Lee Morof's Real Estate Blog

In today’s economy, people are looking for ways to save money.  This is also true when it comes to selling their homes.  Some homeowners believe that selling their homes without a Southeast Michigan real estate agent will save them thousands.

Is selling your home on your own right for you?  After weighing some of the advantages and disadvantages to selling your home without a Southeast Michigan real estate agent, you will be able to make a more informed decision on which choice is best for you.

Here are three advantages to selling your home as a For Sale By Owner (FSBO):

1. You may save money by eliminating the commission.  Selling your house as a FSBO means you don’t have to pay commission to a listing agent.  The average commission is 6% of the sales price, so you could possibly save that amount.  Unfortunately, buyers know that too.  So, most buyers believe that if you are selling on your own and not paying a commission, they should get the savings – not you.
2. The Multiple Listing Service (MLS) is now available to you.  A FSBO can now be advertised on many local Multiple Listing Services.  In the past, this tool was only available to real estate agents and brokers.  You will usually have to pay a fee to get your home listed on the MLS.
3. Offers and counter offers can be negotiated face to face between you and the buyer.  You don’t have to wait for your listing agent to talk with the buyer’s agent and get all the paperwork drawn up.  However, if you are not skilled in negotiation, you may leave money on the table.

One other thing to take into consideration before you put up your For Sale By Owner sign is the state of your local Southeast Michigan real estate market.  If it is a buyer’s market, you will most likely have a hard time selling your home by yourself.  It’s easier to sell your home by yourself when there is a seller’s market.

If you’re still not sure if selling as a FSBO is right for you, and you have plenty of time, you can try selling your home without an agent.  If your home hasn’t sold after a few months, you can then hire a Southeast Michigan real estate agent.

If you’d like information on how to sell your home on your own or what paperwork you need, I’d be happy to help.  Call me today at 248-514-2640 or by email at info@NorthWoodwardHomes.com.

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

Is it really that difficult to sell your home by yourself?  It depends.  Do you like to market, negotiate and fill out legal documents?  If yes, you may prefer to sell your home without the help of a Southeast Michigan real estate agent.

Before you make your decision, consider these three disadvantages to selling your home as a For Sale By Owner (FSBO):

1. You may under-price or over-price your home.  If you’ve overpriced your home, you won’t get many interested buyers.  When you drop the price of your home a few weeks later, you’ll have missed the “new on the market” window of opportunity that brings in a lot of potential buyers.  If you under-price your home, buyers will wonder what’s wrong with it, and, if it sells, you’ll be leaving money on the table.
2. You have to pay to market and advertise your home.  When you sell your own house, you’ll spend money on marketing and advertising costs including for sale signs, online ads, print ads in newspapers and real estate magazines as well as the cost to be included in the MLS.  When you hire a Southeast Michigan real estate agent, they pay to market and advertise your home.
3. You are responsible for all the legal paperwork needed to sell your home.  This means you must know what paperwork is required by the state and how to fill it out correctly.  If you fail to do this properly, it can delay the sale or leave you open for a lawsuit down the line if something is wrong or missing.

If you determine that listing your home as a FSBO is not right for you right now, hire an experienced Southeast Michigan real estate agent to sell your home for you.  Although you’ll have to pay commission, it will save you time and effort (and maybe even money) in the long run.

If you’ve decided to hire a Southeast Michigan real estate agent in Oakland County, I’d be honored to be interviewed for the job.  Please give me a call me at 248-514-2640 or by email at info@NorthWoodwardHomes.com to schedule an interview.

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

There are a few mistakes that many first-time home buyers make.  Here are three of the most common mistakes and how you can avoid them when purchasing your first Bloomfield Hills home.

Mistake #1:  Assuming your credit is good.
The information in your credit report determines whether you can get a loan — and how much interest you will have to pay – so it pays to be certain your credit reports are accurate.

Check your credit reports for free from all three credit reporting companies — Equifax, Experian, and TransUnion — to make sure everything is correct.  If you find errors, contact both the credit reporting company and the information provider (the person, company or organization that provided information about you to a credit reporting company) involved in the errors and ask them to fix the credit report errors.

Mistake #2:  Getting pre-qualified, not pre-approved, for a loan.
It’s far better to be pre-approved for a Bloomfield Hills real estate loan than to be pre-qualified.   Here’s why…

With pre-qualification, your lender does a preliminary evaluation of your ability to pay for a home and gives an estimate of the mortgage amount they’ll give you.  The lender does not verify the information you provide.

With pre-approval, your lender verifies your income, assets, debts and credit history.  They provide you with written confirmation of the mortgage amount for which you’re approved. That written confirmation demonstrates to the seller that you are committed to buying and can give you an advantage over other Bloomfield Hills real estate buyers.

Mistake #3:  Allowing emotions to influence your decisions.
Buying a home is an investment.  It needs to be treated as any other investment.  You don’t buy stocks because they are pretty and you shouldn’t pick your home that way either.  Make sure the home you buy fits your needs and allows you room to grow over the next few years. As with any sound investment, time is the key to a good return.

If you are a first-time home buyer, as an experienced Bloomfield Hills real estate agent, I would be happy to help you find and get the best price for your first home.   Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

In today’s environment, do you think buying one of the Royal Oak Michigan homes for sale has become less popular than renting?  Then, you’ll probably be surprised to learn that 81% of American adults still think that buying a home is the best investment a person can make.

In comparison, two decades ago, a CBS News/New York Times survey found that 84% of American adults thought buying a home was the best investment a person could make.  That’s only a 3% decline in 20 years.

The new information is based on two nationwide studies performed this year by the Pew Research Center and Trulia, a real estate website.  The Pew Research Center’s survey sample included 2,142 adults.  Fifty-seven percent of the people who answered the survey own a home, 30% rent and the remainder has other arrangements, such as living with family members.

Here are some other findings provided by the studies:

• Buying is more affordable than renting in 78% of America’s major cities.
• 81% of renters would prefer to own a home than continue to rent.
• 47% of homeowners say their home is worth less now than before the recession started.  31% say its value is the same.  17% say their home is worth more than before the recession.

The bottom-line?   In most areas of the country, even though home prices have declined in the past four or five years, homeownership is still preferred and is also a practical financial decision.

If you’re ready to buy one of the Royal Oak Michigan homes for sale, I can help you find one that you’ll love in a price range that fits your budget.  To find the perfect Royal Oak Michigan home for sale, give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

If you’re looking to purchase a new home, then you have a list of priorities. When looking at Royal Oak Michigan homes for sale, families with young children consider proximity to schools and quality of school districts as two of the top concerns on their home buying checklist.

With “back to school” on the brain, your top priority when looking at Royal Oak Michigan homes for sale might be how close a home is to schools. Before you purchase property near a school, take the following considerations into account.

• Top-notch education – If the local school is the best in the surrounding area, then your property value could increase. Houses in your neighborhood will be in high demand because families will want to ensure their children are included in that district.
• Around the block – Living near a school could be beneficial if you have younger children you can walk with. Additionally, your proximity will allow you to react quickly if school closes early or your child gets sick.
• Noise alert – With cars whizzing by and children walking past, you might have to deal with daily commotion and traffic. Depending on how close you live to the school, you could also be subject to noise from recess, after-school practice and Friday night football games.
• School view – Living directly across from a school could actually decrease the value of your home and increase the litter. A view of a high school isn’t as good as a view of a quaint, tree-lined street; and the constant foot and car traffic could mean more mess in your yard.
• Neighborhood watch – Do your research. Some neighborhoods surrounding schools may have better relationships with the school. If your neighborhood association meets monthly with a school, you’ll be able to voice any concerns you might have.

While there are many pros and cons to living near schools, you need to decide what is best for your family.

Whether you’re interested in Royal Oak Michigan homes for sale near or far away from schools, I can help you find a home that fits your priorities.  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

Just over a year ago, the federal government launched the Home Affordable Foreclosure Alternatives (HAFA) program.  It was supposed to streamline the Southeast Michigan short sale process for home owners and home owners nationwide.  This article provides an update on HAFA.

How does HAFA benefit Southeast Michigan home owners?

Home owners who don’t qualify for a loan modification can apply for a Southeast Michigan short sale through HAFA.  If the home owner qualifies for a HAFA short sale, the difference between the sales price of the house and the loan balance is forgiven.  In addition, HAFA offers qualified home owners $3,000 for moving expenses.

How well is HAFA working?

From April, 2010, to December, 2010, HAFA has disbursed just $9.5 million of the $4.1 billion in its budget.  And, through May, 2011, only 8,541 HAFA short sales have been completed.

However, HAFA short sales have increased.  There were only 320 HAFA short sales pending in September, 2010. Now, there are 18,000 pending nationwide.

What went wrong with HAFA?

Because the loan balance is forgiven with HAFA short sales, lenders cannot collect that amount.  Lenders can collect the loan balance on short sales that go through them, so the majority of short sales are still handled by individual lenders’ programs.  Although HAFA provides a $1,500 incentive to the lender, it isn’t enough to entice them to go along with the program.

What’s next for HAFA?

The HAFA program expires at the end of 2012, and by then, the U.S. Treasury hopes to have a model process and uniform documents that banks could use to speed the process and avoid greater losses that come with foreclosure.  In the meantime, changes are being made to HAFA to ease eligibility requirements.

If you have any questions about selling your home, whether through a regular sale or a Southeast Michigan short sale, please give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

I’ve been getting a lot of questions about the estimated Southeast Michigan real estate values provided by online sources, so I thought I’d answer a few of the most frequently asked questions here today.

Why is the price you think my home can sell for different than the estimated home values provided by online real estate sources?

Because computer programs set those prices.  Here’s how it works in general.  A computer pulls the description of your Southeast Michigan real estate from public records.   Using that extremely basic information, such as square footage and number of bedrooms and bathrooms, the computer comes up with a price for your home.

Computer programs cannot personally visit your home and other homes in your neighborhood to see the differences and similarities.  They cannot see that your home has recently been painted and renovated.

Are there any circumstances in which those computer generated values are at least fairly accurate?

The estimated home values could be in the ballpark if all the following are true:

• Your home is in a subdivision in which the homes are very similar;
• Several homes just like yours have sold recently;
• Homes are not being sold as short sales or going into foreclosure;
• Your home is newer and has not had a major renovation or addition that is not in the public records.

While it’s fun to go online to see what your neighbor’s home sold for, don’t use that information as the final word for what your home could sell for in today’s market.

If you’d like a free, in-person, professional analysis of what your Southeast Michigan real estate could sell for in today’s market, give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. No obligation, just information.

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

You’ve decided to hire a property management company to handle your Southeast Michigan real estate rental property in Oakland County.  Choosing a well-respected and well-run company is crucial to your success.  Here are seven tips to help you make a wise selection:

1. Phone then visit in person.  Make a list of all the companies you’re considering.  Phone them to ask a series of elimination questions such as how long they’ve been in business and if they are knowledgeable about the Southeast Michigan real estate rental market.  If you’re still interested, make an appointment to visit in person. A personal visit gives you a better idea of how they conduct their business, and you can meet the people who will represent your interests.
2. Determine whether the company offers a comprehensive property management service or if the service is just a sideline for a Southeast Michigan real estate office. Find out exactly who will manage your property and how long that person has been a property manager in this area.  Ask how many people are on the staff and what happens when someone is out sick.  Determine what services they offer and exactly how your property will be managed.
3. Clarify the tenant screening process.  You want a company that does thorough research to determine the applicant’s credit and rental history as well as his or her criminal background and past and present employment situations.  You also want a company that sends you a written report that backs up their reasons for recommending a prospective renter so you can make a well-informed final decision.
4. Pick a company that uses current technology.  From maintenance requests to online rent payment services, there are many online tools available for property management companies.  Hiring a company that offers services through their website is important in attracting and retaining the best tenants.
5. Ask for three client references.  Get names and contact information of current or recently past clients, preferably clients who had property similar to yours.  Talk with them to find out what they liked and disliked about working with the property management company.
6. Hire a company that has good relationships with tenants.  It’s important that the company managing your property gets along well with renters.  If renters like the company, it means they’re getting good service and are being treated well.  This reduces problems and renter turnover.
7. Select a company that gets your money into your account quickly.  Your rental money should be in your account as quickly as possible, and typically no later than the ninth day of each month.  That’s your money and should be in your bank account earning interest not in the property manager’s bank account.

Thinking of investing in Southeast Michigan real estate for rental income?  I can help.  Give me a call today at 248-514-2640 or email me today at info@NorthWoodwardHomes.com.

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

If you own Bloomfield Hills real estate that you rent out, you already know how much work it is to juggle all the responsibilities of being a landlord.   Being able to share that work with someone else is an obvious reason for hiring a property management company.

Here are five additional benefits to hiring a company to manage your rental properties:

1. Stay up to date on legal issues: It’s difficult to stay on top of all the ins and outs of rental ordinances and tenant rights.  Property management companies ensure tenant and landlord rights are not violated and that all state and local laws regarding rental property are followed.  To help with this, property management companies often have an attorney on staff or on retainer.
2. Free up more of your time: The property management company is responsible for the day-to-day operations of your rental homes.  If the furnace goes out in the middle of the night, the management company gets the call not you.  They schedule routine maintenance and handle any repairs that are needed.  Some management companies perform monthly inspections of your Bloomfield Hills real estate to identify any problems or tenants that are damaging the property.
3. Screen potential tenants: Instead of spending your time interviewing potential tenants, running credit reports or checking references, you can spend your time on other things that you need or want to do.  The property management company advertises your rentals and screens all potential tenants.  Their job is to get you the best possible tenants for your rental home.
4. Collect rents: The management company collects and deposits rent on all your rental properties.  This cuts down on the accounting you must do on a monthly basis.  Each unit is tracked separately, so you know which rentals are making the best return and which ones you might want to sell.
5. Remove unwanted tenants: The management company is responsible for evicting tenants for non-payment of rent or improper care of your Bloomfield Hills real estate.  They handle filing the paperwork and going to the court hearing, as well as the follow-up process.  This is probably one of the most unpleasant landlord duties and one of the most difficult to implement without violating the tenant’s rights from lack of knowledge.

Want to buy Bloomfield Hills real estate for income property?  I can help.  Give me a call at 248-514-2640 or send me an email at info@NorthWoodwardHomes.com.

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