Pearland Real Estate Expert

It doesn't matter if you've lived in your home for 15 years or 15 minutes-there's something about it you want to change. Maybe you want new appliances in the kitchen, or perhaps you dream of a 1,000-square-foot addition. Whatever your particular remodeling fantasy, consider not only how an improvement adds value to your home, but how it adds to your family's enjoyment of the house.

No sale

Do you plan to sell your home soon? If not, don't fall into the trap of considering only remodeling projects that you think some future buyer would want. You're the one who has to live there.

I'm not saying you should completely ignore how a project will affect your home's overall appeal. But if you want to convert the garage into a bedroom, don't add a deck instead because you think that's where you'll see a better return on your investment with buyers.

Get your money back

If you anticipate putting your home on the market in the next few years and want to make a splash with improvements, Remodeling magazine's "Cost vs. Value Report" offers a lot of helpful advice. Keep in mind that the majority of remodeling projects cost more than the amount your home's value will increase. However, some types of projects come closer to paying for themselves than others. This report provides an estimated percentage return at resale on 29 different types of remodeling projects.

The big winners?

It's not much of a surprise that money invested in bathrooms and kitchens generated the best return in Texas. According to the report, a bathroom remodel recouped 90.9 percent of dollars invested and a kitchen remodel recouped 88.3 percent. New windows, new siding and the addition of a deck were close behind-and topped the nationwide list-but buyers in this part of the country want shiny new bathrooms and kitchens.

 Space is in the eye of the beholder

I've never heard of someone remodeling his house in order to decrease its square footage. However, when contemplating a project, consider how it will affect the perceived amount of space. Taking part of a large bedroom to create a home office may work for you, but will it make both rooms seem small?

 Don't be odd

The value of improvements can vary from city to city and even neighborhood to neighborhood. One constant, however, is that odd projects won't ever increase your home's appeal in the minds of most buyers. If you plan to stay in the same house for years to come, go ahead and turn your living room into a replica of Reliant Stadium. Be aware, however, that if you do have to sell, potential buyers-even most Texans fans-will see that as a drawback.

Ask for help

The report from Remodeling magazine is a good place to start. But for specific advice about how a room addition or other improvement may affect the resale value of your home, ask a Realtor. If you're already planning a move, a Realtor can even help you choose projects that might help your home sell faster.

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 31Aug08 edition of the Galveston County Daily News

A contract is signed and buyer and seller are excited. But both parties should take a deep breath, because there's still a long way to go. Unfortunately, sometimes real estate transactions that begin smoothly unravel for any number of reasons. When you're aware of these potential problems, it's possible to avoid them.

A buyer is entitled to change his mind

The residential contract includes a termination option. A buyer pays for that option as a means to get out of the contract for a certain number of days. The amount the buyer pays and the option length are negotiated by the parties. The buyer's right to terminate the contract during the option period is unrestricted. That means he can call the whole thing off for any reason whatsoever. A prospective buyer may get cold feet, change his mind, find a different property he prefers or discover something about the property he didn't know when he negotiated the contract. Or he doesn't even have to give a reason.

Upon closer inspection ...

Speaking of learning new information about a property, most buyers hire a professional inspector to thoroughly examine the home and identify problems. Most of the time, this occurs during the option period. When an inspection turns up something significant, the buyer may decide to exercise his option or decide that he wants to proceed. He also may try to amend the contract, either by changing the price or by getting the seller to make repairs at the seller's expense. Obviously, this introduces elements that can disrupt the transaction or terminate it altogether.

Show me the money

It's not enough for a buyer to tell the seller how much he'll pay for the home. If the purchaser isn't able and willing to pay cash for the property, he will need a mortgage. And if he can't get that financing, the deal is off. What happens next when a buyer cannot secure a loan depends on how the contract was filled out. In some instances, the buyer may be on the hook for the earnest money - sort of a good-faith deposit - he paid. In other cases, the buyer will receive a refund of the earnest money.

It's just not worth it

Even if a buyer can qualify for the loan amount, the property may not. That is, most lenders require an appraisal of a home prior to making a loan. The lender wants to know that the collateral for the loan - the property itself - is actually worth the purchase price.

What's in a title?

Some homes have title problems that can stop a transaction in its tracks. Perhaps there's a lien on the property or an easement that affects the property owner's quality of life. There may even be a claim that the person selling the home isn't the true owner after all.

The list goes on ...

As you can see, there are many ways a promising real estate deal can collapse. Add the following to the list above: agreed-to repairs that the buyer deems unsatisfactory (or that aren't made at all); a surprise during the final walkthrough of the home, such as an item that was supposed to convey that is no longer in the home; a sudden request right before or at closing; and plain-old default. Whether you are a buyer or seller, your Realtor can help you avoid these scenarios and give you sound advice when a potential deal-killer does arise. Sometimes, your Realtor may suggest you turn to a lawyer, inspector, engineer or other professional for assistance; other times, your Realtor may be able to put things back on track with a phone call or two. Either way, it's comforting to have someone on your side to help you achieve your goal of buying or selling a home. For more information, please visit TexasRealEstate.com or HAR.com.

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 24Aug08 edition of the Galveston County Daily News