Lee Morof's Real Estate Blog

You’ve listed your property. You’ve spent your weekends with people traipsing through your home. You’ve done everything you can and your Southeast Michigan real estate in Oakland County is still sitting on the market while others around you are selling. Why won’t your home sell?

You’ve cleaned your home—you think. Let’s examine a few areas many people overlook:

• Did you stuff all your stuff in cabinets thinking no one will be bold enough to open cabinets and look inside? Hum… maybe. Maybe not. Lots of people open drawers, cabinets, and definitely will look in closets, so don’t stash all your stuff in closets. Besides being untidy it is likely that overstuffed closets  will fall out in an avalanche when an unsuspecting buyer happens to peek.

• Are there dirty dishes stacked up, clothes in the laundry baskets, or used towels all over the bathroom? Just because you have to live in your Southeast Michigan real estate until you sell it doesn’t mean it looks good to your buyers. The ‘lived in’ look only makes your home look comfortable when friends and family visit, not prospective buyers.

• Does your loving pet adore your visitors? Even the most well-behaved dog or cat may be a distraction. Not everybody is a pet lover, and even if they are they don’t want to have to deal with your pets while viewing a home.   Have your dogs and cats in their crates when buyers come to see your Southeast Michigan real estate listing.

• Is the lawnmower sitting on the patio, the pool skimmer lying on the lawn, the kid’s bikes piled up in the driveway? The inside of your home isn’t the only place that shouldn’t look ‘lived in’ when you are showing your home to the public.

Little things mean a lot. Don’t let those little nail holes, stray wires from a removed fixture, or coffee stains on the carpet go unheeded. Your buyer is not going to want to fix those things when they move in. And, it makes potential buyers think that if minor repairs haven’t been taken care of, most likely, major repairs have been let go also.  Take the time to do minor home fix ups and make your house look as inviting as possible.

If you’d like more tips like this, subscribe to my blog.  You’ll get a couple of new tips automatically emailed to you each week.

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

2009 was a rough stretch for many Southeast Michigan real estate sellers and buyers, but new reports hint at possible stabilization in the housing market that may prove beneficial for everyone. As 2009 rolled to a close and 2010 opened into a new year, economic and real estate reports poured out good news, but bad news wasn’t far behind. For each positive note, there is always that unavoidable “but”:

• Mortgage rates are holding steady below 5%, thanks to government intervention. Thanks to the low rates, more people are buying and refinancing. However, the downside is that banks are more reluctant to refinance or loan. This leaves many, who want to buy Southeast Michigan real estate, with the inability to do so. Ironic that, in a buyer’s market, it’s the banks with all the selling power.
• The other “but” is that the Federal Reserve program providing the low mortgage rates is set to expire in March. Rates could very well double shortly after, which is highly likely to drop the number of interested buyers. A drop in buyer numbers will only further shift the supply/demand ratio.
• As of December 10, 2009, the number of foreclosures in a month had dropped 16%, nationwide. The home buyer tax credit expansion, foreclosure prevention programs and loan modification programs have helped, as well as state mandated financing programs. As great as that is, there were still over 300,000 foreclosures in November, 2009, which is 18% higher than November, 2008.
• Home prices are “firming,” showing improvement over five consecutive months. Although the rise is considered mild, fewer homeowners are underwater, where they owe more mortgage than their house is worth. Because housing prices are improving, home sellers are more confident in the listing prices they’ve set.

However, many – who are currently unemployed – have ARM mortgages that will be resetting shortly. While they can afford their current mortgages, many won’t be able to afford a higher one. This could bring another round of foreclosures and another drop in housing prices.

What does all this mean for Southeast Michigan real estate buyers and sellers? As Ben Franklin put it, “nothing in this world is certain, except death and taxes.” However, there is also the famous “nothing ventured, nothing gained.” 2010 could be rocky, but, if you’re careful and do your research, you’ll find smooth sailing ahead.

If you’re trying to buy or sell a 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

Every year I order the results of the National Association of Realtors (NAR) Survey of Home Buyers and Sellers. I am particularly interested in How the Buyer Found His or Her Home in the last year because that determines where my marketing efforts will go to sell the homes that I list.

Because the numbers pertaining to open houses are so dismal, it is no longer a category in the survey results. I do understand that open houses were more successful before personal computers and the internet but now, approximately 90 percent of buyers begin their home search on the internet. Thirty six percent will find their home on the internet, another thirty six percent will find their home through the help of a Realtor, twelve percent from a yard sign and six percent from a friend, neighbor or a relative. That covers ninety percent. Another five percent, will purchase new construction from a home builder or the builder’s agent.

So why do some Realtors continue to do open houses? I find that generally two types of Realtors continue to do open houses despite the numbers.

1. The first category is the Realtor who has not adapted to the internet. He or she refuses to accept that it is here to stay and plans to retire in the next few years, so why bother?
2. The other category is the new and inexperienced Realtor.

Both categories of  Realtors have just a few listings and hope to acquire some buyers from the open houses. The reality is that qualified buyers who are looking for a home such as the one listed by the Realtor will find it from the top sources listed above and either call the listing agent or have his or her own Realtor schedule a showing

Open houses are also a HUGE security risk for the sellers and the Realtor. We all have been notified by our Boards of murders, robberies, rapes, etc. that have occurred at open houses. Let’s face it. A Realtor has no control over who is coming through the door at an open house. By doing so, you are leaving the door wide open to those who have motives other than buying a house. Besides those who intend to do harm to a Realtor, you invite nosy neighbors, people looking for free food or a bathroom, and burglars to see what the seller has inside the home for him to take when no one is home.

At every list appointment that I have, I advise the seller prospects about the facts of open houses. Almost all of them, after being given the facts,, respond with “That’s great. We were worried that you would want to do open houses and we are not comfortable with idea.”

Since I have been doing this in listing appointments, I have never had a seller insist that I do open houses. If I do, I will pass on the listing. A seller who refuses to accept the facts, will probably be difficult when it comes to the many other things that come with selling a home such as pricing, taking care of the home, etc.

I sell approximately 85% of the homes that I list. I am not a “mega” lister. I am interested in the quality of the seller and his or her home they want to sell and its price. When other Realtors are doing open houses, I am doing things that are much safer and productive like showing homes to buyers who contact me through the internet or yard signs or just having some me time.

If you’re thinking about selling your Southeast Michigan real estate, give me a call at 248-514-2640 or email info@NorthWoodwardHomes.com for more information.

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

Few questions are more important this time of year for owners of Southeast Michigan real estate than which Christmas tree to buy for your home.  There are some things to keep in mind when looking for the perfect Christmas tree, here are just a few:

Real Or Artificial Tree?
Real Christmas trees require some care; if you’re planning to travel this holiday season, you may not want a live tree.  You must water the tree to make sure that it doesn’t lose its needles before Christmas day.  The live trees are not fire resistant, the dried out pine needles can get too hot from the lights and may burst into flame.

On the other hand, there isn’t any up-keep with an artificial Christmas tree,  and many look quite realistic.  The plastic Christmas trees have an added bonus of being flame retardant.  Then, there’s the convenience of not having to go out in the cold weather to pick the tree out.

For those of you who can’t imagine Christmas without the pine needle smell, you can buy air fresheners that mimic the smell of fresh cut pine.  For some, an artificial tree is the best of both worlds.

How Big Is Too Much Tree?
Now that you’ve decided what kind of Christmas tree to buy, you have to find out how big a tree you can fit in your home.  It could be that the only thing limiting the size of your Christmas tree is your budget; in that case, your decision is easy. 

However, if you’re limited on space, you’ll need to decide the best place to put your tree first.  Try to think of how the area will “frame” your Christmas tree.  Consider how much traffic goes by the area and whether there will be enough room for the presents to stay safe. 

Break out the measuring tape so you don’t have to guess when you’re on the Christmas tree lot; trees look deceptively small on the lot.  Or, if you opted for the fake Christmas tree, you’ll know exactly which box to pick out; just look for the right size.

Want to buy Southeast Michigan real estate, maybe a single-family home or condo that has space for a bigger tree?  I can help.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

The National Association of Realtors (NAR) recently released the results of its annual suvey of homebuyers and sellers and they once again confirm that it makes little sense to try and sell your home by yourself.

In 2009, the FSBO seller had a 6% chance of selling to someone that he or she did not already know. Add to that the fact that, on average, he or she would have sold for 25% more had they hired a REALTOR, you have to wonder why anyone would even try. The most important reason given by the FSBO sellers to try to sell by themselves was to avoid paying a commission. So, those that succeeded, ended up netting 19% less assuming they “saved” a 6% commission.

The most difficult tasks reported by the FSBO sellers were, among other things, setting the right price, understanding and preparing the paperwork, selling within the needed time, attracting buyers, having enough time to devote to the sale and helping the buyer obtain financing.

If you’re thinking about selling your Southeast Michigan real estate, I can help you get top price.  Call me  today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

For Southeast Michigan real estate homeowners, winter is almost here and few things are as comforting as the smell of wood burning in the fireplace of their home.  Before you light the first fire of the year, there are a few things you need to do.  Here is the short list for fireplace safety:

Clean Out the Chimney
Everyone wants to get out of the cold weather, including birds and squirrels.  Have a chimney cap installed at the top of the chimney to keep out small animals looking for shelter.  The cap will also keep debris from clogging the chimney.

Have a professional clean out any creosote residue.  Creosote is the build up of carbon from burning wood.  It is flammable and needs to be removed every year.

Creosote is hazardous to your health.  It can cause respiratory problems, so don’t try to clean it out on your own.  Some home improvement stores sell a creosote removal log that you burn in your fireplace, it may clean your fireplace incompletely, so it’s best to go with a professional chimney cleaning company.

Prepare the Surrounding Area
Southeast Michigan real estate homeowners, before you light your fireplace, make sure that the area around your fireplace is free from clutter.  You’ll want to make sure there is at least two to three feet of cleared space around the fireplace. 

Invest in a fireplace screen so that nothing is accidentally knocked into the fireplace.  It will also help to prevent burning embers from flying out.

Each time you get ready use the fireplace, clean out the ashes from the previous fire. 

Light the Fire
First, open the fireplace damper so the proper airflow can occur.  Then, start with paper or kindling placed on top of the fireplace grate.  Use seasoned firewood cut to the right length for your fireplace.  A couple of logs will be enough; you don’t want to add too many or the fire will suffocate. 

Following these fireplace safety instructions can help you enjoy this winter season without worry.  So, if you’re a Southeast Michigan real estate homeowner, feel free to light that fireplace and soon the aroma of burning wood will fill your home.

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

Not just Southeast Michigan real estate, either. Since the end of 2007, as the real estate market started to decline, new rules, regulations, mandates and more have come down the pipeline.

State Specific Laws
Take Michigan, for instance. Ranking sixth in the nation on the number of foreclosures, Michigan legislature enacted the “Lifeline Law.”  This law gives an extra 90 days for homeowners to work with banks to come up with solutions other than foreclosure.  California did the same, with the California Foreclosure Prevention Act.  In New York, judicial hearings are mandatory for both borrowers and lenders before foreclosure can go through.

Nationwide Laws
Other laws have been enacted throughout the United States, such as Congress lowering homeowners’ tax deductions.

Before 2009, if you used your Southeast Michigan real estate as a primary residence for at least two years out of the last five, you could keep up to $500,000 (married couples – $250,000 if single) in real estate gains on your tax return. That exemption is now pro-rated to the time you spent in the house, which could be quite substantially less than what your tax exemption would have been last year.

As well, new appraisal rules went into effect May 1, and, although they aren’t government rules, they do affect Fannie Mae and Freddie Mac loans. With the Home Valuation Code of Conduct (HVCC) put into place, every lender that goes through Freddie or Fannie has to follow the HVCC to the letter. The HVCC stops mortgage brokers from having home appraisals done themselves. Instead, the home appraisals must be done by a third party appraisal management company in the same area as the home.

Laws that Affect You
Other laws have been put into place that may (or may not) effect the Southeast Michigan real estate you own or are looking to buy. However, with so many coming down the line, make sure that you ask your real estate agent what laws have been put into place that may affect your purchase, sales or ownership.

As your Michigan real estate expert, if you’re looking to buy or sell Southeast Michigan real estate, I can help.  I’m not only a professional REALTOR®, I’m also a licensed real estate attorney who keeps up to date on real estate laws.  Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for help or more information.

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

Not everybody is dealing with the worry of buying or selling Southeast Michigan real estate in Oakland County. Some are quite happy where they are, have no intention of moving, and selling is the last thing on their minds.

However, there are a lot of incentives out there to do something in Southeast Michigan real estate, and many are itching to dip into those incentives. So, if you’re not selling or buying, what can you do? Here are a few ideas:

Upgrades
Upgrades are something you can do to your home at any time. However, with the many government incentives out there, you can upgrade your home to be more energy efficient for less. For example, thanks to federal tax credits, you can install solar panels or a geothermal heat pump and get 30% back once you file your federal taxes.

Instead of just jumping in on upgrades, it’s best to start with an energy audit. An energy audit will tell you where your problem areas are in order of priority, as well as what incentives and credits are available to help you compensate for the cost.

In addition to getting you incentives and credits, these upgrades will raise the resale value of your home.  They’ll also lower your utility bills – sometimes by as much as 70%, depending on the size of the problems and the upgrades you make.

Remodeling
If you’ve always wanted to remodel, now is a great time to do it. Contractors and remodelers aren’t as busy as they have been. For you, this means the chance to save money. Bargains are available on materials, labor costs and overall remodeling costs. Be aware that there are some shady companies, so make sure you investigate before signing a contract with anyone.

Refinancing
Although home refinancing isn’t the best thing to do for everyone, it’s something to look into if you’re struggling with mortgage payments. Talk to your lender and see what your choices are. If you can get better financing than you currently have, this may be a great option for you!

Just because you aren’t selling your Southeast Michigan real estate doesn’t mean you can’t take advantage of the down market. Look around, investigate, and see what options you have open as a homeowner to increase the property value or get the best out of the home you do have.

If you’re looking for the best upgrades and remodels to increase your home’s resale value, 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

Do you own Southeast Michigan real estate?  Being eco-friendly is an important issue to most people today. Making your home as energy efficient as possible makes sense on many levels, but do you know it makes sense when it comes to federal tax credits too? They’re not small incentives either. These tax credits are another major reason to be serious about going green in your home.

Tax Credits for Existing Homes

Making your home energy efficient will benefit you whether you are planning to stay in your home for years to come or you are considering selling your Southeast Michigan real estate in the near future. Prospective buyers will react favorably to eco-friendly installations.  It will also help move your home faster and get a better price.

In 2009 and 2010, you could get major tax incentives for going green too. When you purchase certain energy efficient items, you may get as much as 30% (up to $1,500) of the cost of the item returned to you as a tax credit.  These items include:

• Energy efficient windows and doors
• Energy efficient insulation (primary use must be for insulation. Items such as insulated siding are not included)
• New Roofs created with Energy Star materials
• Most HVAC products including: central air units, air pumps, furnace for natural gas, propane, or oil, water heaters, main unit circulation fans.
• Geothermal Heat Systems
• Solar Energy
• Biomass Stove
• Wind Turbine System
• Residential Fuel Cells and other Microturbine Energy systems
• Hybrid Cars (hybrid gas, electric, diesel, battery, alternative and fuel cell) May have a much higher tax value between $2,500 and $7,500 based on several criteria

Tax Credits for Construction and New Homes

There are also excellent tax credits for consumers building a new home. These credits are up to 30% of cost on acceptable items with NO limit. These items include:

• Geothermal Heat Pumps
• Solar Panels
• Solar Water Heaters
• Wind Turbines
• Fuel Cells

Protecting your Southeast Michigan real estate, making it more energy efficient, and saving money has always been important, but there has never been a better time to get started.

If you would like more information on how to take advantage of the Federal Tax Credit for Energy Efficiency, give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

Selling a home isn’t easy, especially now.  Yet some homeowners believe they can stick a “for sale” sign in the ground and have the house off the market within a few days. 

While FSBO (For Sale By Owner) sales do occur, four out of five homeowners still use a Southeast Michigan real estate agent in Oakland County.  Why?  Because selling your home on your own is hard work, and even more importantly, statistics prove that real estate agents get homes sold faster and for more money than FSBOs. 

If you’re not sure what you should do, here are a few things to think about:

FSBO
Sometimes, for sale by owner purchases are a good deal for the homeowner.  That doesn’t mean you should just jump in, however.  FSBO might be a good thing for you if:

1. It’s a seller’s market 
2. You don’t care how long it takes
3. You are unwilling to pay the typical Southeast Michigan real estate agent commission
4. You have a good attorney who can keep you protected for the legal aspects
5. You have the time to learn how to do it, answer the phone and provide open houses
6. You’re comfortable negotiating
7. You’re confident you can price your home correctly

Real Estate Agent
Although you will have to pay your agent a commission, there are some definite benefits to hiring one:

1. A good agent can help you price your home correctly.
2. They have an abundance of resources to help find buyers, get the best price and get your home sold.
3. They make sure the potential buyer can actually afford it.
4. They’re good at negotiating and aren’t emotionally invested in the sale.
5. If for no other reason, they’re interested in getting the highest price possible because of their commission.
6. They put in several hours a day, that you may not have available, to get your home sold.
7. They have advertising resources, such as real estate magazines, that you may not be able to touch (or afford).

A Southeast Michigan real estate agent may not be the best way to go for you.  On the other hand, you may not have the necessary information and time required for FSBO.  Before going one way or the other, take the time to really look at both sides and decide which works well with what you expect from the sale of your home.

If you’ve tried to go the FSBO route, and it didn’t work out, or if you know FSBO isn’t for you, 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