Lee Morof's Real Estate Blog

Whether you’ve bought and sold a dozen homes or you’re a first-time home buyer, you probably know that after you purchase Bloomfield Hills real estate, there is usually no option to return or exchange it. Because of this finality, you need to be sure your contract spells out all the conditions you want met before the deal can close. In real estate contracts, these conditions are called contingencies.

Contingencies are the requirements that both the buyer and the seller must meet in order for the closing contract to be valid. If something does not meet specific criteria, the contract must be renegotiated or it becomes null. Below is a list of contract contingencies every buyer should include in their bid — so that you don’t end up with an unexpected fixer-upper on your hands!

• Home Inspection Contingency – This is a really important contingency because you want to make sure there are no problems with the Bloomfield Hills real estate. If any serious problems are discovered, such as wood-destroying pests, lead-based paint or a damaged roof, you can renegotiate your contract to account for the costs you’ll incur during repairs.
• Loan Contingency – This allows the buyer to shop around for a loan so that they can get financed under a particular interest rate and not get locked into high mortgage payments that they cannot afford. If a buyer can’t secure a loan that meets the contingency parameters, then the contract can be voided.
• Home Insurance Contingency – This means that you’re asking the seller to provide proof that the home is currently insured. This is needed because, in recent years, homeowners living in states with a history of household toxic mold, earthquakes, or hurricanes, have been surprised to receive a flat out “no” from the insurance carriers. You want to make certain that the home is insurable before you buy it. If there are serious issues with the home, insurance companies might reject it or charge astronomical rates.

If you would like to know more about contingencies or need help buying Bloomfield Hills real estate, please call me 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
www.NorthWoodwardHomes.com

You’ve decided it’s time to sell your home. Now you’re dreading the process of finding a Bloomfield Hills real estate agent in Southeast Michigan. Don’t worry! There are many outstanding agents available. Just be sure to interview at least three agents and call a few of their clients to check their references before making your choice.

To help you through this process, here are six key questions to ask when interviewing Bloomfield Hills real estate agents:

1. How many homes have you sold in this area in the last year and how long did it take you to sell them? Obviously, the more homes sold the better and the quicker the homes sold the better. Don’t go with a real estate agent who has sold nothing in the last six months. That most likely means they don’t know how to sell in the current market.
2. How much did the homes sell for? Hire an experienced Bloomfield Hills real estate agent who knows your area and has sold homes priced similar to yours. He or she will know how to price and market your home.
3. Do you live and work in this area? It’s important to find an agent who thoroughly knows the local market. You want an agent who knows what homes are selling for in today’s market, what buyers in your area are looking for and what’s for sale in your area right now.
4. How do you market homes online? You’re looking for a Bloomfield Hills real estate agent who is comfortable using Facebook, Twitter or YouTube to market homes. Look at agents’ websites to see how many photos and videos they’ve posted for other homes they’re selling.  Also visit real estate websites such as Realtor.com, Yahoo Real Estate, Trulia and Zillow to see how the agent showcases homes he or she is selling. Buyers like to see pictures and videos of homes, so you need an agent who provides this as a regular part of his or her service.
5. How do you market homes offline? While searching for homes online is by far the most popular way to find homes for sale these days, you don’t want to miss out on offline marketing. Choose an agent who markets your home in a multitude of mediums, which may include house-for-sale flyers, real estate magazines or newspapers.
6. What are the most common problems that come up when selling a home and how would you handle them? An experienced agent will be able to tell you what to expect throughout the process, as well as possible problems that may arise and how to avoid them.

I’d appreciate the opportunity to interview for the job of selling your home in Southeast Michigan. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to schedule a time for our interview.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
www.NorthWoodwardHomes.com

There’s good news for buyers and sellers of Bloomfield Hills real estate: The U.S. Economic and Housing Market Outlook that came out around February 23 is encouraging. According to this research done by Freddie Mac, the economy and housing market are showing cautious signs of recovery.

Here are some of the changes stimulating these improvements in both nationwide and Bloomfield Hills real estate:

• Loans that were seriously delinquent or going into foreclosure declined to the lowest quarterly share since the start of 2009, according to the latest Mortgage Bankers Association Mortgage Delinquency Survey.
• Existing home sales were at the strongest pace in January since May 2010, according to the National Association of REALTORS®.
• Job gains exceeded expectations for the past two months.
• The unemployment rate fell to the lowest since 2009, in January. In December, jobless claims were at their lowest level since 2008.
• Weekly unemployment benefits applications decreased for the third consecutive week to 348,000, the fewest since the first week in March 2008.
• Home builder confidence continues to grow.
• Households are paying off their debts and at the same time accessing credit more easily.
• Historically low mortgage rates encourage home buying. According to Freddie Mac, the national average rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.92 percent in January.

Please join me in celebrating the fact that there’s a lot to be positive about looking ahead!

Thinking of buying or selling Bloomfield Hills real estate? Please give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com to talk about how I can help you take advantage of the upcoming spring and summer selling season.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
www.NorthWoodwardHomes.com

The mortgage application process can be confusing — so you only want to have to go through it once when buying Bloomfield Hills real estate.  Keep these tips in mind as you complete the application process to make sure you get the answer you want: Approved!

• Make Sure Your Credit is Clear: If there are any lingering issues on your credit report, get them resolved prior to application and get your credit in high standing for the best loan rates.
• Lower Your Debt: If you meet the income requirements, but have substantial debts elsewhere – car payments, student loans, credit card debt – your application may be denied.  Budget, save up and pay off as much as you can.
• Have the Required Income: With the tightening of regulations, any wiggle room you may have had before is gone. You must meet the income requirements for the loan.  Remember that not all income may be counted toward your loan – rental property income, for instance, is often excluded.
• Negotiate the Repair of Any Condition Issues with the Seller: Lenders are leery of extending loans on any properties that could later be deemed distressed.  Issues turned up during the appraisal process should be addressed for loan purposes, as well as your own comfort and safety.
• Follow the Instructions: The stacks of paperwork documenting your application are a nuisance, yes, but they are required.  Do the work and make sure your application is complete.

Put these tips into action and your application is more likely to be approved.

If you’re ready to buy Bloomfield Hills real estate, I can help. Whether you need help finding a reputable lender or a home to buy, 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

Is your family starting to feel cramped in your current house, or are you ready to quit renting and start investing? With the extra day added into this leap year, you have an additional 24 hours this month to decide if you’re ready to take a big jump and purchase Bloomfield Hills real estate.

Not sure how to decide if this is the year? Whether you’re a property-purchasing pro or a first-time home buyer, take a look at the three points below to determine if you’re prepared to take the leap and invest big.

1. You have a sizeable down payment. Knowing what you can actually afford is half the battle. A good estimate is to triple your household income, and that will roughly be what you’ll want to spend. Whatever you’ve saved as a down payment can go on top of that or, if you’re frugal, can just be used to reduce your monthly payments. The larger the down payment you have, the smaller your mortgage payments will be, and it could possibly get you a better interest rate.
2. You have a good real estate agent. It’s important to find a trustworthy, competent agent before you find your dream house. Take the time to thoroughly interview agents and get referrals. You’ll want to make sure you have someone who is knowledgeable about the Bloomfield Hills real estate market to help you make one of the biggest decisions of your life.
3. You have a brag-worthy credit score. Strike while the iron is hot! If you’ve taken the time to build up and ensure a great credit score, use your good standing to take advantage of today’s low interest rates.

If you meet all three qualifications, consider taking advantage of this month’s extra day, as well as the low interest rates and home prices, and leap into a new home. Please call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com if you have questions concerning your credit score and down payment, or want to work with a knowledgeable Bloomfield Hills real estate agent.

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 a Bloomfield Hills real estate homeowner, what could be better than surprising your valentine with an updated bathroom this Valentine’s Day?  Below are some ways to do this inexpensively in your Bloomfield Hills home’s bathroom:

1. Paint the walls: This is one of the cheapest things you can do to upgrade your bathroom while still making an impact.  Choose pale or neutral colors to make the room seem larger.
2. Paint the cabinetry:  A new coat of paint can make the existing cabinets look like new.
3. Change cabinet hardware: Little touches make a big impact.
4. Replace the existing mirror:  Put in a mirror that you know your valentine will love. Or, replace the medicine cabinet.
5. Switch light fixtures: Newer, more modern light fixtures will completely change the look and feel of the room.
6. Upgrade water fixtures:  If it’s all brass, change to chrome, the new neutral.
7. Update accessories: Change the trash cans, shower curtains, window curtains, towels, new towel rods, shelves, etc.
8. Apply tile transfers: They’re a creative and unique yet inexpensive way to give tile a whole new look.  These waterproof, washable stickers go over your existing tile.
9. Install dimmer switches:  They enhance the mood in the room.
10. Decorate with live plants:  Live plants and fresh flowers symbolize life and vitality.  Place plants and flowers sparingly in a small bathroom; use larger plants in a more spacious room.
11. Add candles – Who can forgo candles on Valentine’s Day?  Be sure to place them where they won’t be a fire hazard. Remember, they come in all colors and sizes, from simple white votives to colorful red-column candles. Use whatever sets the mood for your current room.

A few simple changes can make sure your bathroom retreat is the perfect fit for your Bloomfield Hills real estate home and lifestyle.

Bloomfield Hills homeowners, if you’re looking for more helpful hints on upgrades or how to maintain your home, subscribe to this blog.  It’s fast, free and easy.

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 thinking about taking the plunge into homeownership, before you even start looking, talk to a qualified mortgage professional to get preapproved for a home loan. Armed with that information, you can make better decisions on the type of Bloomfield Hills real estate you can afford to buy.

Follow these steps to get preapproved for a mortgage:

1. Get referrals. Ask family, friends, neighbors and your Bloomfield Hills real estate agent for referrals to a lender with whom they have had a good experience. Talk to several lenders to compare service, rates and other options.
2. Review your credit report. If anything unexpected appears on your report, do what you can to resolve the issues before you apply for preapproval.  Lenders will review your credit report before preapproving you for a home loan.
3. Provide financial information to the lender. This usually includes documentation of your income, recent statements for all your checking and savings accounts, assets and debt (for instance, credit card debt and car payments).

Even though the preapproval process is rigorous, obtaining a preapproval still does not guarantee that the lender will ultimately fund your loan. Lenders still need to look at property appraisals, verify your information and potentially check your credit again before agreeing to give you a mortgage.

Preapproval helps you narrow the focus of your Bloomfield Hills real estate property search to properties that are within your financial reach. It also helps you check out lenders to find one that is the best match for your situation.

When you find the Bloomfield Hills real estate of your dreams, you’ll be ready to move to the next step!

If you’re looking for more information on the home buying process, I can help. 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 need (or want) to sell your Bloomfield Hills real estate this winter, you’ll have to step up your game a bit. People tend to be less likely to buy in the winter because the weather keeps them indoors rather than house hunting. And, let’s face it, most homes just don’t look as good in the brown, drab winter as they do in the spicy spring and summer.

If you’re one of the lucky owners who has a home for sale in an area that stays beautiful all year long, you can still find a few tips here to help get your home ready to sell.

Six tips to help you sell your home this winter:

1. Keep it cozy. You want your home to be warm so people can comfortably take their time viewing your Bloomfield Hills real estate. Saving money on heating costs isn’t worth it if it means freezing out your potential buyers.
2. Turn up the light. Keep curtains and blinds open during the day. Turn on your lights, both inside and out, at night. Put your lights on timers if you won’t be home until after dark. Use motion detectors to light up in the evening when a potential buyer approaches your doorstep.
3. Point out cold-weather benefits. Have mass transit within walking distance? That’s a big benefit in bad weather because you don’t have to de-ice or dig your car out of the snow in order to get to work.
4. Take advantage of good winter locations. If your home is in a location that people flock to in the winter, such as an area with great outdoor winter sports such as skiing or a warm-weather area like Florida, now is the time prime time to promote your house! Put all you’ve got into marketing the benefits of living where it’s always sunny or where winter living is fun.
5. Set the mood. Play soft, classical music. Toss afghans or throws across the back of your sofa. Hang plush robes in your bedroom or bathroom.
6. Clear away snow and ice. Shovel a path through the snow so potential buyers don’t have to get out their snowshoes. De-ice your driveway, sidewalk, steps and porch to prevent slips and falls.

If you’re ready to sell your Bloomfield Hills real estate this winter, I can help. Give me a call today 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

Should you be marketing to first-time home buyers in order to sell your Bloomfield Hills real estate? The 2011 National Association of REALTORS® Profile of Home Buyers and Sellers has a wealth of information on first-time home buyers and will help you figure out if you should market to this large and important group of buyers.

Here are the stats (courtesy of AgBeat.com) you need to know about first-time home buyers before selling your Bloomfield Hills real estate:

• Long-term survey averages show that 4 out of 10 buyers are typically first-time buyers. This segment is critical to a housing recovery because they help existing home owners sell and make a trade.
• The median age of first-time buyers was 31 and the median income was $62,400, up from $59,900 in the 2010 study.
• The typical first-time buyer purchased a 1,570 square foot home costing $155,000.
• First-time buyers who financed their purchase used a variety of resources for the down payment: 79 percent tapped into savings; 26 percent received a gift from a friend or relative, typically from their parents; and 7 percent received a loan from a relative or friend. Nine percent sold stocks or bonds and 8 percent tapped into a 401(k) fund.

Ninety-four percent of entry-level buyers chose a fixed-rate mortgage. Fifty-four percent of first-time buyers financed with a low-down payment FHA mortgage, and 6 percent used the VA loan program which requires no down payment.

What this Information Means to You

If you’re selling an existing, entry-level home, you’ll most likely be selling to a first-time home buyer with a median age of 31 and a median income of $62,400. First-time home buyers are most likely to get a fixed-rate, FHA mortgage. Gear your marketing toward that buyer to have more success.

If you’re ready to sell your Bloomfield Hills real estate, whether it appeals to first-time buyers or other types of buyers, I’ll market it to get it sold as quickly and for as much as possible. Give me a call today 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

If you’re looking to purchase Bloomfield Hills real estate, you’ll probably come across many terms you don’t know — including concurrent ownership. This essentially means that more than just one individual can own property. You might be extremely interested in the details of concurrent ownership if you’re purchasing a property with another person, are married or have children.

It’s always good to educate yourself, so that you can assess all the options and maybe show off to your Bloomfield Hills real estate agent and loved ones if you happen to come across this term during your house hunt. Below is the basic breakdown of the four main types of concurrent ownership.

1. Joint Tenancy with the Right of Survivorship – This means that owners retain equal share of the property. In the event that one of the owners dies, their share of the property is distributed equally among the remaining owners. Be sure to use specific language in your deed or will, otherwise the property might be considered tenancy in common.
2. Tenancy in Common – One or more people own the property, but the shares might not be equal. Also, if one owner were to die, the property would be passed by will or inheritance, and not necessarily to the other owners.
   3. Tenancy by Entirety – This type of concurrent ownership is usually between a husband and wife. It states that the entirety of the property passes to the spouse upon one of their deaths. A divorce in most cases will change the tenancy of entirety to tenancy in common.
3. Community Property – Not all states recognize this type of joint ownership. However, if your state does, then all property acquired during a marriage is communal, while anything owned before the union or that has been inherited or gifted would remain separate property in the case of divorce.

By knowing the definition of concurrent ownership, you’ll be able to ensure that any communally owned property will be distributed the way you see fit in the case of an unexpected death.

Whether you’re thinking about purchasing Bloomfield Hills real estate by yourself or with multiple people, I’d love to help. Please call me today 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