Lee Morof's Real Estate Blog

Last November, when Congress approved an extension on the first-time homebuyer tax credit, potential homebuyers who missed the original deadline were excited. It was another chance to buy one of the homes for sale in Southeast Michigan and receive an often badly needed $8,000 on their tax return.

Real estate agents were excited as well, because the tax credit extension expanded to include “upgrade” buyers – those who wanted to replace their current home with a bigger one. The possibility of selling a home was higher than it’d been in a while. However, expansion to include upgrade buyers wasn’t the only change.

If you’re hoping to buy a home for sale in Southeast Michigan and take advantage of the tax credit before the new 2010 deadlines, here are four  things to keep in mind:

1. Two dates are crucial.  You must sign a contract before April 30.  The closings must be complete by June 30. One of the best ways to make sure things go smoothly is to get pre-approved for a mortgage  before you go home shopping. Pre-approval tells you, as well as the seller, exactly how much home you can afford. This way, you don’t waste your time or the seller’s.
2. Negotiate without emotion. Potential buyers have lost the home of their dreams because they became competitive. If you’re negotiating for closing costs, housing price or anything else, make sure that your requests are reasonable. Don’t change something “just because.”
3. Taxes must be mailed in.  Due to people trying to scam the system, you won’t be able to file your taxes electronically; you’ll have to mail them in. Make sure you’re using the right forms, and, if you need your tax refund by a specific time, you might want to file early.
4. Documentation is truly priceless.  Again, thanks to scammers, buyers will have to include a signed mortgage statement, proof of residency and a driver’s license with their taxes.

You still have until April 30 to sign a contract on one of the homes for sale in Southeast Michigan to get the tax credit. Today’s real estate market is beneficial for buyers.  Put it to work for you!

If you’d like to take advantage of the homebuyer tax credit, I can help. Call me right away at 248-514-2640 or email me at info@NorthWoodwardHomes.com so we can beat the deadlines.

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

Do you have one of the homes for sale in Southeast Michigan?  Not everyone decorates their home for Valentine’s Day, but enough do that it brings to mind the question, “How much decoration is too much when your home is for sale?”

Decorations, although beautiful to you, are a matter of personal taste and style. Since this is a buyer’s market, something as simple as the wrong decorations can push a potential buyer from saying “Yes!” to saying “No.”

Rules for Decorating Homes for Sale in Southeast Michigan
Here are a few tips on decorating for Valentine’s or any other day when you’re trying to sell your home:

• Choose decorations that are small and unobtrusive. Large decorations put too much emphasis on themselves. When you’re trying to sell your home, these take away from the overall appearance of the interior.
• Finding buyers is all about allowing them to see themselves living in the home. When choosing your decorations, or deciding to decorate at all, keep this firmly in mind. Ornamentation made of bright colors may be fun, but can also be overwhelming.
• If you’re ever at a loss on how to decorate or stage a home for sale,  take a trip through furniture stores. Stores that sell furniture often have furniture set up in “living” displays so people can see what the pieces look like together. Look at the displays, take pictures and notes, and then apply the knowledge you gain to make your own home look like a display.

Decorating and staging correctly can make a huge difference on how buyers see homes for sale in Southeast Michigan. The few tips above can help make your home shine.

Ready to sell your home?  I can help.  Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

The extension of the homebuyer’s tax credit, as well as the expansion to include upgrade homebuyers, has a lot of people looking for their dream home. Many are looking for that dream home in the listings for Southeast Michigan foreclosures. Why?

The Law of Supply and Demand
Quick marketing lesson: every market is dependent on the law of supply and demand. When the demand for a product is higher than the supply, prices go up. When there’s more product than demand, prices go down.

This is what’s happening now, especially with Southeast Michigan foreclosures. Around the U.S., the supply of homes has doubled in the past two years, reaching as high as a ten-month supply. While homebuyers have been reluctant to buy a foreclosure in the past, people are starting to rethink the situation because:

• Foreclosures are usually less expensive than traditional homes for sale.  In fact, some buyers have found their dream home and bought it for pennies on the dollar.
• Foreclosed properties are generally in better condition than they used to be.  In the past, foreclosed homes had a higher than average amount of repairs needed compared to other homes for sale. This is no longer necessarily true. Many foreclosured homes have been lovingly taken care of by their previous owners.
• Potential buyers of Southeast Michigan foreclosures have a wider variety from which to choose. They aren’t stuck with just one type of house in one neighborhood. For the careful new homebuyer, the possibilities really are almost endless.

Most foreclosed homes aren’t money pits. To protect yourself, make sure your Southeast Michigan real estate agent includes in the contract that you want to have the home inspected, and that if the home inspection finds major problems, you then have the right to walk away from the deal.

If you’re looking for a great home at a great price, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

You’ve listed your property. You’ve spent your weekends with people traipsing through your home. You’ve done everything you can and your Southeast Michigan real estate in Oakland County is still sitting on the market while others around you are selling. Why won’t your home sell?

You’ve cleaned your home—you think. Let’s examine a few areas many people overlook:

• Did you stuff all your stuff in cabinets thinking no one will be bold enough to open cabinets and look inside? Hum… maybe. Maybe not. Lots of people open drawers, cabinets, and definitely will look in closets, so don’t stash all your stuff in closets. Besides being untidy it is likely that overstuffed closets  will fall out in an avalanche when an unsuspecting buyer happens to peek.

• Are there dirty dishes stacked up, clothes in the laundry baskets, or used towels all over the bathroom? Just because you have to live in your Southeast Michigan real estate until you sell it doesn’t mean it looks good to your buyers. The ‘lived in’ look only makes your home look comfortable when friends and family visit, not prospective buyers.

• Does your loving pet adore your visitors? Even the most well-behaved dog or cat may be a distraction. Not everybody is a pet lover, and even if they are they don’t want to have to deal with your pets while viewing a home.   Have your dogs and cats in their crates when buyers come to see your Southeast Michigan real estate listing.

• Is the lawnmower sitting on the patio, the pool skimmer lying on the lawn, the kid’s bikes piled up in the driveway? The inside of your home isn’t the only place that shouldn’t look ‘lived in’ when you are showing your home to the public.

Little things mean a lot. Don’t let those little nail holes, stray wires from a removed fixture, or coffee stains on the carpet go unheeded. Your buyer is not going to want to fix those things when they move in. And, it makes potential buyers think that if minor repairs haven’t been taken care of, most likely, major repairs have been let go also.  Take the time to do minor home fix ups and make your house look as inviting as possible.

If you’d like more tips like this, subscribe to my blog.  You’ll get a couple of new tips automatically emailed to you each week.

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

If you’ve recently applied for credit to finance a Troy Michigan real estate purchase, and were declined, you might be wondering why a lender would deny you credit.  Most lenders have a checklist of qualifications necessary to get approval for a home loan, and some don’t have anything to do with what your credit score is.  Here are the basic reasons a lender may deny a mortgage loan:

• Little or no credit.  You may be under the mistaken impression that no credit is better than bad credit, but you’d be wrong.  A blank credit history is not something a mortgage lender wants to see.  A lender needs some idea of how you make payments.  You can build your credit history by getting a department store credit card, and only using thirty percent of your available credit to make a purchase.  Making regular payments will soon add up to good credit, and lenders will look more favorably at your loan application.

• Bad Credit.  It’ll be difficult to find a lender that will approve a person with bad credit.  It’s not the end of the road.  You can improve your credit score with a little hard work and still buy that Troy Michigan real estate you want.  You’ll want to get a copy of your credit report from all three of the major credit bureaus.  If you have frequent late charges or many items in collections, you’ll need to call each company and arrange to get your accounts current.  You’ll be surprised at the difference each timely payment makes on your credit score.

• Credit-to-Debt Ratio.  Most mortgage lenders will decline a loan application if your credit to debt ratio is too high.  The ratio is figured by dividing the amount of credit available to you by the amount that you are actually using.  Using all or a high percentage of the credit available to you may leave the impression that you are short on money and will have trouble making loan payments.

Let me help you get on the road to a Troy Michigan real estate loan or other property in Oakland County.  Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

When home values started dropping in 2007, a lot of homeowners panicked and immediately began putting their houses on the national and Bloomfield Hills real estate markets. The supply of homes for sale rose to a staggering amount and prices dropped lower, fueling more homeowners to “get out while they still could.”  However, as 2009 rolled to a close, a new trend that may mean a calming of the panicked markets began.

Meet the Nesters
During the real estate boom, house flippers popped up from everywhere. In fact, flipping houses became such a big industry that cable channel A&E began producing “Flip This House” for those who wanted to try it themselves. Houses had become financial investments, a way to build equity or even immediate cash. However, as prices dropped for national and Bloomfield Hills real estate, investors found their investments failing.

So, if you can’t build equity, you can’t invest and you can’t flip homes, what good are they? Ask the “nesters,” who’ve decided that a home is something to hold on to and a good investment anyway.

2009 showed a 20% increase in the first three quarters for home construction according to NAHB (National Association of Home Builders),  and another 8.7% increase in the last quarter of the year. The amount spent on remodeling in 2009 hit $114 billion by October. What are these nesters doing?

While some paying for remodeling are trying to raise the quality of their home to sell it, most are fixing it up to live in. Most people move to get more space, but these nesters would rather expand the place they live in than buy a new home. As well, many contractors believe the number of home improvement bids have gone up thanks to the $1,500 energy tax credit for raising the energy efficiency of a home.

Whatever the reason, the rise in nesters may mean an evening out of the housing supply. Although the national and Bloomfield Hills real estate markets may not stabilize immediately, a drop in the number of homes hitting those markets could make all the difference in a housing recovery.

If you’re looking for a beautifully remodeled home, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

Valentine’s Day is just around the corner.  Are you wondering what to get your loved one? Buying Michigan foreclosures in Oakland County may not be on the top of your list, but maybe it should be. Do you need some extra room? Is it time to spread out? Are you a repeat buyer?

You’ve probably heard the term “buyer’s market” more often than you care to, but if you want to expand your living quarters, you might want to pay attention.

What is a buyer’s market?
The typical reply might be something like, “A buyer’s market is where the supply is greater than the demand; the heavier the supply, the stronger the buyer’s market.” What you really need to know is that a buyer’s market is heavily tipped in your favor. Mortgage rates, housing supply and negotiations are all pointed towards helping you find – and buy – the home of your dreams.

What’s so great about buying Oakland County Michigan foreclosures or other homes for sale now?
Whether you’re a first-time buyer or currently own a home and want to upgrade, there are plenty of reasons to get into the action now:

• Home prices are lower than they’ve been in 12 years.
• Foreclosures are going for rock-bottom prices as lenders try to make up their losses.
• The number of programs to help buyers get into a new home is higher than it’s ever been.
• Between government programs, lenders’ programs and private programs, the chances of getting into a home you can afford are high.
• Many sellers are eager to find qualified buyers. If you’ve been pre-approved for a mortgage, you have a better stance in negotiations.
• Mortgage rates are lower than they’ve been in a long time, but are slowly starting to rise again.

These are just a few of the reasons.

Why buy foreclosures?
Foreclosures are selling at much lower prices than other homes. In fact, many expect to save at least 30% when buying foreclosed property and that percentage isn’t unrealistic.

If you’ve been trying to figure out what to buy your Valentine, and you’ve been thinking about buying a home, look around at Oakland County Michigan foreclosures. Not only can you find a fantastic deal, but you’ll also be able to celebrate Valentine’s Day in a new home!

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

From national and Troy Michigan real estate to the U.S. economy, the predictions for 2010 are in.  Like any predictions, they vary from somewhat bright and cheery to doom and gloom:

CNBC’s Realty Check predicts:

• the beginning of a housing market recovery mid-year
• higher foreclosure inventory
• rising mortgage rates, probably leveling off around six percent
• suffering commercial real estate

The National Association of REALTORS®’ (NAR) chief economist is projecting:

• A sustainable recovery.  The tax credit expansion will help to relieve extra housing supply through mid-2010.
• A rise in existing home sales.  The NAR is expecting existing home sales to rise as high as 5.69 million, even with continuing unemployment issues.  That’s a 13.6 percent increase.

In fact, the U.S. forecasts for national and Troy Michigan real estate are overall positive for 2010.

Housing Predictor, one of the first places to predict the wave of foreclosures, also forecasts positive numbers for 2010.  They anticipate rising home sales, market improvement and even value appreciation for some places. Again, the magic period for the start of stabilization is the middle of the year.

Although no one knows for certain what will happen in the future – especially for such struggling sectors as national and Troy Michigan real estate – we can all gain a little hope from the 2010 forecasts. There is one thing that is fairly well agreed upon according to these predictions:  there will be a real estate recovery in 2010.

If you’re struggling to sell your home, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

2009 was a rough stretch for many Southeast Michigan real estate sellers and buyers, but new reports hint at possible stabilization in the housing market that may prove beneficial for everyone. As 2009 rolled to a close and 2010 opened into a new year, economic and real estate reports poured out good news, but bad news wasn’t far behind. For each positive note, there is always that unavoidable “but”:

• Mortgage rates are holding steady below 5%, thanks to government intervention. Thanks to the low rates, more people are buying and refinancing. However, the downside is that banks are more reluctant to refinance or loan. This leaves many, who want to buy Southeast Michigan real estate, with the inability to do so. Ironic that, in a buyer’s market, it’s the banks with all the selling power.
• The other “but” is that the Federal Reserve program providing the low mortgage rates is set to expire in March. Rates could very well double shortly after, which is highly likely to drop the number of interested buyers. A drop in buyer numbers will only further shift the supply/demand ratio.
• As of December 10, 2009, the number of foreclosures in a month had dropped 16%, nationwide. The home buyer tax credit expansion, foreclosure prevention programs and loan modification programs have helped, as well as state mandated financing programs. As great as that is, there were still over 300,000 foreclosures in November, 2009, which is 18% higher than November, 2008.
• Home prices are “firming,” showing improvement over five consecutive months. Although the rise is considered mild, fewer homeowners are underwater, where they owe more mortgage than their house is worth. Because housing prices are improving, home sellers are more confident in the listing prices they’ve set.

However, many – who are currently unemployed – have ARM mortgages that will be resetting shortly. While they can afford their current mortgages, many won’t be able to afford a higher one. This could bring another round of foreclosures and another drop in housing prices.

What does all this mean for Southeast Michigan real estate buyers and sellers? As Ben Franklin put it, “nothing in this world is certain, except death and taxes.” However, there is also the famous “nothing ventured, nothing gained.” 2010 could be rocky, but, if you’re careful and do your research, you’ll find smooth sailing ahead.

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

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

Recently, I came across a show on the Bravo network. Three high dollar real estate agents push million dollar deals in the City of Angels, Los Angeles, California. I can’t say that it reminds me of when I was a new Troy Michigan real estate agent.

Called Million Dollar Listing, the show is a “docu-series” with three young stars:

• Josh Flagg graduated high school in 2004, stepped into high-end residential real estate, made several record sales and became one of Los Angeles’ best agents.
• Madison Hildebrand graduated from Pepperdine University, sold his first home to a celebrity and now sells homes as high as $20 million.
• Chad Rogers got his real estate license at 18, rose through the ranks and is currently working for a prestigious real estate brokerage.

What does all of this have to do with being a Troy Michigan real estate agent? Nothing – and everything. Watching the show, I can’t help but think, “If these young bloods can sell a $20 million dollar house in Beverly Hills, in this economy, we can certainly sell $143,308 homes here.”

Okay, so they’re selling to a lot of celebrities. And, yes, people in Beverly Hills and the surrounding counties are famous for their big wallets. I also have to admit that it might be easier to sell a house with fifty natural selling points (huge pool with pool man, beautiful grounds cared for by landscapers, two-ton chandeliers, stables) than it is to sell an average house that has five selling points.

Having said all that, however, when times get tough remember that we have a beautiful city. We have beautiful homes for sale, nice neighborhoods and great communities. We have a lot of selling points to show off, at more affordable prices.

If you’re looking for a beautiful home, even if you’re not a celebrity, I can help. Call me now at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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