Lee Morof's Real Estate Blog

You already know all the usual reasons agents and other experts think now is a good time to buy real estate in Southeast Michigan.  Here are 4 reasons to buy real estate in Southeast Michigan now that just might surprise you:

1. Homes are in tip-top condition. Instead of selling and moving into a more expensive home, many owners have invested their money in home maintenance, repair and updates, so says the Harvard University’s Joint Center for Housing Studies.

2. Outstanding homes are coming on the market. Many homeowners who have been waiting for the real estate market to take an upturn are now putting their homes on the market.  And, those homes are in great shape (see #1).

3. Appraisals reflect reality. We can all be thankful that Fannie Mae adjusted its guidelines so that home appraisals can be more in alignment with today’s real estate market. That means more deals will make it all the way through to closing.

4. Housing programs. There are still programs to help people buy homes:

• Workforce Housing Programs encourage middle-class families to buy houses. Buyers who qualify can get a big boost by combining one of these programs with today’s low mortgage rates.
• American Dream Downpayment Initiative (ADDI) provides low-income first-time earners (single family: $44,400; family of four: $63,450) with a city loan equal to 6% of the purchase price or up to $10,000, whichever is greater. Each state receives ADDI funds proportionate to the percentage of the national total of low-income households residing in rental housing in the state, as determined by the most recent available U.S. Census data.
• Mortgage Credit Certificate Program is a federal tax credit (15% or 20% of the mortgage interest, depending on property location) that helps low and moderate earners qualify for a higher first mortgage and reduced federal income tax.

Talk with a mortgage specialist or real estate in Southeast Michigan professional to find out which programs your state has funded.

Now isn’t just a good time to buy, it’s one of the best times ever.  If you’re ready to buy a home, I can help.   Give me a call at 248-514-2640 or email me today 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

While some people are hesitant to buy into a real estate market that seems to still be bottoming out, many studies have shown that owning a house is an investment in your future and that of your community. From tax breaks to property taxes, being a Bloomfield Hills home owner can put money in the bank.  It also gives you a sense of pride in contributing to community institutions such as the police force, local government offices, fire stations and free medical services.

Did you know that statistically you and your neighbors are more likely to properly maintain and update your Bloomfield Hills homes when you own them rather than rent them?  Maintaining and updating your home boosts the real estate market around you, giving you the chance to increase the value of your property, your neighbors’ property and eventually your entire community.

4 more reasons why you should buy instead of rent:

1. Building financial security – While it might take many years for you to actually make a profit on your house, you’ll still have your money secured in a tangible investment that you can pass down for generations to come.

2. Investing in your community – If you pay property taxes, you’ll be investing in your community. You could play a part in contributing to more parks, cleaner streets and better schools for you, your children and your neighbors.

3. Buying while the housing market is slow – With the high rate of foreclosures and slow real estate market, you can scoop up amazing homes at great prices. Purchase while the market is slow and your investment could grow exponentially within the next 10 years.

4. Taking advantage of tax benefits – You’ll receive a federal income tax break, and you’ll get to deduct the interest paid on your mortgage and property taxes — which means more money in the bank!

Use an online mortgage calculator to determine what you can afford to buy instead of paying rent. While renting can be appealing, you won’t be doing your financial security, your children’s schools or your community any long-term favors.

Want to discover more benefits of buying instead of renting a Bloomfield Hills home? 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

Considering deflated real estate values, you might wonder if buying national and Troy Michigan real estate still makes good financial sense.  According to the National Association of REALTORS® eighth annual Housing Opportunity Pulse Survey, nearly 8 out of 10 respondents believe buying a home does make good financial sense. 

Surprised?  Let’s examine three reasons Americans believe buying national and Troy Michigan real estate remains a good financial choice:

1. Lower home prices and low mortgage interest rates are making homes more affordable. 

2. Almost 7 out of 10 believe that home values have stabilized in their area; the same number expects home sales to remain about the same through the end of the year.

3. The rate of foreclosures is also seen as stabilizing; 51 percent say the rate is about the same as last year.

Another big advantage for you may be the tax benefits of home ownership.  You will still, as always, be able to deduct the interest you pay, as well as other real estate related items on your income tax return. For most people that deduction equates to a sizeable chunk of money. It can mean the difference between owing the government more money at the end of the year, and getting a refund.

If you would like more information on how owning Troy Michigan real estate can make sense for you, 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

You know it’s a buyer’s market.  But you really need to sell your home now.  Here are 6 tips to get Royal Oak Michigan homes for sale sold, even in today’s real estate market:

1. Price your home competitively from the start.  Ask your agent to find out what similar homes in your neighborhood sold for in the last 6 months.  Don’t bother looking at pricing prior to that.  And don’t base your decision on listing prices.  A lot of homeowners price their Royal Oak Michigan homes for sale high to start with, but end up drastically reducing the price in order to get them sold.

2. Offer incentives.  There are a lot of similar properties on the market, so in addition to competitively pricing your home, you should consider including incentives.  You could offer a home warranty, to pay part of the closing costs or to leave the big screen television that fits perfectly over your fireplace.

3. Pick the right agent. Look for local agents who are listing, marketing, and selling in your neighborhood even though the market is slow. Interview several of them and ask what price they recommend and how they’ll market your property.

4. Get your home in tip-top shape.  You cannot afford to let anything slip through the cracks… literally.  If you have cracks in your driveway, walls or foundation, get them fixed before you put your home up for sale.  Make your home shine.

5. Be flexible on the deposit.  In a slow market, you may need to settle for a smaller deposit than you’d typically require.  If the buyer is pre-approved for a loan and no other offers are on the table, reducing the deposit may convince the buyer to make an offer.

6. Negotiate.  Buyers can and will be demanding in today’s real estate market.  Prepare yourself for some tough negotiating.  Make sure you’re working with an agent who excels at negotiating, and then let her do her job.

Want to work with a local agent who is an expert negotiator and knows how to get Royal Oak Michigan homes for sale sold in this buyer’s market?  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

As a society, it seems like we’ve gotten away from appreciating our Royal Oak Michigan homes for their emotional and sentimental worth.  Instead, we focus solely on their monetary value. 

An appraiser can estimate a Royal Oak Michigan home’s monetary value, but to gain a true concept of your home’s worth, you must also take into consideration:

1. Pride of ownership.  You don’t buy a pair of Prada shoes because you’re going to be able to resell them and make a profit.  You buy them because they make you look good and feel good.

2. Security and stability.  Your home provides a roof over your head that’s in your control.  You can decorate it how you want.  You don’t have to worry about a landlord selling the property or asking you to move out.  In the “olden days” (or should I say “golden days”), we called our homes our castles because, as owners, we felt like the kings and queens of our Royal Oak Michigan homes.  You can still feel that way!  Claim your castle and crown yourself king or queen today.

3. A safe haven.  After a tough day at work or a day of disappointments, where’s the first place you think of going?  Home!  As Dorothy says, “There’s no place like home.”

4. A place to make memories.  Your son’s tree house and daughter’s playhouse.  The markings on the wall that tracked your children’s growth.  The porch swing where you start and end every anniversary celebration.    

5. A neighborhood full of friends.  In the event of an emergency, your neighbors are your first line of defense.  They’re also the simplest, best and least expensive form of security.  Additionally, they may have the exact tool you need for a project; the extra pair of hands you need to complete a project or children to become playmates with yours. Neighbors also give you that much needed in-person, up-close social network.

Even if your home’s economic value has dropped, you continue to benefit from its emotional values of community, stability, security and success.

Thinking of buying a home in southeast Michgian in Oakland County?  I can help you evaluate the emotional and monetary worth of homes and find a home that fits your values and lifestyle.  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

Valentine’s Day is the perfect time to add some romance to your Bloomfield Hills home.  No need to spend a lot of money.  Here are some simple tips to create your own inexpensive, yet romantic, Valentine evening:

Romantic Dinner for Two
A delicious meal is a great way to start off the evening. Many restaurants raise their prices on Valentine’s Day, so forego the expensive dinner out. Instead, create a special dinner at your Bloomfield Hills home. Here’s what you’ll need:

• Cook Pecan Chicken with Mustard Sauce – Don’t like to cook?  Buy an already prepared meal from your local grocery store; it’s fairly inexpensive these days.  Just be sure to remove it from the containers and put it on pretty plates.
• Add Music – Turn the radio to your favorite station and enjoy.  Or, download some romantic music to your MP3 player.
• Use candlesticks and cloth napkins – Candles are always romantic, and, when lit, eliminate the need to clean your Bloomfield Hills home thoroughly.  Your sweetie won’t be able to see the dirt in the glow of candlelight.

After Dinner
Valentine’s Day is about spending time with the one you love.  Instead of going out, rent a romantic movie and stay in.  Wine (or sparkling juice), a movie and snuggling on the couch can do wonders for your love life!

• Wine or sparkling grape juice – Grab a 2 Buck Chuck at Trader Joe’s
• Movie – Rent a Redbox movie for $1.

The Bedroom
Go on vacation – in your own bedroom!  Get that “new room” feeling by washing your bed linens, fluffing up the pillows, and spraying the pillowcases with lavender essential oil.  Put one rich chocolate wrapped in foil on each pillow.

Wishing you and your loved one a sweet Valentine’s Day!

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

For some frustrated sellers, the answer to “Why isn’t my home selling?” is “It’s the agent’s fault!”  If your immediate instinct is to drop your Southeast Michigan real estate agent for a new one, you might want to take a deep breath and consider the following:

1. Do you think agents are like lottery tickets?  Going through Southeast Michigan real estate agents as fast as scratch-off lottery tickets isn’t going to get your home sold faster.  In fact, it usually slows down the process.

2. Is your home priced correctly?  That’s probably the number one difference between homes that sell fast and homes that sit on the market.  A poorly priced home could be your agent’s fault.  Then again, you could be partially to blame.  Did you insist on a specific price even though your agent strongly recommended a lower price?  Did you refuse to lower the price when your agent suggested lowering it?  If you’re inflexible about price, switching agents will not help. 

3. Did you make the home improvements recommended by your agent?  If your agent suggested you paint, clean carpets, reduce clutter or complete any other inexpensive, easy-to-accomplish task, and you didn’t do it, you’re greatly reducing your opportunity to get your home sold.  You chose to work with your agent because he is a knowledgeable professional.  Take his advice and get those home improvement tasks done now.

4. Has your listing agreement expired?  If your listing contract has expired, this is the perfect time to consider switching agents.  Go back to the start, identify 3 new agents and interview the agents.  If you find one that fits your needs better than your current agent, let your agent know you won’t be renewing your contract.

5. Did your agent market your home?  If your agent has not done all the marketing he promised, point this out and ask him when he’ll get the marketing in place.  Follow up to be sure it’s done on time and professionally.  If he still doesn’t market your home like he said he would, it may be time to switch agents. 

6. Are you being impatient?  If you made all the home improvements recommended by your agent, your home is properly priced, and all marketing tasks are completed, you may just need to have a little patience.  This is a slow real estate market.  That means your home isn’t going to sell overnight.  Ask your agent the average number of days it takes a home to sell in your area, then wait that length of time before thinking about changing agents.

Don’t replace your agent just because you don’t know what else to do.  You’ll be wasting time and effort.  Instead, work with your agent to determine what else can be done to get your home sold.

If you decide to search for a new Southeast Michigan real estate agent, I’d be honored if you’d allow me to interview for the job.  Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com to schedule an interview.

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

Now is a great time to get into the investment real estate market. Not only does investment property give you a real tangible asset for your portfolio, investors in Michigan real estate can also get investments at great prices right now.

Here are four ways investors in Michigan real estate can make money from potential investments that you might want to consider.

• Rental properties.  Not everyone enjoys owning rental property, but it is one of the most profitable ways to make money from real estate.  Rental properties give you a constant residual income that lasts as long as you keep the property.

• Flipping. While the house flipping craze of the 80s and 90s cooled down with the current mortgage and housing crunch, for serious investors who take the time to know what they are doing, it is still a viable means of making money in real estate.  This is typically a shorter term method of real estate investing.

• Rehabbing. Buying a house to live in while you fix it up and resell it is similar to flipping, except that most rehabbers take longer to renovate the home, and use it as their primary residence while doing the work. There are three reasons this is a more comfortable way to flip real estate investments. First, you have a place to live and don’t have to pay a mortgage on another property.  Second, you don’t have to feel as pressured to sell in a short period of time the way you do a flip.  Third, you may receive all the homeowner benefits like tax breaks and no capital gain tax.

• Subdivide. This form of investment requires a little advance preparation and investigation. When you discover a sizeable piece of land at a good price, find out if it is zoned so you can subdivide it.  If it is, you can profitably sell off individual parcels to those who want to build on it.

If you are one of the investors in Michigan real estate and would like more information on investment tips that makes sense for you, I can help. Contact me 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