Lee Morof's Real Estate Blog

Technology has improved our lives over the last ten years, but it’s also caused some problems along the way for Bloomfield Hills real estate buyers.

As a buyer, you naturally want to take advantage of every tool and service available to make it easier to find the home of your dreams. However, the Internet, which is one of the most common places for people to shop for Bloomfield Hills real estate nowadays, has also become a place where the unscrupulous hang out.  You can’t believe everything you read online, even when it comes to shopping for homes online. 

If you’re trying to find a home, here are two things you need to be aware of:

Home Valuation Sites
Many potential buyers find an interesting home and then research the home value. This is commendable and just plain good sense. You want to make sure you’re not overpaying. Thanks to the Internet, we have sites like Zillow and Realtor.com that provide home valuations.

The problem is that these sites hardly ever agree on the home value. They can differ as much as 20% or more. While home valuation sites are an excellent place to get a ballpark estimate, you shouldn’t base your buying price on their information alone. Hire a reputable Bloomfield Hills real estate agent who knows the surrounding area and recent sale prices.

Dream Home or Nightmare
One of the best things to happen for real estate agents and sellers alike is the ability to post digital photos and walk-through videos of the homes they’re selling. This is also great for you, as the buyer, because you can view the homes without going anywhere.

Unfortunately, many buyers take those images and videos at face value. Thanks to some high-tech graphics programs, however, you can’t guarantee that what you see is what you get. Videos and images can both be manipulated to show you the best face of any piece of property.

Any time you see a home online that you’re interested in, it’s a good idea to check Google Maps and use the Street View  option. At the very least, you can usually see the front and sides of the home. If you’re still interested, visit the home in person, or, if that’s not possible for some reason, ask your Bloomfield Hills real estate agent to visit the home and take pictures for you.

If you’re trying to find your dream 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

If you’re like me and other real estate agents, home sellers, homebuyers and homeowners, you’re always looking for a great resource for information on the Southeast Michigan real estate market. You have questions and you want answers.

• What are the mortgages like in this area?
• What are the current selling prices for homes?
• What’s a specific neighborhood like?
• Is there anything besides the economy affecting the Southeast Michigan real estate market?

For instance, you want to know current market trends. Are they stabilizing? Are things still sliding down hill? Is there a buying trend sellers can take advantage of to market their homes? While a professional real estate agent will help you sell or find a home, it doesn’t hurt for you to do some research on your own to become more knowledgeable. Who knows, you may come up with some ideas we haven’t thought of!

So where can you find reliable information on the real estate market? On the Internet, there are thousands, perhaps millions, of informational sites. Below are just a few of my personal favorites:

CNNMoney.com (real estate) – The information on CNNMoney.com has no bias in terms of convincing you to sell or buy. Where are home prices falling? Where are they strongest? What information do you need to know as a buyer or seller? From mortgages to pricing and market stability, you can find it here.

RISMedia.com – If you can’t find it on CNNMoney, you can most likely find it on RISMedia. Home improvement, financing and foreclosure information are just a few of the topics. As well, because RISMedia is actually involved in real estate, you can find the latest market information.

DQNews.com – DataQuick provides real estate data on a state-by-state basis or on a specific area. While the information can be a little technical for the non-real-estate-professional, if you want to know how the Las Vegas region is doing for home sales, or the average mortgage rates in Missouri, DQ can help. Depending on your area, you may have to pay for the data, but it’s fairly inexpensive and can give you great information.

If you’re interested in the Southeast Michigan real estate market in any way, bookmark this blog and the listed sites for easy reference. The more you know, the better you can prepare for upcoming trends, good or bad!

If you’re trying to sell your home, or are looking for your dream home to buy, 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

Good credit is more important than ever, if you want to get a Bloomfield Hills real estate loan.   Knowing what’s on your credit report and how lenders view various aspects of your report is crucial.

First Things First
Get a copy of your credit report from all three of the credit reporting companies: Equifax, Experian, and TransUnion. You are entitled to one free report every year from each of the three credit reporting companies.  Whether you’re considering getting a loan or not, you should always take advantage of that opportunity to make sure your credit reports are accurate.

Range
FICO® scores range from 365 to 840. While the standards for what lenders consider a “good” FICO® score changes constantly and varies by lender, here’s a general breakdown of today’s standards:

• Over 750 is excellent and should get you the best terms and rates.
• Under 600 might get you a Bloomfield Hills real estate loan, but you’ll want to shop for the lender who’ll give you the best rates and terms.
• Under 500, you need to brace yourself for waiting until you get your credit in better condition.

What Determines Your Score
There are many things that can affect your score.  Magically (or not), each of the three companies tend to view things just a little differently, which means your score will not be the exact same for all three. That’s why it’s so important to get copies of your report from all of them. However, the two main things that all companies consider in rating your credit score are delinquencies and debt-to-income ratio.

What You Can Do To Immediately Improve Your Score:

• Check the entries: Make sure any debts or delinquencies listed are true. Report any errors.
• Pay off debts: But do not close accounts. Having available credit is good as long as it doesn’t look like you’re over-extended by having your credit maxed out. The lender may worry that you’re living off your credit and can’t afford your bills.

If you would like more tips on how to improve your chances of getting a Bloomfield Hills real estate loan, 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

Surprising numbers of potential homebuyers are holding off on buying homes for sale in Southeast Michigan. They see the housing prices drop and are waiting for them to go lower. They see the mortgage rates and are waiting for them to drop further. If this is you, you might want to rethink your strategy and take a real look at potential homes for sale in Southeast Michigan.

Here are two crucial reasons why you might not want to wait any longer:

1. Interest Rates on the Rise – Thanks to the Federal Reserve buying $1.23 trillion worth of mortgages, interest rates have been kept somewhere between 4.93% and 5.09% for a 30-year fixed-rate loan.  That’s about 0.4 % lower than it might be without the Fed’s help. However, by the end of 2009, the Federal Reserve had already started implementing a phase out of the mortgage program. With the Fed program closing at the beginning of this month, it’s not a question of whether mortgage rates will rise, but when, how much and how fast.  The experts don’t expect them to climb very high, stopping somewhere between 5.5% and 6% by the end of 2010.

2. Lower Home Prices – Home prices, predicted to drop another 5% in 2010, will also make some difference in overall cost. Putting the falling home prices together with the currently low interest rates, you still have a chance to get a great home at a great deal – for a little while longer.

Instead of waiting for lower costs that may never come, consider where you are now:

• Do you have good credit?
• Are you pre-approved (not pre-qualified) for a mortgage loan? Do you know how much home you can afford?
• Are you certain (or as certain as you can be) of your job stability?

It’s very possible that the market will never be better than it is right now for buyers. It’s a buyers’ real estate market, with the scales tipped to make homeownership as cheap as it can get. If you can afford to buy now, but are waiting for things to get even better, reconsider – you might wait yourself into a market you can no longer afford!

Ready to take advantage of this buyers’ market and purchase one of the homes for sale in Southeast Michigan?  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

Government support in the national and Southeast Michigan real estate sectors is slowly being pulled back. For instance, the federal homebuyer’s tax credit expires this month and the Fed stopped purchasing mortgage-backed securities in March. These two changes in financial backing for the housing market are causing worry because people fear the expiring tax credit will cause a dramatic drop in sales.

An important question right now is how much did the government support really help the national and Southeast Michigan real estate markets and the economy?

The Economy
Dean Maki, chief U.S. economist for Barclays Capital (New York) and one of the most accurate economic forecasters for the past 20 years, says the U.S. economy is on the rise. Many economists share Maki’s view:  We’re at the bottom and there’s no place left to go but up.

The Fed Stops Buying Mortgage-Backed Securities
The largest hurdle for the real estate market came at the end of March, as the Fed finished buying up $1.25 trillion worth of mortgage-backed securities and taking care of housing-agency debt to the tune of $175 billion. However, strategists and economists conclude that the change won’t have a lot of impact; the central bank will be replaced by private demand.

The Expiration of the Homebuyers Tax Credit
The second largest hurdle, the expiration of the homebuyers’ tax credit, might have a bigger impact if it had brought a huge sales increase. It didn’t, however, and the belief is that things will slowly improve with – or without – the credit. Although vacant housing rose to 2.09 million by the end of 2009 and foreclosures are expected to hit around 2.2 million this year, the number of new households may reach as high as 1.25 million.

The Good News
Of the potential 1.25 million new households, almost 1 million are currently living with family members. With home sales gradually improving, economists predict that even a slight improvement in the job market will bring those 1 million households out of the woodwork to find a home. When this happens, the excess housing supply will quickly disappear. 

If you’ve been stuck, waiting to sell your Southeast Michigan real estate in Oakland County, your home is part of the housing supply. With the housing market slowly improving, you may very well end up coming out on top within the next three to six months.

If you’d like to sell your home, or buy a new 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

If the Bloomfield Hills real estate you are looking to buy is going to be your primary residence, you probably know the features that are important to you.  However, in today’s economic environment, the resale, or investment value, of Bloomfield Hills real estate is as important as the practical value of the number of bedrooms or bathrooms and the size of the kitchen.

In the past, a home buyer rarely worried about the resale value of a property because homes were always considered good financial investments. With today’s fluctuating home prices, property values are as important for home buyers to understand as they are for real estate investors to understand.

Location and Property Values

Before the housing and mortgage crisis, even if the home that suited you was not in a prime location, it would likely increase in value over time.  Now, you want to be sure you research a potential home before purchasing it to be sure:

1. The home is in a great Bloomfield Hills neighborhood.
2. It’s at the lower end of the market value for that neighborhood.
3. If you buy a home in a neighborhood that is already considered a lower value area, it’s possible that those prices will not recover as quickly as better areas.   Or worse, home values could decline more leaving you with a home worth less than what you paid for it.

Now more than ever, it’s important to work with a real estate agent who specializes in the neighborhood where you’d like to live.  As a specialist in Bloomfield Hills real estate, I can give you the insider’s scoop on that neighborhood.  Contact me 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

If you’re in need of an appliance for your Troy Michigan real estate, you may want to buy now to save cash.  The U.S. government is giving you good reasons to buy energy-efficient appliances through its Energy Star designation.  Thirty-six states have launched programs to distribute almost $300 million in rebates to consumers who buy energy-efficient appliances.

The federally-funded programs are similar to the hotly debated cash-for-clunkers auto rebate program of 2009. Rebates differ by state and appliance but typically run between $50 to $75 on refrigerators, washers, dryers and freezers.

To qualify for rebates, consumers must buy Energy Star appliances, which meet or beat energy standards.  These standards are set by the federal government and are up to 30 percent more efficient than non-Energy Star appliances.

Should you buy new appliances for your home now?  Say yes if:

• You need a new appliance anyway.
• You’re tired of throwing away money every time you operate inefficient appliances.
• You want a good deal on a new appliance.
• You want to help the environment by going green and saving energy.

You may even be able to trade in your old-but-still running refrigerator or dishwasher when you buy a new Energy Star model.  For the specific rules and amount you’ll save, go to Energy Savers.  

Want to save even more?  You may also be eligible for rebates offered by manufacturers, local utilities and retailers.  Home Depot, Lowe’s and Sears are all planning special promotions in certain states to coincide with the federal rebate program.

Research the stores’ promotions before you buy.  To find a list of retailers of Energy Star qualified products in your area and the categories of products they carry, use the Energy Star Store Locator. 

Since rebates for Energy Star qualified (or higher) appliances are generally being given on a first-come, first-served basis, and because funding is limited, you might want to act fast before the available cash is gone.

If you’d like to buy Troy Michigan real estate for your new appliances, 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

When people meet you for the first time, their first impression is usually a lasting one. You also never get a second chance to make that first impression when you’re selling your Southeast Michigan real estate in Oakland County. You need to present your home at its very best all the time.

Here are 3 things you can do to make a great first impression:

1. Clean up the yard: A messy yard is a distraction.  It can be time consuming to keep up with general yard work, but it’s worth the effort.  Overgrown shrubs, limp lawns, and general disarray can turn off a potential buyer. If you have to hire someone to come in and give your yard a quick pick me up, it’s worth the money.

2. Get Rid of Items You Don’t Need: Be very strict about this and get rid of all but the bare necessities. You don’t have to throw or give everything away. Find a storage unit and put the things in there you will be taking with you to your new home but do not need immediate access to for now.

3. Fix Up the Little Things: Little things count. If you have a leaky faucet, a broken tile in the floor or a crack on the wall, now is the time to fix it.  Little flaws like this make potential buyers worry that there are bigger problems waiting to be found. 

Selling Southeast Michigan real estate is a lot of work.  You can get it sold faster, easier and for the most money when you take the time to make a great first impression.

If you have any questions about what you can do to make your home sell faster, I can help. Order your free copy of the book, “Staging Tips to Prepare Your Home for Market.” Call me 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

April has a lot of important and semi-important dates in it. The tax deadline, Good Friday and Easter are just a few. What is April 5th, though, and what does it have to do with Bloomfield Hills real estate buyers? Well, the biggest news is that the government has stepped into real estate and short sales.

Home sales are down nation-wide, despite the Obama administration’s efforts with the first-time buyer’s tax credit. Many homebuyers are waiting for a better interest rate or to see if home prices will drop more. Meanwhile, owners of Bloomfield Hills real estate are preparing for the spring selling season, without any idea whether they’ll actually be able to sell or not.

Part of the reason for this situation is because of the depreciated housing values. For instance, many potential buyers want to take advantage of the repeat buyer’s tax credit, but can’t. They currently own a home that’s facing foreclosure, are trying to sell that home, but can’t because it’s underwater. This puts a wrench in the whole market.

The government’s solution is short sale. There’s always been the option for those facing foreclosure to opt for short sale, but (thanks, in part, to the many scams out there) few choose this option. The Obama administration has decided that, if they can’t help with foreclosure, they’ll pay people to accept short sale.

Starting April 5, 2010, the government is encouraging delinquent borrowers who can’t be helped through loan modification programs to go through a streamlined short sale process. Many potential short sellers have gotten offers the lenders won’t agree to, which this program called HAFA (Home Affordable Foreclosure Alternatives), is geared towards fixing. Here’s how:

• The servicing bank that allows the short sale gets $1,000.
• The homeowner gets $1,000 to go towards a second loan.
• The homeowner gets $1,500 in relocation assistance.

Even with this program, lenders are wary of short sales. Depending on the price of the short sale, there’s a possibility that lenders could lose a large amount of money. However, under the new program, real estate agents will be working with the lender to determine the value of the home and what the minimum price should be. If the short sale offer meets or exceeds that minimum, the lender has to accept it.

The hope is that this program will slow the tide of foreclosures, free homeowners up to become repeat buyers, sell more homes and, ultimately, improve the flow of the real estate market. The good news about all this is if the program does even a quarter of what the administration plans, there may not be enough Bloomfield Hills real estate to go around!

Have questions about the new HAFA program or any other real estate incentive programs?  I’m happy to answer your questions.  Give me a call 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

There has truly never been a better time to think about buying a new home. The current economy has created a buyers’ market like never before. This works to your advantage, and the fact that the real estate market is recovering means that buying Southeast Michigan real estate as a future investment is a smart move.

Consider New Construction
Builders are faced with unsold homes in developments and are willing to make deals. They are interested in all reasonable offers, and, especially if you have pre-approved financing, will negotiate with your real estate agent to give you better price and terms. It is in their best interest to get their existing homes sold.

Best Mortgage Rates in Current History
You can take advantage of the low mortgage rates to get fantastic payments on your new Southeast Michigan real estate. These low rates won’t last forever, so if you have good credit and solid employment, buy now to make your new home truly affordable.

Tax Credits
If you or your spouse has never owned a home, or if neither of you have owned a home as a principle residence in the past 3 years, buying a home now makes financial sense. You will get a large tax rebate at the end of the year for making a home purchase now.  However, you must act immediately because you have to have a binding contract signed no later than April 30, 2010, and close on the home no later than June 30, 2010, in order to qualify for this first-time home buyer tax credit. 

If you’re a repeat home buyer, you too might qualify for a tax credit.  Again, you must act fast.  The same dates apply for this repeat home buyer tax credit as for the first-time home buyer tax credit. 

Affordability and Availability
The market is wide open for buyers now, and finding the perfect home at a reasonable price is easier than ever before. Waiting too long can prove to be a very costly decision. The market is getting stronger and tax credits are coming to an end. Over the course of the next year, it will become increasingly more difficult to buy Southeast Michigan real estate at prices and rates now available.

If you would like more information on the intelligence of buying a new home now, please call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I look forward to talking with you!

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