Lee Morof's Real Estate Blog

When home values started dropping in 2007, a lot of homeowners panicked and immediately began putting their houses on the national and Bloomfield Hills real estate markets. The supply of homes for sale rose to a staggering amount and prices dropped lower, fueling more homeowners to “get out while they still could.”  However, as 2009 rolled to a close, a new trend that may mean a calming of the panicked markets began.

Meet the Nesters
During the real estate boom, house flippers popped up from everywhere. In fact, flipping houses became such a big industry that cable channel A&E began producing “Flip This House” for those who wanted to try it themselves. Houses had become financial investments, a way to build equity or even immediate cash. However, as prices dropped for national and Bloomfield Hills real estate, investors found their investments failing.

So, if you can’t build equity, you can’t invest and you can’t flip homes, what good are they? Ask the “nesters,” who’ve decided that a home is something to hold on to and a good investment anyway.

2009 showed a 20% increase in the first three quarters for home construction according to NAHB (National Association of Home Builders),  and another 8.7% increase in the last quarter of the year. The amount spent on remodeling in 2009 hit $114 billion by October. What are these nesters doing?

While some paying for remodeling are trying to raise the quality of their home to sell it, most are fixing it up to live in. Most people move to get more space, but these nesters would rather expand the place they live in than buy a new home. As well, many contractors believe the number of home improvement bids have gone up thanks to the $1,500 energy tax credit for raising the energy efficiency of a home.

Whatever the reason, the rise in nesters may mean an evening out of the housing supply. Although the national and Bloomfield Hills real estate markets may not stabilize immediately, a drop in the number of homes hitting those markets could make all the difference in a housing recovery.

If you’re looking for a beautifully remodeled 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

Have you heard of the first-time homebuyer’s tax credit extension? Last month, President Obama signed the extension to help first-time homebuyers (who didn’t get their sales in by November 30th) buy a house that meets their needs. What about those who already own Bloomfield Hills real estate, are doing well and want a larger home?

To those who already own a home, Merry Christmas! The Workers, Homeownership and Business Assistance Act of 2009 didn’t just come with an extension; it came with improvements. Those in governmental positions of authority reasoned that if someone wanted to get a bigger home, they should get some kind of help too, thus further helping the overall real estate market.

If you own a home, you can now receive up to $6,500 in tax credits for buying Bloomfield Hills real estate for sale, either a single-family home or condo. The actual wording is “$6,500 or 10%.” Here are a few of the important points you need to know:

• Income Qualifications – Your modified adjusted gross income (MAGI) as a single taxpayer must be less than $125,000 ($225,000 if you file jointly). Partial credit may be received by those with a MAGI of less than $145,000 (single) and $245,000 (jointly).

• Home Ownership Qualifications – You must have lived in the home you own for five consecutive years out of the past eight to qualify. You do not, however, have to currently own the home you’re using to qualify. The key terms are “five consecutive years” and “in the past eight years.” If you lived in your home for five years straight, but sold it two years ago, you are still eligible for the tax credit. If you’re filing jointly with a spouse, both you and the spouse have to qualify.

• Cost Qualifications – The cost of the home doesn’t have to be more than the home you already own, but it does have to cost less than $800,000. As a side note, the government has put a definitive cap on the housing costs. If the home you’re looking at is a solid, non-negotiable $801,000, it isn’t eligible for the credit.

• Purchase Date – The final date for the purchases to be secured is April 30, 2010. The actual closing date must be finalized before June 30, 2010.

Most couples move into a home thinking they will “eventually” get a bigger home once they have a family. Then the family comes along, the house is full and they can’t buy a larger home due to financial issues. The tax credit is a perfect opportunity for families to find Bloomfield Hills real estate that will fit their expansion needs. Take a chance and look around; your dream home may be only a city block and $6,500 away!

If you’re looking to expand and take advantage of the tax credit, 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

More festive candles are used in your home during the holidays than at any other time of year, so it’s important to review the safety rules.  Here are few tips to keep your Bloomfield Hills real estate safe:

Candle Placement Preparation
It may sound silly, but you need to prepare before you light that candle.  First figure out where you want to place the candle in your home. 

• Find a heat resistant surface.
• Make sure there aren’t any books, papers, curtains, or bedding nearby. 
• Watch out for flammable holiday decorations. 
• Keep the candle away from windows and vents, and check for signs of a draft. 
• Place the candle where children and pets can’t reach and where it isn’t likely to be bumped into.

Getting Ready to Light the Candle

• Before burning the candle, review the manufacturer’s instructions.  Most recommend that the wick be trimmed to 1/4 inch before lighting.
• Make sure to use only approved candle holders.  Using an unapproved glass holder could cause it to burst and send glass everywhere. 
• Place candles at least three inches apart so the additional heat doesn’t cause them to melt improperly.

Burning the Candle

• Now that the candle is lit, make sure to never leave it unattended.
• Watch the candle to see if it smokes or flickers a lot.  This could be a sign that the candle isn’t burning properly. 
• Leave about two inches of wax when you extinguish the candle.  Most manufacturers recommend that you don’t burn the candle all the way down. 

Putting the Candle Out Safely
The safest way to put out a candle is with a candle snuffer.  Don’t use your fingers or blow out the candle; the flame may travel and cause a fire.

• Never use water to put out a candle; the wax may splatter and burn you. 
• Wait until the wax is cooled before you move the candle.

Homeowners of Bloomfield Hills real estate find candles are a beautiful way to decorate for the holidays.  By following these simple safety suggestions, you can help to ensure that your holidays are happy and safe. 

If you’re interested in looking at Bloomfield Hills real estate and want to be in a new home or condo before the next holiday rolls around, 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

Yesterday, I was driving through the city, wondering if a potential buyer was going to show up to look at some Bloomfield Hills real estate I’m showing. I’d had a bad day; the car didn’t want to start, what I’d planned to wear was dirty, I’d run out of milk and so on, and so on. Needless to say, I wasn’t in the best of moods.

As I stopped at a light, grouching because the light would make me late, I happened to look over and see a woman with her daughter. The little girl had holes in her coat, a ragged hat, torn up shoes and a teddy bear missing an eye that she clutched as she smiled up at her worried mother – who had a “Please help” sign in her hands. As I drove on to show the Bloomfield Hills real estate, and further throughout the day, that little girl’s smile stuck with me.

Last night, I came across a news broadcast about a family of five living in a one-room apartment after losing their house and I remembered that little girl. All of this comes down to one thing…

It’s coming up on Thanksgiving, people are searching turkey recipes, decorations are being pulled out… and the current problems in the world make it hard to find something to be grateful for. However, they’re there if you only look.

If you have a home and you’re trying to sell it, it’s understandable that you might be upset if it’s not moving. As hard as it may be, however, remember that at least you have a home to sell.

If you’re looking for a home to buy and you can’t afford the fancy one you wanted but you can afford a slightly smaller one, remember – at least you can afford something.

If you’re upset that your job isn’t paying enough, you’re working long hours or not enough, remember the millions that no longer have a job.

Whatever your problem that may be weighing you down when Thanksgiving rolls around, remember that it truly could be worse. It is worse, for so many people.

I’ll even start the list: I’m grateful for all of my clients. I’m grateful that I have Bloomfield Hills real estate to show and potential buyers that want to see them. For my readers, my friends, my family and my own home… Happy Thanksgiving, and may you always have something to be grateful for!

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

If you’re looking to buy Bloomfield Hills real estate in Southeast Michigan, you’re probably already looking at mortgage possibilities as well. Since many buyers are also looking for energy efficient options, I thought it only right that I brought EEMs (Energy Efficient Mortgages) and EIMs (Energy Improvement Mortgages) to your attention.

What are EEMs and EIMs?
An EEM adds a home’s energy efficiency into the mortgage, giving you the ability to finance energy efficient measures as part of the mortgage payment. One of the good things about an EEM is that it stretches the debt-to-income qualification ratio, which means that you can qualify for a larger loan and a more energy efficient home.

An EIM is for existing Bloomfield Hills real estate that you plan to make energy efficient improvements to. You can include the cost of the improvements into the mortgage without raising the down payment. In addition, whatever you save in utility costs from the improvements can go to finance more improvements.

Qualifications
If you’re trying to qualify for an EEM or EIM, you’ll need to have a home energy rating conducted first. This is to give you an estimated Energy Savings Value – the value of the measures and the estimated monthly energy savings.

Types of Energy Mortgages
There are several types of energy mortgages available:

• Conventional – sponsored by Fannie Mae and Freddie Mac, these EEMs give the Fannie Mae approved lender the ability to raise your income, matching a dollar for each estimated dollar gained through efficiency.
• FHA – Lenders can add 100% of the cost of improvements to an approved FHA loan, up to $4,000 or 5% of the home value (maximum of $8,000). FHA loan limits won’t stop you from getting the EEM. You can find out more about the FHA EEMs on their website. 
• VA – Veterans Administration EEMs cap energy improvements at $3,000 to $6,000, and are for buying existing Bloomfield Hills real estate. If you’re a qualifying reservist, veteran or military personnel, you can find more information on the U.S. Department of Veteran’s Affairs website.  
• Last but not least, there is the Energy Star mortgage pilot program. Currently, it is only available in a few states, but it’s growing to include others.

If you’re interested in making energy efficient improvements to an existing home or buying a home that’s already energy efficient, I strongly recommend that you look into EEMs and EIMs.

If you’re looking for an energy efficient home or one you can make energy efficient, I can help. Call me at 248-514-2640 or email me now 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

It’s October, which means Halloween is just around the corner. Are you still struggling to come up with great decorating ideas for your Bloomfield Hills real estate? Have no fear; your real estate agent is here to help. Here are a few ideas that will take away your holiday Halloween jitters:

1. Nothing says “Halloween” like twitching fingers, growling werewolves and hovering demon skeletons. Thanks to today’s technology, you can turn your decorations into a hellish wonderland with animated Halloween props. Build a graveyard and have a rocking tombstone or a creeping skeleton to snatch up visitors.

2. Everybody has the standard jack-o-lantern on the front porch. As Halloween nears, they crop up everywhere. This year, try something a little different. There are plenty of pumpkin-carving patterns  available for purchase or for free on the Internet. Grab some bloodcurdling patterns and get to work.

3. Are you throwing a party this year? Add a little fog to your Halloween decorations! Fog machines aren’t near as expensive as they used to be. You can grab one big enough for fantastic, spine-tingling effects for less than $50. Sometimes the extra touches make all the difference, and fog is a great addition

4. Spruce up your doorbell with sinister sound effects and chilling Halloween music. Record-A-Chime™ by Dimango® Carlon® is perfect for just such a thing. Although it’s somewhat expensive at $59.98, you can record whatever sound effect or music you want for any holiday.
 
Each Halloween, people struggle to come up with something different for their Bloomfield Hills real estate home. I hope these ideas help you find your own “something different” and get your creative juices flowing. Have fun, stay safe and happy holidays!

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

Bloomfield Hills real estate is one of the biggest purchases anyone will make, whether male or female. And, while it’s been scientifically proven that men and women have different approaches to life, one would think that purchasing a home is pretty much the same across genders. We each have our own concerns and important issues, but they basically all add up to, “This is what I want in my home.”

Therefore, the results of a recent survey caused quite a bit of surprise. The survey pointed out places where inherent differences were clear, as well as places where there weren’t any differences at all. So, when it comes to a match in the Bloomfield Hills real estate boxing ring, who comes out on top?

Who is fastest at making up their minds on a home to buy?
Believe it or not, women grabbed the top mark at 70%. A full 8% more women made up their minds on whether to buy a house the day they walked into it. Of those that needed another visit or two, 32% were men, versus 23% of the women. Although women have a stereotype of being wishy-washy, this stereotype doesn’t hold true in the real estate market.

How close is the extended family?
If you had a choice between living closer to your extended family or closer to your job, which would you choose? According to the survey, 55% of the women would rather be closer to family, while only 37% of the men would.

What about home security? 
When it came to security concerns, men and women both agree. It may be the home of your dreams, but if it’s not safe, it’s “no thank you.” What was the percentage? Women grabbed 64%, while 51% of the men said the same. Security is something we appear to agree on.

How would you use a spare room? 
If you had an extra 12 x 12 room, how would you use it? With men and women both, we’d rather have a spare bedroom (25%), an office or study (15%), or a family room/den (11%).

Conclusion: Couples, if you’re looking to buy Bloomfield Hills real estate, sit down with your partner and lay out the rules. Find that fine line between what you each want, and no fighting, biting, kicking or scratching!

If you’re looking for the perfect home to fit what you both want, I can help! Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com now for more information.

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

There’s at least one good thing about the drop in the dollar and it’s boosting the real estate market.  Many high-end Europeans are now looking toward the U.S. for a vacation home or permanent resident, and that could mean big hope for your Bloomfield Hills real estate in Southeast Michigan.  However, this also means a different way of selling. 

Stage a Benefit
No open house for high-end buyers.  Host an event instead – maybe even a benefit dinner for a worthy charity.  Let people come and view the property, but give them an avenue to mix and mingle as well.  In addition, they get to see how the house handles a bunch of guests.

Showcase a Chef
If you have a gourmet kitchen (or two), check with chefs that would like to showcase their cooking abilities.  This creates an entire “house-buying” experience for your guests.  Again, they see what that featured kitchen can handle as well as being able to enjoy the culinary arts of a professional chef. 

Host a Private Tour
If your Bloomfield Hills real estate has beautiful gardens and a large landscape, add a private concert or tour of the gardens.  A wine cellar and large sitting rooms can turn the event into a stylish wine tasting event. 

The biggest trick in attracting high-end buyers is showing off the house’s best features.  If the event is hosted at night, you can show how attractive the home is with an overall “candlelight” appearance.  You might even go so far as to set the time for when the sky is at its best and frames the home just right.

First impressions are everything, so pull out all the stops.  Don’t let any great feature go undiscovered, from indoor swimming pools to music rooms and manly dens.  Let your Bloomfield Hills real estate shine!

If you’re getting ready to put a high-end home on the market, 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

As most Bloomfield Hills real estate agents will tell you, remodeling, decorating or repairing your home can go a long way towards getting it sold.  For that matter, it can add value to your property in case you want to sell later – that is, if you don’t choose the wrong places to buy cheap:

1. Windows – Never buy a window based on which one is cheapest.  You want windows that look good, and, as most Bloomfield Hills real estate agents will recommend, you want energy-efficient windows.  During 2009 and 2010, you may be eligible for a Federal Tax Credit for Energy Efficiency of up to $1500 when you purchase Energy Star windows.
2. Paint – Paint is one of the biggest places people skimp when it comes to cost, and a big no-no.  Cheap paint may take several coats to look right; those several coats can end up leaving blotches and runs.  In addition, cheap paint has a tendency to peel or wash off under light cleaning.  If you’re going to add painting to your remodeling or repair work, quality is always better.
3. Doors – Whether it’s for a shower or a screened-in porch, the door you choose can make all the difference.  A rickety shower door falling off the railing is a big “don’t buy” sign.  While you don’t want to blow your whole budget, the doors throughout your house should be of quality material.  Likewise, a solid front door adds to the curb appeal and security of your home.  Some exterior doors also qualify for the Federal Tax Credit for Energy Efficiency.  Find out if your exterior door qualifies for an Energy Star Rebate or Tax Credit. 
4. Flooring – Unless it’s expensive carpet on sale, cheap flooring never looks like anything but cheap flooring.  Low cost carpet and wood flooring seldom has high durability and is likely to wear out before you’re ready to replace it again.  Take the time to find quality flooring at a price you can afford – don’t go cheap!

Many Bloomfield Hills real estate agents will push quality, but the biggest point they’ll push these days is – go green!  It may not be the cheapest option, but the benefits in efficiency and property value more than make up for the cost.

Want more tips on remodeling or repairing your home?  Subscribe to this blog.  Two or three times a week, you’ll get information like this automatically sent to your email for free.  Or, if you’re ready to buy or sell, 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

If you’re tired of renting but don’t want a huge home to manage, consider purchasing a condo. You can enjoy the benefits of home ownership and leave your renting days behind you when you own Bloomfield Hills real estate.

By owning a condo, you can:

Build equity
When you make payments on a condo you own, you are constantly building equity in the property. With renting, you pay for years and own nothing.

Avoid payment increases
Unlike renting, when you own your Bloomfield Hills real estate condo and have a fixed mortgage rate, you can feel confident that your monthly payments will remain the same. No more surprise rent hikes. You can just sit back, relax and plan your finances around that peace of mind.

Make upgrades
As a renter, you probably never had the pleasure of painting the walls any color that suited your style. Your only choices were white and builder beige. As a condo owner, you have the freedom to do what you want to the interior of your home without worrying about penalties from the landlord.

Break away from landlords
Now’s your chance to escape the watchful eye of your landlord and start living life the way you please. As a property owner, you call the shots. And best of all, you don’t have to be concerned with your landlord selling the property and leaving you without a place to live. Now you can secure your future as condo owner.

There is an array of benefits to owning Bloomfield Hills real estate. All you have to do is get out of the renter’s mindset and step out on your own. You’d be surprised how great you’ll feel once you do.

Search for Bloomfield Hills Real Estate condos (and homes) for sale now!  Or, let me do the work for you.  I’d be happy to send you a list of available properties that meet your criteria.  Just 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