Lee Morof's Real Estate Blog

As a Bloomfield Hills real estate agent, I spend a lot of time rushing in and out of homes. It’s easy for me to get caught up in the hustle-bustle of Bloomfield Hills real estate transactions, and I forget to slow down to appreciate the pleasure of owning a home. So today, I want to take a moment to reflect on the home aspect of real estate.

My job (one I love) is to help people just like you find the perfect Bloomfield Hills real estate that suits their lives.  Once you move in, you make that house into a home. 

Holiday Traditions 
Your Bloomfield Hills home is where you and your loved ones celebrate holidays and where you create and continue family traditions. Whether you deck the halls with layers of tinsel and wreaths or have the whole family over to spin Hanukkah dreidels, the spirit of the season comes from the energy of the people gathering together in your home. 

Season of Family Warmth
While you’re making your famous sugar cookies or spiking your secret-recipe punch with extra holiday cheer, pause for a moment to enjoy the warmth and beauty of your Bloomfield Hills home. My wish for you is that you live every day like it’s a holiday, being thankful and spending time with loved ones.

Happy Holidays!
May your home be filled with the joy of family and friends this holiday season. There’s truly no place like home for the holidays!

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

Holidays are full of joy and family fun – and potential hazards all about. Bloomfield Hills real estate homeowner can keep harmony and health in their home this season, by keeping these safety tips in mind:

• Sparkly, Not Sparking, Electrical Safety: Plugging extension cords into extension cords into extension cords to create a wire farm of electricity can be a fire hazard. Blown circuit breakers are one sign that you’re overloading the capacity of your home. Don’t wait for the sparks. If you are using lights outside, make sure that they are approved for outdoor, all-weather use for your Bloomfield Hills real estate.
• Season of Light, Not of Fire: Never leave candles burning unattended or where pets or children can knock them over. Period. Flames are lovely only when contained to fireplaces and candlestick holders.
• Balance in All Things: As you decorate your Bloomfield Hills real estate with wreathes, ornaments, and nativity scenes or menorahs and dreidels, consider where and how you are piling them. Too many items perched on tabletops and mantles and dangled from wafer-thin supports may become unstable. If you have to add the word “probably” before “it’s secure,” re-do your approach.
• Poison Control: Poinsettias, for instance, can be lethal for pets. Mistletoe is good for stealing kisses under but poisonous if eaten. Think about who and what has access to and interest in any new plants, foods, toys, or decorations you’re putting out for the season. Spot, Kitty and the kiddies may think new items look appetizing, from tinsel to food-shaped ornaments. 
• Respect the Power of Tools: If you only take your chain saw out once a year to cut the bottom off the tree, take a moment to review the manual and find your safety goggles. Hint: the electric knife for the turkey should not be plugged in and left out.

The holiday season can be the harried and hurried season too. Be sure to take the time to make sure everyone survives the holidays in health and happiness.

If you’re thinking of starting the New Year in a new home and you’re interested in looking at Bloomfield Hills real estate or other communities in Oakland County, call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com to start the ball rolling.

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

During the holidays, Bloomfield Hills real estate homeowners may find it hard to insure their home is put together for impromptu parties and visiting family. With all the extra decorations and presents that appear, there never seems to be enough room to keep your house organized and uncluttered. This year, you might consider asking the big man in red for the gift of orderliness.

Instead of asking Santa for the usual new clothing, sports gear or electronics, maybe you should ask him to splurge on even one of the space-expanding strategies below. It might take a little bit of an investment, but you’ll add value to your Bloomfield Hills real estate. Your home’s interior rooms will appear larger and it will be bought up quickly when the time comes to sell.

• Build a front porch. Extending your entrance out under eaves will improve curb appeal, add charm and create more of an entry space to place coats, boots and umbrellas — which means they’re not lying around your kitchen.
• Order a counter-depth fridge. By purchasing a fridge that aligns with your counters, you’ll keep your kitchen looking sleek and avoid running a hip into an appliance that juts out into the walkway.
• Repurpose an extra too-small bedroom. If there’s a tiny bedroom next to the master, then you might want to consider repurposing it as a walk-in closet or en-suite bathroom. Not only will you have the luxury of more storage, but you’ll also add (especially with another bathroom) value.
• Take advantage of the attic. Open up a one-story house’s kitchen or give the master bedroom a vaulted ceiling by lifting the existing one into the attic. You can put in recessed lighting, add a top row of cabinets or install a skylight to let in extra light.

You don’t need to ask Santa to bring you an entirely new house, just see if he’ll splurge this holiday season on luxury space expanders that open up and add value to your property.

If you’re looking for more ways to invest in your Bloomfield Hills real estate or would like to move to a larger home, please call me 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

Within the walls of your house, you’ve probably raised a family, made future plans and created years of memories. Take time this month to be thankful for everything your Bloomfield Hills real estate has given you by giving it some green TLC this Thanksgiving.

With Christmas right around the corner, I know it’s hard to justify spending a lot of money on your Bloomfield Hills real estate. Below are a few easy and affordable green projects for you to do this Thanksgiving holiday — and they’ll start paying off immediately!

• Buy compact florescent light bulbs. You don’t have to do this all at once. As your light bulbs burn out, purchase these energy savers for around $3 a piece. They last about ten times longer than incandescent light bulbs and can save you close to $40 over their lifetime.
• Use faucet aerators. These only cost about $10 and are incredibly easy to install. Just unscrew your faucet nozzle or showerhead and slip the aerator in. It can cut your water bill in half by making the water squeeze through tiny holes, which makes it feel like there is more pressure. You’ll also reduce heating bills because the less hot water you use, the less you’ll have to heat.
• Put in ceiling fans. If you don’t have these in your house, then you’re missing out on a huge energy-saver. Starting around $50, ceiling fans push hot air down and help regulate each room’s temperature — just switch the blade rotation for summer.
• Replace your old toilet. Older toilets can dispense almost 3.5 gallons per flush, while modern low-flow toilets dispense as little as 1 gallon. If you’re in for more of a handyman challenge, you can purchase these for as low as $150. The more people you have in your house, the more savings you’ll see.

Not only will your Bloomfield Hills real estate and finances thank you for the green upgrades, but the environment will too.

If you’d like more green ideas you can implement this Thanksgiving break, 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
info@NorthWoodwardHomes.com
 www.NorthWoodwardHomes.com

At this time of year, as thoughts turn to gobbling down turkey dinners and watching football, it’s easy to get caught up in the details and lose the spirit.  So today, I want to take a minute to say something important:

Thank you!
Because of you, I have a job I love: being a Bloomfield Hills real estate agent. 

Thanksgiving is a holiday of gratitude, and yet too few of us remember that when we’re stuck in traffic going over the river and through the woods to grandma’s house for her famous pumpkin pie. 

So today, I’d like to say again, thank you.  

Thank you for contributing to this community, online and in the real world, by asking questions, adding your insights, and trusting me with your housing dreams.   

If we’ve worked together in the past, please know that I am sincerely grateful for your business. I hope the experience of working together led you to your perfect home and fulfilled your real estate goals.

If you are new to this site and just beginning to investigate the sometimes confusing world of real estate, I’d like to thank you for stopping by.  I hope that we will have an opportunity to work together.
 
One of my favorite things about working as a Bloomfield Hills real estate agent is that I learn so much about the lives of my clients. They let me inside their homes and tell me about their best imaginings for the future. Thank you for allowing me to be a part of your life.

Thank you for your trust.  I want you to know I am honored by it, and take it seriously. As a Bloomfield Hills real estate agent, I take pride in helping you find the perfect solution for your needs. I love hearing your stories as you embark on new chapters, and addresses, in your life.  

During the warmth of this holiday season, I hope you and yours are safe and secure in a community that you love. And I hope your turkey emerges from the oven golden brown and delicious!

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

As a buyer, finding the right Bloomfield Hills real estate and deciding to place an offer can be overwhelming enough without the stress of discovering you’ve entered into a multiple-offer situation.  Yes, even in this buyer’s market, you can find yourself competing against other buyers.

Purchasing a house is emotional, and when it comes to having to negotiate for your dream house, you need to keep a level head and understand your options. Be prepared for the following scenarios:

• Seller can just accept the best offer. If it’s a property that you absolutely can’t let slip away, you might want to give the seller exactly what they’re asking for. There is a chance you could get a deal with a low bid, but you need to talk with your Bloomfield Hills real estate agent and decide if it’s worth taking the risk. You could also end up paying more than the buyer would have accepted, but at least you’ll have the house.
• Seller can let all parties know that there are multiple offers. In this case, you know there is competition. That means there’s a chance, even if you do give them their asking price, that you might not be the only potential buyer putting in a full price offer on the home.  
• Seller can counter one offer and wait for a response, but not dismiss others. If you’re the offer that’s being countered and you know other parties have placed bids, it’s likely you’re the highest proposal. You’ll want to negotiate with the seller and hopefully meet somewhere in the middle.
• Seller can counter one offer and reject all others. All you can do is hope that you’re the best offer!

There are advantages and disadvantages to all of these scenarios, but make sure you take each into consideration before submitting a proposal or counter-offer. Also, talk to your agent and ask how multiple-offer negotiations are handled by the agency that has the house listed for sale.

When bidding on Bloomfield Hills real estate with multiple offers, you’ll have to move quickly. Have a plan and be prepared for any and all situations.

If you’d like to speak with an agent who is a skilled negotiator, including multiple-offer negotiation, 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
info@NorthWoodwardHomes.com
 www.NorthWoodwardHomes.com

Sellers are quick to blame their Bloomfield Hills real estate agents if their homes are slow to sell, but that can be an unfair assumption.  Here are four reasons for a slow sale that have nothing to do with your Bloomfield Hills real estate agent:

Reason #1:  Your neighborhood has seen better days.
There are many signs that a neighborhood is in decline. Examine yours to determine if this could be one of the reasons why your home isn’t selling. Here are a few signs to look out for: local businesses going out of business, schools deteriorating, major traffic jams or a multitude of foreclosures or short sales. What can you do to get your home sold if your neighborhood is in decline? Work with your Bloomfield Hills real estate agent to set the price of your home based on the neighborhood’s current market value.

Reason #2:  Your home is located in an area of high unemployment.
When businesses close or down-size, it impacts more than those who have lost their jobs; it effects the value of homes in the area as well.  It also makes it difficult to attract buyers to the area because most people want to live where there are more employment opportunities.

Reason #3:  You have an unrealistic idea of what your home is worth.
Regardless of what you might think, a Bloomfield Hills real estate agent is not going to price your home at bottom dollar just to get a sale.  This type of strategy doesn’t help anyone including your agent.   Do your homework on what comparable homes in your neighborhood are selling for, and listen to your agent’s pricing advice – you’re paying for his or her expertise!

Reason #4:  We are in a recession and banks are less willing to lend.
Banks have much tighter lending requirements and people have less money to spend.  That means buyers must have higher credit scores and larger down payments to qualify for a home loan.

The fact is that in the current market homes take longer to sell.  So, before you decide to replace your agent, be fair in assessing their job performance. And, don’t blame your Bloomfield Hills real estate agent for the slow market.

Thinking of selling your Bloomfield Hills home? I’d be happy to do a free comparative analysis of the current value of your home. Give me a call today at 248-514-2640 or send me an email 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

Investing in real estate is not a get rich quick scheme by any means.  Late night infomercials claim to show you how to retire in months after trying their methods for investing in real estate. Unfortunately, the only one getting rich is them.

But, you can build for your future by investing in the right Bloomfield Hills real estate and in the right way. Here are five tips to give you some guidance on how to buy that second, third or even fourth piece of real estate as an investment:

1. Shop smart. Look for homes or land in desirable neighborhoods or in up-and-coming neighborhoods.
2. Keep your property. You should not buy Bloomfield Hills real estate for the purpose of flipping it.  That was a short-lived fad that ended up costing many people thousands of dollars and more.  Instead, buy real estate with the intent of holding on to it.
3. Buy rental property. Rental property can be a great way to add to your income and give you the means to do things you might not have been able to do on your current income.  It is also a great way to set your children up for the future by giving them their first home. You don’t want to be a slumlord so be prepared to invest some time and money into the upkeep of your Bloomfield Hills real estate.
4. Exchange properties without paying capital gains. You don’t have to fear the tax man if you decide you want to get rid of one property for another.   By using a 1031 exchange, you can sell one property and buy another without paying taxes on the first one. This is not something you want to do as a “For Sale By Owner;” you need to use a real estate professional who is skilled in the 1031 exchange.
5. Enjoy your free time. You don’t have to give up all your free time to manage your investment property. There are professional property management companies that can handle some or all of the day-to-day tasks for you. There is a fee for their services but it is often well worth the cost.

For more information on buying investment properties or 1031 exchanges, contact me at 248-514-2640 or by email 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

You know that you can lend money to your child to help him or her buy Bloomfield Hills real estate.  But you’d like to explore some of the other financial arrangements to determine which option is the most advantageous for you and your child.

Here are four additional ways to help your child buy Bloomfield Hills real estate:

1. Give the down payment as a gift.

Before deciding whether to make the money a gift, consider what moral message you may be sending.  You don’t want your child to develop a sense of entitlement and take for granted that he or she can come to you any time they need money.

If you decide you do want to give part or all of the down payment as a gift, consult with your financial adviser to determine the amount you can give away without incurring tax liabilities.

2. Co-sign the bank loan.

This could be all the help your child needs to get a mortgage. It might make sense if he or she is close to graduating college and already has a job lined up or has a solid but irregular income that would disqualify her or him from getting loan approval.

However, there are big risks associated with co-signing a loan. You’re responsible if your child fails to keep up payments, which means the bank will come after you for the money. If your child is late with a payment, it impacts your credit score. If you want to get another loan for a home or some other big expenditure, you may find the co-signed loan uses up your borrowing ability.

Before co-signing a loan, get legal and financial advice.  Also, if your child is married, be sure to have his or her spouse sign the loan and any other written documents that provide the terms of your agreement.

3.   Set up a shared-equity arrangement.

In this arrangement, everything is open to negotiation.  Typically, a written contract spells out that the child (as the homeowner) is responsible for mortgage payments and gets the tax deduction that comes with it, and you (as the investor) are responsible for providing the down payment.

Some of the conditions you’ll want to agree on before finalizing the agreement are who pays the property taxes, whether or not your name will be on the loan and when the investment will be paid back through either selling or refinancing the Bloomfield Hills real estate.

Because of the flexibility inherent in this type of arrangement, it’s crucial to involve your lawyer and have a document drawn up that spells out everything in detail.

Set up a lease-to-own agreement.

Basically, you buy an investment property and rent it to your child.  You can set the terms of the agreement, but here’s how lease-to-own arrangements typically work:

The renter is buying the right to purchase the house later for a given price.  There’s often a large upfront option fee of 1% to 3% of the home’s purchase price.  Or, the option fee can be added to the monthly rent. Usually, some or all of the option fee is credited as a down payment on the purchase of the house.

During the rental period, you still own the home and are legally responsible for it, but your child maintains the property as his or her own. Be sure to have a legally-reviewed contract signed by all parties involved.

If you’re interested in purchasing Bloomfield Hills real estate in Oakland County, Michigan for your adult child or as an investment, 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

You’ve reviewed your finances and have decided you can afford to and want to help your child buy Bloomfield Hills real estate.  Is lending the money to your offspring your best option?  Here are some questions to consider when making this decision.

1.  Will you need the money later?

If there’s a chance that you might need the money to live on at some point, lending the money to your child is a better option than giving it to them.  You can always forgive part of the loan later on, if you find you don’t need the money to live on.

2. How much should you lend?

Depending on your financial situation, you can lend part or all of the down payment or part or all of the purchase price of the Bloomfield Hills real estate.

If you have enough money to lend the entire mortgage amount, consult with your financial planner to determine if this is the best option for you. Lending the entire amount often offers you more income than you’d get from a bank and gives your child an even lower interest rate than he or she would get with a traditional mortgage.  It also allows your child to deduct the mortgage interest because the loan is secured by the property.

3. Who will receive the mortgage payments?

Decide if you want to receive the monthly mortgage payments or if you’d prefer to have a third party service the mortgage.  If you want to know more about employing a third party to draw up the mortgage contract and accept the monthly payments, look into companies that handle intra-family loans.

4. How much interest should you charge?

As part of the loan agreement, you’ll want to charge an interest rate equal to the IRS-approved Applicable Federal Rates (AFRs). The AFR is the lowest interest rate you can charge without causing any unwanted tax complications.  Work with your financial and legal experts to ensure the loan agreement is in the best interest of both you and your child.

Let me help you find the Bloomfield Hills real estate that meets the needs of you and your child and get it at a great price.  Call me 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