Lee Morof's Real Estate Blog

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

If you’re a potential buyer of Southeast Michigan real estate, when scanning the listings of homes for sale, you may see references to Southeast Michigan “short sales.”  You may hear vague warnings about avoiding short sales from some people, while others tout the advantages.  So who is right?  Well, it depends…

Short Sales Defined
First, what is a short sale?  A short sale is a situation in which the current market price of a home would not, in fact, cover the amount the home owner owes on the mortgage.  Yes, that’s what people mean when they say they are “underwater” – they owe more on their home than it is worth.

Since the mortgage can’t be paid off by the sale of the house, short sales become an option, albeit a complicated one. The seller and the bank (or banks, as is sometimes the case if there are multiple mortgages on the house) become, if the bank agrees, essentially co-sellers of the house.  Any offers considered by the seller have to be approved by mortgage holder(s).

Seller Short Sale Advantages
Short sales can be a win-win situation for the seller and the mortgage company. The seller is relieved from his debt without the greater stigma of foreclosure attached to his credit standing. The mortgage company often gets more money than it would in a foreclosure auction, and without the time and expense of the foreclosure process.

Buyer Short Sale Advantages
For potential buyers, short sales can have some advantages. The biggest possible advantage is a better price. Keep in mind though that short sales are seldom amazing deals. The bank will usually do an analysis on comparable properties in the neighborhood, and will likely turn away any offers that fail to come in that range.

What you are more likely to get with a Southeast Michigan short sale purchase is a home that has been cared for and recently lived in.  Short sales are still officially owned by the seller, not the bank (as in foreclosures), and so someone is more likely to be living there, mowing the lawn, cleaning the kitchen and making repairs.

Short Sale Buyer Complications
The bad news on Southeast Michigan short sales is time and administrative detail. With the companies holding the lien having final say on the process, their review can delay acceptance of short sale offers, sometimes for months. And, of course, if there are multiple lien holders, the time can increase dramatically. A short sale can take three months – not much longer than a standard closing – but they can also take six months or longer.  If that level of timing uncertainty doesn’t work for you, you might want to consider other options in your quest for Southeast Michigan real estate.

Whether you’re considering buying or selling a short sale, as a Certified Distressed Property Expert I can help. Give me a call 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

Flyers, open houses and stagnant real estate web sites don’t cut it anymore. Property buyers and sellers are more technologically savvy than they’ve ever been, and they rely on social media’s instant communication forums for information, advice, suggestions, and reviews to guide their decision-making processes.

Real estate agents’ roles within the industry have evolved — they’re no longer just gatekeepers.  Now, they need to be interpreters between their clients and the constant stream of social media information.

To determine if a Southeast Michigan real estate agent is socially savvy online, ask the following questions:

• Strategy – Before signing a listing agreement with an agent, find out what marketing strategies he or she usually implements. Is he or she using any social media platforms to promote their properties or gather feedback from buyers?
• Following – Ask about how many people and organizations he or she reaches on a regular basis. The number of Facebook “Likes” or Twitter followers is a direct correlation to how many people could be exposed to your home for sale.
• Activity – Ask how often he or she updates and posts on social media sites. Having 2,000 followers does nothing if the agent isn’t active on the social media site. A constant flow of information and communication is essential to effectively promote a property. If he or she just has a stagnant Facebook page with a biography on it, that doesn’t benefit you in any way.

From sending out tweets about houses for sale to posting new listings on Facebook walls, social media platforms are one of the quickest and most targeted ways to reach potential buyers. To achieve your real estate goals, seek out a Southeast Michigan real estate agent who uses social media as a tool to build loyal followers and promote properties.

If you’re looking for a Southeast Michigan real estate agent who successfully uses social media as a marketing tool, 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

Investing in real estate is not a get rich quick scheme by any means.  Late night infomercials claim to show you how to retire in months after trying their methods for investing in real estate. Unfortunately, the only one getting rich is them.

But, you can build for your future by investing in the right Bloomfield Hills real estate and in the right way. Here are five tips to give you some guidance on how to buy that second, third or even fourth piece of real estate as an investment:

1. Shop smart. Look for homes or land in desirable neighborhoods or in up-and-coming neighborhoods.
2. Keep your property. You should not buy Bloomfield Hills real estate for the purpose of flipping it.  That was a short-lived fad that ended up costing many people thousands of dollars and more.  Instead, buy real estate with the intent of holding on to it.
3. Buy rental property. Rental property can be a great way to add to your income and give you the means to do things you might not have been able to do on your current income.  It is also a great way to set your children up for the future by giving them their first home. You don’t want to be a slumlord so be prepared to invest some time and money into the upkeep of your Bloomfield Hills real estate.
4. Exchange properties without paying capital gains. You don’t have to fear the tax man if you decide you want to get rid of one property for another.   By using a 1031 exchange, you can sell one property and buy another without paying taxes on the first one. This is not something you want to do as a “For Sale By Owner;” you need to use a real estate professional who is skilled in the 1031 exchange.
5. Enjoy your free time. You don’t have to give up all your free time to manage your investment property. There are professional property management companies that can handle some or all of the day-to-day tasks for you. There is a fee for their services but it is often well worth the cost.

For more information on buying investment properties or 1031 exchanges, contact me 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

Halloween is a fun and exciting time, especially for children. To ensure youngsters and your Royal Oak Michigan home for sale make it safely through the festivities this year, follow these Halloween safety tips:

1. Eliminate trip hazards. Remove bikes, toys and garden hoses from your Royal Oak Michigan home for sale front yard and porch. Sweep and rake leaves.
2. Replace burned out lights. Trick-or-treaters have a hard enough time seeing through their masks; don’t increase the danger by keeping them in the dark.
3. Restrain pets. You don’t want your pet to jump on a trick-or-treater, or even worse, bite someone.
4. Use a flashlight or glow stick to illuminate your carved pumpkin. Lit candles are dangerous, especially around small children or crowds of people.
5. Practice candle safety in your Royal Oak Michigan home for sale. Keep indoor jack-o-lanterns with lit candles, and any decorations with open flames, away from curtains and other furnishings that can easily ignite.
6. Apply makeup as a mask. A loose-fitting mask might restrict breathing or make it difficult to see. Instead, draw on a mask using makeup. If a mask is used, make sure it fits securely and has large eyeholes so the child can see.
7. Choose flame-resistant costumes. Many Royal Oak Michigan homes use lit candles as part of their exterior Halloween decorations. A child’s costume could accidentally brush against the flame. Purchase costumes with flame-resistant labels. If a costume is homemade, spray it with a non-toxic fire retardant.
8. Add a few strips of reflective tape to costumes and treat bags. This helps drivers see the children. It’s also helps to have trick-or-treaters carry flashlights – both to see and be seen.
9. Limit where children go. They should only knock on the doors of homes with a porch light on. Instruct them to never enter a home or a car for a treat. Teach them to stick to well-lit streets, stay on sidewalks and never cut across yards, use alleys or dash between parked cars.

Wishing you and your loved ones a fun and safe Halloween!

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

When a buyer makes a Southeast Michigan short sale offer on your home, it’s impossible to know for sure if the offer will be accepted by the lender.  Even when you’ve negotiated the offer with the buyer and come to an agreement that meets both of your needs, there’s still no guarantee that the lender will say yes to the short sale.

Here are three tips to help get Southeast Michigan short sale offers on your home accepted by the lender:

1. Convince the lender that you have a legitimate hardship. Submit a hardship letter,  paystubs, bank statements, monthly budget and profit and loss statement to demonstrate that you cannot make your monthly payments and have no disposable income. Here are examples of hardships to mention in your letter:
   a. lost your job
   b. reduced hours/pay at current job
   c. have to move more than 75 miles from home to get a new job
   d. death of a borrower
   e. divorce
   f. onset of a disabling illness
2. Negotiate with the buyer to exclude terms and contingencies that complicate the sale. Lenders do not like to accept short sales when they include time contingencies or when the short sale is contingent on the sale of a home.
3. Submit paperwork as a complete package. Ask your lender for a list of all documents needed. Fill out the paperwork and collect all other documents required. Make copies of everything. Put together a complete package including all the documents your lender requested, and only then send the entire package to your lender. If the lender later tells you they can’t find a particular document, don’t waste your time arguing about it, just resend the information – it’s easy to do because you already have copies prepared!

If you’d like more information on the possibility of selling your home as a Southeast Michigan short 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