Lee Morof's Real Estate Blog

If you’ve recently applied for credit to finance a Troy Michigan real estate purchase, and were declined, you might be wondering why a lender would deny you credit.  Most lenders have a checklist of qualifications necessary to get approval for a home loan, and some don’t have anything to do with what your credit score is.  Here are the basic reasons a lender may deny a mortgage loan:

• Little or no credit.  You may be under the mistaken impression that no credit is better than bad credit, but you’d be wrong.  A blank credit history is not something a mortgage lender wants to see.  A lender needs some idea of how you make payments.  You can build your credit history by getting a department store credit card, and only using thirty percent of your available credit to make a purchase.  Making regular payments will soon add up to good credit, and lenders will look more favorably at your loan application.

• Bad Credit.  It’ll be difficult to find a lender that will approve a person with bad credit.  It’s not the end of the road.  You can improve your credit score with a little hard work and still buy that Troy Michigan real estate you want.  You’ll want to get a copy of your credit report from all three of the major credit bureaus.  If you have frequent late charges or many items in collections, you’ll need to call each company and arrange to get your accounts current.  You’ll be surprised at the difference each timely payment makes on your credit score.

• Credit-to-Debt Ratio.  Most mortgage lenders will decline a loan application if your credit to debt ratio is too high.  The ratio is figured by dividing the amount of credit available to you by the amount that you are actually using.  Using all or a high percentage of the credit available to you may leave the impression that you are short on money and will have trouble making loan payments.

Let me help you get on the road to a Troy Michigan real estate loan or other property in Oakland County.  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

When home values started dropping in 2007, a lot of homeowners panicked and immediately began putting their houses on the national and Bloomfield Hills real estate markets. The supply of homes for sale rose to a staggering amount and prices dropped lower, fueling more homeowners to “get out while they still could.”  However, as 2009 rolled to a close, a new trend that may mean a calming of the panicked markets began.

Meet the Nesters
During the real estate boom, house flippers popped up from everywhere. In fact, flipping houses became such a big industry that cable channel A&E began producing “Flip This House” for those who wanted to try it themselves. Houses had become financial investments, a way to build equity or even immediate cash. However, as prices dropped for national and Bloomfield Hills real estate, investors found their investments failing.

So, if you can’t build equity, you can’t invest and you can’t flip homes, what good are they? Ask the “nesters,” who’ve decided that a home is something to hold on to and a good investment anyway.

2009 showed a 20% increase in the first three quarters for home construction according to NAHB (National Association of Home Builders),  and another 8.7% increase in the last quarter of the year. The amount spent on remodeling in 2009 hit $114 billion by October. What are these nesters doing?

While some paying for remodeling are trying to raise the quality of their home to sell it, most are fixing it up to live in. Most people move to get more space, but these nesters would rather expand the place they live in than buy a new home. As well, many contractors believe the number of home improvement bids have gone up thanks to the $1,500 energy tax credit for raising the energy efficiency of a home.

Whatever the reason, the rise in nesters may mean an evening out of the housing supply. Although the national and Bloomfield Hills real estate markets may not stabilize immediately, a drop in the number of homes hitting those markets could make all the difference in a housing recovery.

If you’re looking for a beautifully remodeled 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

Valentine’s Day is just around the corner.  Are you wondering what to get your loved one? Buying Michigan foreclosures in Oakland County may not be on the top of your list, but maybe it should be. Do you need some extra room? Is it time to spread out? Are you a repeat buyer?

You’ve probably heard the term “buyer’s market” more often than you care to, but if you want to expand your living quarters, you might want to pay attention.

What is a buyer’s market?
The typical reply might be something like, “A buyer’s market is where the supply is greater than the demand; the heavier the supply, the stronger the buyer’s market.” What you really need to know is that a buyer’s market is heavily tipped in your favor. Mortgage rates, housing supply and negotiations are all pointed towards helping you find – and buy – the home of your dreams.

What’s so great about buying Oakland County Michigan foreclosures or other homes for sale now?
Whether you’re a first-time buyer or currently own a home and want to upgrade, there are plenty of reasons to get into the action now:

• Home prices are lower than they’ve been in 12 years.
• Foreclosures are going for rock-bottom prices as lenders try to make up their losses.
• The number of programs to help buyers get into a new home is higher than it’s ever been.
• Between government programs, lenders’ programs and private programs, the chances of getting into a home you can afford are high.
• Many sellers are eager to find qualified buyers. If you’ve been pre-approved for a mortgage, you have a better stance in negotiations.
• Mortgage rates are lower than they’ve been in a long time, but are slowly starting to rise again.

These are just a few of the reasons.

Why buy foreclosures?
Foreclosures are selling at much lower prices than other homes. In fact, many expect to save at least 30% when buying foreclosed property and that percentage isn’t unrealistic.

If you’ve been trying to figure out what to buy your Valentine, and you’ve been thinking about buying a home, look around at Oakland County Michigan foreclosures. Not only can you find a fantastic deal, but you’ll also be able to celebrate Valentine’s Day in a new home!

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

From national and Troy Michigan real estate to the U.S. economy, the predictions for 2010 are in.  Like any predictions, they vary from somewhat bright and cheery to doom and gloom:

CNBC’s Realty Check predicts:

• the beginning of a housing market recovery mid-year
• higher foreclosure inventory
• rising mortgage rates, probably leveling off around six percent
• suffering commercial real estate

The National Association of REALTORS®’ (NAR) chief economist is projecting:

• A sustainable recovery.  The tax credit expansion will help to relieve extra housing supply through mid-2010.
• A rise in existing home sales.  The NAR is expecting existing home sales to rise as high as 5.69 million, even with continuing unemployment issues.  That’s a 13.6 percent increase.

In fact, the U.S. forecasts for national and Troy Michigan real estate are overall positive for 2010.

Housing Predictor, one of the first places to predict the wave of foreclosures, also forecasts positive numbers for 2010.  They anticipate rising home sales, market improvement and even value appreciation for some places. Again, the magic period for the start of stabilization is the middle of the year.

Although no one knows for certain what will happen in the future – especially for such struggling sectors as national and Troy Michigan real estate – we can all gain a little hope from the 2010 forecasts. There is one thing that is fairly well agreed upon according to these predictions:  there will be a real estate recovery in 2010.

If you’re struggling 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

2009 was a rough stretch for many Southeast Michigan real estate sellers and buyers, but new reports hint at possible stabilization in the housing market that may prove beneficial for everyone. As 2009 rolled to a close and 2010 opened into a new year, economic and real estate reports poured out good news, but bad news wasn’t far behind. For each positive note, there is always that unavoidable “but”:

• Mortgage rates are holding steady below 5%, thanks to government intervention. Thanks to the low rates, more people are buying and refinancing. However, the downside is that banks are more reluctant to refinance or loan. This leaves many, who want to buy Southeast Michigan real estate, with the inability to do so. Ironic that, in a buyer’s market, it’s the banks with all the selling power.
• The other “but” is that the Federal Reserve program providing the low mortgage rates is set to expire in March. Rates could very well double shortly after, which is highly likely to drop the number of interested buyers. A drop in buyer numbers will only further shift the supply/demand ratio.
• As of December 10, 2009, the number of foreclosures in a month had dropped 16%, nationwide. The home buyer tax credit expansion, foreclosure prevention programs and loan modification programs have helped, as well as state mandated financing programs. As great as that is, there were still over 300,000 foreclosures in November, 2009, which is 18% higher than November, 2008.
• Home prices are “firming,” showing improvement over five consecutive months. Although the rise is considered mild, fewer homeowners are underwater, where they owe more mortgage than their house is worth. Because housing prices are improving, home sellers are more confident in the listing prices they’ve set.

However, many – who are currently unemployed – have ARM mortgages that will be resetting shortly. While they can afford their current mortgages, many won’t be able to afford a higher one. This could bring another round of foreclosures and another drop in housing prices.

What does all this mean for Southeast Michigan real estate buyers and sellers? As Ben Franklin put it, “nothing in this world is certain, except death and taxes.” However, there is also the famous “nothing ventured, nothing gained.” 2010 could be rocky, but, if you’re careful and do your research, you’ll find smooth sailing ahead.

If you’re trying to buy or sell a 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

Recently, I came across a show on the Bravo network. Three high dollar real estate agents push million dollar deals in the City of Angels, Los Angeles, California. I can’t say that it reminds me of when I was a new Troy Michigan real estate agent.

Called Million Dollar Listing, the show is a “docu-series” with three young stars:

• Josh Flagg graduated high school in 2004, stepped into high-end residential real estate, made several record sales and became one of Los Angeles’ best agents.
• Madison Hildebrand graduated from Pepperdine University, sold his first home to a celebrity and now sells homes as high as $20 million.
• Chad Rogers got his real estate license at 18, rose through the ranks and is currently working for a prestigious real estate brokerage.

What does all of this have to do with being a Troy Michigan real estate agent? Nothing – and everything. Watching the show, I can’t help but think, “If these young bloods can sell a $20 million dollar house in Beverly Hills, in this economy, we can certainly sell $143,308 homes here.”

Okay, so they’re selling to a lot of celebrities. And, yes, people in Beverly Hills and the surrounding counties are famous for their big wallets. I also have to admit that it might be easier to sell a house with fifty natural selling points (huge pool with pool man, beautiful grounds cared for by landscapers, two-ton chandeliers, stables) than it is to sell an average house that has five selling points.

Having said all that, however, when times get tough remember that we have a beautiful city. We have beautiful homes for sale, nice neighborhoods and great communities. We have a lot of selling points to show off, at more affordable prices.

If you’re looking for a beautiful home, even if you’re not a celebrity, I can help. Call me now 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

Once again, the clock is ticking for first-time home buyers to get one of the  Royal Oak Michigan homes for sale before the tax credit runs out. Extended in November, 2009, the first-time buyers’ tax credit is set to expire in April, 2010, and there are no plans for another extension.

What does this mean for you? If you’re a home seller, it’s time to look over your Royal Oak Michigan home for sale, make sure all your t’s are crossed, i’s are dotted and that you’ve done everything you can to put your home at the front of the buying line. If you’re a first-time or repeat buyer hoping to take advantage of the credit, it’s time to start looking for your new home; the binding sales contract has to be signed by April 30, 2010.

Making the Buying Process Easier
Many times, the buying process can take forever.  Red tape, failing negotiations and more has caused several possible sales to fall through. So, what can you do to make the buying process easier? Here are a few tips:

1. Find out if you qualify for the first-time or repeat buyer tax credit. The home buyer requirements are many.  If you can’t afford to buy a home without the tax credit, make sure you qualify.
2. Shop for lenders before hand. Choosing a mortgage lender can be a lengthy process, so finding one you want to use before you start looking for a home will cut down on the time it takes to buy the house.
3. Get pre-approved. Getting pre-qualified is the first step in the loan process, but it’s based on an estimate, not verified facts. By getting pre-approved for a mortgage, you know exactly how much you qualify for, and how much house you can afford. Because this is a large part of the buying process, once you’re pre-approved, the lender can expedite the rest of the deal for a quicker closing.
4. Negotiate wisely. Remember that you’re on a time-line and try not to let negotiations with the seller turn into a contest of wills. Yes, negotiate, but make sure your counteroffer on the home is realistic.

Buying one of the great Royal Oak Michigan homes for sale before the tax credit expires is definitely possible, even with only four months to go.  Following the tips outlined above can make the sale go as smoothly and quickly as possible.

Have questions about the home buyer tax credit?  I can help. Call me now 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

Those with Royal Oak Michigan homes for sale are buckling down for the long haul, but exactly how long will that be? I spent a little bit of time roaming the Internet to get the general “feel” from people on the housing market. It turns out that the answer all depends on who you ask…

Housing Predictor
Housing Predictor.com says, yes, the housing market appears to be making a rebound. However, that rebound, says economist, John Hines, is a false front. The government is pushing the rise in sales to make the housing markets look good and increase buyer confidence. Will the market ever get back on track? According to Hines, if Congress can get the lending pipeline going again, we might finally see a bottom around the third quarter of next year.

The Ledger
According to an article at The Ledger, Stephen Blank of the Urban Land Institute isn’t at all optimistic. Blank says there’s no quick fix, and that 2010 will be sobering. While the housing market is being helped by various factors, the foreclosure rate probably isn’t going to drop and lenders aren’t lending. Blank worries that financing may be lacking, even for those wanting to buy. He doesn’t see the market doing much for another year.

CBS Money Watch
The best article I’ve come across so far, however, was written back in June at CBS MoneyWatch. The article says give the market at least seven years to recover. The author doesn’t just quote doom and gloom, however. She has some great points for people with Royal Oak Michigan homes for sale. I highly recommend the read, but here is the quote that stuck firmly in my mind:

“If you are a seller, get realistic about what you can get for your house. With so little upside in the foreseeable future, you may be better off to sell, even at a loss, since you can probably get back into a similar house at a lower price and very low interest rates.”

It’s a buyer’s market; the supply of empty homes is much higher than the demand for them. If you have one of the Royal Oak Michigan homes for sale and it’s not selling, you may need to change your mindset a little. In this buyer’s market, sellers may just have to bite the bullet.

Ready to buy or sell?  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