Lee Morof's Real Estate Blog

Buying Royal Oak Michigan homes for sale when you live in another state or country can be challenging.  Here are a few simple ideas to help make things a little less hectic.

• Investigate online.  Most people know to search for Royal Oak Michigan homes for sale Michigan online, but what about searching for a neighborhood?  Although you can’t search each and every individual neighborhood, you can research almost any city online.  This gives you a pretty good idea of what the area has to offer in the way of schools, shopping and safety.
• Hire a buyer’s agent.  While you’re searching online, your buyer’s agent can search the Multiple Listing Service (MLS) for you.  She or he can email newly listed properties to you daily.
• Use your buyer’s agent as your eyes, ears and nose.  When you find a home that meets your needs, ask your buyer’s agent to visit it in person.  Have him or her take photos of the interior and exterior of the property and email them to you.  S/he can even take a video and post it on YouTube for you to see.  Ask your buyer’s agent to tell you what the home smells like and how loud (or quiet) the neighborhood is.
• Share as much information with your agent as you can.  The more you research the area, the more information you are going to have to give to your agent.  Talk with your agent and let her or him know what you have found and any areas that you may have decided against.  This will save you and your agent time.
• Visit to get a personal impression.  If at all possible, after you’ve narrowed the properties down to the top two or three, personally visit them.  While you can buy a house sight unseen, it’s best to make at least one trip to get a feel for which home most appeals to you.

For more information on long distance home buying or other tips to make your search for Royal Oak Michigan homes for sale easier, give me a call at 248-514-2640 or send an email to 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

You’ve been watching the news, reading blogs and you know this is the perfect time for you to buy a piece of Bloomfield Hills real estate.  You want to do all the right things to get the best deal, and you know one of the first steps is to line up your financing.

To help you pick a mortgage that matches your goals and financial situation, here’s an overview of three of the most popular mortgages available today.

Fixed Rate Mortgage

If you plan on keeping your new Bloomfield Hills real estate for more than 10 years and you don’t expect your income to change, this is probably the loan for you.  Although fixed rate loans charge a bit more interest, the rate will never change.  This provides financial stability and the security of knowing what your monthly mortgage payment will be.  By locking in the current low interest rates, you’ll save thousands of dollars over the life of your loan.

ARM (Adjustable Rate Mortgage)

With the ARM loan, the interest rate is usually very low at the beginning but can increase over time.  If you plan on keeping your Bloomfield Hills real estate for only a few years, up to 7, or you expect your income to increase, then this might be a better choice for you. If you expect your income to increase, an ARM loan can allow you to buy a more expensive home now. The drawback to this type of loan is that you do not know what your mortgage payment is going to be; if the interest rate jumps dramatically, then so does your payment.  A particularly popular ARM is the 5/1 ARM.  The interest rate of a 5/1 ARM is fixed for a period of 5 years.  In the 6th year, the loan becomes a typical Adjustable Rate Mortgage.  So if you plan to own your home for less than 5 years, the 5/1 ARM may be your best choice.

FHA Mortgage

If your credit is a bit shaky, an FHA loan may be a good fit for you.  The qualifying criteria for FHA loans are not as strict as for traditional mortgages.  Also, because these loans are guaranteed by the FHA, lenders often allow you to provide a smaller down payment than they would allow for other types of mortgages.  If you’re in a time crunch, an FHA loan may not be right for you; processing times are typically longer than other types of loans because of the government paperwork involved.

If you have any questions about mortgages or need a referral to a lender, 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

Recently, environmentally friendly or “green” remodeling has become more and more popular. Nearly every day you see a TV show or online article giving tips on how to make your home and life more eco-friendly.

The catch is that green building can sometimes be extremely expensive. And, in most areas there really aren’t enough buyers specifically looking for features like rain water catch basins and solar panels to make it worth your investment. However, there are some relatively inexpensive ways you can remodel your Bloomfield Hills real estate that will benefit the environment and go easy on your wallet at the same time.

• Refurbish what you can while remodeling. If it’s possible to refinish existing cabinets and woodwork instead of replacing them, you’ll save yourself tons of money. And, nothing says eco-friendly like re-using old, good quality materials instead of throwing them in a landfill.
• Pay for extra insulation. If you’re doing a major remodel or building from scratch, pay for insulation that exceeds the minimum code requirements. You’ll see an immediate reduction in utility bills and that can be a great selling feature in the future.
• Use sustainable and green materials. Low VOC paints and bamboo flooring are eco-friendly and still look great. You don’t have to sacrifice your overall vision in order to make your home more environmentally sound.
• Invest in new, energy-efficient appliances. Again, you’ll see an immediate reduction in your power bills. Besides, what buyer wouldn’t love brand new kitchen appliances and a modern, tankless water heater?
• Upgrade your windows. The biggest drain on the overall insulation of your home could be old, worn-out windows. By replacing them with new, energy-efficient ones, you’ll get immediate benefits that your potential buyers will also appreciate.

With smart planning and careful use of your money, you can remodel your home in ways that will help the environment, save you money and appeal to buyers when it’s time to sell.

If you could use help adding some green to your Bloomfield Hills real estate, 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
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

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