Lee Morof's Real Estate Blog

The closing is the final step in purchasing your Southeast Michigan real estate in Oakland County. The closing date is set during the negotiation phase and is usually several weeks after the offer is formally accepted. During the closing, the buyer and seller complete the purchase contract, and ownership of the property is transferred to the buyer.

Before the closing can occur, all the terms of the purchase contract must be met. As you can imagine, problems can come up which delay the closing.  Here are seven tips to ensure a smooth and problem-free closing on your Southeast Michigan real estate:

1. Communicate. Talk with all parties involved in the deal, from your agent to your lender, and discuss what to expect.  Get in touch with each of them to make sure they have everything they need from you for a hassle-free closing.
2. Do a final walk-through. Before you close, it’s critical to do a final walk-through to check that all repairs agreed upon were actually done. You also want to ensure that everything is in the state that you expect it to be in.
3. Anticipate errors in the paperwork.  There could be missing documents, typos and mistakes on the paperwork.  Before closing day, review all documents thoroughly to catch and fix mistakes.
4. Make sure the money is there.  Talk with your real estate agent to be sure that you will have the money you need, in the right form, at closing.
5. Ask your agent to attend the closing.  You want your trusted agent there to explain to you the purpose of each form you are signing, answer any questions you have and guide you through the process.
6. Expect the unexpected.  Read all documents before signing them.  Any corrections will have to be made before the closing can continue.
7. Plan to take the day off.  You do not want to be late to the closing or be worried about having to go back to work.

If you’re ready to work with a professional Southeast Michigan real estate agent who will guide you step-by-step through the home-buying process, please contact me.  You can reach 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
www.NorthWoodwardHomes.com

Mortgage lenders are primarily concerned with your ability to repay your Southeast Michigan real estate mortgage.  They will consider your credit score, debt-to-income ratio and how much you have for a down payment before telling you what you can afford to spend on Southeast Michigan real estate in Oakland County.

Credit Score

One of the first things your lender will review is your credit score.  Credit scores range from a low of 350 to a high of 850.  In this case, the higher, the better.  The lower your credit score, the higher your interest rate and points will be, and the lower the amount of home you’ll be able to afford. If your score is too low, you may not qualify for a mortgage. If your score is low, you may need to take some time to improve your credit score before buying Southeast Michigan real estate.

Debt-to-Income Ratio

Lenders use a formula called the debt-to-income ratio to determine if your income is high enough and your debts are low enough to qualify for a certain loan amount.

Standard debt-to-income ratios are the housing expense (also called the front-end ratio) and the total debt-to-income (also called back-end ratio).  How are these calculated?

• Front-end ratio:  Shows how much of your gross monthly pretax income would go toward the mortgage payment.  As a general rule, the monthly mortgage payment, including principal, interest, taxes, and homeowners insurance, should not exceed 28 percent of your gross monthly income.  To calculate the front-end or housing expense ratio, multiply your annual salary by 0.28, and then divide by 12 months.  This is your maximum housing expense ratio. (Annual salary x 0.28/12 = Maximum housing expense ratio)
• Back-end ratio:  This shows how much of your gross income would go toward all of your debt obligations – mortgage, car loans, child support, credit card bills, etc.  Your monthly debt obligation should not exceed 36 percent of your gross income.  To calculate this ratio, multiply your annual salary by 0.36, and then divide by 12 months.  This is your maximum allowable debt-to-income ratio. (Annual salary x 0.36/12 = Maximum allowable debt-to-income ratio)

Down Payment

Last but definitely not least, lenders consider the amount you have for your down payment. The bigger your down payment, the less risk the lender feels like he is taking on, so you will probably receive a better interest rate. Ideally, you want to come up with at least 20% of the value of your new home as a down payment, to avoid things like mortgage insurance payments.

The mortgage process can be confusing.  I would be happy to go over this information with you in detail, or if you prefer, I can refer you to a well-respected, knowledgeable mortgage lender. Please call me today at 248-514-2640 or email me info@NorthWoodwardHomes.com for more information.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney 
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

As home buying picks up pace with spring in full bloom, there are a few tips every Bloomfield Hills real estate buyer should keep in mind:

1. Plan to stay in the property more than 5 years.  Typically home values appreciate 7% per year; that number has been 2% to 5% recently, so it will take longer to break even and begin making a profit or building equity in your home.
2. Do the math.  First, figure out what price range you can afford.  Then, calculate how much income is left after paying the mortgage, taxes and insurance.  Use an online affordability calculator to make this easier.
3. Explore the neighborhood.  At various times of the day and night, visit the neighborhood of a Bloomfield Hills home you are interested in.  Find out if it’s an area in which you’ll enjoy living.  How are the schools, the traffic, the noise and the neighbors?
4. Find the right agent.  Interview at least three Bloomfield Hills real estate agents.  Make sure they’re experienced, knowledgeable and professional and that your communication styles mesh.  They will be overseeing the most expensive decision of your life, so take the time to find the best person for the job.
5. Shop for your mortgage.  Shaving even a half a percentage point off your mortgage rate can save you thousands of dollars.
6. Get pre-approved. Before you start house hunting, get pre-approved for a mortgage. You’ll save yourself the grief of looking at houses you can’t afford. Being pre-approved will also improve your chances of getting the sellers to say yes to your offer. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.
7. Hire a home inspector. Have the property checked out by a professional home inspector. Even if you and your agent carefully look over the home, there can be hidden problems only a home inspector can find.

If you’re looking for a Bloomfield Hills real estate agent to help you buy a home, I’d be honored to be considered for the job. Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to schedule a time to interview me.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

When it comes time to sell your home, the most important person that can ensure a quick sale at top dollar is your Bloomfield Hills real estate agent. He or she will be the primary person marketing your home, and if your professional doesn’t work hard to sell your home, it can cost you precious time and money.

Choosing the right Bloomfield Hills real estate agent can be tricky. To help you make a wise choice, below are five simple questions you should ask agents before making your decision:

1. How many other homeowners are you currently working with? An agent with too many properties on their plate might not give your home the individual attention it needs to attract potential buyers. However, if the agent has no listings, that might also be a bad sign.
2. Are you going to be readily available? There is nothing more frustrating than working with an agent who seems too busy to show your home, take your phone calls or answer your emails.
3. How does your real estate agency compare to the others in town? Any brokerage with great statistics will be happy to share them with you. However, you may get more personal attention working with a lower-volume agency.
4. Are you a member of the National Association of REALTORS®? Members are held accountable for their professional ethics. They continually participate in training and educational courses to keep up their certification.
5. What’s your plan for marketing my home? A good agent should be able to give you a detailed and well-thought-out plan for marketing your home. It’s also a good idea to make sure your expectations are clear before entering into any agreement.

Selling your home can be stressful. When selecting a Bloomfield Hills real estate agent to represent your interests, it’s important to make sure you feel comfortable that he or she will meet your expectations.

If you’re getting ready to sell and have questions about comparables, marketing strategies or the process in general, please call me 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
www.NorthWoodwardHomes.com

Real estate has come a long way over the years, and its communication and marketing strategies have developed and morphed into the institution it is today. It might be helpful to appreciate real estate’s history in order to better sell your North Woodward home in Oakland County Michigan. So, in honor of Memorial Day this month, we’ve compiled an outline of some of real estate’s major moments.

• The National Association of REALTORS® – Founded in 1908, this organization still strives today to uphold the ethical integrity of the real estate industry and profession.
• Condos – In 1960, the first condominiums were built, which opened up an entirely new niche for real estate agents to dive into.
• The Fair Housing Act – Passed in 1968, this Act outlawed discriminating against race, sex, religion or national origin when selling your property.
• Tax Reform Act – This Act was passed in1986 to encourage people to become property owners by giving them a tax deduction on mortgage interest.
• The World Wide Web – We all started to be connected in1990. Now this revolutionary technology provides buyers and sellers with more information at their fingertips than was ever thought possible. Promoting your North Woodward home on the Internet is now a crucial part of every marketing plan.
• The Man Cave – In 2004, Urban Dictionary uses this phrase and suddenly everyone is classifying space within their houses for men to relax and do “manly things.”
• Facebook – While this social media site launched in 2004 was originally intended to connect college students, it quickly expanded across demographics. It is now an effective marketing tool for real estate agents to reach out to their clients and potential buyers and sellers.

If you’re ready to sell your North Woodward home in Oakland County Michigan, I can help.  Please 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
www.NorthWoodwardHomes.com

These days, over 80% of all home buyers begin their search for homes online. So it’s crucial to market your Royal Oak Michigan home for sale by owner online to reach as many potential buyers as possible.

An Internet listing of your home gives buyers 24/7 access to your home. Unfortunately, a poorly executed Internet listing can hurt rather than help your home sell.  Here are six tips to effectively market your Royal Oak Michigan home for sale by owner (FSBO) online:

1. Upload the best possible pictures.  Make sure you use a good digital camera.  Cell phone cameras will not work for this purpose.  You want great quality pictures for potential buyers to see all the glory of your home.
2. Include photos of your home’s best features. Whether it’s a great view, the best lawn, a 2-story stone fireplace or a kitchen fit for a gourmet chef, make sure you show its best assets.
3. Provide information that buyers want to know.  They want to know everything. Information on the neighborhood, school system, and proximity to shopping will all entice a buyer to your Royal Oak Michigan home for sale by owner. Buyers also want to know the details about the home itself: Number of bedrooms and bathrooms, room and lot size, style of home, sales price, description of HVAC, amenities and upgrades.
4. Create a virtual tour of your home.  A picture is worth a thousand words, but a video or virtual tour is even better.  It allows potential buyers to see everything without having to step foot inside your home. Best of all, it can make them want to see more.
5. Print out flyers from your online listing.  Include all the necessary information and pictures. Put the flyers in a box in your front yard for people driving or walking by. Leave them in a prominent spot in your home, such as a kitchen counter or entry table, for potential buyers who visit your home.
6. Promote your home on multiple real estate sites.  List your home on as many real estate sites as possible. Here are a few of the top sites: Zillow.com, Craigslist, Google Base, Bargain Network and Kijiji (which is a classified site from eBay).

When you’re ready to turn all this work over to a real estate agent, I’ll implement my comprehensive plan to market your home both online and offline.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to get started.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney 
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

Whether it’s your mother, mother-in-law or grandmother’s Royal Oak Michigan home for sale that needs work, make the effort this Mother’s Day to give her your time and make a few quick improvements. Fixing up a Royal Oak Michigan home for sale can be overwhelming, especially if costly repairs are needed.

To give you some ideas, here are six fast and inexpensive improvements that will have your loved-one’s Royal Oak Michigan home for sale looking better and selling faster:

1. Neutralize the rooms. Your father might take pride in his fly-fishing-inspired man cave, but potential buyers may not love it. Pack away as much of the fishing memorabilia as dad will allow, and brighten the room by painting it a neutral color.
2. Add lighting. Modern track lighting can help brighten a space and is relatively cheap and easy to install. Even a few inexpensive floor lamps can dramatically improve the look of an otherwise dull or dreary room.
3. Hang art. If your mother’s house has nothing but blank walls, consider buying some cheery and inexpensive art. A few pieces can help a space feel homier and make buyers feel more comfortable.
4. Give the kitchen a facelift. You don’t have to completely renovate to get buyers to see a kitchen as an attractive feature instead of a potential project. Instead, replace the most worn-out appliances, paint the cabinets or invest in better countertops.
5. Improve curb appeal. Hard work and a little bit of money can really improve a property’s curb appeal. Plant bright flowers, trim the hedges and add new mulch. A weekend of work can make a huge difference — and your mother will love you for it.
6. Pay attention to bathrooms. Even one really appealing bathroom can help sell a house. Add flowers, paint the walls, or if you can afford it, re-tile. Bathrooms are small, but important spaces!

Give the best gift this Mother’s Day — time, labor and motivation — to get her Royal Oak Michigan home for sale sold quickly!

If you would like additional suggestions for home improvement projects that help a home sell faster or for more money, 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
www.NorthWoodwardHomes.com

There is still an opportunity to profit by buying short sale houses in SE MI, but you need to know how to proceed in order to achieve success. Here are four steps to follow to increase your chances of success when buying short sales:

Step 1: Hire a short sales expert.

Hire a real estate agent who has experience helping people buying short sales. You need someone who can find short sale houses in SE MI for you and help you through the complicated process. Although the short sale process has gotten better over the last few years, it’s still a slow and frustrating process.

Step 2: Have your finances in order.

If you’re buying with cash, fabulous! Otherwise, visit a lender and take the steps necessary to finance a short sale. Many short sale banks want to close within 30 days of short sale approval. Ask your lender up front if they can guarantee a 30-day closing. If they cannot, you may want to consider finding a new lender.

Step 3: Move quickly.

When you find a short sale you want, move quickly.  With any luck, you’ll be the first to submit a market value offer. Lenders look for offers that are reasonable and equal to market value. To make your offer even more attractive, eliminate as many contingencies as possible.

Step 4:  Negotiate with the bank.

Banks don’t enjoy taking a loss, but short sales remain a necessary evil for lenders.  Be firm, polite and patient.  Don’t ever be forceful or rude.  Lenders are busy and overworked, and they want to see you as somebody who is minimizing the damage and the hassle of the bad debt.

If you’re interested in buying short sale houses in SE MI, 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
www.NorthWoodwardHomes.com

Just because you can buy a Royal Oak Michigan home for sale does not always mean that you should.  It’s important for you to consider if it is better for you to own or rent a home.

Here are five reasons you might want to rent:

1. You may be moving within five years. It usually takes five years to break even on your home purchase or investment.
2. You don’t want the responsibilities associated with being a homeowner.  It can be expensive and time consuming to maintain a home.
3. You have a bad credit report.  If your score is below 620, you will not get a good interest rate.
4. You have a high debt ratio.  A high debt ratio means you may not qualify for a loan to purchase a Royal Oak Michigan home for sale.
5. You have job instability.  If your job is not secure, it’s not a good idea to buy.

Here are four reasons you might want to buy:

1. You want to build equity.  The longer you own your home the more equity it will build. When you pay rent, that money goes down the drain.
2. You get a tax break when you deduct mortgage interest.
3. You want the emotional satisfaction of owning your own home in Royal Oak.
4. It’s an investment. With low interest rates and home prices, buying investment property is a wise decision.

If you are ready to buy one of the Royal Oak Michigan homes for sale or purchase investment property, 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
www.NorthWoodwardHomes.com