Lee Morof's Real Estate Blog

With rising real estate sales, many investors in Michigan real estate are starting to wonder if Real Estate Investment Trusts are once again a potential opportunity. Home sales have gone up for the past six months in a row, homebuilding price indexes are rising and investors are turning optimistic. Is it really a good time, though?

What are REITs?
REITs are Real Estate Investment Trusts. These trusts invest in property then sell shares to people or businesses. If the REITs make a profit, that profit is split between shareholders as dividends. Many investment trusts cover a full portfolio of Southeast Michigan real estate and other real property, rather than just one property. In the past, they’ve been incredibly popular because they trade like stock and dividend yields are normally at the top of the market.

Not All REITs Are Created Equal
It’s important to remember that real estate investment trusts come in different shapes and sizes. As well, REITs report rental income, rather than sales, as revenue. Keeping rental income in mind, it becomes obvious REITS with long-term leases and high occupancy rates are generally better than others to invest in. Also, the higher the occupancy, the easier it is to raise rental rates (although this is probably not good business at this time due to the current real estate market).

Investing in REITs Now
If you’re thinking of investing in REITs now, don’t forget that they may only benefit in a particular market. For instance, many individual investors in Michigan real estate are purchasing unfinished homes at steep discounts, investing a little more to finish the homes and then renting them out. As most real estate agents, blogs, articles and magazines will tell you, the rental market is doing quite well, so this may be a viable option for you.

No matter what type of Southeast Michigan real estate you’re thinking of investing in, remember that any type of investment is risky. Is it time to invest? Ultimately, only you can make that decision. Do your research, check your funding, then – and only then – make an informed decision.

If you’re one of the investors in Michigan real estate and are interested in finding good Southeast Michigan real estate investments, 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

You probably will not be surprised to hear that in 2009, on the average, new buyers of homes for sale in Southeast Michigan purchased smaller homes. 

To be exact, the National Association of Home Builders (NAHB) released information showing that the average size of a new home decreased by 40 square feet, from 2,520 square feet in 2008 to 2,480 square feet in 2009.  While 40 square feet may not sound like a lot, it is significant because it’s been 27 years since the average home size fell by that much.

Are You Missing a Bathroom?
This decline in square footage is also noteworthy because 40 square feet is about the size of an average bathroom.  Interestingly, NAHB’s statistics revealed that the number of homes with 3 or more bathrooms fell in 2009, for the first time since 1992.

What’s Fueling this Shrinkage?
There are 4 primary reasons the sizes of new homes are declining:

1. The recession.  People are reconsidering how much home they really need and are looking for ways to save money.  Results of a 2009 survey by Better Homes and Gardens magazine, showed that downsizing is a bigger priority.  Thirty-six percent of homeowners surveyed said they expected their next home to be “somewhat smaller” or “much smaller” than their current home.

2. The small-house movement.  This movement has been gaining steam in the United States for a number of years.  The recession accelerated it and home builders responded by building smaller homes.

3. The prominence of first-time buyers in the housing market.  This is being stimulated by the $8,000 first-time homebuyer tax credit. 

4. The increasing number of households with members 55 and older who are buying homes.  Folks over 55 prefer to purchase single-story homes, which tend to be smaller than two-story homes.

Looking for smaller homes for sale in Southeast Michigan? 
If you’re thinking of downsizing, 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

I can hear you now, “Oh, no! Not another article on curb appeal to sell my Troy Michigan real estate!” To which I reply, “Oh, yes.” One more time around the block, but this time, we’re doing it in style.

The 21st Century Curb
Curb appeal is that thing you do to pretty up the outside of your home. It’s the landscaping, the painting and the checking of the little details. However, many home sellers (and Troy Michigan real estate agents, for that matter), don’t take into account that the curb nowadays isn’t just the view from the front of your house. In the 21st century, the “curb” starts right here on the Net.

Your online Troy Michigan real estate listing has only three seconds – three short moments of time – to catch a potential buyer’s eye and turn them into an interested party. Unfortunately, it’s hard not to be biased or become used to the problems and eyesores your home may have. Because first impressions are so crucial and the housing market is glutted with competition, you have to bring it up a notch to get your home sold.

The Right Perspective
Most real estate agents park across the street, when they’re showing a home. So, to get the same perspective of your home as potential buyers will have, walk to the other side of the street and stand where potential buyers might stand. Go ahead; walk over there.

Once you’re on the other side of the street, turn around and look at the house for a few seconds. Most buyers don’t look for very long, so don’t stare, just glance. Then, as you slowly walk back to the house, keep your focus close, no more than a few feet out. What are you seeing?

• Yard ornaments
• Plain façade
• Obstructed pathway to the door
• Driveway stains or cracks
• Yard tools
• Leaves

These are just a few things that might be detracting from the beautiful home you have to sell. Take one last look around – a long, searching look from the front door – and see if anything stands out. If it does, fix it up!

The Virtual View
Once you think you have your home’s curb appeal perfected, create a video of it for your potential buyers. Take a video camera across the street and start from there. Give your buyers a virtual tour of your home, using your curb appeal to its (and your) best potential. Online IS the new curb – use it!

When you hire me as your Troy Michigan real estate agent, I’ll market your home with plenty of photos, including its curb appeal.  Your listing will appear on key real estate websites giving your home maximum exposure with a 24/7, world-wide virtual open house. 

Give me a call 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

Have you been wondering if the National and Michigan real estate predictions for 2010 are true?  Is it possible this is the year to buy Southeast Michigan real estate? Why would 2010 be special? Well, let’s look at the current house hunting conditions, which might give some insight:

• Home prices are lower than they’ve been since 2003. According to the National Association of REALTORS® (NAR), the median price of homes in the U.S. was around $170,000 by November of last year.
• Fixed mortgage rates have almost reached record lows. Although they are subject to change from week to week, at the time of this writing, 15 year fixed and 30 year fixed mortgages were 4.45% and 5.06%, respectively.
• The high number of foreclosures has been painful for many homeowners. However, if you listen to the Michigan real estate predictions for 2010, there are many great deals for those who want to buy Southeast Michigan real estate, but don’t want to spend their entire life savings at once.
• The extension and expansion of the Obama administration’s homebuyer tax credit has been a driving force for many home sales. The government has handed out a large amount of tax credits to many first-time buyers, and will be paying out more as the purchase date draws closer.

So, is it the year to buy a house? Only you know for sure. The economy is up and running once again, but the unemployment rate is still at 10%, and may go higher. The answer to “can I buy a home” depends on whether you have a stable job or not; look at your industry, company and job before answering. The good news is that, while unemployment may still rise, it’s expected to level off and start decreasing mid-year.

For those who can afford a home, want to buy one, but are waiting for the bottom of the market, don’t wait too long. Michigan real estate predictions for 2010 say the Southeast Michigan real estate around the corner with the “SOLD” sign might have been your dream home!

If this is a good year for YOU to buy 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

Thousands of potential buyers of homes for sale in Southeast Michigan are now homeowners, thanks to the first-time homebuyer tax credit. You could be eligible for a tax credit if you bought a home in 2009 or plan to buy one before April, 2010.  But which one are you eligible for?

If you have two or three hours to spend reading the information about the homebuyer tax credit, you’ll be able to figure out if you’re eligible.  But, most people don’t have the time or patience. To shorten your learning curve, here are a few tips, pointers and frequently asked (and answered) questions about the tax credit:

Three Kinds of Homebuyer Tax Credits
There are actually three kinds of tax credits:

1.  The original first-time homebuyer tax credit, enacted in 2008, covers the homes for sale in Southeast Michigan that went off the market between April 9, 2008 and June 30, 2009. Rather than being a true credit, the money received is actually a 15-year, interest-free loan. In other words, it has to be paid back.
2. The second tax credit, raised from a maximum of $7,500 to $8,000, doesn’t have to be paid back. If you bought a home between January 1, 2009 and November 30, 2009, you may be eligible.
3. The third homebuyer tax credit, enacted in November 2009, is actually an expansion and extension of the second credit. It extends the deadline of November 30, 2009 to April 30, 2010 and expands the credit to include long-term homeowners who want to buy a new residence.

Tax Credit Qualifications
Just because you buy a home between April 9, 2008, and April 30, 2010, doesn’t mean you automatically qualify. Each homebuyer tax credit has its own eligibility requirements. For instance, the home has to cost less than $800,000, if bought after November 6, 2009. Long-term owners have to have lived in the same home for five consecutive years of the past eight. There are also income requirements, as well as other factors.

Automatic Ineligibility
To receive the homebuyer tax credit, there are a few things you absolutely cannot do. For example, the home you buy has to be a principle residence, which means it’s the one you live in most of the time. You can’t buy it for business. As well, the home you buy has to be in the U.S.

Another “can’t do” is selling the home or converting it to rental property. You have to live in the home as your permanent residence for at least three years. If you don’t, Uncle Sam will want the money back.

There are many great homes for sale in Southeast Michigan, and one of them might just be your dream home. However, if you plan to purchase and claim the homebuyer tax credit, make sure you know the facts first.

Have questions about the homebuyer tax credits?  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

Last November, when Congress approved an extension on the first-time homebuyer tax credit, potential homebuyers who missed the original deadline were excited. It was another chance to buy one of the homes for sale in Southeast Michigan and receive an often badly needed $8,000 on their tax return.

Real estate agents were excited as well, because the tax credit extension expanded to include “upgrade” buyers – those who wanted to replace their current home with a bigger one. The possibility of selling a home was higher than it’d been in a while. However, expansion to include upgrade buyers wasn’t the only change.

If you’re hoping to buy a home for sale in Southeast Michigan and take advantage of the tax credit before the new 2010 deadlines, here are four  things to keep in mind:

1. Two dates are crucial.  You must sign a contract before April 30.  The closings must be complete by June 30. One of the best ways to make sure things go smoothly is to get pre-approved for a mortgage  before you go home shopping. Pre-approval tells you, as well as the seller, exactly how much home you can afford. This way, you don’t waste your time or the seller’s.
2. Negotiate without emotion. Potential buyers have lost the home of their dreams because they became competitive. If you’re negotiating for closing costs, housing price or anything else, make sure that your requests are reasonable. Don’t change something “just because.”
3. Taxes must be mailed in.  Due to people trying to scam the system, you won’t be able to file your taxes electronically; you’ll have to mail them in. Make sure you’re using the right forms, and, if you need your tax refund by a specific time, you might want to file early.
4. Documentation is truly priceless.  Again, thanks to scammers, buyers will have to include a signed mortgage statement, proof of residency and a driver’s license with their taxes.

You still have until April 30 to sign a contract on one of the homes for sale in Southeast Michigan to get the tax credit. Today’s real estate market is beneficial for buyers.  Put it to work for you!

If you’d like to take advantage of the homebuyer tax credit, I can help. Call me right away at 248-514-2640 or email me at info@NorthWoodwardHomes.com so we can beat the deadlines.

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

Do you have one of the homes for sale in Southeast Michigan?  Not everyone decorates their home for Valentine’s Day, but enough do that it brings to mind the question, “How much decoration is too much when your home is for sale?”

Decorations, although beautiful to you, are a matter of personal taste and style. Since this is a buyer’s market, something as simple as the wrong decorations can push a potential buyer from saying “Yes!” to saying “No.”

Rules for Decorating Homes for Sale in Southeast Michigan
Here are a few tips on decorating for Valentine’s or any other day when you’re trying to sell your home:

• Choose decorations that are small and unobtrusive. Large decorations put too much emphasis on themselves. When you’re trying to sell your home, these take away from the overall appearance of the interior.
• Finding buyers is all about allowing them to see themselves living in the home. When choosing your decorations, or deciding to decorate at all, keep this firmly in mind. Ornamentation made of bright colors may be fun, but can also be overwhelming.
• If you’re ever at a loss on how to decorate or stage a home for sale,  take a trip through furniture stores. Stores that sell furniture often have furniture set up in “living” displays so people can see what the pieces look like together. Look at the displays, take pictures and notes, and then apply the knowledge you gain to make your own home look like a display.

Decorating and staging correctly can make a huge difference on how buyers see homes for sale in Southeast Michigan. The few tips above can help make your home shine.

Ready 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

The extension of the homebuyer’s tax credit, as well as the expansion to include upgrade homebuyers, has a lot of people looking for their dream home. Many are looking for that dream home in the listings for Southeast Michigan foreclosures. Why?

The Law of Supply and Demand
Quick marketing lesson: every market is dependent on the law of supply and demand. When the demand for a product is higher than the supply, prices go up. When there’s more product than demand, prices go down.

This is what’s happening now, especially with Southeast Michigan foreclosures. Around the U.S., the supply of homes has doubled in the past two years, reaching as high as a ten-month supply. While homebuyers have been reluctant to buy a foreclosure in the past, people are starting to rethink the situation because:

• Foreclosures are usually less expensive than traditional homes for sale.  In fact, some buyers have found their dream home and bought it for pennies on the dollar.
• Foreclosed properties are generally in better condition than they used to be.  In the past, foreclosed homes had a higher than average amount of repairs needed compared to other homes for sale. This is no longer necessarily true. Many foreclosured homes have been lovingly taken care of by their previous owners.
• Potential buyers of Southeast Michigan foreclosures have a wider variety from which to choose. They aren’t stuck with just one type of house in one neighborhood. For the careful new homebuyer, the possibilities really are almost endless.

Most foreclosed homes aren’t money pits. To protect yourself, make sure your Southeast Michigan real estate agent includes in the contract that you want to have the home inspected, and that if the home inspection finds major problems, you then have the right to walk away from the deal.

If you’re looking for a great home at a great price, 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

You’ve listed your property. You’ve spent your weekends with people traipsing through your home. You’ve done everything you can and your Southeast Michigan real estate in Oakland County is still sitting on the market while others around you are selling. Why won’t your home sell?

You’ve cleaned your home—you think. Let’s examine a few areas many people overlook:

• Did you stuff all your stuff in cabinets thinking no one will be bold enough to open cabinets and look inside? Hum… maybe. Maybe not. Lots of people open drawers, cabinets, and definitely will look in closets, so don’t stash all your stuff in closets. Besides being untidy it is likely that overstuffed closets  will fall out in an avalanche when an unsuspecting buyer happens to peek.

• Are there dirty dishes stacked up, clothes in the laundry baskets, or used towels all over the bathroom? Just because you have to live in your Southeast Michigan real estate until you sell it doesn’t mean it looks good to your buyers. The ‘lived in’ look only makes your home look comfortable when friends and family visit, not prospective buyers.

• Does your loving pet adore your visitors? Even the most well-behaved dog or cat may be a distraction. Not everybody is a pet lover, and even if they are they don’t want to have to deal with your pets while viewing a home.   Have your dogs and cats in their crates when buyers come to see your Southeast Michigan real estate listing.

• Is the lawnmower sitting on the patio, the pool skimmer lying on the lawn, the kid’s bikes piled up in the driveway? The inside of your home isn’t the only place that shouldn’t look ‘lived in’ when you are showing your home to the public.

Little things mean a lot. Don’t let those little nail holes, stray wires from a removed fixture, or coffee stains on the carpet go unheeded. Your buyer is not going to want to fix those things when they move in. And, it makes potential buyers think that if minor repairs haven’t been taken care of, most likely, major repairs have been let go also.  Take the time to do minor home fix ups and make your house look as inviting as possible.

If you’d like more tips like this, subscribe to my blog.  You’ll get a couple of new tips automatically emailed to you each week.

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