Lee Morof's Real Estate Blog

If you’re considering putting your Royal Oak Michigan home up for sale, you may have heard rumors  that there is a new tax going into effect in January, 2013. Here’s the rundown on what the tax really is – and isn’t.

The new tax is called the ‘‘Unearned Income Medicare Contribution.” It is a 3.8 percent tax on the net investment income of high-income taxpayers. The tax will apply to those with an adjusted gross income of more than $200,000 ($250,000 for joint filers), with no indexing for inflation.

The Good News
Odds are that you will never pay this tax.

Why You Most Likely Won’t Pay the New Tax
The tax will apply to capital gains, not sale proceeds. Because of the current exclusion of gains on home sales — up to $500,000 (joint) or $250,000 (single) on a primary residence — the vast majority of home sellers will not be required to pay this tax.

Here’s an example: A couple with an adjusted gross income of more than $250,000 (which qualifies them for the tax — more than 90% of households make less than that) decide to put their Royal Oak Michigan home up for sale. They purchased their home long, long ago for $50,000. They sell the house, miraculously, for $549,000. Because that profit of $499,000 is under the $500,000 profit exclusion amount allowed for couples, they owe no tax.

The Bottom Line
There are plenty of other taxes that are worth getting upset about; this isn’t one of them.

If you’re looking for more information on putting your Royal Oak Michigan home up for sale, 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  Lee Morof
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

As we look to London for the 2012 Olympics, you may be thinking about qualifying for your own special event: buying a new Royal Oak Michigan home for sale! Whether you want a pristine condo (a brilliant flat in English parlance) or a fixer-upper labor of love, clearing all the hurdles to win at homeownership may not be as competitive as the Olympics, but it does require training.

Step One: Select Your Event
The ancient Greeks, originators of the Olympics, coined the aphorism, “Know Thyself,” and that is important advice for athletes and home shoppers alike. If you spend all your time looking for a five-bedroom single-family home, but you really want a condo that you can shut up and forget about when you travel six months of the year, you’re training for a marathon when you’re a sprinter. Know the type of home that fits your lifestyle and your budget.

Step Two: Find a Good Coach
Earning a gold medal or buying a new Royal Oak Michigan home for sale doesn’t happen overnight, and it can’t happen without good advice. Find a professional real estate agent you trust to guide you toward the most successful outcome.

Step Three: Find Your Cheering Section
You’ll find no shortage of naysayers who will tell you that real estate is the road to ruin. And it’s just not true. Do the research and do your best to make owning a home a dream come true. More than one Olympic athlete heard people chide them for pursuing what they knew they wanted.

Step Four: Get to Work
You can’t buy a Royal Oak Michigan home for sale if you don’t look for one. You won’t win at the Olympics if you don’t get off the couch. Even if you just spend an hour a day reading ads, researching mortgage options and reviewing neighborhoods, in a short period of time, you will be much more knowledgeable about the real estate market.

If you’re looking for a real estate agent who can help you successfully jump the hurdles to homeownership, 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
www.NorthWoodwardHomes.com

A powerful listing description, whether used in MLS, home magazines, websites or flyers, pulls in buyers and gets your Royal Oak Michigan home for sale by owner in Oakland County, Michigan, sold faster.

To stand out, a description of your home must be well crafted and contain elements that attract buyers and elicit an emotional response. The best description paints a picture about your home that makes potential buyers want to jump in their cars and drive right over.

Here are four tips to help you write a dazzling description about your Royal Oak Michigan home for sale by owner:

1. Brainstorm: What was it about your home that made you want to buy it? What do visitors to your home always comment on? Maybe it’s the park-like backyard with the multitude of mature shade trees. Perhaps it’s your mastermind bedroom suite or the gourmet kitchen. It could be the cozy character and unique architecture of your home. Or it could simply be a bargain in a great neighborhood.

2. Choose two features: When writing your description, don’t try to do too much.  Any type of advertisement is most effective when it centers on one or two primary characteristics. Limiting your focus to two characteristics also helps with the space restrictions you have to work within the MLS, home magazine, website and flyer.

3. Talk about the benefits. This is a hard thing to do. It’s much easier to focus on features.  But it’s worth the few extra minutes of brain power it’ll take you. My tip for figuring out how to write about benefits is to mention the feature and then write something about the benefit of that feature.  For example:

Feature: Deck
Benefit:  Enjoy fun barbecues all summer long on your deck.

Feature:  Lawn maintenance included
Benefit:  Sell your lawn mower.

Remember, write about the benefits of only those top two characteristics you’ve previously chosen.

4. Make it emotional. Speak to the heart of your potential buyers. People buy homes because they want a place where they can live, laugh and love. Paint a picture with your words:  “Enjoy your fireplace-warmed family room, large enough to entertain family and friends.”

If you’d like help writing a great description for your Royal Oak Michigan home for sale by owner, or would like additional marketing tips to get your home sold, 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
www.NorthWoodwardHomes.com

You’re searching for Royal Oak Michigan homes for sale and come across a house that looks like just the right fit. However, when you go to the showing, the fourth bedroom ends up being a glorified closet and the “new” deck was built five years ago. While sellers might fool one buyer into falling in love with their property, these misleading facts will probably infuriate most buyers.

If sellers fudge the figures about their Royal Oak Michigan homes for sale, buyers wonder what other shenanigans they’ll try to pull when it comes time to close. So, as a seller, be honest about your property’s features, and you’ll sell it faster and with fewer hassles.

• Advertise with accurate images. Don’t mislead buyers with skewed photographs of your home or stretched shots. Making the kitchen look longer or the backyard wider just turns your property into a disappointment when house shoppers come to see it in person.
• Mention the bad along with the good. If your house has any major issues, don’t try to hide them. You’ll just be setting yourself up for failure.
• Leave the buyer alone. Don’t feel that you have to give a personal tour to buyers so that you can highlight all the positive features; that’s why the real estate agent is there. Also, refrain from stalking them around the house during a showing. They want to be able to talk amongst themselves about what they like and what they want to rip out.

Be honest and give buyers room to make their own decisions. When looking at Royal Oak Michigan homes for sale, a buyer is more likely to find the right fit and place an offer if all the cards are on the table.

If you are thinking about selling and want to market your real estate right, please call me 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
www.NorthWoodwardHomes.com

It’s always difficult to find the perfect gift for your father to express how much he means to you. However, this Father’s Day, with just a little bit of money, effort and time, you can show your father you care by helping him stage his Royal Oak Michigan home for sale.

While fathers might be good at fixing broken appliances and taking care of lawns, most are uninterested in making a house feel welcoming. Below are five inexpensive ways to give a little back to your dad and help him stage his Royal Oak Michigan home for sale so it sells faster.

1. Evict the pack rat. Decluttering and cleaning should go without saying. While this personal issue might be touchy, your father will thank you later. Be strong and carry on.
2. Replace kitchen hardware. Your father has a good point when he says, “Those drawer pulls work perfectly fine.” However, you can give a kitchen an immediate facelift with modern hardware that is easy to install.
3. Display fresh cut flowers. Whether from your garden or the supermarket, add flowers around the house, especially when it is being shown. The scent and beauty of the flowers make rooms feel brighter and cause potential buyers to smile.
4. Fluff up the bathrooms. Again, most men don’t seem to notice the dingy bathmat or pilled towels. Buy a set of fluffy, new towels and bathmats to put out when buyers are walking through. It’ll make your dad’s bathroom feel fresh and clean. And he can take the towels and bathmats with him to his new place.
5. Add a pop of color. If your dad’s house feels a little drab, find some inexpensive throw pillows, blankets or picture frames to give each room a memorable note.

With a little bit of time and money, you can give your dad the perfect Father’s Day gift. If you’d like more information on how to stage a Royal Oak Michigan home for sale, 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
www.NorthWoodwardHomes.com

If you’re getting ready to put your Royal Oak Michigan home up for sale, it’s time to make all those repairs that have been simmering on the back burner.  When buyers come looking, they want things in tip-top shape, otherwise they think you have not been taking care of the property.

Here are your ten must-do repairs before putting your Royal Oak Michigan home up for sale:

1. Repair the roof.  Maintaining a sound roof literally tops the list of crucial home repairs. Replace missing shingles and fix damaged shingles.
2. Clean, clear and caulk gutters.  When the weather is dry, get on a ladder and clean out all the leaves and debris from the gutters.  Check their condition, repair any loose sections and caulk around the end caps.
3. Fix sagging screen doors and other front-of-the-home problems.  This is what a buyer sees first, therefore, these are must-do repairs.  Approach your home as a potential buyer and see it from his or her eyes. Fix everything that looks shabby.
4. Patch nail holes.  Walk through all the rooms, and fill in all nail holes with lightweight putty.  Wait for it to dry, and then paint the walls.
5. Eliminate odors.  The last things buyers want to smell are mold, a cat box and smoke in the house.  Using scented candles and plug-in room fresheners just smells of cover-up.  Deep clean bathrooms with bleach.  Wash walls with ammonia-type cleaners.  Paint with a Kilz primer to seal cigarette smoke in and on walls.  Then cover with a fresh coat of paint.
6. Repair or replace damaged flooring.  If you have vinyl flooring, check for holes, tears and discoloring.  Get a professional to replace flooring, if necessary.
7. Reseal the toilet.  If the toilet rocks when you sit down on it, the seal needs to be replaced.  You do not have to call in a professional to do this; just make sure you have a friend handy who can help you lift it.
8. Stop faucet drips.  Dripping faucets are easy to repair.  Turn off the water under the sink. (While under there, look for any moisture problems.)  Dismantle the hot and cold handles, take them to the hardware store and buy new parts.  Reassemble at home and turn the water back on.
9. Renew dinged baseboards.  Clean them to remove scrapes and smudges from pets and children’s toys.  Fill in dents, sand smooth and repaint.
10. Fill in cabinet scratches.  Old English scratch cover or a scratch stick work wonders here.

If you’re ready to put your Royal Oak Michigan home up for sale, 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
www.NorthWoodwardHomes.com

These days, over 80% of all home buyers begin their search for homes online. So it’s crucial to market your Royal Oak Michigan home for sale by owner online to reach as many potential buyers as possible.

An Internet listing of your home gives buyers 24/7 access to your home. Unfortunately, a poorly executed Internet listing can hurt rather than help your home sell.  Here are six tips to effectively market your Royal Oak Michigan home for sale by owner (FSBO) online:

1. Upload the best possible pictures.  Make sure you use a good digital camera.  Cell phone cameras will not work for this purpose.  You want great quality pictures for potential buyers to see all the glory of your home.
2. Include photos of your home’s best features. Whether it’s a great view, the best lawn, a 2-story stone fireplace or a kitchen fit for a gourmet chef, make sure you show its best assets.
3. Provide information that buyers want to know.  They want to know everything. Information on the neighborhood, school system, and proximity to shopping will all entice a buyer to your Royal Oak Michigan home for sale by owner. Buyers also want to know the details about the home itself: Number of bedrooms and bathrooms, room and lot size, style of home, sales price, description of HVAC, amenities and upgrades.
4. Create a virtual tour of your home.  A picture is worth a thousand words, but a video or virtual tour is even better.  It allows potential buyers to see everything without having to step foot inside your home. Best of all, it can make them want to see more.
5. Print out flyers from your online listing.  Include all the necessary information and pictures. Put the flyers in a box in your front yard for people driving or walking by. Leave them in a prominent spot in your home, such as a kitchen counter or entry table, for potential buyers who visit your home.
6. Promote your home on multiple real estate sites.  List your home on as many real estate sites as possible. Here are a few of the top sites: Zillow.com, Craigslist, Google Base, Bargain Network and Kijiji (which is a classified site from eBay).

When you’re ready to turn all this work over to a real estate agent, I’ll implement my comprehensive plan to market your home both online and offline.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to get started.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney 
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

Whether it’s your mother, mother-in-law or grandmother’s Royal Oak Michigan home for sale that needs work, make the effort this Mother’s Day to give her your time and make a few quick improvements. Fixing up a Royal Oak Michigan home for sale can be overwhelming, especially if costly repairs are needed.

To give you some ideas, here are six fast and inexpensive improvements that will have your loved-one’s Royal Oak Michigan home for sale looking better and selling faster:

1. Neutralize the rooms. Your father might take pride in his fly-fishing-inspired man cave, but potential buyers may not love it. Pack away as much of the fishing memorabilia as dad will allow, and brighten the room by painting it a neutral color.
2. Add lighting. Modern track lighting can help brighten a space and is relatively cheap and easy to install. Even a few inexpensive floor lamps can dramatically improve the look of an otherwise dull or dreary room.
3. Hang art. If your mother’s house has nothing but blank walls, consider buying some cheery and inexpensive art. A few pieces can help a space feel homier and make buyers feel more comfortable.
4. Give the kitchen a facelift. You don’t have to completely renovate to get buyers to see a kitchen as an attractive feature instead of a potential project. Instead, replace the most worn-out appliances, paint the cabinets or invest in better countertops.
5. Improve curb appeal. Hard work and a little bit of money can really improve a property’s curb appeal. Plant bright flowers, trim the hedges and add new mulch. A weekend of work can make a huge difference — and your mother will love you for it.
6. Pay attention to bathrooms. Even one really appealing bathroom can help sell a house. Add flowers, paint the walls, or if you can afford it, re-tile. Bathrooms are small, but important spaces!

Give the best gift this Mother’s Day — time, labor and motivation — to get her Royal Oak Michigan home for sale sold quickly!

If you would like additional suggestions for home improvement projects that help a home sell faster or for more money, 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
www.NorthWoodwardHomes.com

Just because you can buy a Royal Oak Michigan home for sale does not always mean that you should.  It’s important for you to consider if it is better for you to own or rent a home.

Here are five reasons you might want to rent:

1. You may be moving within five years. It usually takes five years to break even on your home purchase or investment.
2. You don’t want the responsibilities associated with being a homeowner.  It can be expensive and time consuming to maintain a home.
3. You have a bad credit report.  If your score is below 620, you will not get a good interest rate.
4. You have a high debt ratio.  A high debt ratio means you may not qualify for a loan to purchase a Royal Oak Michigan home for sale.
5. You have job instability.  If your job is not secure, it’s not a good idea to buy.

Here are four reasons you might want to buy:

1. You want to build equity.  The longer you own your home the more equity it will build. When you pay rent, that money goes down the drain.
2. You get a tax break when you deduct mortgage interest.
3. You want the emotional satisfaction of owning your own home in Royal Oak.
4. It’s an investment. With low interest rates and home prices, buying investment property is a wise decision.

If you are ready to buy one of the Royal Oak Michigan homes for sale or purchase investment property, 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
www.NorthWoodwardHomes.com

You’ve found the perfect Royal Oak Michigan home for sale that you know should be well within your budget. Now all you need to do is secure the loan — but you’re turned down by bank after bank. In today’s economy, many buyers are facing this exact issue. They have the means to meet their potential mortgage payment. Unfortunately, an issue in the past damaged their credit score and it’s preventing them from getting a loan.

If you’re contemplating purchasing one of the Royal Oak Michigan homes for sale, especially if you’re a first-time buyer, you need to do everything you can to boost your credit score. This will make it more likely that you’ll qualify for a loan and will help you secure a lower interest rate. Below are a few steps to get you started:

• Get a free credit report. You can do this at https://www.annualcreditreport.com once a year. This site is maintained by the FTC and is the only site that provides a truly 100% free credit score. There are other sites with similar names, but they are not to be trusted because they are not maintained by the FTC. If you prefer not to use the web, you can also get your free credit report by calling 1-877-322-8228.
• Check your credit score. A score of 780 is excellent; however, you should be able to secure a loan with a score of around 720. If your score is low, you might want to consider renting for another year while you work to improve it.
• Ensure there are no errors. If a credit card company has you defaulting on bills for a card you never opened, you could be a victim of identity theft. Start working to have any errors removed immediately — they’ll be more difficult to fix the longer you wait.
• Pay down debt quickly and on time. Paying off your debt as quickly as possible and on time will help to steadily increase your credit score.

Working to maintain and improve your credit score will make purchasing a new home, or refinancing your existing one, much easier on your pocketbook and your sanity. Also, shop around and check with multiple loan agencies, such as a national bank, a local bank and a credit union because they might yield very different interest rates based on your credit score.

If you’re ready to purchase a Royal Oak Michigan home for sale, I can help.  Please 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
www.NorthWoodwardHomes.com