Lee Morof's Real Estate Blog

If you’re hoping to sell your real estate in Southeast Michigan in 2011, make some New Year’s resolutions to help the process along.   Resolve to:

1. Interview and get a comparative marketing analysis (CMA) from at least three agents from three different real estate agencies in Southeast Michigan.  Each agent has a different opinion about the value of your home and how to best market your home.  Learn from each agent and then sign a contract with the agent you decide to hire. 

2. Research the number of foreclosures and short sales in your neighborhood.  To sell your home, find out how many foreclosures and short sales you’re competing against.  This impacts the value of your property as well as the length of time it takes you to sell.  Your real estate agent in Southeast Michigan can help you with this research.

3. Be realistic about price. After reviewing your three CMAs, talk with the agent you hired and come to an agreement on the price that can get your home sold.  Ideally, that price should be at or just below the selling price of similar houses in your neighborhood that have sold in the past 90 days.

4. Counter offers.  Be calm if a buyer suggests a lower price than you want. Don’t just snap his or her nose off. Consider your options.  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? Super low bids are not insults; they’re a buyer’s way of testing you.  So, even if an offer seems insulting low to you, counter it.  If the buyer wants your home, he or she will come up to a realistic price.

5. Remain flexible.  Make concessions where you can.  The buyer wants you to pay part of the closing costs?  That’s a great way to sweeten the deal.  Fix those small problems found in the home inspection.  Add on a home warranty.  A successful sale means everyone walks away happy. 

Put these resolutions into action, and your new year may turn out to be even happier than you expected!

If you’d like a proven 30-Day Marketing Plan to get your real estate in Southeast Michigan sold, give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. You’ll also receive a free competitive marketing analysis.  

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

When you go through one of the Michigan foreclosures, your credit score drops considerably. The good news is that you can rebuild your credit.  Here are a few tips to help:

1. Create a budget. A budget lets you see exactly how much money you have to spend each month. It also helps you track where you spend your money. Put together a budget that fits your lifestyle and then stick to it.

2. Build an emergency fund. You never know when an emergency will happen. When you’re prepared for a financial emergency, you’re better protected from financial problems.

3. Repair your credit.  Review your credit reports from all three credit bureaus.  Dispute any errors you find.  Removing errors from your credit reports help improve your credit.

4. Establish new credit. This can be tricky after a Michigan foreclosure. New credit will give you a chance to prove you can manage debt. However, you certainly don’t want to find yourself owing more than you can possibly pay. If you can get a traditional credit card, your interest rate will be very high, so choose and use your credit cards wisely. An alternative is to apply for a secured credit card, which requires that you put money down as a deposit before credit is extended to you. Use your card regularly but lightly, and you will see your credit start to improve as you make consistent payments.

5. Have patience. It takes time to rebuild your credit. Don’t expect your credit score to be in the good or excellent range within weeks or even months after your Michigan foreclosure. It’s going to stay on your credit report for seven years, so there’s no need to rush.

A foreclosure is not the end of the world. Let me help you plan for and find your next home so it fits your budget. Give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

Before you put your Royal Oak Michigan home up for sale, you want to make sure it looks as attractive and modern as possible. Buyers usually walk away from a Royal Oak Michigan home for sale with outdated color schemes and fixtures. This is especially true of bathrooms. Even if you lack the budget and space to turn your bathroom into a spa-like retreat, you can still give this room a quick facelift.

1. Get creative with color. If you don’t have the time or budget to replace dated ceramic tile, try camouflaging it with towels, rugs, and other accessories for a more modern color scheme. For example, you can pair pink with brown or bright blue with light green.

2. Replace your fixtures. Brushed aluminum and pewter bathroom fixtures are more modern than the shiny chrome fixtures from years ago. They are also easier to clean because they don’t show water marks as easily.

3. Find new lighting. A bathroom light can do more than just illuminate the space; it can create an atmosphere. Sconces placed on either side of a mirror tend to look better than harsh overhead light. Track lighting can be arranged to provide light in dark corners of the room.

4. Accessorize. Put your personal touch on your bathroom with shower curtains, soap dispensers, and scented candles. Don’t feel like you have to stick to the bath accessories aisle, either. A clear vase can display bath salts. Baskets can hold rolled-up towels. A beautiful serving bowl can be filled with potpourri.

Preparing your Royal Oak Michigan home for sale is an important part of the process. I can help you prepare you home to sell it faster and for more money. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to schedule a free consultation.

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

This winter has already brought most areas of the U.S. major snow storms, and we have many more months of winter weather to deal with.  Whether you live in a city that gets snow or you vacation in snowy communities, you need to know how to stay safe and warm in the snow.

1.  Dress in layers.  Ideally, the layer against your skin should be made of a synthetic microfiber that wicks moisture away from your body.  Avoid cotton, which gets wet and stays wet. Top the wicking layer with something warm like fleece and finish with a jacket that’s windproof.

2.  Wear boots with good traction.  Make sure they aren’t too tight, either because they’re too small or because you have on bulky socks.

3.  Wear sunglasses and sunscreen.  A sunny day in winter is often brighter and more dangerous to your eyes and skin than summer sun.  That’s because of the reflection off the snow.  So before leaving your Bloomfield Hills home, slip on sunglasses and generously apply sunscreen.

4.  Shovel with care or hire it done.  If you’re not in tip-top shape to shovel the snow from your Bloomfield Hills home’s driveway, hire a neighborhood teen to do it.  You’ll give that teen some much wanted income, and save yourself from strained muscles at the least and a heart attack at the worst.  If you do not have a history of heart disease, heart attack, high blood pressure or any other ailment that could result in injury or death, you may decide to shovel the snow yourself. 

Here are a few tips for safe snow shoveling:  

• Stay well hydrated.  Don’t drink caffeine or alcohol during or immediately before shoveling.
• Take frequent breaks.  Do not remove deep snow all at once; take off an inch or two at a time.  Preferably, start when the snow is not yet heavily packed, and shovel periodically if the snow continues to fall.
• Pick a shovel with a smaller blade.  This puts less strain on your body because you lift less snow at once.
• Use a back-friendly shoveling technique.  Keep the shovel close to your body.  Bend from your knees, not your back.  Tighten your stomach muscles.  Do not twist. Instead, move your body so your feet face the direction in which you’re shoveling.  Do not throw the snow over your shoulder; throw it in front of you.
• Check your body.  Are you experiencing shortness of breath, dizziness or chest pains?  Stop immediately and seek medical help.

5.  Prepare your car for snowy conditions.  Clean all the snow off your car before leaving your Bloomfield Hills home.   Make sure your windshield wipers and headlights are cleaned off and working.  Stock your car with a shovel, extra clothes, a blanket, a flashlight, snacks, water, an ice scraper and wood ashes or sand for traction in case you get stuck in the snow.

6.  Go slowly.  Whether walking or driving, give yourself additional time to get to your destination.  The roads, driveways and sidewalks get slick, and even a generous amount of salt can leave behind spots of ice and snow.

Stay safe and warm this winter!  If you’d like to buy a safe, warm Bloomfield Hills home, I can help.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

Trends for national and Bloomfield Hills homes come and go depending on many factors including the needs and desires of buyers, changes in technology and economic issues.

Here are some 2011 design trends predicted for national and Bloomfield Hills homes.

Kitchens Continue to be the Heart of the Home
People still love kitchens that are open and airy.  Popular kitchen countertops will embrace the green movement switching from granite to crushed recyclable glass under a solid, smooth surface.

Energy Efficiency Remains Important
According to The Joint Center for Housing Studies, homeowners and builders alike continue to make homes more energy efficient.  This is led by regional certification programs as well as national green building standards.

Vintage is Hot
Reproductions from the 1950s, ‘60s and ‘70s will be a hot design trend in home furnishings.  Think of the furniture in the hit TV show “Mad Men.”

Bold Lighting Touches are Added
In addition to functional lighting, bathrooms will boast chandeliers.  Ooh, la la!

Ceilings Become a Focal Point
Ceilings will no longer fade into the background with the addition of architectural enhancements such as domes and bold paint options including metallic colors.

 Whether you’re looking for trendy or traditional Bloomfield Hills homes, I can help you find your perfect fit.  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to get started.

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

Times change but not always for the best.  Consider the change we’ve seen in attitudes toward Southeast Michigan real estate over the last few decades. 

Owners used to love their homes because they were their safe havens.  Many now only worry about whether or not their houses will appreciate enough in value to allow them to refinance to buy luxury vacations in Hawaii or a new car.

What’s your stance on the Southeast Michigan real estate you own or wish to own some day?   Is it a house or a home to you?  There’s no right or wrong answer to this question, simply a varying point of view.

It’s a house if you:

• Bought it because you want to build equity 
• Value it most because of its monetary value
• Worry primarily about it because it might lose some of its value in today’s market
• Appreciate it if it gives you short term profit
• Like the neighborhood because it increases the market value of your property
• Plan to sell when you can make the biggest profit

It’s a home if you:

• Bought it because you want to build a happy life there
• Value it most because of its emotional value
• Worry primarily about it because without it you wouldn’t have a roof over your head
• Appreciate it if it gives you long term profit
• Like the neighborhood because of the people who live there
• Plan to sell when your lifestyle needs change

Personally, I’m nostalgic for the days when a house was called a home because of the love that was inside.

Whether you’re interested in buying Southeast Michigan real estate as an investment or a home, I can help you achieve your goals.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

Frequently, there are news stories that impact our Southeast Michigan real estate market.  Here are two I want to share with you this month:

Rising Interest Rates Could Get Buyers Moving

Rising interest rates may finally push Southeast Michigan real estate buyers off the fence and into the market.

In December, after President Obama agreed to extend tax cuts for two years, the financial markets  indicated this event would most likely push mortgage interest rates higher.

Analysts predict that buyers will move quickly when it looks like rates are going up and are unlikely to come down. “Once people see this might actually be the bottom, they’ll go for it,” says Paul Dales, U.S. economist at Capital Economics Ltd. 

For an example of interest rate increases, note what happened in December, 2010.  

• On December 2, the 30-year fixed interest rate hovered around 4.46 percent. 
• One week later, on December 9, it was up to 4.61 percent.
• When I checked on December 26, the 30-year fixed interest rate was up again to 4.875 percent.

National Foreclosure Rates Fall

Has the real estate market hit bottom?  One sign that it has is RealtyTrac’s report that foreclosures fell sharply in November.  RealtyTrac’s November, 2010, U.S. Foreclosure Market Report™ indicated a 21 percent decrease in foreclosure activity from the previous month and a 14 percent decrease from November, 2009.

According to RealtyTrac, a mortgage research firm, foreclosure activity decreased dramatically in November with fewer than 300,000 properties receiving a foreclosure notice for the first time since February, 2009.

While foreclosures typically decrease in November, and we’re sure to see a rebound in foreclosure activity, these statistics are not to be dismissed because they show the lowest level of foreclosure activity since November, 2008.  Additionally, both the 21 percent month-over-month decrease and 14 percent year-over-year decrease in foreclosure activity were the highest drops recorded since RealtyTrac began publishing the U.S. Foreclosure Report in January, 2005.

Want to know more about the Southeast Michigan real estate market?  Give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com to discuss our real estate market.  I look forward to hearing from you.

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

Most people make New Year’s resolutions to improve themselves.  If you’re a Troy Michigan real estate home owner, this year consider making a few New Year’s Resolutions to improve your home.  Here are 6 ideas to choose from:

1. Renovate.  Choose one project you really want to do, and get it done this year.  Add on a deck, make minor kitchen renovations or install a new bathroom floor.

2. Practice home safety.  Troy Michigan real estate home owners can practice fire safety by ensuring their home smoke alarms work and holding fire drills. Prevent poisoning by keeping cleaners, medications and beauty products in a place where children can’t reach them and using child safety locks.  Avoid falls by having bright lights over stairs and steps and on landings. Also, keep stairs clear of clutter.

3. Test for radon.  Radon is a significant contaminant that affects indoor air quality worldwide. The United States Environmental Protection Agency (EPA) says that radon is the number one cause of lung cancer among non-smokers. Even if you live in an area that typically doesn’t have radon problems, the US EPA recommends testing your home for radon because testing is the only way to know your [city] home’s radon levels.

4. Do one thing to go green.  Change to Compact Fluorescent Lights (CFL), install a low-flow shower head, use green cleaning products or start recycling.

5. Check water quality. Drinking water quality varies from location to location, depending on the condition of the source water from which it is drawn and the treatment it receives. Every community water supplier must provide an annual report to its customers. Read your report to find out what your water contains. 

6. Private wells and homes drawing water from other sources such as lakes and rivers are not regulated. If your drinking water does not come from a public water system, you alone are responsible for assuring that it is safe. Routine water testing is essential.

7. Reduce your utility bills.  Troy Michigan real estate owners should review electric and gas expenses for the previous 12 months and make a plan to reduce them. There are many ways to save on energy bills:  increase your insulation, weather strip windows and doors, purchase energy efficient appliances, install energy efficient windows and adjust home temperatures.

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

From national and Southeast Michigan real estate to the U.S. economy, the predictions for 2011 are in.  Like any predictions, they vary from gloomy to cheery.  Overall, the U.S. forecasts for national and Southeast Michigan real estate are more positive than negative for 2011.

1. Real Estate Economy Watch predicts:  People are interested in buying a foreclosure.  Nearly half (49 percent) of U.S. adults are at least somewhat likely to consider purchasing a foreclosed property, up from 45 percent in May, 2010. Despite the rising interest in buying a foreclosed home, an increasing number of U.S. adults also recognize negative aspects to buying a foreclosure.

2. Bill Redfern, CEO of A Buyer’s Choice Home Inspections says:  Presale inspections are on the rise.  Sellers, and particularly banks, have become far more interested than in the past in having presale inspections conducted to help attract buyers. This business, which helped sustain inspectors during the downturn, is expected to grow in 2011 even as regular inspections come back. I might be optimistic, but I think in five to 10 years every listing coming to market will have a presale inspection done.

3. The National Association of REALTORS®’ (NAR) Chief Economist Lawrence Yun is projecting: 

• Once businesses pick up spending, job gains will quicken and home sales—fueled by strong affordability and plenty of pent-up demand—will rise.
• 5.2 million existing-home sales in 2011, up from 4.8 million last year.
• Modest improvement in prices—a rise of about 1 percent this year on a national basis. That would be the first in what Yun says will be a series of small but steady gains in the years ahead that will eventually bring home sales back to a period of normalcy.
• Yun says all of the price excesses from the housing bubble have been squeezed out of the market and interest rates remain at historically low levels, making buying attractive now. 

4. The Joint Center for Housing Studies says:

• If the past is any guide, the strength and sustainability of the housing recovery will depend most on the bounce back in employment growth.  Unfortunately, most economists predict that the unemployment rate will remain elevated as discouraged workers reenter the labor force amid slow gains in jobs.
• The oldest baby boomers are just turning 64, with millions soon to follow. Despite their losses in wealth caused by the correction in home and stock prices, the baby boomers will drive demand for senior housing suited to active lifestyles as well as for assisted living facilities.

5. According to the Standard and Poor / Case-Schiller index:  Home prices are expected to rise 12 percent in the next five years. And, according to a survey of economists, that upturn should begin in 2011.

6. WalletPop.com’s prediction for renters in 2011:  The American Dream will include both renting and owning:

• Lifelong renters will begin to buy.  As jobs grow, prices hit bottom or move past their bottom in the handful of appreciating markets, and interest rates start what is likely to be a long, volatile climb up from the all-time lows of 2010, extreme affordability will push even some lifelong renters off the fence and into the market.
• Lifelong owners will begin to rent.  Baby Boomers who have owned homes for decades and lost them at the trough of the job and housing markets will become renters-by-choice.  Retirees will rent their current homes, rather than selling them, move to warmer climes and rent instead of own their retirement homes, at least until the housing market stabilizes and the mortgage market relaxes.

Although no one can be certain what will happen in 2011 – especially for the struggling national and Southeast Michigan real estate markets – we can all gain a little hope from these 2011 forecasts.

If you’d like to buy or sell a home in 2011, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

When you buy a home, you want one that will meet your needs. You may have an at-home business that requires a lot of space or large pets that need room to run. If this is the case, a home located in a close-knit planned community may not be right for you.

Here are three reasons when you’re buying southeast Michigan real estate, building on vacant land might be right for you:

1. You want to build a home designed to meet your needs. Perhaps the greatest benefit of buying southeast Michigan real estate that is vacant land, is the freedom you have to build whatever home you want. You won’t have to use a particular home builder or build a home just like everyone else’s.

2. You want more space. Building a home in a planned community comes with certain restrictions. One of those is usually a smaller lot size. Many homes are now being built on 1/3 acre lots and smaller. You may not be comfortable living in a home that close to your neighbor’s house. Purchasing Southeast Michigan real estate and building on vacant land puts as much space between you and your neighbors as you want.

3. You want to take advantage of current land prices. Even if you aren’t ready to build right now, it still makes sense to purchase vacant land. Land typically goes up in value over time, and as the saying goes, they’re not making any more of it. You can buy your land at today’s rate and then build your home whenever you are ready. The land will be waiting for you.  This could save you thousands of dollars.

Ready to buy southeast Michigan real estate? If you think buying vacant land is right for you, let me help you find the property that meets your needs. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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