Lee Morof's Real Estate Blog

The Troy Michigan real estate industry is full of numbers and metrics that can influence your home for sale. Here are just a few you need to know before putting your house on the market:

1. Pricing – Is your Troy Michigan real estate worth more than you bought it for? Even now, it’s a possibility. Check the average sales prices for the homes in your area, neighborhood and street. You might be pleasantly surprised. Contact your local agent for the information.

2. DOM – Days on Market is the time period a home sits on the market before closing. Currently, the average days on market in almost any area are rather high, but the actual metric may change depending on the price of your home. If you’re faced with a timeline and have a set goal for the sale, the average days on market for your area is a number you need to know. Again, you can ask your local real estate agent.

3. List Pricing – The average list price tells you how much your competition is going for. If you’re trying to sell your house way above the average list price, it probably won’t leave the market.

4. Competition – How much competition do you really have? How many “For Sale” signs are up? The higher the inventory, the lower your chances of selling the home quickly.

Of all the numbers to know, these are at the top. As every agent knows, the best way to sell Troy Michigan homes is to do the research – and then hire a proven Troy Michigan real estate agent!

If you want to sell your home and need current information, I can help. Call me now at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

New Years is just around the corner, and for many with Royal Oak Michigan homes for sale, it’s the perfect time to make some resolutions. Let’s be expansive, though, shall we? Don’t say, “I will sell my house by April.” We can be more specific than that. Here’s a short list of resolutions that might help you take that home off the sales shelf:

1. Resolve to look over the competition. Not just one or two of the Royal Oak Michigan homes for sale, but ten or eleven. Look at them with the buyer’s mindset. What selling points do they have? What negative points do they have? Your goal should be to outshine the competition. You can’t do that if you don’t know what the competition is.

2. Resolve to do a little home improvement. These don’t have to be big projects. Your project could be as simple as adding a few bushes for better curb appeal. You don’t have to spend a lot of money or a huge amount of time for the home improvement to count. What you do have to do, however, is make the improvement count. In other words, don’t forget to walk buyers past whatever you’ve decided to do, or tell your real estate agent about it.

3. Resolve to check with your agent about the state of your home. Not when they think it will sell, but what you can do to up the value. Remember, “value” is a relative term. Upping the value for buyers may be as simple as cutting $5,000 off your price.

4. Resolve to be calm if a buyer suggests a lower price than you want. Consider the options fully – don’t just snap his or her nose off. Can you afford to let the house go at the offered price? If you can and still want to say no, think about it… how long did it take to get this potential buyer? Can you afford to wait longer?

If you have one of the Royal Oak Michigan homes for sale, keep in mind that it’s just one of the homes for sale. You have an amazing amount of competition; not just here, but around the nation. Take a chance to do something a little different. Your New Years may turn out to be even happier than you expected!

If you’re looking for unique ways to sell your home, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

Every year I order the results of the National Association of Realtors (NAR) Survey of Home Buyers and Sellers. I am particularly interested in How the Buyer Found His or Her Home in the last year because that determines where my marketing efforts will go to sell the homes that I list.

Because the numbers pertaining to open houses are so dismal, it is no longer a category in the survey results. I do understand that open houses were more successful before personal computers and the internet but now, approximately 90 percent of buyers begin their home search on the internet. Thirty six percent will find their home on the internet, another thirty six percent will find their home through the help of a Realtor, twelve percent from a yard sign and six percent from a friend, neighbor or a relative. That covers ninety percent. Another five percent, will purchase new construction from a home builder or the builder’s agent.

So why do some Realtors continue to do open houses? I find that generally two types of Realtors continue to do open houses despite the numbers.

1. The first category is the Realtor who has not adapted to the internet. He or she refuses to accept that it is here to stay and plans to retire in the next few years, so why bother?
2. The other category is the new and inexperienced Realtor.

Both categories of  Realtors have just a few listings and hope to acquire some buyers from the open houses. The reality is that qualified buyers who are looking for a home such as the one listed by the Realtor will find it from the top sources listed above and either call the listing agent or have his or her own Realtor schedule a showing

Open houses are also a HUGE security risk for the sellers and the Realtor. We all have been notified by our Boards of murders, robberies, rapes, etc. that have occurred at open houses. Let’s face it. A Realtor has no control over who is coming through the door at an open house. By doing so, you are leaving the door wide open to those who have motives other than buying a house. Besides those who intend to do harm to a Realtor, you invite nosy neighbors, people looking for free food or a bathroom, and burglars to see what the seller has inside the home for him to take when no one is home.

At every list appointment that I have, I advise the seller prospects about the facts of open houses. Almost all of them, after being given the facts,, respond with “That’s great. We were worried that you would want to do open houses and we are not comfortable with idea.”

Since I have been doing this in listing appointments, I have never had a seller insist that I do open houses. If I do, I will pass on the listing. A seller who refuses to accept the facts, will probably be difficult when it comes to the many other things that come with selling a home such as pricing, taking care of the home, etc.

I sell approximately 85% of the homes that I list. I am not a “mega” lister. I am interested in the quality of the seller and his or her home they want to sell and its price. When other Realtors are doing open houses, I am doing things that are much safer and productive like showing homes to buyers who contact me through the internet or yard signs or just having some me time.

If you’re thinking about selling your Southeast Michigan real estate, give me a call at 248-514-2640 or email info@NorthWoodwardHomes.com for more information.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

Oh, the dreaded/happy DOM question. “How long has this house been up for sale?” If it’s your Royal Oak Michigan home for sale we’re talking about, you’re probably wondering about the split “dreaded/happy” bit. For that matter, whether you’re a buyer or a seller, you’re probably asking, “what the heck is ‘DOM’?”

Days On Market
“DOM” is the shortened industry term for Days on Market, used by the multiple listing services (MLS). It’s exactly what it sounds like: the number of days your Royal Oak Michigan home for sale has been on the market. This metric covers the time it actually goes on sale to the time the deal is closed.

Why Is DOM Important?
Remember the “dreaded/happy” part at the beginning of this article? As a buyer’s agent, I might gleefully answer, “Fifty days.” I say “gleefully”, because a house that has sat on the market for a long time is a good thing for my client. The seller is probably more eager to sell than a month before, and is most likely willing to work a deal. An eager seller makes a happy buyer in most cases.

On the other hand, as a seller’s agent, I might not be so happy about it, and for the same reason. My seller is now an eager seller. I want to get the best deal for my client, but I know the buyer has the upper hand. It is then up to me to help my client get the home sold without giving away the barn, the pool, the tool shed and the tools.

Already, you may be beginning to understand how the Days on Market metric can affect the sale of your home.

The problem with the DOM metric is that it causes buyers and agents to build false assumptions. If a home has been on the market for an above-average length of time, we start to wonder, “What’s the matter with that listing?” Even though I know there are other reasons for a home to go static and not sell, many people automatically think there’s something wrong.

Although you can’t force a house to sell, you do have control over some of the reasons for an extended DOM metric:

• The home may be overpriced – Nothing is wrong with the property itself; it’s just priced too high.
• Testing the market – Although it’s a big mistake and agents will tell you so, some sellers test the market by throwing a high price on a home they don’t care if they sell – just to see if somebody is foolish enough to take it.
• Sticking to your guns – Often, sellers get fixed on a price and won’t budge, come hell or high water. They figure they can wait around until the market can meet their price, not the other way around.
• Renovations – Sometimes, a home will go on the market in the middle of renovations. The sellers aren’t ready to let the home be seen, so it just sits there.
• Availability – A growing problem is the lack of access to Royal Michigan homes for sale.  Sadly, agents and FSBOs alike seem to be unavailable when a buyer wants to view the home. Obviously, no viewing means no sale.

Don’t let your DOM get high because of simple mistakes. If you’re serious about selling your home, remember the five reasons above and make sure you aren’t doing them.

If you’re ready to sell your home with a professional who understands how to keep the DOM to a minimum, give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

As the number of foreclosures rise around the nation, some lenders have held their Michigan foreclosures in private stock, hoping to sell them gradually in a stabilizing real estate market. That hope has slowly dwindled, however, even with the five-month extension on home buying tax credits  signed by the President November 6th of this year.

Government-owned Fannie Mae may have come up with a solution.

Deed-in-Lieu
Some homeowners facing a Michigan foreclosure have more options than foreclosure, loan modification or a short sale. Some qualify for a deed-in-lieu (DIL), where they sign away all their equity back to the lender and walk away “debt free” (except, possibly, for taxes). Unfortunately, a DIL leaves the homeowner without a home to live in, and the lender with a house to sell in an uncertain market.

Deed for Lease Program
Under Fannie Mae’s new Deed for Lease Program (D4L), those who go through the DIL process may be eligible to rent their home back from Fannie Mae at current market rental rates. This may not sound like a great deal, but many families have ended up on the street because of foreclosure. Those who qualify for the D4L Program will be able to remain in their homes for at least 12 months. To learn more, read the entire D4L Program eligibility list.  Here are a few of the qualifications:

• No prohibitive Homeowner’s Association rental limitations
• The cost of any required repairs is an acceptable amount, based on the value of the property
• The income the lender receives from the current rental market should be expected to cover any maintenance/management costs
• The current rental rates must be less than 31% of your gross income
• The home must be a primary residence

Whether the D4L Program will help or hinder the number of Michigan foreclosures is still up in the air, but it does give homeowners other options – something they’ve been sorely lacking.
 
If you’re facing foreclosure and qualify for short sale, I’d love to help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

During this festive season, owners of Troy Michigan real estate have thoughts that turn to giving gifts, baking delicious treats and visiting friends and family. However, there are others who think about unoccupied, gift-filled houses.

Don’t give a thief a chance this year.  Safeguard your Troy Michigan real estate for the holidays by following these tips:

Holiday Safety at Home

• Keep all doors and windows locked, even if your step out for a moment.
• Videotape valuables so you’ll have a record of ownership.
• Inspect all holiday lights for frayed wiring before your hang them.
• Beware of strangers coming to the door asking for charitable donations. Ask for identification, if donations are tax deductible, how the funds will be used. If you are not satisfied, don’t give. Instead, help a charitable group you know.

Holiday Events Away from Your Troy Michigan Home

• Turn on lights, a television or radio so that it appears that someone is home.
• Lock all doors and windows.
• If you have a home alarm system, use it.  Alarm systems are only useful when they’re activated.
• Holiday gifts should not be displayed where they can be seen from the outside.
• Never leave keys under doormats, flowerpots or other “secret” hiding places — burglars know where to look for hidden keys.

Holiday Travel 

• Secure all doors and windows including your pet doors.  Burglars can gain access to your premises from amazingly small openings – including cat doors. Secure all pet doors and remember to lock every single window and door, including those on garages and exterior buildings or storage sheds.
• Ask a neighbor to watch your house and pick up any packages left for you.
• If you leave your car at home, park it where you normally would.
• Use automatic timers for your interior and exterior lights.
• Stop your mail and newspaper deliveries.
• Arrange to have snow shoveled (if necessary) while you’re away.
• Notify your local police department and leave a number where you can be reached in case of an emergency.

Take the time to be safe so you can relax and enjoy this wonderful time of the year.

Happy Holidays to you and yours!

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

Have you heard of the first-time homebuyer’s tax credit extension? Last month, President Obama signed the extension to help first-time homebuyers (who didn’t get their sales in by November 30th) buy a house that meets their needs. What about those who already own Bloomfield Hills real estate, are doing well and want a larger home?

To those who already own a home, Merry Christmas! The Workers, Homeownership and Business Assistance Act of 2009 didn’t just come with an extension; it came with improvements. Those in governmental positions of authority reasoned that if someone wanted to get a bigger home, they should get some kind of help too, thus further helping the overall real estate market.

If you own a home, you can now receive up to $6,500 in tax credits for buying Bloomfield Hills real estate for sale, either a single-family home or condo. The actual wording is “$6,500 or 10%.” Here are a few of the important points you need to know:

• Income Qualifications – Your modified adjusted gross income (MAGI) as a single taxpayer must be less than $125,000 ($225,000 if you file jointly). Partial credit may be received by those with a MAGI of less than $145,000 (single) and $245,000 (jointly).

• Home Ownership Qualifications – You must have lived in the home you own for five consecutive years out of the past eight to qualify. You do not, however, have to currently own the home you’re using to qualify. The key terms are “five consecutive years” and “in the past eight years.” If you lived in your home for five years straight, but sold it two years ago, you are still eligible for the tax credit. If you’re filing jointly with a spouse, both you and the spouse have to qualify.

• Cost Qualifications – The cost of the home doesn’t have to be more than the home you already own, but it does have to cost less than $800,000. As a side note, the government has put a definitive cap on the housing costs. If the home you’re looking at is a solid, non-negotiable $801,000, it isn’t eligible for the credit.

• Purchase Date – The final date for the purchases to be secured is April 30, 2010. The actual closing date must be finalized before June 30, 2010.

Most couples move into a home thinking they will “eventually” get a bigger home once they have a family. Then the family comes along, the house is full and they can’t buy a larger home due to financial issues. The tax credit is a perfect opportunity for families to find Bloomfield Hills real estate that will fit their expansion needs. Take a chance and look around; your dream home may be only a city block and $6,500 away!

If you’re looking to expand and take advantage of the tax credit, I can help.  Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

Few questions are more important this time of year for owners of Southeast Michigan real estate than which Christmas tree to buy for your home.  There are some things to keep in mind when looking for the perfect Christmas tree, here are just a few:

Real Or Artificial Tree?
Real Christmas trees require some care; if you’re planning to travel this holiday season, you may not want a live tree.  You must water the tree to make sure that it doesn’t lose its needles before Christmas day.  The live trees are not fire resistant, the dried out pine needles can get too hot from the lights and may burst into flame.

On the other hand, there isn’t any up-keep with an artificial Christmas tree,  and many look quite realistic.  The plastic Christmas trees have an added bonus of being flame retardant.  Then, there’s the convenience of not having to go out in the cold weather to pick the tree out.

For those of you who can’t imagine Christmas without the pine needle smell, you can buy air fresheners that mimic the smell of fresh cut pine.  For some, an artificial tree is the best of both worlds.

How Big Is Too Much Tree?
Now that you’ve decided what kind of Christmas tree to buy, you have to find out how big a tree you can fit in your home.  It could be that the only thing limiting the size of your Christmas tree is your budget; in that case, your decision is easy. 

However, if you’re limited on space, you’ll need to decide the best place to put your tree first.  Try to think of how the area will “frame” your Christmas tree.  Consider how much traffic goes by the area and whether there will be enough room for the presents to stay safe. 

Break out the measuring tape so you don’t have to guess when you’re on the Christmas tree lot; trees look deceptively small on the lot.  Or, if you opted for the fake Christmas tree, you’ll know exactly which box to pick out; just look for the right size.

Want to buy Southeast Michigan real estate, maybe a single-family home or condo that has space for a bigger tree?  I can help.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

Real estate aficionados who follow the upswings and dips in the Troy Michigan real estate market were worried that the end of the first-time homebuyer’s credit would mean an end to housing sales. Sales were up, prices were down and the market seemed to be stabilizing – thanks, in large part, to the tax credit.  The tax credit motivated potential homebuyers to become actual homebuyers, which kept home sales stable.

Fortunately, those worries were groundless.  President Obama signed a five-month extension on the first-time buyer tax credit November 6th. The Worker, Homeownership and Business Assistance Act of 2009 covers quite a few new bits of housing legislation:

• Extends the first-time tax credit until April 30, 2010
• Expands to include those homebuyers that haven’t owned a home in three or more years
• Allows first-time buyers that are overseas military personnel to take advantage of the credit until May 2011
• Requires documented proof that the buyer actually bought a home
• Changes the credit amount from $8,000 to “$8,000 or 10% of the home’s value”, whichever is less
• Sets the qualification guidelines at $125,000 a year or less for individuals and $225,000 or less for couples (credit amount becomes a scaled decrease above these income levels)
• Requires a minimum age of 18 for those applying for the tax credit
• Adds $6,500 tax credit for those that have lived in a home for at least five years, but want to buy a larger house

I think a lot of people want to own a home, and the extension of the tax credit can only help. As a result of the extension, buyers may take a little longer, peruse the Troy Michigan real estate market and make sure they’ll enjoy the home they buy. While I don’t see a long line of buyers standing in line, I do see the potential for long-term market stabilization.

If you want to take advantage of the new tax credit extension, I can help. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

More festive candles are used in your home during the holidays than at any other time of year, so it’s important to review the safety rules.  Here are few tips to keep your Bloomfield Hills real estate safe:

Candle Placement Preparation
It may sound silly, but you need to prepare before you light that candle.  First figure out where you want to place the candle in your home. 

• Find a heat resistant surface.
• Make sure there aren’t any books, papers, curtains, or bedding nearby. 
• Watch out for flammable holiday decorations. 
• Keep the candle away from windows and vents, and check for signs of a draft. 
• Place the candle where children and pets can’t reach and where it isn’t likely to be bumped into.

Getting Ready to Light the Candle

• Before burning the candle, review the manufacturer’s instructions.  Most recommend that the wick be trimmed to 1/4 inch before lighting.
• Make sure to use only approved candle holders.  Using an unapproved glass holder could cause it to burst and send glass everywhere. 
• Place candles at least three inches apart so the additional heat doesn’t cause them to melt improperly.

Burning the Candle

• Now that the candle is lit, make sure to never leave it unattended.
• Watch the candle to see if it smokes or flickers a lot.  This could be a sign that the candle isn’t burning properly. 
• Leave about two inches of wax when you extinguish the candle.  Most manufacturers recommend that you don’t burn the candle all the way down. 

Putting the Candle Out Safely
The safest way to put out a candle is with a candle snuffer.  Don’t use your fingers or blow out the candle; the flame may travel and cause a fire.

• Never use water to put out a candle; the wax may splatter and burn you. 
• Wait until the wax is cooled before you move the candle.

Homeowners of Bloomfield Hills real estate find candles are a beautiful way to decorate for the holidays.  By following these simple safety suggestions, you can help to ensure that your holidays are happy and safe. 

If you’re interested in looking at Bloomfield Hills real estate and want to be in a new home or condo before the next holiday rolls around, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640