Lee Morof's Real Estate Blog

There are several important criteria to consider when buying Bloomfield Hills real estate for investment. Some of the items will vary depending on the reason you are buying and the type of investment you are looking to make.

Long term investments such as rental properties can take longer to pay off but the income is consistent.  Short term investments such as buying for quick flips may pay off larger but can be a less regular form of income.

When buying a home for either long or short term real estate investments, it is very important to know exactly what your costs will be compared to potential income. That should be your primary deciding factor when buying investment properties. 

Short Term Bloomfield Hills Real Estate Investments

When you are looking at short term investments like re-sales and flipping, the potential profit needs to be larger to cover both the inconsistent nature of that type of investment and the slightly larger risk. Bloomfield Hills real estate purchased for short term investment also needs to be very appealing to ensure quick turnover. Languishing on the market once you have relisted it eats away at your profits.

Vacant Land as Real Estate Investment

Another type of investment property is vacant land you can subdivide and resell, or develop on your own. If you’re considering that type of real estate venture, know that it requires quite a bit of homework.

1. You will need to check out the zoning laws to be sure your plans are allowable without going through the hassle and possible failure of rezoning. 
2. You also need to pay close attention to the initial and long term costs associated with developing your vacant land.
3. You need to know exactly what is possible such as how many units can be placed on a given parcel to be sure the property can accommodate the number of resale units you require in order to make a profit.

If you would like more information on investing in real estate, please call me 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

The new stimulus plan has given many people new hope for their housing futures. At first, many worried that the stimulus package would merely help the banks and other financial institutions and not the actual homeowner looking to buy Southeast Michigan real estate.  But, it has become clear that the people who really win with the new plan are those who count—prospective home buyers.

Stimulus for Banks and Buyers

The stimulus package provides huge tax rebates in 2009, and while that is a limited provision, the savings are enormous for those who get out there and buy a new Southeast Michigan home. The fact that the stimulus plan includes relief for the struggling financial industry also helps buyers by making it more likely they will be able to obtain loans. 

Stimulus for Luxury Properties

The stimulus package gives the two major government mortgage companies Fannie Mae and Freddie Mac more power and allows for larger loans for higher priced properties. That is a big incentive if you’re looking to buy in a major metropolitan area because you will now be able to get a loan secured by Fannie or Freddie.

The economic boost from the stimulus package will require a little time to really become apparent, but it is working, even now.  Slowly the market is rebounding and new home buyers are able to take advantage of loans and tax incentives while getting houses at prices that are extraordinarily low.

If you would like more information on how the stimulus package can help you buy Southeast Michigan real estate, give me a call 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

Buying REOs is a very popular method of buying Troy Michigan real estate for investment.  If you’re just getting started accumulating investment property, this is one way you can get very good deals and amass a great deal of property quickly.

REO stands for Real Estate Owned and is the acronym banks place on properties they have taken back from mortgage defaults. REOs are considered non-performing assets meaning they have value but are not bringing in any money—bad for the bank, good for you.

Buy REOs at Foreclosure Auctions

Foreclosure auctions are a great way to get fantastic deals that you might not be able to convince a bank to go with prior to the event. Some savvy investors try to catch properties while they are in pre-foreclosure  which avoids a property being bid up in an auction atmosphere.  To do that, you often have to convince the holding bank to “short sale” a property and sell it for less than the note they were holding on it. At a foreclosure auction, the bank is usually desperate to unload the [city] real estate and often settles for far less than the actual value without all of the short sale paperwork.

Do Your Homework

If you choose to buy properties at auction do your homework. Use foreclosure worksheets to determine the true value of a property and what your maximum bid should be in order to realize a profit from its eventual sale or use as a rental. Doing this prevents you from getting caught up in the moment and over-bidding on a piece of Troy Michigan real estate that has a lot of competitors bidding on it.

If you would like more information on how to acquire REO properties, I can help. Contact me 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

If your Troy Michigan real estate has been sitting on the market for more than three weeks, it’s already an “old property.” Being an old property hurts sales because buyers looking in that community wonder what is wrong with your home that’s keeping it from selling. Even in today’s slower market, that holds true. It’s human nature to think something must be wrong with an item that hasn’t sold quickly. There are things you can do, however, to spruce up your home to make it more appealing and help it sell faster.

A second look from potential buyers can be a life-saver to you when selling your Troy Michigan real estate. If a previous looker was on the fence, just a few little changes might make them reconsider. Ask your real estate agent to share negative comments from walkthroughs. Don’t be offended, instead, find a way to overcome that dissatisfaction. If one person felt a room was too dark, too crowded, too cluttered, it is likely others will too.

After you address those issues, consider how your Troy Michigan home really looks. If you haven’t had time to do much landscaping get out there and plant a few border plants along the walk, or line the front of your house with some attractive flowers.  At the very least, make sure lawn, trees and shrubs are trimmed, pruned and weeded to make your yard look as neat as possible.

Paint the inside. If you walls haven’t been painted recently, chances are they could use some sprucing up. Your buyers want a home to sparkle and a new coat of paint is a cheap way to make that happen.

If you would like more ideas on how to make your Troy Michigan real estate more attractive to buyers, I can help. Contact 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

It can happen to even the best Southeast Michigan real estate for sale. It has great curb appeal and the interior shows well. So, why isn’t it selling? 

Even if your home is the best home in the neighborhood, it can still end up languishing on the market  as others around it sell. So, what can you do to get your home sold?

Check Your Price

Being over priced, even by a relatively small amount, is the most common reason homes don’t sell.  The wrong price can prevent potential buyers from even looking at your home.  Keep your emotions out of the calculations.  Of course, you love your home and think it’s very valuable.  But, you need to look at it as an impartial outsider.  Examine the facts and figures presented by your real estate agent, and take his or her expert advice.  Price isn’t the only factor to consider.

Picture It

Homes marketed with only one or two photos are passed by. The more photos the better, but any old photos won’t do.  You need quality photos.  Consider hiring a professional real estate photographer,  or work with a real estate agent who will get professional photographs for you. 

Promote It Online

These days almost 80% of all buyers start their home search online.  Make sure your home is marketed on multiple websites to get the broadest possible exposure.  In addition to using multiple photos as mentioned above, a great online marketing tool is a virtual tour.  Ask your agent to create a professional virtual tour for your home.

Market it Everywhere

Advertise your home in as many ways and as many places as possible.  Here are a few ideas:

• Colorful flyers
• Home magazine ads
• Postcard mailings
• Emails to other agents and potential buyers

If you would like more information on how to get a stagnant home moving, give me a call today 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

When looking for property that will be a good investment either as a rental, resale, flip, or even a home that will eventually be worth a great deal more than you originally paid, location is a paramount concern. For the very best in Bloomfield Hills real estate investments, location means more than just being situated in a good neighborhood—it means a location with perks. 

1. Lakefront Property – There is something about a home that sits on a lake that makes it an amazingly popular property. Perhaps it’s the ability to wake up in the morning and have coffee looking out over soothing waters. If you’re looking for one of the very best selling homes, consider lakefront or other waterfront properties.  However, be absolutely sure that the Bloomfield Hills real estate you purchase on a waterfront is built so that it is not going to flood should the waters rise.
2. Gated Communities – Privacy and security are worth their weight in gold—or at least you’d think so considering what people are willing to pay for the peace of mind of knowing their neighborhood is secure.
3. Great Communities in Major Metropolitan Areas – Big cities mean big bucks and lots of need for housing. People living in large cities typically have more disposable income and are willing to pay for the convenience of living in the middle of the action.
4. Rapidly Growing Communities – If you’re lucky enough to know when an area is in a growth spurt, buy investment property there.  Click here to learn more about Bloomfield Hills.

If you’d like help locating the best Bloomfield Hills real estate investment opportunities, I can help. Call me today 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

The housing plan included in President Obama’s stimulus package has many good qualities that will help those seeking Troy Michigan real estate. 

There are two main points to the housing plan:

1. To help people once again obtain reasonable mortgages to afford the home of their dreams.
2. To keep people in the homes they already have. If it works the way it is planned, it is reason for a collective sigh of relief for millions of homeowners feeling threatened by foreclosures.  

That’s really it in a nutshell. There are many incentives wrapped up in each of those two areas to help both homeowners and prospective home buyers, but the very impetus behind the stimulus housing package  is simple.

For Current Homeowners

If you have a current mortgage that you can’t handle, now is the time to talk to your mortgage company. Don’t wait too long because some of the detailed elements of Obama’s housing plan are meant to be short-term in their offer so as not to over-tax the budget. While you have the chance, see if your mortgage can be reduced to reflect current home values. That can provide you with the equity you would have already built up but lost due to a drop in housing values.  It will also lower your monthly mortgage to a manageable level.

For New Home Buyers

This is your market now. The Troy Michigan real estate prices are much lower which gives you a chance to buy a home you might not have been able to afford before.  President Obama’s housing plan provides tax incentives for you.  However, just like with current homeowners, the time to do this is now. Because of the stimulus to the Troy Michigan real estate market, housing values are not going to stay as low as they currently are. Also, many of the incentives like the tax credits are valid for a very limited time.

If you’re ready to take advantage of the stimulus package benefits by buying a home, I can help. And, as a licensed real estate broker and lawyer, I can keep you from making a costly mistake in the process.  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

You’ve decided to take the plunge and buy a home for your family.  With the banking industry in the shape it is, unless you have stellar credit, you’ll need a more sizeable down payment than ever before.  So, how do you get the down payment for the Bloomfield Hills real estate you’ve always dreamed of?

Get Scrounging

Scour your attic, basement and storage units. Look in every nook and cranny to find items that are in decent shape, but no longer used, and have a garage sale. Sure it’s usually pennies on the dollar of what your stuff is worth.  But if you’re not using it, someone else can, and you get the cash in hand. If you find items that are more valuable, sell them on eBay.  Every little bit helps.

Rich Relatives?

Hey, if you have’em use’em. This is no time to feel shy about asking for a gift. Purchasing Bloomfield Hills real estate is a wise investment.  Many relatives who might otherwise be unwilling to give cash for frivolous items are happy to help loved ones buy a home.

Sell Something Big

Having precious jewelry or antiques is a great asset.  Consider selling items you’ve been holding onto as investments, in order to get the home of your dreams.

There are many ways to come up with the down payment and financing you need to buy Bloomfield Hills real estate.  I can help you buy your dream home!  Give me a call today at 248-514-2640 or send me an email at info@NorthWoodwardHomes.com.

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

With the current economy, it may seem like a better idea to rent a condo instead of buying one. Let’s explore some of reasons why it’s still better to buy Troy Michigan real estate rather than rent.

Throwing Money Away

When you rent that’s basically what you’re doing. You give your money away in exchange for a ‘perishable’ item—one month of living space. Once that month is over, the money is gone and you didn’t get anything of long term value in return.

When you buy Troy Michigan real estate you still spend money for a month of living space, but in addition, you’re building long term equity. It may take longer and property may not increase in value as quickly as it did in the past, at least for now, but the money you spend becomes a back end asset instead of just disappearing.

Tax Breaks

When you buy a home, you can deduct the interest and property taxes that you pay every year on your income taxes. That can be a sizeable amount of money.  If you buy your first home in 2009, you get an even bigger tax break of $8,000 as a result of President Obama’s stimulus plan.  

Saving Money

Yes, you actually end up saving money in the long run if you buy a home or condo rather than renting. According to The New York Times, over a 16-year period you can save as much as $5,000.00 by owning your own home.  And, that number doesn’t include the $8,000 tax credit first-time home buyers get when they purchase a principle residence in 2009.

The bottom line is that the housing market troubles have nothing to do with the ‘evils’ of homeownership. They have to do with bad lending practices, and people wanting more than they can afford.

Choose your Troy Michigan real estate home or condo wisely.  Only buy what you can afford to pay for each month, and pay attention to the loan you are being offered. If you need any advice on the best types of loans or condos available, I’d like to help. Call me today 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

The Southeast Michigan real estate market is a homebuyer’s dream right now!  Whether you’re looking to buy a new home or to buy investment property, it’s the perfect time.  Home prices are down, which means that well-informed buying could benefit you in the long run.  There are several tips I can offer you on how to get the best price when buying a home:

1. Shop around in the neighborhood where you’re looking to buy.  The only way to know if you’re getting a good deal is to look at home prices in the same neighborhood.  Ask your Southeast Michigan real estate agent for listings that are similar to the homes you’re looking at.  Evaluate the homes and their prices to ensure that you’re getting a good price.  Your real estate agent can help you with this evaluation.
2. Play the negotiator when writing your contract!  One way to try to bring down the price of the home is to offer a lower price on your contract.  Offering a slightly lower price than what the homeowner is asking is a place to start trying to save some money.  If the homeowner is firm on the listing price, you can look to cut costs in other areas.  One way you may be able to lower your cost is by asking the seller to pay your closing costs. 
3. Check how long the house has been on the market.  If a home has been on the market for an extended period, the homeowner is going to be more likely to lower the price.  A house that has not had any offers in a few months gives you, the homebuyer, an advantage.  The homeowner may be willing to lose a few thousand dollars in order to sell the property to you.

Especially now, it’s possible to get a good price in the Southeast Michigan real estate market.  But you’ll need an experienced real estate agent to find the best deals for your mortgage dollars.  I’m not your average REALTOR®; not only am I a licensed Southeast Michigan real estate agent, I’m also a licensed lawyer. 

Let me help you negotiate an excellent price for your new home.  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com now to get started.

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