Lee Morof's Real Estate Blog

If you are on the verge of buying Southeast Michigan real estate, you’ve probably heard the term Private Mortgage Insurance (PMI). Mortgage professionals talk about it a great deal, but you may be asking, “What is it exactly? And why should I care?”

Private Mortgage Insurance Defined
PMI is required by lenders if the down payment of a purchase is less than 20 percent of the home’s value. It protects the lender if the borrower defaults on the loan. It also makes the lender more apt to loan, even if the down payment is as low as 3%, because in the long run, the lender’s investment is protected.

You Pay For It
Unlike other types of insurance which you pay to protect your interest in an asset, you pay Private Mortgage Insurance to the mortgage company to protect its interest in your new Southeast Michigan real estate. (Note that PMI is not usually tax deductible. Check with a tax professional for details. )

Make It Go Away: PMI Can Be Terminated Once You’ve Paid Down Your Loan
Once you pay down your mortgage to the point where it hits the magical 80% of the original purchase price or appraised value, whichever is less, you can request cancellation of PMI. The Homeowners Protection Act requires that loans made after 1999 include notifications to the borrower when you arrive at this point in your payments.

Your PMI payments must be automatically canceled once you pay down your loan to 78%. At closing, and on a yearly basis, you should receive information from your lender about when you can request cancellation.

Whether you’re ready to buy Southeast Michigan real estate or need more information before taking the plunge, I can help. 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

Within the walls of your house, you’ve probably raised a family, made future plans and created years of memories. Take time this month to be thankful for everything your Bloomfield Hills real estate has given you by giving it some green TLC this Thanksgiving.

With Christmas right around the corner, I know it’s hard to justify spending a lot of money on your Bloomfield Hills real estate. Below are a few easy and affordable green projects for you to do this Thanksgiving holiday — and they’ll start paying off immediately!

• Buy compact florescent light bulbs. You don’t have to do this all at once. As your light bulbs burn out, purchase these energy savers for around $3 a piece. They last about ten times longer than incandescent light bulbs and can save you close to $40 over their lifetime.
• Use faucet aerators. These only cost about $10 and are incredibly easy to install. Just unscrew your faucet nozzle or showerhead and slip the aerator in. It can cut your water bill in half by making the water squeeze through tiny holes, which makes it feel like there is more pressure. You’ll also reduce heating bills because the less hot water you use, the less you’ll have to heat.
• Put in ceiling fans. If you don’t have these in your house, then you’re missing out on a huge energy-saver. Starting around $50, ceiling fans push hot air down and help regulate each room’s temperature — just switch the blade rotation for summer.
• Replace your old toilet. Older toilets can dispense almost 3.5 gallons per flush, while modern low-flow toilets dispense as little as 1 gallon. If you’re in for more of a handyman challenge, you can purchase these for as low as $150. The more people you have in your house, the more savings you’ll see.

Not only will your Bloomfield Hills real estate and finances thank you for the green upgrades, but the environment will too.

If you’d like more green ideas you can implement this Thanksgiving break, please call me 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

At this time of year, as thoughts turn to gobbling down turkey dinners and watching football, it’s easy to get caught up in the details and lose the spirit.  So today, I want to take a minute to say something important:

Thank you!
Because of you, I have a job I love: being a Bloomfield Hills real estate agent. 

Thanksgiving is a holiday of gratitude, and yet too few of us remember that when we’re stuck in traffic going over the river and through the woods to grandma’s house for her famous pumpkin pie. 

So today, I’d like to say again, thank you.  

Thank you for contributing to this community, online and in the real world, by asking questions, adding your insights, and trusting me with your housing dreams.   

If we’ve worked together in the past, please know that I am sincerely grateful for your business. I hope the experience of working together led you to your perfect home and fulfilled your real estate goals.

If you are new to this site and just beginning to investigate the sometimes confusing world of real estate, I’d like to thank you for stopping by.  I hope that we will have an opportunity to work together.
 
One of my favorite things about working as a Bloomfield Hills real estate agent is that I learn so much about the lives of my clients. They let me inside their homes and tell me about their best imaginings for the future. Thank you for allowing me to be a part of your life.

Thank you for your trust.  I want you to know I am honored by it, and take it seriously. As a Bloomfield Hills real estate agent, I take pride in helping you find the perfect solution for your needs. I love hearing your stories as you embark on new chapters, and addresses, in your life.  

During the warmth of this holiday season, I hope you and yours are safe and secure in a community that you love. And I hope your turkey emerges from the oven golden brown and delicious!

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 this economy, cash buyers have the advantage and are swooping in on great housing deals to beat out buyers obtaining loans through banks. Sellers are jumping on these offers because the cash is already secured, they don’t have to worry about finances falling through at the last minute, and it can guarantee quick closing dates on their Royal Oak Michigan homes for sale.

While dealing in ready money definitely gives real estate investors an advantage, don’t get discouraged. There are a few guidelines financed buyers can follow to give them a better hand when it comes to beating out competitors that throw down the cash card.

• Get pre-approved. Talk with a reputable bank and get a pre-approved home loan for a certain amount before you start shopping for Royal Oak Michigan homes for sale. This will give you an idea of the maximum you can spend and ensure you have the funds to back up your bid.
• Save for a large down payment. The more money you can put down up front, the more likely it is that you will sway the seller to accept your bid. This is especially true if the seller is a bank, because it wants to erase bad debt quickly.
• Build a relationship. Cash investors usually have a good rapport with listing agents, and so should you. Figure out who the seller’s agent is and introduce yourself, or have your real estate agent send greetings on your behalf. You should also be sure you’ve hired an agent who knows how to build beneficial relationships with buyers, sellers, other agents, and everyone involved in the home selling process. The more the seller’s agent gets to know and trust you and your agent, the better chance you will have.
• Seek out the seller’s needs. Ask your real estate agent to try and find out if the seller has any special requirements, such as needing a shorter or longer closing period. If you offer to be thoughtful and flexible, you have more of a chance of beating out the cash buyer.

Don’t let cash investors deter you from getting good deals on Royal Oak Michigan homes for sale. Prepare, save, build a relationship and be flexible, and you might have a new house before you know it.

Want to work with an agent who knows how to build beneficial relationships?  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 this computer age where everyone relies on the Internet for accurate information, it’s unfortunate that some online Southeast Michigan real estate information can be misleading. With the vast amount of time you have to spend house hunting to find a home you love, you don’t want to waste any of it on properties that aren’t what they seem.

Beware of the following online inaccuracies when house hunting online:

• Misleading descriptions – When you visit a property, double-check that what attracted you to it online is portrayed accurately. Ensure that a “fully finished basement” isn’t just concrete floors and drywall or that the “spacious backyard” isn’t as narrow as a dog run.
• Errors – It’s impossible for nation-wide real estate websites to manage and fact check all of the information posted to their pages, so inaccuracies often happen — such as wrong price points or incorrect home descriptions. Follow up with a Southeast Michigan real estate agent, if you’re seriously interested.
• History hiccups – Check with an agent to find out how long a house has truly been on the market. If a seller has switched agencies or removed the property from the market for a period of time, the house could appear to be newly listed based on its official number of days on market.
• Out-of-date information – Agents market many homes at once, and while they might reprint fliers for an open house or relay current information to inquiring buyers, they could completely forget to update the online information.
• Old listings – Be careful about spending time on a wild goose chase. Properties are often listed online, but have already sold. While this may be an intentional ploy to get you to call an agency, most agents are just too busy and forget.

The Internet has made searching for homes and gathering house hunting information much. Just be skeptical, see a home in person, and thoroughly research the history and neighborhood before making an offer on Southeast Michigan real estate. 

If you’re interested in purchasing a home, let me do the time-consuming house hunting for you. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more 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

As a buyer, finding the right Bloomfield Hills real estate and deciding to place an offer can be overwhelming enough without the stress of discovering you’ve entered into a multiple-offer situation.  Yes, even in this buyer’s market, you can find yourself competing against other buyers.

Purchasing a house is emotional, and when it comes to having to negotiate for your dream house, you need to keep a level head and understand your options. Be prepared for the following scenarios:

• Seller can just accept the best offer. If it’s a property that you absolutely can’t let slip away, you might want to give the seller exactly what they’re asking for. There is a chance you could get a deal with a low bid, but you need to talk with your Bloomfield Hills real estate agent and decide if it’s worth taking the risk. You could also end up paying more than the buyer would have accepted, but at least you’ll have the house.
• Seller can let all parties know that there are multiple offers. In this case, you know there is competition. That means there’s a chance, even if you do give them their asking price, that you might not be the only potential buyer putting in a full price offer on the home.  
• Seller can counter one offer and wait for a response, but not dismiss others. If you’re the offer that’s being countered and you know other parties have placed bids, it’s likely you’re the highest proposal. You’ll want to negotiate with the seller and hopefully meet somewhere in the middle.
• Seller can counter one offer and reject all others. All you can do is hope that you’re the best offer!

There are advantages and disadvantages to all of these scenarios, but make sure you take each into consideration before submitting a proposal or counter-offer. Also, talk to your agent and ask how multiple-offer negotiations are handled by the agency that has the house listed for sale.

When bidding on Bloomfield Hills real estate with multiple offers, you’ll have to move quickly. Have a plan and be prepared for any and all situations.

If you’d like to speak with an agent who is a skilled negotiator, including multiple-offer negotiation, please call me 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

With Daylight Saving Time turning back the clock this month, sellers having trouble going the for-sale-by-owner route should take a hint from Father Time: Set aside the time to “fall back” on helpful connections and get your Southeast Michigan real estate sold.

Your for-sale-by-owner home is probably clear of clutter and staged to perfection, so why aren’t buyers lining up to take a peek? If it’s not the price, then it probably means you need to take a look at your marketing. The tips below will guide you on how to take some time to fall back on local connections and reach out to more people.

• Connect through all your communities. Networking online through real estate sites and social media  platforms are a good place to start, but don’t stop there. Utilize all of your connections by emailing friends, close coworkers, social groups and any other contacts from activities in which you participate. Also, talk to neighbors because they’ll be the best advocates for getting someone they know and like to move in down the street.
• Ask a friend to do a walk-through. It is always valuable to have a fresh set of eyes to notice the things that you’ve gotten used to, such as old hardware, a yard in need of attention or a wall that could use a fresh coat of paint. Also, if you have pets, make sure you ask a friend without any pets to give your home a quick sniff. Lingering pet smells are always a turnoff for potential buyers.
• Reach out to Southeast Michigan real estate agents. While this may seem counter-intuitive for a for-sale-by-owner seller, this is actually a great avenue for reaching potential property purchasers. Real estate agents have buyers, and if you offer a commission, they might send them your way.

Selling Southeast Michigan real estate is harder than it seems, so make sure you’re utilizing all of your resources. And if nothing seems to be working, then you might want to seriously consider hiring an agent.

Please call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com if you’re finding it hard to unload your home for sale.

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

Sellers are quick to blame their Bloomfield Hills real estate agents if their homes are slow to sell, but that can be an unfair assumption.  Here are four reasons for a slow sale that have nothing to do with your Bloomfield Hills real estate agent:

Reason #1:  Your neighborhood has seen better days.
There are many signs that a neighborhood is in decline. Examine yours to determine if this could be one of the reasons why your home isn’t selling. Here are a few signs to look out for: local businesses going out of business, schools deteriorating, major traffic jams or a multitude of foreclosures or short sales. What can you do to get your home sold if your neighborhood is in decline? Work with your Bloomfield Hills real estate agent to set the price of your home based on the neighborhood’s current market value.

Reason #2:  Your home is located in an area of high unemployment.
When businesses close or down-size, it impacts more than those who have lost their jobs; it effects the value of homes in the area as well.  It also makes it difficult to attract buyers to the area because most people want to live where there are more employment opportunities.

Reason #3:  You have an unrealistic idea of what your home is worth.
Regardless of what you might think, a Bloomfield Hills real estate agent is not going to price your home at bottom dollar just to get a sale.  This type of strategy doesn’t help anyone including your agent.   Do your homework on what comparable homes in your neighborhood are selling for, and listen to your agent’s pricing advice – you’re paying for his or her expertise!

Reason #4:  We are in a recession and banks are less willing to lend.
Banks have much tighter lending requirements and people have less money to spend.  That means buyers must have higher credit scores and larger down payments to qualify for a home loan.

The fact is that in the current market homes take longer to sell.  So, before you decide to replace your agent, be fair in assessing their job performance. And, don’t blame your Bloomfield Hills real estate agent for the slow market.

Thinking of selling your Bloomfield Hills home? I’d be happy to do a free comparative analysis of the current value of your home. Give me a call today 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