Lee Morof's Real Estate Blog

More than likely, you’ve cooked dinners, you’ve played games and you’ve made thousands of memories within the personally decorated walls of your home — and now you think you’re ready to move on. No matter the reason for selling your Southeast Michigan real estate, getting emotional is normal. However, you need to keep those emotions in check, because they could be detrimental to closing the deal.

Emotional calls constantly get sellers in troubling situations that make them regret their split decisions. A snide remark, too-low offer or fixer-up request can strike a personal cord, but you need to set your feelings aside in order to do what’s best for your financial future. Below are emotional mistakes that can stop negotiations and put you in housing hot water!

• Overpricing faux pas – Just because your sweat is worth a lot to you doesn’t mean that your property’s value will reflect the years of hard work, cleaning, upgrades and love you’ve put into it. Do your research. If there are comparable houses in your neighborhood at lower price points, reduce your listing price so that you’ll be a contender for buyers.
• Negative negotiating – Even though you may not want to entertain low offers, listen to your Southeast Michigan real estate agent. He or she has been through hundreds of negotiations and is your best bet for closing the deal at a fair price.
• Personal injuries – Don’t let buyer biases get to your personal ego and cause you to reject a potential purchaser all together. Remember, you are selling this house and moving on; they’ll be able to do whatever they want once they own it anyway.
• Mourning the sale – The memories go with you, so don’t have any second thoughts. Concentrate on making new happy moments in your future home.

Don’t let sentimental seller’s syndrome cause you to blow a fuse, have seller’s remorse, or worst of all, lose a sale. Eliminate emotions from the sale process in order to draw in buyers, get your money’s worth and sell quickly.

If you need help selling your Southeast Michigan real estate in Oakland County, 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
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

In today’s economy, people are looking for ways to save money.  This is also true when it comes to selling their homes.  Some homeowners believe that selling their homes without a Southeast Michigan real estate agent will save them thousands.

Is selling your home on your own right for you?  After weighing some of the advantages and disadvantages to selling your home without a Southeast Michigan real estate agent, you will be able to make a more informed decision on which choice is best for you.

Here are three advantages to selling your home as a For Sale By Owner (FSBO):

1. You may save money by eliminating the commission.  Selling your house as a FSBO means you don’t have to pay commission to a listing agent.  The average commission is 6% of the sales price, so you could possibly save that amount.  Unfortunately, buyers know that too.  So, most buyers believe that if you are selling on your own and not paying a commission, they should get the savings – not you.
2. The Multiple Listing Service (MLS) is now available to you.  A FSBO can now be advertised on many local Multiple Listing Services.  In the past, this tool was only available to real estate agents and brokers.  You will usually have to pay a fee to get your home listed on the MLS.
3. Offers and counter offers can be negotiated face to face between you and the buyer.  You don’t have to wait for your listing agent to talk with the buyer’s agent and get all the paperwork drawn up.  However, if you are not skilled in negotiation, you may leave money on the table.

One other thing to take into consideration before you put up your For Sale By Owner sign is the state of your local Southeast Michigan real estate market.  If it is a buyer’s market, you will most likely have a hard time selling your home by yourself.  It’s easier to sell your home by yourself when there is a seller’s market.

If you’re still not sure if selling as a FSBO is right for you, and you have plenty of time, you can try selling your home without an agent.  If your home hasn’t sold after a few months, you can then hire a Southeast Michigan real estate agent.

If you’d like information on how to sell your home on your own or what paperwork you need, I’d be happy to help.  Call me today 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

Is it really that difficult to sell your home by yourself?  It depends.  Do you like to market, negotiate and fill out legal documents?  If yes, you may prefer to sell your home without the help of a Southeast Michigan real estate agent.

Before you make your decision, consider these three disadvantages to selling your home as a For Sale By Owner (FSBO):

1. You may under-price or over-price your home.  If you’ve overpriced your home, you won’t get many interested buyers.  When you drop the price of your home a few weeks later, you’ll have missed the “new on the market” window of opportunity that brings in a lot of potential buyers.  If you under-price your home, buyers will wonder what’s wrong with it, and, if it sells, you’ll be leaving money on the table.
2. You have to pay to market and advertise your home.  When you sell your own house, you’ll spend money on marketing and advertising costs including for sale signs, online ads, print ads in newspapers and real estate magazines as well as the cost to be included in the MLS.  When you hire a Southeast Michigan real estate agent, they pay to market and advertise your home.
3. You are responsible for all the legal paperwork needed to sell your home.  This means you must know what paperwork is required by the state and how to fill it out correctly.  If you fail to do this properly, it can delay the sale or leave you open for a lawsuit down the line if something is wrong or missing.

If you determine that listing your home as a FSBO is not right for you right now, hire an experienced Southeast Michigan real estate agent to sell your home for you.  Although you’ll have to pay commission, it will save you time and effort (and maybe even money) in the long run.

If you’ve decided to hire a Southeast Michigan real estate agent in Oakland County, I’d be honored to be interviewed for the job.  Please give me a call me at 248-514-2640 or by email at info@NorthWoodwardHomes.com to schedule an interview.

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

I’ve been getting a lot of questions about the estimated Southeast Michigan real estate values provided by online sources, so I thought I’d answer a few of the most frequently asked questions here today.

Why is the price you think my home can sell for different than the estimated home values provided by online real estate sources?

Because computer programs set those prices.  Here’s how it works in general.  A computer pulls the description of your Southeast Michigan real estate from public records.   Using that extremely basic information, such as square footage and number of bedrooms and bathrooms, the computer comes up with a price for your home.

Computer programs cannot personally visit your home and other homes in your neighborhood to see the differences and similarities.  They cannot see that your home has recently been painted and renovated.

Are there any circumstances in which those computer generated values are at least fairly accurate?

The estimated home values could be in the ballpark if all the following are true:

• Your home is in a subdivision in which the homes are very similar;
• Several homes just like yours have sold recently;
• Homes are not being sold as short sales or going into foreclosure;
• Your home is newer and has not had a major renovation or addition that is not in the public records.

While it’s fun to go online to see what your neighbor’s home sold for, don’t use that information as the final word for what your home could sell for in today’s market.

If you’d like a free, in-person, professional analysis of what your Southeast Michigan real estate could sell for in today’s market, give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. No obligation, just 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 decided to hire a property management company to handle your Southeast Michigan real estate rental property in Oakland County.  Choosing a well-respected and well-run company is crucial to your success.  Here are seven tips to help you make a wise selection:

1. Phone then visit in person.  Make a list of all the companies you’re considering.  Phone them to ask a series of elimination questions such as how long they’ve been in business and if they are knowledgeable about the Southeast Michigan real estate rental market.  If you’re still interested, make an appointment to visit in person. A personal visit gives you a better idea of how they conduct their business, and you can meet the people who will represent your interests.
2. Determine whether the company offers a comprehensive property management service or if the service is just a sideline for a Southeast Michigan real estate office. Find out exactly who will manage your property and how long that person has been a property manager in this area.  Ask how many people are on the staff and what happens when someone is out sick.  Determine what services they offer and exactly how your property will be managed.
3. Clarify the tenant screening process.  You want a company that does thorough research to determine the applicant’s credit and rental history as well as his or her criminal background and past and present employment situations.  You also want a company that sends you a written report that backs up their reasons for recommending a prospective renter so you can make a well-informed final decision.
4. Pick a company that uses current technology.  From maintenance requests to online rent payment services, there are many online tools available for property management companies.  Hiring a company that offers services through their website is important in attracting and retaining the best tenants.
5. Ask for three client references.  Get names and contact information of current or recently past clients, preferably clients who had property similar to yours.  Talk with them to find out what they liked and disliked about working with the property management company.
6. Hire a company that has good relationships with tenants.  It’s important that the company managing your property gets along well with renters.  If renters like the company, it means they’re getting good service and are being treated well.  This reduces problems and renter turnover.
7. Select a company that gets your money into your account quickly.  Your rental money should be in your account as quickly as possible, and typically no later than the ninth day of each month.  That’s your money and should be in your bank account earning interest not in the property manager’s bank account.

Thinking of investing in Southeast Michigan real estate for rental income?  I can help.  Give me a call today at 248-514-2640 or email me today 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

Getting from “I want to sell my house” to “SOLD” is often a long and stressful process.  The last thing you want to do is find someone who wants to buy your house and then lose him or her.  Here are five ways to avoid deal-killing surprises:

• Get a home inspection.  If you truly don’t want any surprises, get a home inspection before you put your home on the Southeast Michigan real estate market.  Then make all repairs needed; or disclose the problems up front, and tell the potential buyers how much you’ve reduced the price instead of making the repairs.
• Do not ask for favors.  You don’t want to suddenly ask the buyers if you can delay closing for six months or if you can keep the crystal dining room chandelier.
• Go over the contract in detail.  Ask your agent to have the buyer’s agent go over the details of the Southeast Michigan real estate contract with the buyers before they sign it.  Even if the buyers say they understand the contract, ask the agent to discuss the details with them.  This prevents misunderstandings and provides time to make contract changes well before the closing, if needed.
• Be honest.  If your hot-water heater breaks two days before the closing, don’t pretend that you love cold-water showers.  Tell the buyers what happened and that it’ll be replaced before closing.  Being honest up front builds trust.
• Remain calm.  If the buyers ask questions or make comments about the house that make you feel like they don’t love the house as much as you do, let it go.  This is a business deal.  You need to sell the house; they want to buy it.  Who cares what they say?  Remember the childhood saying about sticks and stones…

If you’re ready to sell your Southeast Michigan real estate, I’d love the opportunity to interview for the job.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to schedule an interview.

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

So you’ve invited some friends over to show off your Southeast Michigan real estate in Oakland County, and all is going well. The weather is good, the food is delicious, everybody is having a great time and—oh no! Somebody finds a tick!

Unfortunately, ticks are an ugly reality just about everywhere these days. Not only are they utterly creepy blood-suckers, they can also carry some serious diseases you do not want to get. If you’ve ever tried to kill a tick, you know just how tough and gnarly they are. You need to be prepared to deal with ticks. Here are some helpful tips:

• Treat your pets for ticks. Dogs and cats, being furry and close to the ground, are natural tick magnets. If you don’t treat your pets for ticks, you’re simply inviting ticks into your home, your lap, anywhere your pet goes.  If you apply a product to your pet that kills ticks, your pets then act as little sweepers that collect ticks wherever they go and drastically reduce the tick population in their territory (aka, your Southeast Michigan real estate). Ask your vet about the tick treatment options available.
• Treat yourself for ticks.  Use insect repellent on your clothing that may come in contact with grass and brush. Repellents that contain DEET or Permethrin are the most effective, but make sure you use them according to the directions because they contain powerful ingredients that can harm your health. Don’t get it in your mouth or eyes, and wash your hands after you apply it.
• Keep a tick jar handy. This can be any small jar filled with straight vinegar. Empty vitamin jars are good, as they are dark and you won’t have to look at the nasty things. Add a few drops of essential oil to keep the smell pleasant. Any time you find a tick crawling around, toss it in. No running around in a panic trying to find two rocks to crush it with. Just be sure to label the jar and keep the lid on tight.
• Use duct tape. Yes, it’s duct tape to the rescue! The beauty of this tactic is you don’t even have to touch the little beasts. Just unroll a bit of tape, apply it to the tick and it’s immobilized. Fold the tape over on it and it’s out of sight, out of mind. Perfect.

With these tools at the ready, you can avoid being a hapless victim of ticks. If you’d like to read more handy tips like these to enhance your Southeast Michigan real estate, subscribe to my blog. It’s free!

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

Buying a home is a business transaction, but it’s hard to keep emotions completely out of the process. Most sellers in today’s market already know that they need to avoid unnecessarily angering their buyers. And buyers shouldn’t make the mistake of thinking that just because the southeast Michigan real estate market is down they can get away with annoying sellers. Keep your cool this summer and avoid upsetting sellers so that your home purchase goes smoothly and for a fair price.

• Don’t put down their home. By pointing out everything that is wrong with a house, you could force the sellers to take less money, but this strategy hardly ever works. You’re more likely to anger the seller to the point that they won’t continue negotiations. That doesn’t mean you can’t fight for the best deal possible, but be careful not to shoot yourself in the foot.
• Don’t present an absurdly low offer. In today’s market, there’s often room to negotiate on southeast Michigan real estate, but offering something WAY to low will often insult the seller. You’re better off coming in with what you think is a fair or a slightly low offer — and negotiating from there.
• Don’t put off getting a pre-approved loan. There’s nothing that will frustrate a seller more than getting almost all the way through the purchasing process only to find out you can’t get financing. With your pre-approval, you’ll know exactly what you can afford so you won’t waste your or the seller’s time.
• Don’t renegotiate at the end. Never offer over what you want to pay and then attempt to ask for a massive price reduction to fix every minor repair. Of course, if a major repair needs to be completed, you can certainly expect that to be reflected in the price. Just don’t attempt to lure the seller in with a price you know you’re unwilling to pay.

If you’d like to work with an experienced RE/MAX Showcase Homes MI real estate agent who can help you stay cool while purchasing southeast Michigan real estate this summer, 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
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

When you own a home, you have to pay your homeowner’s insurance and the tax on your Southeast Michigan real estate.  Depending on the state in which you live and your lender, you may be required to make monthly payments into an escrow account so your lender can pay your taxes and insurance, or you may have the choice to pay them yourself.

Escrowing homeowner’s insurance and Southeast Michigan real estate taxes has advantages and disadvantages.  If you have a choice, here are several things to consider when deciding whether to escrow or not to escrow your real estate tax and insurance.

Advantages to Escrowing

• No lump sum to pay.  The biggest advantage to escrowing your real estate tax and insurance is knowing that the money is there when it’s needed.  Your monthly mortgage payment includes 1/12 of your property taxes and homeowners insurance premium.  By paying this expense monthly, you don’t have a mountain of debt facing you at the end of the year, at a time when finances are tight for many people.
• Lenders like it.  If a lender is unsure if your home has sufficient homeowner’s insurance coverage, they can purchase insurance to cover their investment at your expense. A lender’s insurance policy is expensive and only protects their interest in your home. With the insurance in escrow, the policy is sent directly to your lender eliminating any confusion on the coverage provided.
• Lower closing costs.  You don’t have to pay your homeowner’s insurance and real estate taxes as part of your closing costs.  Unfortunately, you do still have to pay them, just not as part of your closing costs.

Disadvantages to Escrowing

• Closing costs are higher.  Lenders collect money at closing for your escrow account. That way, they have your money to pay the tax and insurance bills when they arrive.
• Errors can occur.  For example, if your insurance company cancels your homeowner’s policy, the insurance company sends the cancellation notice to the lender.  Unless the insurance company or the lender lets you know, you have no idea that your policy was cancelled.
• Mortgage payments may vary.  If you have an escrow account associated with your mortgage, your monthly mortgage payment will adjust periodically.  If your homeowner’s insurance or real estate taxes increase, your monthly escrow payment will need to increase to cover the added cost.

Both options have advantages and disadvantages, in the end you have to decide which is best for you and the protection of your Southeast Michigan real estate.

If you’re thinking of buying Oakland County MI real estate, I can guide you through all the complex details including whether to escrow or not to escrow.  Give me a call 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

Almost every home could use some remodeling here and there.  If your mother’s home could use some fixing up, here are a few remodeling projects that give a good return on investment – either in selling price or in the speed of the sale.  One of these might make a great Mother’s Day gift, even if your mother isn’t considering selling her Southeast Michigan real estate in Oakland County.

• Flooring – If your mother’s Southeast Michigan real estate has hardwood floors, it’ll be worth the investment to get the floors refinished. If she only has carpet or tile, make sure it’s in great shape. If not, replace the flooring with new carpeting or tile in a neutral color.  Buyers don’t want to worry about replacing flooring in the near future.
• Kitchens – Update countertops. Granite is great, but most markets still put a lot of value on nice, updated laminate counters. Also, consider freshening up the cabinets. If they’re old and tired looking, refinish them with new stain or paint. If nothing else, a few dollars worth of new hardware, such as drawer pulls, will go a long way.
• Paint and wallpaper – Remove wallpaper. Many people do not like wallpaper, and those who do like wallpaper have personal opinions on which wallpaper is attractive.  Also, make sure every room looks freshly painted.  Buyers want a finished house, not a bunch of to-do projects.
• Roof – Consider replacing the roof, if it needs it.  Buyers will likely move on from homes needing large repairs.
• Exterior – Patch cracks in the cement, plant some flowers and replace the door hardware, if it’s dated. These are all inexpensive fixes that will pay off.

If you need help deciding the priority of quick fixes for your mother’s Southeast Michigan real estate, call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I’m happy to help.

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