natural wood siding typically requires periodic repainting; brick and stone do not.

Don't get too used to that drip

When you own a home, it's easy to let little problems slip to the bottom of your to-do list. After all, that leaky faucet isn't really hurting anyone. This deferred maintenance, as it's sometimes called, comes at a cost, though. For starters, something like a leaking faucet does cost money in the form of higher water bills. And some minor problems can turn into major problems if left unattended. Which would you rather pay to repair - a sink faucet that's not working properly or a floor ruined from the leak from the sink faucet that you should have repaired months ago?

Chances are that you will fix these items when you prepare to put your home on the market. If you're going to pay for them anyway, why not take care of them when you can enjoy the benefits of the repair?

It's not too late

So you put off some maintenance that you should have tackled long ago, and now you're getting ready to sell your home. You have a choice to make. You can catch up on all those deferred maintenance projects - replace rotten boards, paint trim, swap out the broken light fixture in the closet with one that works, get someone to do something about the windows that are painted shut, and so on. Or you can leave things as they are. If you choose the latter route, you need to understand how that affects the marketing of your home.

Many buyers today want a home that's in "move-in condition." Those who are willing to overlook some faults here and there will expect to pay less for your home than a similar property in top condition. Rightfully so. But be prepared that you probably are not looking at a dollar-for-dollar trade. That is, if your home needs $20,000 worth of work to get it in shape, a willing buyer will want more than $20,000 "discount." That additional amount is what makes it worthwhile for someone to spend their time and energy working on the home.

If you're getting ready to buy or sell, your Realtor can discuss with you how maintenance issues will affect your decision and costs.

Whether you're interested in buying your first home, your next home, or just want to know more about homeownership 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 13July08 edition of the Galveston County Daily News