Lee Morof's Real Estate Blog

The good housing numbers continue for Southeast Michigan real estate in Oakland County. May 2008 sales are up by 9.3%, pending sales are up by 15.6%, and listing inventories are down by 7.43% as compared to May 2007.

This statistical information has been obtained from Realcomp, the REALTORS MLS. Realcomp is Michigan’s largest Multiple Listing Service. Although not guaranteed, these statistics are from data Realcomp believes to be reliable. This information is not to be reproduced, redistributed, or combined with data from other sources without expressed permission from Realcomp.

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

I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County, Southeast Michigan. Like the rest of the country, we are in a buyers market with more homes than buyers to buy them. Many home sellers think that they can list a home at a price they have in mind and then “see what happens.” In my opinion, that can be a huge mistake and here’s why. In a buyer’s market, you usually have a pool of buyers who have been looking for a while for a home, usually more than thirty days. To attract those buyers, your home must first be in excellent condition. Second, you must price the home somehwhere between the middle and the bottom of the market as those are the homes that the buyers are looking at. Naturally, they are looking for the best deal. At the present time, in Oakland County, Michigan, one of every two homes sold is bank owned. The reality is that if you want to sell, you have to compete with the bank owned home. Most buyers will pay about a ten percent premium above a bank owned home because bank owned homes are usually in rough shape and have had the appliances removed. After thirty days, new buyers trickle into the market. If the existing pool of buyers have rejected your home due to its price or condition, you will be fighting an uphill battle. Some sellers I recently worked with in Ferndale, Michigan understood all of this and listed their beautiful home at a price around ten percent above the bank owned competiton. Within fourteen days, a first time home buyer who had previously looked at more than one hundred homes made an offer on a Ferndale Michigan home that was ninety six percent of the list price, right after he looked at the home.

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

I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County, Southeast Michigan. I am currently working with a very motivated buyer who has already sold his home. Last week, we wrote and submiited an offer on a home that he was interesed in.  The amount offered, net of a needed seller contribution toward the buyer’s closing costs and downpayment, was approximately 88% of the listed price. This was not an offer we expected the seller to sing “I’m In The Money” about but, considering that the home was overpriced, was not a bad faith offer.

The listing agent called me the next day and, in a haughty tone of voice, told me that the seller rejected the offer “outright” and would not be making a counteroffer. I asked Mr. “My Morning Breath Doesn’t Stink” what his seller was looking for and his response was, “sorry, but the ball is in your court.” Politely, I told him that I disagreed with him and that he probably wouldn’t be hearing from me again.

The buyer was furious and rightly so. He had made his best offer and, if he would have increased the amount,  would have had to get a gift from a relative or friend which was something that he did not want to do.

This week, a similar offer was made on another home, his second choice. Except that this time, the listing agent came back with an acceptance and a very appreciative tone. She and her seller must understand that in this market. an offer is an opportunity, to move forward with your plans. Last I checked, the other home was still on the market.

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

On Thursday May 8, 2008, the United States House of Representatives passed a Housing Aid Bill that would allow struggling homeowners to refinance their subprime mortgage loans through the Federal Housing Administration and provide funding to states to buy and fix up foreclosed homes. Bush has threatened a veto claiming that the bill would penalize prudent homebuyers and reward those that “gambled” that home values would rise. As to the funding provision to the states, Bush claims that it rewards the lenders who helped cause the problem. Total projected cost of the bill is estimated to be $17.7 billion over five years.

First, let’s put this is perspective. According to some accounts, we are spending around $1 billion per month in Iraq, an amount that Congress doesn’t  seem to have any trouble funding. So, any claim that we cannot afford the cost of the Housing Bill is just disingenuous. In addition, the bill provides that homeowners would be required to share any profits from selling or refinancing with FHA.

Second, the contention that the bill would penalize prudent homeowners is shortsighted Bushspeak. I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County in Southeast Michigan. Currently, one of every two homes sold here is bank owned foreclosed. This influx of housing inventory has caused all homes in the area to decline in value by as much as thirty to forty percent over the last few years. By reducing the number of foreclosed homes on the market, “prudent” homeowners will see their home values stabilize and, eventually, climb. To say they would be penalized is absurd.

Third, to contend that subprime borrowers “gambled” shows how disconnected this President is from reality. Subprime mortgage borrowers typically had very little choice when it came to financing available to them to buy a home. For the most part, the choice was to buy a home under those terms or not. What the subprime borrowers did not expect was that they would be laid off or outsourced during a recession that no one wants to admit has happened.

George W. Bush’s approval ratings are amongst the lowest of any President in our nation’s history. His, or his conrollers’, veto threats of the current Housing Bills and the reasons for them, are more examples of why he is so unpopular.

Are you thinking about buying or selling Southeast Michigan real estate in Oakland County?  Give me a call today at 248-514-2640.

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

I am a RE/MAX agent in Birmingham, Michigan. I primarily represent home buyers and sellers in the North Woodward Area of Oakland County, Southeast Michigan. Currently, approximately one of every two sales in Oakland County, Michigan is a bank owned home. Of course, this has caused huge downward pressure on home values and has perpetuated our buyer’s market. A bill currently before the United States House of  Representatives has some provisions that I believe would help. First, the bill provides for a $7.000 tax credit for those buying bank owned homes and would provide $4 billion in grants for communities to buy and fix up foreclosed homes. The naysayers in the house contend that this would unfairly award purchasers who would have bought anyway and would devalue other homes. In addition, the naysayers think that this would encourage banks to foreclose on more homeowners. I believe that the bill’s detractors are misguided. First, these measures would help reduce the huge inventory of bank owned homes and, in turn, would help get supply to meet current demand. This will help home values not hurt them. The bill also includes the issuance of $10 billiion in tax free mortgage revenue bonds to help homeowners refinance subprime loans. This part of the bill has white house support and would naturally result in fewer foreclosure. All combined, these measures should help reduce the glut of bank owned homes on the market much faster than would occur otherwise.

Ready to buy Southeast Michigan real estate?  I can help you find and buy the right home for you at the best price and terms.  Call me today at 248-514-2640.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-5114-2640

According to the 2006 National Association of Realtors (NAR) Survey of Home Buyers and Sellers, 95% (ninety five percent) of home sellers were satisfied with the service provided to them by their full service Realtor when selling a home. However, only 50% (fifty percent) were satisfied with the service of their discount Realtor. I am not surprised at all. Before I affiliated with RE/MAX, I worked in a discount shop. I can tell you it is absolutely true that you get what you pay for. Most people want the very best service and are willing to pay for it because it is worth it. In this challenging market we are in, sellers need maximum marketing exposure which the discount shops cannot provide because they cannot afford it. Today, sellers need way more than just having their home placed on a Multiple Listing Service to get their home sold. I have developed a Thirty Day Marketing Plan by which I am able to sell 75% (seventy five percent) of the homes that I list. Abviously, it costs money to do this but the point is that IT SELLS HOMES. Homes listed by discount shops take longer to sell, sell for less and usually with more complications. I frequently represent buyers.  Almost always, when I am in my car with the buyer who wants to see a home that we drove by listed by a discount shop, when I call the phone number on the sign, it goes to voice mail. Of course, I don’t end up showing the home and the buyer buys something else. Another thing to consider is that when you list your home with a discounter, you have placed your home in a discount category. Doesn’t your home deserve better? Moreover, a Realtor agreeing to a discount has just showed you the level of his or her negotiating skills. He or she has already given away THEIR OWN MONEY. What do you think they will do with yours?

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

Birmingham Michigan posted some nice housing numbers in February 2008 according to the April Edition of Metropolitan Realtor. Total home sales were up 26.32% as compared to February 2007. The median sale price was up by 9% and the number of on market listings declined by almost 8%. While one month does not necessarily represent a trend, the fact that all of these categories posted encouraging figures, gives cause for optimism. I suspect that many buyers who have been waiting on the sidelines, have jumped at this current opportunity to live in Birmingham. Prices have dropped considerably over the last few years and interest rates have remained low as well. Hence, many are now able to live in an area that they previously thought they could not afford. 

Looking for Southeast Michigan real estate in Birmingham?  Give me a call today at 248-514-2640 or email info@NorthWoodwardHomes.com now!

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

Accordingly to the recently released 2007 National Association of Realtors (NAR) Profile Of Home Buyers And Sellers, the number one reason given by For Sale By Owner (FSBO) Home Sellers as to why they attempted to sell their homes without Realtor assistance was to avoid paying a commission. An examination of the survey results indicates that home sellers should avoid the FSBO process altogether. First, in 2007, the by owner seller had a seven percent (7%) chance of selling his or her home to a buyer that they did not know. In addtion, according to the survey, the median sale price was thirty four percent (34%) higher for Realtor assisted sales compared to by owner sales. By owner sellers also indicated that the most difficult task they faced was understanding and preparing the paperwork necessary to sell their home.  If you’re thinking about selling your 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

Finally we have some good news for the North Woodward Area of Oakland County, Southeast Michigan. In January 2008, according to Metropolitan Realtor-March 2008 edition, Birmingham, Michigan saw home sales increase from January 2007 by almost 54% (fifty four percent) and listings down by almost 9% (nine percent) for the same period. In Beverly Hills, Michigan sales were up by 71% (seventy one percent) and listings were down by almost 2% (two percent). If these numbers continue, home prices should start going back up again in Birmingham and Beverly Hills. Any buyers who are considering buying in these areas may want to buy now or they might be priced out in the next few months. 

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

Between 1997 and 2006, the number of home purchasers that found their home on the internet jumped by 1,200 percent according to the National Association of Realtors 2006 Profile of Home Buyers & Sellers. The use of the internet to find a home is here to stay. In fact, in 2006, it was the number two source that buyers used to actually find the home that they purchased. The number one source that buyers used was a Realtor. Therefore, if one is serious about selling a home in this market hire a RE/MAX Realtor and have your home marketed where the buyers are.

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