Lee Morof's Real Estate Blog

From national and Southeast Michigan real estate to the U.S. economy, the predictions for 2011 are in.  Like any predictions, they vary from gloomy to cheery.  Overall, the U.S. forecasts for national and Southeast Michigan real estate are more positive than negative for 2011.

1. Real Estate Economy Watch predicts:  People are interested in buying a foreclosure.  Nearly half (49 percent) of U.S. adults are at least somewhat likely to consider purchasing a foreclosed property, up from 45 percent in May, 2010. Despite the rising interest in buying a foreclosed home, an increasing number of U.S. adults also recognize negative aspects to buying a foreclosure.

2. Bill Redfern, CEO of A Buyer’s Choice Home Inspections says:  Presale inspections are on the rise.  Sellers, and particularly banks, have become far more interested than in the past in having presale inspections conducted to help attract buyers. This business, which helped sustain inspectors during the downturn, is expected to grow in 2011 even as regular inspections come back. I might be optimistic, but I think in five to 10 years every listing coming to market will have a presale inspection done.

3. The National Association of REALTORS®’ (NAR) Chief Economist Lawrence Yun is projecting: 

• Once businesses pick up spending, job gains will quicken and home sales—fueled by strong affordability and plenty of pent-up demand—will rise.
• 5.2 million existing-home sales in 2011, up from 4.8 million last year.
• Modest improvement in prices—a rise of about 1 percent this year on a national basis. That would be the first in what Yun says will be a series of small but steady gains in the years ahead that will eventually bring home sales back to a period of normalcy.
• Yun says all of the price excesses from the housing bubble have been squeezed out of the market and interest rates remain at historically low levels, making buying attractive now. 

4. The Joint Center for Housing Studies says:

• If the past is any guide, the strength and sustainability of the housing recovery will depend most on the bounce back in employment growth.  Unfortunately, most economists predict that the unemployment rate will remain elevated as discouraged workers reenter the labor force amid slow gains in jobs.
• The oldest baby boomers are just turning 64, with millions soon to follow. Despite their losses in wealth caused by the correction in home and stock prices, the baby boomers will drive demand for senior housing suited to active lifestyles as well as for assisted living facilities.

5. According to the Standard and Poor / Case-Schiller index:  Home prices are expected to rise 12 percent in the next five years. And, according to a survey of economists, that upturn should begin in 2011.

6. WalletPop.com’s prediction for renters in 2011:  The American Dream will include both renting and owning:

• Lifelong renters will begin to buy.  As jobs grow, prices hit bottom or move past their bottom in the handful of appreciating markets, and interest rates start what is likely to be a long, volatile climb up from the all-time lows of 2010, extreme affordability will push even some lifelong renters off the fence and into the market.
• Lifelong owners will begin to rent.  Baby Boomers who have owned homes for decades and lost them at the trough of the job and housing markets will become renters-by-choice.  Retirees will rent their current homes, rather than selling them, move to warmer climes and rent instead of own their retirement homes, at least until the housing market stabilizes and the mortgage market relaxes.

Although no one can be certain what will happen in 2011 – especially for the struggling national and Southeast Michigan real estate markets – we can all gain a little hope from these 2011 forecasts.

If you’d like to buy or sell a home in 2011, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

When you buy a home, you want one that will meet your needs. You may have an at-home business that requires a lot of space or large pets that need room to run. If this is the case, a home located in a close-knit planned community may not be right for you.

Here are three reasons when you’re buying southeast Michigan real estate, building on vacant land might be right for you:

1. You want to build a home designed to meet your needs. Perhaps the greatest benefit of buying southeast Michigan real estate that is vacant land, is the freedom you have to build whatever home you want. You won’t have to use a particular home builder or build a home just like everyone else’s.

2. You want more space. Building a home in a planned community comes with certain restrictions. One of those is usually a smaller lot size. Many homes are now being built on 1/3 acre lots and smaller. You may not be comfortable living in a home that close to your neighbor’s house. Purchasing Southeast Michigan real estate and building on vacant land puts as much space between you and your neighbors as you want.

3. You want to take advantage of current land prices. Even if you aren’t ready to build right now, it still makes sense to purchase vacant land. Land typically goes up in value over time, and as the saying goes, they’re not making any more of it. You can buy your land at today’s rate and then build your home whenever you are ready. The land will be waiting for you.  This could save you thousands of dollars.

Ready to buy southeast Michigan real estate? If you think buying vacant land is right for you, let me help you find the property that meets your needs. 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

Buying a home used to be celebrated. It was a sign of growing up and “getting somewhere.” Yet, tell someone you bought real estate in southeast Michigan now days and you might just get wide eyes and a gasped, “You did WHAT?”

If you’re still trying to decide if buying real estate in southeast Michigan is for you, consider all the reasons why people are still buying homes. 

Well, first, you have the reasons that have stood the test of time:

• Once you buy a house, it’s yours until you decide to sell it.
• You experience pride of ownership. 
• There’s also a sense of security in owning your own home, which is something missing in renting.

While those traditional reasons are tried, tested and true, there are others:

• Mortgage rates hit an all-time low, which became a big incentive for some buyers.  Potential buyers looked at the interest rates and figured they could never get a better deal on a mortgage.
• Home prices are lower too. Yes, the media says home prices may decline more, but the key word is “may.” The experts can predict all they want, but you don’t know for sure until it happens. Some first-time buyers looked at the prices, weighed their decision on “what if the prices start rising again” and signed the deal.

What about you? If you’re looking at the possibility of buying real estate in southeast Michigan, what would get you to sign on the dotted line? Put your requirements and goals in writing, and make them realistic. When all the cards are right, there’s nothing left to do but play your hand.

If you’re looking for a great property to own, I can help. Call me 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

With the many auctions here and throughout the U.S., you may be wondering if it’s worth buying Southeast Michigan real estate this way. Auctions let you bid at a public sale.  Some property is being sold by the owner, but most properties are foreclosures being sold by banks.

Like any endeavor, there are pros and cons in buying Southeast Michigan real estate at an auction. For instance, a pro for auctions might be the price; you can often get great discounts on nice homes through an auction. However, you may get caught up in the fervor of the bidding process and pay more for a home than you ever intended.

The Condition of the Home may be Questionable 
When you work with a real estate agent to buy a home in the traditional manner, you go through the home inspection process.  This ensures the home is in sound structural condition.

In an auction, you have to go with the timeframe of the bidding process and most likely will not have time to get a home inspection performed.  In fact, homes sold at auction are sold “as is.”  That means no improvements will be made to the home, even if you had it inspected and found something wrong.  Additionally, there’s no warranty and no legal recourse to get your money back if you find problems later.

Tax liens can be Costly 
In foreclosure auctions, a property may have a tax lien. If you win the auction, you may then become responsible for the payment of the tax lien. It could be a small or large amount of money, but no matter the size, you may not be able to afford it on top of the cost of the house.

Large Payments in Short Timeframes
Lastly, consider that full payment may be required at the close of the sale; if not full payment, earnest money will at least be required. Because closing usually happens within a month of the auction, it’s always best to be pre-approved for your loan before you start bidding.

If you’re looking at Southeast Michigan real estate auctions for your dream home, do your homework first. You could end up with a fantastic deal, but, without enough information, you could also end up with a dead end.

If you’re looking for a great deal on a wonderful home, I can help. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

Setting the asking price for your home for sale is one of the most important decisions a Southeast Michigan real estate homeowner has to make in the selling process.  Why is it so important?

1. You only get one chance to make a good first impression.  With so many competing Southeast Michigan homes for sale, yours has to pop out immediately as a good value or buyers will move on, unlikely to return. You get one stab at your home’s debut, and it’s easy to blow it.

2. Set the price too high and you could hurt your chances of selling your home.  The amount of traffic a home gets in the first week on the market is about 5 times what it gets the following weeks.  The traffic continues to decrease every week. You might say, “Well, I’ll just lower my price.”  This hurts almost as much as it helps.  It conveys to buyers (the few who are still considering your home) that your home was overpriced and may still be.

3. Setting the price too low can be almost as harmful. Buyers who are looking in a specific price range may not consider your home because of the low price tag.  They assume it will not fulfill their needs or worry that there’s something wrong with it.

How do you know what that magic number should be for your home?  Here are 3 factors to take into consideration when setting your asking price:

1. Neighborhood sales prices:  Recent closed sales in your immediate neighborhood offer the most pertinent data for predicting the sale price of your home.  List prices of homes still on the market should be taken into consideration also, because they show the current pricing trend.  A professional Southeast Michigan real estate agent will do all this research for you as part of their services.

2. Condition of your home:  If your home has been better maintained, is more up to date and shows better than the other homes for sale, it will sell faster and for more money. Updates, even those as minor as having current paint colors, impact pricing.  Updated kitchens and baths are especially important to buyers.

3. Appraisal value:  As the seller, you can get an appraisal on your home before putting it on the market.  You’ll have to pay for it, but it may be worth it to get access to this pricing tool.

Are you ready to sell your Southeast Michigan real estate?  Let me do the research for you and help you set the best price to get your home sold.  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

Today’s slow Southeast Michigan real estate market is a hard place to sell homes. However, the fact remains that homes are still being bought and sold.  Buyers are out there; you just have to attract them to your home.

Here are a few tips for getting homes sold in a slow Southeast Michigan real estate market:

Prepare for the Sale
Your home needs to stand out from the rest. Give it a lot of sparkle and shine:

• Make minor repairs:  Patch holes, fix faucets and replace cracked tiles.
• Clean inside and out:  No cobwebs, dirty carpets, worn rugs or smelly odors.
• Check your curb appeal:  Mow the lawn, plant flowers, trim bushes, etc.
• Remove clutter and de-personalize:  If it isn’t essential, pack it up or get rid of it.
• Straighten your cabinets and closets:  Buyers will open them; make sure they’re nice and neat.

Stage Your Home
Hire a professional home stager or read informational home staging articles on doing it yourself. Here are a few quick tips:

• Carefully choose your window coverings.
• Tie new bathroom towels with ribbons for a “finished” bathroom look.
• Use color psychology.
• Bring in plants.

Use Good Marketing Techniques
A strong marketing campaign is a must.  A few techniques you want to be sure you or your agent includes in your marketing campaign are:

• Take photographs with good lighting that show off the positive aspects of your home.
• Create a virtual tour that showcases both the inside and outside of your home.
• Display the photos and virtual tour on as many real estate websites as possible.

Selling homes isn’t a quick or easy endeavor. Especially now, aggressive marketers are the winners. Taking the time to clean and stage your home, as well as create a wide-reaching marketing campaign, can get that for sale sign taken down for good.

If you’d like to sell your Southeast Michigan real estate, let me create a strong, wide-reaching marketing campaign to get your home sold.   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

Before Southeast Michigan real estate – or real estate anywhere, for that matter – was bought and sold, it was just… owned. “Possession is nine-tenths of the law.” If you wanted some land, you found it, fought for it and kept it. Legal rights weren’t even a thought.

A long, long time ago…
William, Duke of Normandy, felt he had a claim to the throne of England. King Harold Godwinson, crowned king in January 1066, didn’t much agree. While it took until October, William and Harold met on the battlefield at Hastings; Harold was killed, William moved on to storm London.

Upon his coronation, William became King William I of England. He then made a proclamation that went something like, “I came. I conquered. Give it.” William I claimed the complete ownership of all land in England based on right of conquest. He won the battle, so it only made good sense to claim the spoils, and possession equaled ownership.

English aristocracy and the feudal system began. Lords could bargain with the King, who then might make them tenants-in-chief through tenure, or estate. The most extensive and complete estate was called the Fee Simple Estate (also known as an estate of inheritance, fee simple absolute or fee ownership), the basis of our real estate laws now, in America.

When our British ancestors spread across the pond to American soil, they brought Fee Simple Estate with them. And, they claimed America by King William’s idea of “right of conquest.” However, they also developed the concept of an informal association of agents in the 1880s.

Inception of National Association of Realtors®
In 1908, they formed the National Association of Realtors® (NAR). At that time, the NAR had a whole 19 Real Estate Boards and one state association!

While the history of real estate associations probably isn’t that exciting, unless you’re trying to pass a test, modern real estate laws are based off that history.

Although things have changed in terms of law, they really haven’t changed that much in terms of conquest. Okay, so maybe now the army is real estate agents and the weapons are contracts, but you still have to fight for the land you want.

If you’re looking for Southeast Michigan real estate to buy and you’re feeling tentative, it’s time to buck up a little. Buying and selling is still a matter of conquest, and it can still get rough. Negotiations, for instance, aren’t usually quiet discussions over Earl Grey tea. Before you go house hunting, do yourself a favor and make sure you’re armed… with a good real estate agent.

If you’re looking for a great piece of land to call your own, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

Rejection is a hard thing to face in life, whether it’s from a potential client, a potential boss or a potential home seller.  As a Southeast Michigan real estate buyer, your stress level might be reduced if you’re aware of some of the reasons a seller may reject your offer.   

Before I give you the list of reasons, I’d like to mention that even if you and your buyer’s agent do everything right, the seller may still reject your offer.  It frequently has nothing to do with you.

With that said, here are 5 common reasons sellers reject offers on their homes: 

1. The offer wasn’t enough for them to pay off their mortgage. For most sellers, the bottom line is paying off their mortgage. If your offer won’t cover the mortgage, they cannot accept it.

2. They may have just been testing the waters to see what they can get for their home.

3. Their plans may have changed. People put their homes on the market because they need to move, they want to upgrade their home, or they can no longer afford their home. If the circumstances change, they may not need to sell their Southeast Michigan real estate.

4. Their deal may have fallen through. Perhaps your seller was buying another house contingent on the sale of their property. If something went wrong with that deal, they may not be able to sell their home to you.

5. You may be asking too much of them. The seller may not have the time or money to make any repairs they think are insignificant. Perhaps you want to close too soon or would like to move in to the home before closing.

Don’t get depressed when a seller rejects your offer. There may be many reasons for their refusal.  Help your Southeast Michigan real estate agent develop a counter offer, or move on to a new opportunity.  There are a lot of homes on the market.  You may be pleasantly surprised when you start looking again and find a home that fits your lifestyle even better.

When you’re ready to buy a home, I can help you find a great home and negotiate to a successful “Yes, we’ll accept your offer.” Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to get started.

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

Have you ever seen a child right after a huge chewing gum bubble pops on his face? A mess everywhere, eyes wide, mouth in an “O” – rather reminiscent of the real estate industry when its own bubble popped. Homeowners panicked and began trying to sell their Southeast Michigan homes.

As more pushed to unload the instantly unwanted “step child” of homeownership, the Southeast Michigan real estate market became glutted, resulting in lower sales prices. Two years later, some owners are still trying to sell their homes, still panicking, and still worried about what the future will bring. However, you might be like some homeowners, who are indecisive about selling their homes or who realize they don’t really want to sell.

Stop.

Take a deep breath.

Quit worrying for a moment and ask yourself… Why am I selling?

There are good reasons to sell:

• Your house has become hard to afford.
• You’re getting older and need to move somewhere that doesn’t take as much maintenance.
• You need to relocate for your job.

But there are a lot of not-so-good reasons to sell:

• You’ve read so much about people who have been unable to sell their homes that you became alarmed and put yours on the Southeast Michigan real estate market “just in case” you want to sell it later.
• You’re simply tired of your home.  If that’s the case, all you actually need to do is update or redecorate your home to make it sparkle again.
• You’d just like to see what you can get for your home.

It may seem strange for a Southeast Michigan real estate agent to speak against selling homes. However, my first motivation is always doing what’s best for my client, including giving them the best advice I can. So, I urge you to take a moment and think about it:  do you really need to sell your home now?

Even if your home has lost some of its value, there are many ways that your home is still very valuable:

• Building credit – Home ownership is still a good way to build credit. With good credit you can borrow for other major expenses, such as a new car.
• Building equity – The average home equity for the U.S. is approximately $38,000. When you consider how much your home costs, that may not seem like much. However, when you are ready to sell, that equity will be there to put toward your next home purchase or your retirement savings.
• Saving money on taxes – Owning a home offers several tax benefits. For most Americans, the biggest benefit is deducting the annual interest paid on a mortgage.
• Living well – There’s a reason why homeownership is still called the American Dream.  It simply feels good to live in a home you love.  That you can decorate any way you want.  A home that’s your very own.

Now think about why you bought your home in the first place. Do the things still exist that made you value the home enough to buy it?  If yes, maybe you should stay.

If you do need (or want) to sell your Southeast Michigan real estate, I can help. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

As you may be aware, there are two primary ways to sell and buy Southeast Michigan real estate.  One, FSBO (For Sale By Owner), means just what it says – the owner sells the home. The second, of course, is selling the home through a real estate agent. What you may not be aware of is the main reasons why so many choose to hire an agent, whether selling or buying Southeast Michigan real estate.

Should you hire an agent? Of course, I’m going to say yes. However, what I really want you to do is make up your own mind after reading. Only you can answer this question because only you know your situation, but you need to know the facts:

Fact #1, for buyers – Real estate is one of the biggest areas of fraud in the U.S., and a fraud in which the scammer is less likely to be caught. Instances abound where an unsuspecting buyer has bought a home that still belonged to someone else.  Someone else who had no idea their home was up for sale in the first place. You won’t be able to get your down payment back, because the con artist will be long gone with it. Agents deal directly with the homeowner whose name is on the title.  If a licensed Southeast Michigan real estate agent represents a home, you know it’s really for sale.

Fact #2, for sellers – Real estate agents have access to many marketing venues that individuals don’t. FSBO sellers are limited to a few websites on the Internet versus the multitude of websites agents use to advertise homes for sale. With the knowledge agents gain through training and experience, the marketing available to agents, and the resources agents have at their fingertips, you have a much better chance of selling your home with an agent than on your own. If you don’t mind having your home sit on the market for awhile, FSBO may be the way to sell. However, if you need your home to sell sooner rather than later, you need an agent.

Fact #3, for buyers and sellers – Selling or buying a home isn’t as simple as “yeah, I’ll take it” and throwing money down. Selling real estate includes everything from negotiations and contracts to assessments and legalities. If either side doesn’t complete the steps correctly, actually closing the deal may be impossible. To be blunt, real estate agents are trained to handle the pitfalls of selling or buying a home and ensure that the sale goes smoothly.

Should you hire an agent to sell or buy Southeast Michigan real estate? To me, this isn’t the real question. The real question is:   Can you afford not to?

If you’d like to work with a knowledgeable, experienced agent to buy or sell a home, I’d love to have the opportunity to interview for the job. Call me 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