Lee Morof's Real Estate Blog

Frequently, there are news stories that impact our Southeast Michigan real estate market.  Here are two I want to share with you this month:

Rising Interest Rates Could Get Buyers Moving

Rising interest rates may finally push Southeast Michigan real estate buyers off the fence and into the market.

In December, after President Obama agreed to extend tax cuts for two years, the financial markets  indicated this event would most likely push mortgage interest rates higher.

Analysts predict that buyers will move quickly when it looks like rates are going up and are unlikely to come down. “Once people see this might actually be the bottom, they’ll go for it,” says Paul Dales, U.S. economist at Capital Economics Ltd. 

For an example of interest rate increases, note what happened in December, 2010.  

• On December 2, the 30-year fixed interest rate hovered around 4.46 percent. 
• One week later, on December 9, it was up to 4.61 percent.
• When I checked on December 26, the 30-year fixed interest rate was up again to 4.875 percent.

National Foreclosure Rates Fall

Has the real estate market hit bottom?  One sign that it has is RealtyTrac’s report that foreclosures fell sharply in November.  RealtyTrac’s November, 2010, U.S. Foreclosure Market Report™ indicated a 21 percent decrease in foreclosure activity from the previous month and a 14 percent decrease from November, 2009.

According to RealtyTrac, a mortgage research firm, foreclosure activity decreased dramatically in November with fewer than 300,000 properties receiving a foreclosure notice for the first time since February, 2009.

While foreclosures typically decrease in November, and we’re sure to see a rebound in foreclosure activity, these statistics are not to be dismissed because they show the lowest level of foreclosure activity since November, 2008.  Additionally, both the 21 percent month-over-month decrease and 14 percent year-over-year decrease in foreclosure activity were the highest drops recorded since RealtyTrac began publishing the U.S. Foreclosure Report in January, 2005.

Want to know more about the Southeast Michigan real estate market?  Give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com to discuss our real estate market.  I look forward to hearing from you.

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

Most people make New Year’s resolutions to improve themselves.  If you’re a Troy Michigan real estate home owner, this year consider making a few New Year’s Resolutions to improve your home.  Here are 6 ideas to choose from:

1. Renovate.  Choose one project you really want to do, and get it done this year.  Add on a deck, make minor kitchen renovations or install a new bathroom floor.

2. Practice home safety.  Troy Michigan real estate home owners can practice fire safety by ensuring their home smoke alarms work and holding fire drills. Prevent poisoning by keeping cleaners, medications and beauty products in a place where children can’t reach them and using child safety locks.  Avoid falls by having bright lights over stairs and steps and on landings. Also, keep stairs clear of clutter.

3. Test for radon.  Radon is a significant contaminant that affects indoor air quality worldwide. The United States Environmental Protection Agency (EPA) says that radon is the number one cause of lung cancer among non-smokers. Even if you live in an area that typically doesn’t have radon problems, the US EPA recommends testing your home for radon because testing is the only way to know your [city] home’s radon levels.

4. Do one thing to go green.  Change to Compact Fluorescent Lights (CFL), install a low-flow shower head, use green cleaning products or start recycling.

5. Check water quality. Drinking water quality varies from location to location, depending on the condition of the source water from which it is drawn and the treatment it receives. Every community water supplier must provide an annual report to its customers. Read your report to find out what your water contains. 

6. Private wells and homes drawing water from other sources such as lakes and rivers are not regulated. If your drinking water does not come from a public water system, you alone are responsible for assuring that it is safe. Routine water testing is essential.

7. Reduce your utility bills.  Troy Michigan real estate owners should review electric and gas expenses for the previous 12 months and make a plan to reduce them. There are many ways to save on energy bills:  increase your insulation, weather strip windows and doors, purchase energy efficient appliances, install energy efficient windows and adjust home temperatures.

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

From national and Southeast Michigan real estate to the U.S. economy, the predictions for 2011 are in.  Like any predictions, they vary from gloomy to cheery.  Overall, the U.S. forecasts for national and Southeast Michigan real estate are more positive than negative for 2011.

1. Real Estate Economy Watch predicts:  People are interested in buying a foreclosure.  Nearly half (49 percent) of U.S. adults are at least somewhat likely to consider purchasing a foreclosed property, up from 45 percent in May, 2010. Despite the rising interest in buying a foreclosed home, an increasing number of U.S. adults also recognize negative aspects to buying a foreclosure.

2. Bill Redfern, CEO of A Buyer’s Choice Home Inspections says:  Presale inspections are on the rise.  Sellers, and particularly banks, have become far more interested than in the past in having presale inspections conducted to help attract buyers. This business, which helped sustain inspectors during the downturn, is expected to grow in 2011 even as regular inspections come back. I might be optimistic, but I think in five to 10 years every listing coming to market will have a presale inspection done.

3. The National Association of REALTORS®’ (NAR) Chief Economist Lawrence Yun is projecting: 

• Once businesses pick up spending, job gains will quicken and home sales—fueled by strong affordability and plenty of pent-up demand—will rise.
• 5.2 million existing-home sales in 2011, up from 4.8 million last year.
• Modest improvement in prices—a rise of about 1 percent this year on a national basis. That would be the first in what Yun says will be a series of small but steady gains in the years ahead that will eventually bring home sales back to a period of normalcy.
• Yun says all of the price excesses from the housing bubble have been squeezed out of the market and interest rates remain at historically low levels, making buying attractive now. 

4. The Joint Center for Housing Studies says:

• If the past is any guide, the strength and sustainability of the housing recovery will depend most on the bounce back in employment growth.  Unfortunately, most economists predict that the unemployment rate will remain elevated as discouraged workers reenter the labor force amid slow gains in jobs.
• The oldest baby boomers are just turning 64, with millions soon to follow. Despite their losses in wealth caused by the correction in home and stock prices, the baby boomers will drive demand for senior housing suited to active lifestyles as well as for assisted living facilities.

5. According to the Standard and Poor / Case-Schiller index:  Home prices are expected to rise 12 percent in the next five years. And, according to a survey of economists, that upturn should begin in 2011.

6. WalletPop.com’s prediction for renters in 2011:  The American Dream will include both renting and owning:

• Lifelong renters will begin to buy.  As jobs grow, prices hit bottom or move past their bottom in the handful of appreciating markets, and interest rates start what is likely to be a long, volatile climb up from the all-time lows of 2010, extreme affordability will push even some lifelong renters off the fence and into the market.
• Lifelong owners will begin to rent.  Baby Boomers who have owned homes for decades and lost them at the trough of the job and housing markets will become renters-by-choice.  Retirees will rent their current homes, rather than selling them, move to warmer climes and rent instead of own their retirement homes, at least until the housing market stabilizes and the mortgage market relaxes.

Although no one can be certain what will happen in 2011 – especially for the struggling national and Southeast Michigan real estate markets – we can all gain a little hope from these 2011 forecasts.

If you’d like to buy or sell a home in 2011, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

When you buy a home, you want one that will meet your needs. You may have an at-home business that requires a lot of space or large pets that need room to run. If this is the case, a home located in a close-knit planned community may not be right for you.

Here are three reasons when you’re buying southeast Michigan real estate, building on vacant land might be right for you:

1. You want to build a home designed to meet your needs. Perhaps the greatest benefit of buying southeast Michigan real estate that is vacant land, is the freedom you have to build whatever home you want. You won’t have to use a particular home builder or build a home just like everyone else’s.

2. You want more space. Building a home in a planned community comes with certain restrictions. One of those is usually a smaller lot size. Many homes are now being built on 1/3 acre lots and smaller. You may not be comfortable living in a home that close to your neighbor’s house. Purchasing Southeast Michigan real estate and building on vacant land puts as much space between you and your neighbors as you want.

3. You want to take advantage of current land prices. Even if you aren’t ready to build right now, it still makes sense to purchase vacant land. Land typically goes up in value over time, and as the saying goes, they’re not making any more of it. You can buy your land at today’s rate and then build your home whenever you are ready. The land will be waiting for you.  This could save you thousands of dollars.

Ready to buy southeast Michigan real estate? If you think buying vacant land is right for you, let me help you find the property that meets your needs. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

Picking up the phone book and letting it fall open to the real estate agency page is not the best way to find a great Bloomfield Hills real estate agent.   Here are several other pitfalls to avoid when looking for a real estate agent:

• Impulse: Just because you walk into a busy, bright, and productive looking office doesn’t mean all the agents who work there are also busy, bright and productive. Take the time to get to know the agents you’re considering working with.  Interview them, like you would any other professional you hire, to determine their abilities and knowledge of the community in which you want to live.
• Easy Agreement: If you finally find an agent who instantly agrees with everything you have to say about the selling price of your home without question, beware. This is especially true if you’ve been to others who disagreed with your price.  Consider why this one agent is so agreeable. As in any industry, there are people out there who will tell you anything you want to hear to get your business.
• Trusting Your Judgment: While you may very well be a great judge of character, make sure you get at least three references from all the Bloomfield Hills real estate agents you’re considering.  Then, take the most crucial step and contact those references. 
• Lowest Commission: Don’t go with a real estate agent just because they have the lowest commission on the block. Remember the old adage “you get what you pay for.”

These are just a few of the considerations when choosing a Bloomfield Hills real estate agent, but they will get you started on firm footing.

If you’re looking for a knowledgeable Bloomfield Hills real estate agent, I’d be honored if you’d interview me.  To schedule an interview, call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

Buying a home used to be celebrated. It was a sign of growing up and “getting somewhere.” Yet, tell someone you bought real estate in southeast Michigan now days and you might just get wide eyes and a gasped, “You did WHAT?”

If you’re still trying to decide if buying real estate in southeast Michigan is for you, consider all the reasons why people are still buying homes. 

Well, first, you have the reasons that have stood the test of time:

• Once you buy a house, it’s yours until you decide to sell it.
• You experience pride of ownership. 
• There’s also a sense of security in owning your own home, which is something missing in renting.

While those traditional reasons are tried, tested and true, there are others:

• Mortgage rates hit an all-time low, which became a big incentive for some buyers.  Potential buyers looked at the interest rates and figured they could never get a better deal on a mortgage.
• Home prices are lower too. Yes, the media says home prices may decline more, but the key word is “may.” The experts can predict all they want, but you don’t know for sure until it happens. Some first-time buyers looked at the prices, weighed their decision on “what if the prices start rising again” and signed the deal.

What about you? If you’re looking at the possibility of buying real estate in southeast Michigan, what would get you to sign on the dotted line? Put your requirements and goals in writing, and make them realistic. When all the cards are right, there’s nothing left to do but play your hand.

If you’re looking for a great property to own, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

There is no simple way to discover which home-improvement projects will yield the highest return when you’re ready to sell your home. There are many variables that come into play such as the state of the real estate market when you put your Royal Oak Michigan home up for sale, how old your home is, and the style of your home. 

Here are several costly projects to pass up if you want to get the biggest bang for your bucks:

Extravagant Landscaping

Buyers expect a well-maintained yard; they don’t expect the home’s value to increase because of it. Beautiful landscaping may encourage potential buyers to take a closer look at your Royal Oak Michigan home for sale, but it most likely will not add to the selling price. If a buyer is unable or unwilling to put in the effort to maintain an elaborate garden, it becomes a negative feature rather than a positive one.

Swimming Pool

A swimming pool seems like fun to have, but can actually be more of a hassle than a pleasure. Many potential buyers consider swimming pools expensive and time consuming to maintain. Buyers may say no to an otherwise perfect house if it has a pool. Or, they may include in the contract a stipulation that the seller has to take down an above-ground pool or fill in an in-ground pool, at their own expense, before closing.

High-End Upgrades

Buyers don’t want to see the absolute cheapest renovations in a Royal Oak Michigan home for sale, but they also don’t want to pay more for the highest-priced upgrades that they don’t need.   Marble countertops in a kitchen and a built-in sauna in a bathroom are nice, but unless you have a high-end home in a high-end neighborhood, don’t expect to get your money back from these upgrades.

Don’t spend thousands of dollars on a home-improvement project that will not increase your home’s value when it comes time to sell.  Do spend money on projects that will make your home a wonderful place to live in now and that may increase the selling price when you’re ready to sell.

Are you ready to sell your home?  I can help.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

Do you own Troy Michigan real estate with a small room that’d you’d like to make larger, but you don’t have the money in your budget to tear down a wall or add on to the room?  By using a bit of creativity, you can make that tiny room look larger without breaking the bank.

Here are 8 low-cost decorating tips to make any room in your home look bigger:

1. Leave open space.  Place taller pieces of furniture along a wall rather than out in the open space.  To prevent blocking the view into a room, use shorter pieces of furniture like an ottoman or a low table.   The more open space you can see, the larger the room will look.

2. Brighten the room.  A well-lit room looks larger, whether it’s brightened with natural or artificial light.  Remove heavy, dark draperies to let the natural light into the room.  Install track lighting or recessed spot lighting, which is perfect for a small space.

3. Lighten up the floor and ceiling.  Open up the room by using a white or very light color on the ceiling.  Use light-colored flooring such as light oak or a light-colored carpet to make the room appear bigger.

4. Reduce the amount of furniture.   This goes back to leaving open space.  Keep only those pieces of furniture that you really love or really need in the room.  Get rid of everything else.

5. Switch to glass.  Using a glass-topped dining table, end table or coffee table gives the appearance of an open space, even though there isn’t.

6. De-clutter.  Too much stuff makes even a large room seem small.  Organize anything you must keep.

7. Choose light colors.  Light, cool colors like pale blue and light green can make the smallest space feel open and airy.

8. Use a monochromatic scheme. Take those light colors one step further by using colors all in the same family. When you look around a room that has the same color scheme for the furniture, flooring and walls, you believe there’s more space than there really is.  Contrasting colors break up a space. Furniture is less interrupting and blends with the space if its color matches the wall.

Are you looking for Troy Michigan real estate with large rooms?  I can help.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

Unless elaborate decorations, gourmet food and mountains of mess are your idea of fun, I have some suggestions for you on how to make your holidays simpler and less stressful this year.

Use Fewer Decorations in Your Bloomfield Hills Home

While National Lampoon’s Christmas Vacation is a fun holiday movie to watch, keeping up with the Griswolds isn’t something you should aspire to. If you’re not sure what to eliminate from your heap of holiday decorations, here are a few tips:

• If it flashes or makes a noise, just say no.  Decorations like that increase stress.
• Display only your most treasured items.
• This year’s mantra should be “less is more.”
• Decorate only those rooms in your Bloomfield Hills home that are used during celebrations.
• Instead of filling every inch of a room with decorations, use fewer items and group them in noticeable spots around the room.

Spending less time decorating your Bloomfield Hills home gives you more time for your friends and family.  It also means wasting less time after the holidays putting away all those decorations.

Entertain Simply

It’s not necessary to spend a lot of money on food or entertainment in order to have a good time.  Some of my most enjoyable gatherings were spent listening to holiday music, playing games and eating a bowl of popcorn with friends and family.

Here are few more ideas to make entertaining easier:

• Don’t cook all the food yourself.  Host a potluck party or pick up already prepared food from your local grocery store.
• Reduce the number of guests.  Do you really need to invite the entire neighborhood?  Invite only those few who you sincerely want to spend some time visiting with.
• Send electronic invitations.  It’s free, fast, easy and fun.

The holidays aren’t about your house, food or furniture. They’re about your heart.  Open your heart, relax and truly enjoy your loved ones this holiday season.  Happy Holidays!

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

Unfortunately, the winter holidays are peak times for thieves and burglars.  Not only are burglaries of Bloomfield Hills homes at their highest during the darkest months of the year, there’s also the added temptation of unoccupied Bloomfield Hills homes full of expensive gifts.

A recent survey found that 39% of homeowners leave presents under the tree long before Christmas Day, with only 7% of respondents waiting until Christmas Day itself to put the presents on display in their Bloomfield Hills homes. If gifts are in full view of passers-by who can see them through the windows, they could provide an incentive for thieves to target the house.

1. Take greater security measures during the holidays to keep yourself and your property safe.

2. Don’t hide presents in obvious locations such as closets, under the bed or in the garage.  Instead, hide gifts in an attic.  The average burglar doesn’t have time to climb into your attic.

3. Keep window shades drawn. If your gifts are easily visible from the street, burglars will be tempted to smash the window and grab the wrapped packages.

4. Don’t discard whole boxes in your trash.  This gives thieves easy clues about what they can steal from your home.  Instead, break the boxes up into small pieces and place them in your recycling bin or at the bottom of a sealed garbage bag.

5. Create a lived in look and feel.  Before leaving your home, turn on lights and a radio or television. 

6. Ask a neighbor or close friend to pick up your mail and newspapers if you go out of town for the holidays.

7. Lock up.  Make sure all doors and windows are locked.  Consider replacing your locks if they’re worn.  Use deadbolts in entry doors.

8. Keep the garage, gates, driveway, and sides of your home well lit.  Motion sensor lights work well for this.

If you’re looking for a home already equipped with an alarm system or other security features, I can help you find one.  Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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