Lee Morof's Real Estate Blog

Good news for the housing industry!  Nationwide new home starts increased 14.6% in January, reaching its highest rate in four months and increasing more than analysts expected.

During the International Builders’ Show in Orlando, David Crowe, chief economist of the National Association of Home Builders, projected single-family housing starts to rise 21% in 2011.

To what can we attribute these actual and projected increases?  The four key elements driving new construction in 2011 are:

• Sustained job growth.   Lawrence Yun, chief economist of the National Association of REALTORS®, projects about 2 million jobs to be added in 2011.  Unemployment is expected to drop to 9.2 percent.
• Increasing U.S. population.  Over the past 10 years, the U.S. population has increased by 27 million. Continued population growth will also stimulate construction and sales of Bloomfield Hills homes. “All the indicator trends are pointing to a gradual housing recovery,” Yun says.
• Low interest rates.  The 30-year fixed-rate mortgage for Bloomfield Hills homes is forecast to rise gradually to 5.3 percent around the end of 2011.
• An increase in the multi-family category.  The majority of the new construction projects were for apartment buildings and other multi-family units.  The rate of starts for single-family homes was the lowest in almost two years.  Independent economist Joel Naroff said, “What is nice to see is that developers seem to be picking up the slack by putting up rental and condo units instead, a trend that is likely to continue.”

Another boost to the housing market will come as lending opens up with safe underwriting standards for creditworthy buyers.

If you have any questions about buying or selling Bloomfield Hills homes or about our local real estate market, please 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
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

Selling homes for sale in southeast Michigan by owner takes a lot of time, energy and expertise.  You need to know how to set a fair market value for your home, promote your home to pull qualified buyers and negotiate the final terms and sales price. 

One of the most important skills you need to learn in order to find qualified buyers for your home for sale in southeast Michigan is how to sort out the lookers from the serious buyers.

Lookers are people who aren’t serious about buying a home.  At the least, they waste your time and energy.  At the worst, lookers could be a security problem.  They could be checking out your home to determine if you have valuables worth stealing.

Serious buyers are people who are interested in buying a home within 30 to 90 days and are pre-approved for a mortgage.  Spend your time and energy on these individuals.

So, how do you identify qualified buyers?  Before scheduling a time to show your home for sale in southeast Michigan by owner to potential buyers, ask them these four questions: 

1. Are you pre-approved for a mortgage?  If they’re pre-approved for a mortgage, they’re serious about buying a home.  If buyers aren’t pre-approved, suggest they contact a mortgage specialist and get back in touch with you when they have their pre-approval letter.  Mortgage specialists check the buyer’s credit score, income and debt ratios. They also verify that the buyer has enough money for down payment and closing costs.
2. How much are you pre-approved for?  Make sure they’ve been approved for a big enough loan to be able to afford your home for sale in southeast Michigan.  If your home is valued at $500,000 and they’re only pre-approved for $150,000, they cannot afford your home unless they can pay the difference in cash.  If the buyer is purchasing your home with cash, or using cash for a large down payment, ask the buyer for a bank statement to verify his or her funds.
3. Do you have your pre-approval letter?  Verify that they are pre-approved for the amount they say they are.  Ask the buyers to email or fax their pre-approval letter to you or bring it with them when they tour your home.
4. What’s your possession deadline?  Your move-out timeframe needs to be close to the buyer’s move-in deadline.  How close?  Close enough to negotiate the difference.  If they don’t want to take possession of your home for 6 months, and you need to sell immediately, they’re not a serious buyer for your home.

To successfully sell your home, you need to know if a potential buyer is qualified to buy your home.  The sooner you know this, the less time you’ll waste chasing after lookers and unqualified buyers.

Tired of going it alone?  If you’d rather have an experienced southeast Michigan real estate agent handle everything for you from finding qualified buyers to negotiating the sales contract, 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
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

Whether you’re looking to update your Royal Oak Michigan home before selling or you want to remodel a new place before moving in, it’s imperative that you have a good relationship with your contractor. Unless you’re planning to do the renovation work yourself, you’ll be relying on the knowledge, competence and trustworthiness of someone you might barely know.

While you want to stay on good terms with the person renovating your Royal Oak Michigan home, there are a few formal guidelines that you should follow to ensure your projects are completed on time and on budget.

5 tips for working with a contractor: 

1. Keep in constant communication – Try to touch base with your contractor every day. Exchange cell phone numbers, set up a daily appointment or send periodic emails. This allows your contractor to keep you up to date on changes or issues, and it allows you to voice questions and concerns.
2. Know what you want – Decide the type of materials (such as hardware, tile or wood) you’re going to use before you bring in a contractor to give you a bid. Without all of the information, he or she could vastly under or over estimate the renovation cost and budget. 
3. Sign off on all project changes – Put in your renovation contract that you want to be informed of all unforeseen changes to the project. This ensures that you stay in the loop and allows you to manage the total cost of your renovation.
4. Accommodate and be helpful – You and your contractor will be happier if you make his or her workers’ lives easier by designating a bathroom for them to use or providing them with something cold to drink on a hot day. You’ll help motivate and boost morale!
5. Make sure you only pay for work completed – Never pay the full amount up front.  Instead, set up a pay-as-the-project-is-completed schedule. Depending on the size of the renovation, decide on how much you’ll pay after certain points of completion. This ensures work for the money.

If you want to learn more about dealing with Royal Oak Michigan home contractors, 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
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

If you’re looking at Bloomfield Hills homes to buy, you’re probably overwhelmed by everything you need to take into account before making your final choice.  You have to think about the Bloomfield Hills home’s size, location, price and condition, to name a few. 

Some of the most important features to carefully examine are those that cannot be easily or inexpensively changed.  You can easily and relatively inexpensively repaint the bright pink walls and replace the avocado refrigerator.  But what about the power lines hanging across the backyard?  You may never be able to get those removed.

Here are a few difficult to fix flaws you may want to steer clear of:

• Odd smells coming from businesses in the neighborhood such as farms, garbage dumps and recycling centers 
• A busy road
• Noise from businesses, trains, airports or flight paths
• Super steep driveway or road to the home
• Traffic from busy shopping centers or entertainment facilities
• A floodplain 

Watch out for flaws that are expensive and difficult (or even impossible) to fix.  They can significantly decrease your enjoyment of the home, while you live there.  They can also lengthen your Bloomfield Hills home’s time on the market and reduce its resale value, when you’re ready to sell.

Shopping for a home to buy in Southeast Michigan?  Let me help you find a home that is free of tough to fix flaws.  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
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

It’s the time of year we all dread… time for your 2010 tax filings.  While I am not a Certified Public Accountant (CPA) or even a plain old accountant, I do want to share with you some basic tax tips all Royal Oak Michigan home owners should consider before filing their taxes.

• Contact a tax expert.  My motto is always, if in doubt, contact a tax expert.  There’s no way around it; taxes are complicated.  While some don’t want to spend their money on tax experts, I’ve found that they’ve saved me much more money than they’ve cost.  And, the peace of mind they provide is priceless.
• Claim your Royal Oak Michigan home owner’s tax deduction, if you’re eligible.  In 2002, a study was conducted that showed that 61% of eligible home owners did not claim their home owner’s tax deductions on their income taxes.  That means that 61% of home owners who would have saved on their income taxes took the standard deduction and paid a higher tax bill that they needed to.  Don’t miss any more tax savings by automatically taking the standard deduction.  Consult a tax expert to find out how much you can save by taking advantage of your home owner’s tax breaks.
• Review your past returns.  If you think you might have overpaid your taxes in the past, have a tax expert review your past returns and help you file an amended return to reclaim your money.
• Start paying back your 2008 first-time home buyer tax break. If you claimed the very first version of the first-time home buyers tax break on your 2008 tax returns, you must now start paying it back.  The credit has to be repaid in 15 equal payments each tax-filing time, beginning with 2010 returns.  The 2008 tax break wasn’t a true credit.  Instead, it was an interest-free loan, and like all loans, it must be paid back.
• Claim subsequent home-buyer tax credits.  If you qualified for and used the 2009 (which was extended to June, 2010) first-time home-buyer tax credit or home-owner tax credit, you had the option to claim the credit on your 2009 or 2010 taxes.  If you waited to claim them, now’s the time to do so.

Even though the home-buyer tax credits are no longer available, this is an amazing time to buy one of the Royal Oak Michigan homes for sale.  If you’d like to learn more about why now is a fabulous time to buy a home, or if you need help finding a home you love, 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

Looking to buy a new house? Do you have a specified budget in place? Are you going to need to take out a loan? In such a tumultuous Troy Michigan real estate market, there are many frustrating financial hurdles that you need to jump before you can purchase your home. However, with a pre-approved loan you could reduce stress and move in quicker.

Troy Michigan real estate buyers have an advantage if they are pre-approved for a home loan. A pre-approved loan is when a bank provides you with an amount they would be willing to lend you for a home and a period of time for which this offer is good. They determine this amount based on several criteria that you must provide and prove, such as your current income, bank statements, income tax returns and credit history. 

Perks from pre-approval

• Know what you can afford –Using a mortgage calculator, you can see an estimate of the monthly mortgage payment to help you determine if it is within your budget.  By obtaining a pre-approved loan, you’ll know exactly how much money you can spend on a house.
• Gain credibility – Troy Michigan real estate agents and sellers take you more seriously if they have proof that you can come up with the money to purchase the property.
• Save time – When you know exactly how much you can spend, you won’t waste your time looking at houses out of your price range. This allows you to spend more time scrutinizing the houses you can afford.
• Close quicker – With a pre-approved loan, you’ve already completed part of the time consuming work toward getting your mortgage. Without pre-approval, you might endure heartache if you find your dream home, but can’t find the funds.

If you’re searching for Troy Michigan real estate without a pre-approved loan, stop wasting time. Analyze your income, talk with a lender and get pre-approved before beginning the house hunt.

Need a referral to a reputable mortgage provider in Southeast Michigan?  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

Here are a few tips to help your Royal Oak Michigan home for sale show better and sell faster.

1. Get rid of the excess:  Eliminate as much as possible, and then do it again.  Remember when staging your Royal Oak Michigan home for sale, less is best.  Swap out personal photos for framed art.  The main idea is to remove as much as possible and replace personal items with neutral objects so that people can imagine their things in the home.
2. Repair and paint:  Before painting, fix all those minor dings that don’t really bother you.  Buyers notice everything.  A missing piece of baseboard, an outlet that doesn’t work, or a closet door that won’t stay on track all seem minor, but they can have a huge affect on how a buyer views your home.  The next step is to apply a fresh coat of paint in a neutral color.  Freshly painted walls make a room look cleaner and larger.
3. Improve the curb appeal:  You have to get people in the door before they’ll buy your Royal Oak Michigan home for sale.  If your house looks bad on the outside, buyers won’t waste their time taking a look at the inside.  Improving your curb appeal doesn’t mean you need to hire a landscaper.  It can be as basic as trimming your hedges and trees, especially those closest to your house.  Repair or replace loose porch railings and make sure the exterior paint is not chipping.  If needed, scrape and paint; peeling paint is a real turnoff to buyers.  Keep the lawn mowed.  Put away bikes, toys and garden tools.

Following these simple steps will go a long way to getting your home sold quickly.

Ready to sell your home in southeast Michigan?  I can help.  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

As houses continue to sit on the market without the slightest sign of interested buyers, sellers are lowering prices and pouring more money into upgrades and remodels. While these updates might help increase sales, you could achieve the same results with your Bloomfield Hills home by spending less cash and adding more green.

With the growing demand for green features, buyers like the idea of purchasing a house that already contains a few eco-conscious elements. From environmentally sound materials to energy efficient windows and doors, just adding one green upgrade could be the ticket to spark interest and sell your Bloomfield Hills home.

6 eco-features buyers love:

1. Water-saving appliances – Install low-flow toilets and aerators on showers to reduce your water usage and see a surprising reduction in your bills.
2. High-efficiency filters and air purifiers – Remove even the smallest dust particles and kill bacteria that could be floating throughout your house.
3. Paving stones – Use paving stones for your driveway in place of concrete. It looks quaint and allows rainwater to seep into the ground, instead of flooding the storm water system.
4. A sealed garage – Properly seal your garage to ensure poisonous fumes and outdoor contaminates don’t accidentally seep into your living areas.
5. Solar power – Decrease your energy bill by incorporating these sun soakers into your grid. Just make sure they’re positioned discretely, so they don’t become an eyesore.
6. Efficient windows – Help regulate your home’s temperature by limiting air leakage.

If you don’t have the cash to turn your house completely green, just update one or two features and be sure to highlight them when marketing your home. By providing your potential buyer with energy savings, you may also save yourself time and money when your home sells faster and for more money.

Don’t endure another day of waiting for someone to buy your Bloomfield Hills home. With the right updates and my 30-Day Marketing Plan, I can help you turn your house green and cash in on your pot of gold.  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

Are you a first-time home buyer?  There are a lot of things you’ll want to learn before making that first purchase.  Here are 9 tips to help you purchase the perfect Southeast Michigan real estate you’ll love and be prepared for additional costs you may not have considered:

1. Ask yourself if you’re ready. Are you financially ready to buy Southeast Michigan real estate?  Do you have a steady job and income?  Do you have money for the down payment?

2. Get pre-approved.  When you get pre-approved for a mortgage loan, your lender checks your credit and lets you know the amount of mortgage for which you qualify.  Having a pre-approved loan will put you at the top of the list when presenting an offer.

3. Identify closing costs. The cost of closing on the sale of your Southeast Michigan real estate shouldn’t be overlooked. Closing costs include origination fees, title and settlement fees, taxes and prepaid items such as homeowner’s insurance or homeowner’s association fees.

4. Calculate your total monthly housing cost.  Include taxes and homeowners insurance.  In some areas, what you’ll pay for your taxes and insurance escrow almost doubles your mortgage payment.

5. Include home maintenance expenses in your budget.  Maintaining your investment can be labor-intensive and expensive. Unexpected costs for new appliances, roof repairs and plumbing problems can drain your bank account.

6. Find a Bloomfield Hills home.  Identify the neighborhood, you want to live in.  Hire a full-time REALTOR® who specializes in that neighborhood to help you find and negotiate the purchase of the home.

7. Get a home inspection.  Make sure your agent includes a home inspection contingency in your offer to buy a home. If you’re unsatisfied with anything found in the home inspection, have your agent negotiate with the seller to make repairs, pay for repairs or lower the price.

8. Make it to closing.  You have your financing, your offer has been accepted, and you’re anxiously awaiting the day you close on your home.  Now, you just have to make sure you don’t do anything to jeopardize your credit.  Do not change jobs, buy a new car or apply for credit cards.

9. Celebrate.  Congratulations!  You’re now the proud owner of your first home.

Buying your first home can be exciting, especially if you’re knowledgeable about the process and prepared.

If your goal for this year is to be a first-time homeowner, let me guide you through the process of finding and buying a home.  Give me a call today 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