Lee Morof's Real Estate Blog

Advice for home sellers is everywhere!  Turn on the TV, radio, or computer and you’re practically bombarded with ideas on how to prepare your Bloomfield Hills real estate to get it sold.

Curb Appeal: It’s Elementary, My Dear Watson

Sometimes the simplest solution is right under your nose.  Sure, renovations, additions, upgrades and updates are great—and should not be overlooked. But common sense says buyers make their first judgment of homes for sale based on the homes’ exterior.

Increasingly Discerning Buyers in Today’s Bloomfield Hills Real Estate Market

Today’s real estate market is challenging for sellers, all the more reason why every little detail matters. Buyers know they are in a strong buyer’s market and literally won’t put up with any rubbish, when window shopping for homes.

Before a potential buyer even considers stepping a foot inside your home, they want to see curb appeal — and not just any curb appeal, mind you. The discerning home buyer of today wants everything “just so.”

Here’s what buyers are looking for:

• Precision lawn care:  That means weekly mowing and edging in the warm months and snow or ice removal in the cold months.  The perfect lawn features mowing done in precise straight lines resulting in a very symmetrical, uniform look.  Don’t forget to trim around the driveway, stones, garden, trees, and especially the sidewalk.
• No junk lying around: Pack rats, you know who you are!  Put things in storage.  Don’t have an RV blocking your driveway or bikes and toys strewn everywhere.
• Beautify: Pick up leaves, weeds, branches and other debris.  Plant beautiful flowers.  You can even buy pre-bloomed flowers and replant.
• Splash o’ Color: Paint the house, garage, doors and shutters in neutral, updated colors.
• Fix and Re-Finish: Wooden decks and porch railings should be in tip-top shape.

Shoot for Showroom Shine

Just imagine that you are trying to win a contest for best looking home in the area. Think model-home quality.

You’ve got a Friend!

To help you get the most out of your precious Bloomfield Hills real estate, I’m here for you.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

For Bloomfield Hills real estate owners getting ready to put their homes on the market, here are a few stunningly-easy tips to help get your home sold faster and maybe even for more money.

Keep in mind that your prospective Bloomfield Hills real estate buyers will most likely be viewing several homes on the same day as your showing. The emotional elements you include will have a profound impact on their memory, and will make your home standout when they review what they’ve seen with their agents at day’s end.

Preparing your home for the perfect showing is essential and comprises three basic elements that will make your home sparkle.

Atmosphere

• Soft classical music
• Simmering potpourri  
• Bake an apple pie in the oven.  Or, if you have a bread machine, bake bread.
• Well-lit rooms and inviting indirect lighting
• Air conditioning or heating set at a comfortable temperature

Decorations

• Garden-fresh bouquet of flowers near the entrance or on the kitchen table
• Fresh neutral-colored paint and cleaned or new carpet
• Remove family photos or personal items (allows buyer to imagine it is their home)

Cleanliness

• Meticulously spotless kitchen and bath
• Walls washed and spackled as needed
• No clutter whatsoever (uncluttered rooms look larger)
• No pets – kennel them if needed (buyer may be allergic)
• Clean closets (yes, people peek in your closets)

Remember it’s the little things in life that matter, and the same is absolutely true when it comes to a buyer looking for a place to call home-sweet-home.

For more ideas on how to sell your Bloomfield Hills real estate fast and make the most from the sale of your home, call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

On June 16, the Senate approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives.  If the plan passes, it means you’ll have until September 30, 2010, to close on your Bloomfield Hills real estate and qualify for tax credits of up to $8,000.  (First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.)

Who Qualifies?

Originally, you had to sign a contract to purchase a home by April 30, 2010, and close no later than June 30, 2010.  With this extension, anyone who had a signed purchase agreement by April 30 would have until September 30 to close on the sale of that home.

Why the Extension?

Mortgage lenders have been swamped with borrowers trying to get their Bloomfield Hills real estate home purchases approved by June 30.  Many potential borrowers are having difficulty meeting that deadline. 

The National Association of REALTORS® (NAR) estimates that 180,000 buyers are likely to miss the June 30 deadline “because of delays in the process.” That’s particularly true of short sales, the NAR noted.

Is it Approved?

Unfortunately, an extension of the deadline for the federal homebuyer tax credit remains tied to Senate legislation that would extend unemployment benefits, complicating efforts to get the deadline extended before the expiration date of June 30. 

But don’t give up hope.  If lawmakers extend the deadline after June 30, the language in both the House and Senate bills will apply retroactively.

Have questions about the federal tax credits?  Or any other questions about Bloomfield Hills real estate?  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I’ll respond promptly and personally.

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

The debate is as old as the real estate industry.  Does a low, highly competitive selling price for Bloomfield Hills real estate actually generate a faster, more profitable sale than a slightly inflated price with a willingness to negotiate?  Yes, it is an age-old debate.  Yes, it has never been more important that sellers make informed decisions about their asking price and negotiating strategy. 

A seller with an unreasonable opinion of their home’s value is either a wishful thinker or does not have the benefit of an accurate comparative market analysis and a real estate agent who specializes in the area.

Get Real, Know the Facts

When sellers decide to list their home in the Bloomfield Hills real estate market, they usually have an opinion of value based on reported sales of similar properties.  Consciously or subconsciously, most homeowners follow the real estate activity of surrounding homes.

However, every real estate transaction stands independently.  In today’s market, buyers and sellers negotiate to capitalize on tax incentives, green-initiative improvements, closing fees, homeowner credits and local incentives.  Thus, the “neighborhood selling price” may not represent the price you can actually get for your home.

Real estate agents use differing strategies to secure listings and set sales prices.  Therefore, a seller who requests proposals from three different Bloomfield Hills real estate agents may well get three different opinions of value:

1. One agent may want the listing at any price and be willing to accept an owner’s requirement for a high asking price just to land the listing.
 
2. Another agent may be conservative and encourage a low asking price in the hopes of generating superior demand.  This strategy was effective in the boom years of 2006 and 2007.

3. A third agent may combine his knowledge about the property, the neighborhood and today’s real estate market to come up with the optimal listing price.

The Optimal Listing Price

Responsible Bloomfield Hills real estate agents view the property from three postures. 

1. First we inspect the property, top to bottom.  We understand its history, the neighborhood, its strengths and its weaknesses. 

2. Next, we do our research.  We compile a complete, relevant list of recent sales, a thorough list of properties on the market and a comparable list of recently concluded Bloomfield Hills real estate transactions.

3. We balance this information against the cost of new construction.  We factor in what improvements might be necessary to stage the home more effectively.  And, we use this quantitative analysis, called a comparative market analysis, to recommend a strong selling price designed to garner demand.

This is not a whimsical exercise.  This is about establishing the maximum selling price your Bloomfield Hills real estate should achieve.

To further discuss how you can realize the greatest real estate value for your home, contact me today at 248-514-2640 or by email at info@NorthWoodwardHomes.com.

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

Technology has improved our lives over the last ten years, but it’s also caused some problems along the way for Bloomfield Hills real estate buyers.

As a buyer, you naturally want to take advantage of every tool and service available to make it easier to find the home of your dreams. However, the Internet, which is one of the most common places for people to shop for Bloomfield Hills real estate nowadays, has also become a place where the unscrupulous hang out.  You can’t believe everything you read online, even when it comes to shopping for homes online. 

If you’re trying to find a home, here are two things you need to be aware of:

Home Valuation Sites
Many potential buyers find an interesting home and then research the home value. This is commendable and just plain good sense. You want to make sure you’re not overpaying. Thanks to the Internet, we have sites like Zillow and Realtor.com that provide home valuations.

The problem is that these sites hardly ever agree on the home value. They can differ as much as 20% or more. While home valuation sites are an excellent place to get a ballpark estimate, you shouldn’t base your buying price on their information alone. Hire a reputable Bloomfield Hills real estate agent who knows the surrounding area and recent sale prices.

Dream Home or Nightmare
One of the best things to happen for real estate agents and sellers alike is the ability to post digital photos and walk-through videos of the homes they’re selling. This is also great for you, as the buyer, because you can view the homes without going anywhere.

Unfortunately, many buyers take those images and videos at face value. Thanks to some high-tech graphics programs, however, you can’t guarantee that what you see is what you get. Videos and images can both be manipulated to show you the best face of any piece of property.

Any time you see a home online that you’re interested in, it’s a good idea to check Google Maps and use the Street View  option. At the very least, you can usually see the front and sides of the home. If you’re still interested, visit the home in person, or, if that’s not possible for some reason, ask your Bloomfield Hills real estate agent to visit the home and take pictures for you.

If you’re trying to find your dream 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

Good credit is more important than ever, if you want to get a Bloomfield Hills real estate loan.   Knowing what’s on your credit report and how lenders view various aspects of your report is crucial.

First Things First
Get a copy of your credit report from all three of the credit reporting companies: Equifax, Experian, and TransUnion. You are entitled to one free report every year from each of the three credit reporting companies.  Whether you’re considering getting a loan or not, you should always take advantage of that opportunity to make sure your credit reports are accurate.

Range
FICO® scores range from 365 to 840. While the standards for what lenders consider a “good” FICO® score changes constantly and varies by lender, here’s a general breakdown of today’s standards:

• Over 750 is excellent and should get you the best terms and rates.
• Under 600 might get you a Bloomfield Hills real estate loan, but you’ll want to shop for the lender who’ll give you the best rates and terms.
• Under 500, you need to brace yourself for waiting until you get your credit in better condition.

What Determines Your Score
There are many things that can affect your score.  Magically (or not), each of the three companies tend to view things just a little differently, which means your score will not be the exact same for all three. That’s why it’s so important to get copies of your report from all of them. However, the two main things that all companies consider in rating your credit score are delinquencies and debt-to-income ratio.

What You Can Do To Immediately Improve Your Score:

• Check the entries: Make sure any debts or delinquencies listed are true. Report any errors.
• Pay off debts: But do not close accounts. Having available credit is good as long as it doesn’t look like you’re over-extended by having your credit maxed out. The lender may worry that you’re living off your credit and can’t afford your bills.

If you would like more tips on how to improve your chances of getting a Bloomfield Hills real estate loan, I can help. Call me today 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

If the Bloomfield Hills real estate you are looking to buy is going to be your primary residence, you probably know the features that are important to you.  However, in today’s economic environment, the resale, or investment value, of Bloomfield Hills real estate is as important as the practical value of the number of bedrooms or bathrooms and the size of the kitchen.

In the past, a home buyer rarely worried about the resale value of a property because homes were always considered good financial investments. With today’s fluctuating home prices, property values are as important for home buyers to understand as they are for real estate investors to understand.

Location and Property Values

Before the housing and mortgage crisis, even if the home that suited you was not in a prime location, it would likely increase in value over time.  Now, you want to be sure you research a potential home before purchasing it to be sure:

1. The home is in a great Bloomfield Hills neighborhood.
2. It’s at the lower end of the market value for that neighborhood.
3. If you buy a home in a neighborhood that is already considered a lower value area, it’s possible that those prices will not recover as quickly as better areas.   Or worse, home values could decline more leaving you with a home worth less than what you paid for it.

Now more than ever, it’s important to work with a real estate agent who specializes in the neighborhood where you’d like to live.  As a specialist in Bloomfield Hills real estate, I can give you the insider’s scoop on that neighborhood.  Contact 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

April has a lot of important and semi-important dates in it. The tax deadline, Good Friday and Easter are just a few. What is April 5th, though, and what does it have to do with Bloomfield Hills real estate buyers? Well, the biggest news is that the government has stepped into real estate and short sales.

Home sales are down nation-wide, despite the Obama administration’s efforts with the first-time buyer’s tax credit. Many homebuyers are waiting for a better interest rate or to see if home prices will drop more. Meanwhile, owners of Bloomfield Hills real estate are preparing for the spring selling season, without any idea whether they’ll actually be able to sell or not.

Part of the reason for this situation is because of the depreciated housing values. For instance, many potential buyers want to take advantage of the repeat buyer’s tax credit, but can’t. They currently own a home that’s facing foreclosure, are trying to sell that home, but can’t because it’s underwater. This puts a wrench in the whole market.

The government’s solution is short sale. There’s always been the option for those facing foreclosure to opt for short sale, but (thanks, in part, to the many scams out there) few choose this option. The Obama administration has decided that, if they can’t help with foreclosure, they’ll pay people to accept short sale.

Starting April 5, 2010, the government is encouraging delinquent borrowers who can’t be helped through loan modification programs to go through a streamlined short sale process. Many potential short sellers have gotten offers the lenders won’t agree to, which this program called HAFA (Home Affordable Foreclosure Alternatives), is geared towards fixing. Here’s how:

• The servicing bank that allows the short sale gets $1,000.
• The homeowner gets $1,000 to go towards a second loan.
• The homeowner gets $1,500 in relocation assistance.

Even with this program, lenders are wary of short sales. Depending on the price of the short sale, there’s a possibility that lenders could lose a large amount of money. However, under the new program, real estate agents will be working with the lender to determine the value of the home and what the minimum price should be. If the short sale offer meets or exceeds that minimum, the lender has to accept it.

The hope is that this program will slow the tide of foreclosures, free homeowners up to become repeat buyers, sell more homes and, ultimately, improve the flow of the real estate market. The good news about all this is if the program does even a quarter of what the administration plans, there may not be enough Bloomfield Hills real estate to go around!

Have questions about the new HAFA program or any other real estate incentive programs?  I’m happy to answer your questions.  Give me a call 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 already know that the quality of your buyer’s agent can make or break a deal.  To find a quality Bloomfield Hills real estate agent (or other Southeast Michigan communities in Oakland County), you know that you need to interview several agents and consider their years of experience and levels of service. 

There’s one thing you might not have thought to take into account when hiring a buyer’s agent:  the communities in which they specialize.  Here are six benefits of hiring a neighborhood specialist:

1. Get insider’s knowledge of the Bloomfield Hills real estate market:  Your neighborhood specialist knows the history of neighborhood homes including who owned them and when.  He knows which streets are considered the most desirable and why.  He’s up to date on neighborhood nuisances and their influence on home values.  He’s aware of pending legislation and neighborhood regulations.

2. Work with locals who know their businesses:  A neighborhood agent develops a professional network of local contacts who will be very useful to you when buying a home.  A neighborhood real estate agent personally knows the local home inspector, mortgage broker, title company and contractor and will introduce you to them.

3. Receive personal recommendations:  In addition to understanding the local real estate market inside and out, a real estate agent who specializes in a particular area knows the businesses in the neighborhood.  He can recommend the best dry cleaner, dog walker and doctor from his own personal experience.  He can also tell you which businesses to avoid. 

4. Save time:  When you tell the neighborhood specialist the type of home you want to buy, she knows where to find that home.  She knows about new homes that are not yet on the market but are coming soon.  She knows which properties you should stay away from and which you should snap up quickly, if you like them.  In other words, she saves you precious time you’d otherwise spend trying to find that elusive, perfect piece of Troy Michigan real estate. 

5. Discover the real scoop:  Want to know what’s really going on in a community?  Ask the real estate agent who specializes in that community.  She can tell you what’s really going on.  She knows the quality of the schools, the condition of the roads and the amount of crime in the neighborhood.

6. Save money:  The neighborhood specialist knows what makes some homes on a particular street worth more (or less) than others.  He knows the supply and demand of the houses in that area. He knows how long the property has been on the market, and if it was previously on the market.   Bottom-line, he knows what you should pay for a neighborhood home and the terms you should ask for.

If you’re looking for an agent who specializes in Bloomfield Hills real estate, 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

Even though it may sometimes seem like it, home building and design trends are not conjured up using a crystal ball.  They are the result of surveys, observations, lifestyles, socioeconomic issues, entertainment, technology, and most importantly, the needs and desires of national and Bloomfield Hills real estate buyers.

Here are some of the home building trends to expect in 2010.

Green is growing. 
A study conducted by Burst Media in late December, 2009, found that 90 percent of Web users surveyed have incorporated some aspect of going green into their lives, and overall, they are willing to pay a premium for environmentally friendly products. 

Homes are getting smaller.
For 2010, home builders say they will focus on lower-priced and smaller homes. More than 95 percent of home builders surveyed by the National Association of Home Builders (NAHB) in January said that was the way they saw their businesses evolving.

Single-story homes are in.
Because of the rise in homebuyers looking at Bloomfield Hills real estate who are 55 years of age and older, more single-story homes are being purchased.  According to NAHB, barely over half of new homes today are built with two stories or more. Two-story homes peaked at about 55 percent of the market in 2006.

Lower cost, more practical homes are being purchased.
In an attempt to respond to consumer demands for practicality, as well as hold the line on prices, home builders surveyed by NAHB are most likely to include these features as standard in their houses this year:

• Walk-in closets in the master bedroom
• Laundry rooms
• Insulated front doors
• Great rooms
• Energy-efficient windows  
• Linen closets
• Programmable thermostats
• Energy-efficient appliances and lighting
• Separate shower and tub in master bathrooms
• Nine-foot ceilings on the first floor

Here are the features builders said they are least likely to add to houses in 2010.  You’ll notice a lot of the items being eliminated are luxury features, as builders try to lower costs.  

• Outdoor kitchens
• Outdoor fireplaces
• Sunrooms
• Butler’s pantries
• Media rooms
• Desks in kitchens
• Two-story foyers
• Multiple shower heads in the master bath
• Smaller kitchens

Thinking about buying one of the new homes in 2010?  If you’re ready to look at Bloomfield Hills real estate in Southeast Michigan, call me at 248-514-2640 or email info@NorthWoodwardHomes.com today.

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