Lee Morof's Real Estate Blog

Buying REOs is a very popular method of buying Troy Michigan real estate for investment.  If you’re just getting started accumulating investment property, this is one way you can get very good deals and amass a great deal of property quickly.

REO stands for Real Estate Owned and is the acronym banks place on properties they have taken back from mortgage defaults. REOs are considered non-performing assets meaning they have value but are not bringing in any money—bad for the bank, good for you.

Buy REOs at Foreclosure Auctions

Foreclosure auctions are a great way to get fantastic deals that you might not be able to convince a bank to go with prior to the event. Some savvy investors try to catch properties while they are in pre-foreclosure  which avoids a property being bid up in an auction atmosphere.  To do that, you often have to convince the holding bank to “short sale” a property and sell it for less than the note they were holding on it. At a foreclosure auction, the bank is usually desperate to unload the [city] real estate and often settles for far less than the actual value without all of the short sale paperwork.

Do Your Homework

If you choose to buy properties at auction do your homework. Use foreclosure worksheets to determine the true value of a property and what your maximum bid should be in order to realize a profit from its eventual sale or use as a rental. Doing this prevents you from getting caught up in the moment and over-bidding on a piece of Troy Michigan real estate that has a lot of competitors bidding on it.

If you would like more information on how to acquire REO properties, I can help. Contact me 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

If your Troy Michigan real estate has been sitting on the market for more than three weeks, it’s already an “old property.” Being an old property hurts sales because buyers looking in that community wonder what is wrong with your home that’s keeping it from selling. Even in today’s slower market, that holds true. It’s human nature to think something must be wrong with an item that hasn’t sold quickly. There are things you can do, however, to spruce up your home to make it more appealing and help it sell faster.

A second look from potential buyers can be a life-saver to you when selling your Troy Michigan real estate. If a previous looker was on the fence, just a few little changes might make them reconsider. Ask your real estate agent to share negative comments from walkthroughs. Don’t be offended, instead, find a way to overcome that dissatisfaction. If one person felt a room was too dark, too crowded, too cluttered, it is likely others will too.

After you address those issues, consider how your Troy Michigan home really looks. If you haven’t had time to do much landscaping get out there and plant a few border plants along the walk, or line the front of your house with some attractive flowers.  At the very least, make sure lawn, trees and shrubs are trimmed, pruned and weeded to make your yard look as neat as possible.

Paint the inside. If you walls haven’t been painted recently, chances are they could use some sprucing up. Your buyers want a home to sparkle and a new coat of paint is a cheap way to make that happen.

If you would like more ideas on how to make your Troy Michigan real estate more attractive to buyers, I can help. Contact me now at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

The housing plan included in President Obama’s stimulus package has many good qualities that will help those seeking Troy Michigan real estate. 

There are two main points to the housing plan:

1. To help people once again obtain reasonable mortgages to afford the home of their dreams.
2. To keep people in the homes they already have. If it works the way it is planned, it is reason for a collective sigh of relief for millions of homeowners feeling threatened by foreclosures.  

That’s really it in a nutshell. There are many incentives wrapped up in each of those two areas to help both homeowners and prospective home buyers, but the very impetus behind the stimulus housing package  is simple.

For Current Homeowners

If you have a current mortgage that you can’t handle, now is the time to talk to your mortgage company. Don’t wait too long because some of the detailed elements of Obama’s housing plan are meant to be short-term in their offer so as not to over-tax the budget. While you have the chance, see if your mortgage can be reduced to reflect current home values. That can provide you with the equity you would have already built up but lost due to a drop in housing values.  It will also lower your monthly mortgage to a manageable level.

For New Home Buyers

This is your market now. The Troy Michigan real estate prices are much lower which gives you a chance to buy a home you might not have been able to afford before.  President Obama’s housing plan provides tax incentives for you.  However, just like with current homeowners, the time to do this is now. Because of the stimulus to the Troy Michigan real estate market, housing values are not going to stay as low as they currently are. Also, many of the incentives like the tax credits are valid for a very limited time.

If you’re ready to take advantage of the stimulus package benefits by buying a home, I can help. And, as a licensed real estate broker and lawyer, I can keep you from making a costly mistake in the process.  Call me now at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

You’ve decided to take the plunge and buy a home for your family.  With the banking industry in the shape it is, unless you have stellar credit, you’ll need a more sizeable down payment than ever before.  So, how do you get the down payment for the Bloomfield Hills real estate you’ve always dreamed of?

Get Scrounging

Scour your attic, basement and storage units. Look in every nook and cranny to find items that are in decent shape, but no longer used, and have a garage sale. Sure it’s usually pennies on the dollar of what your stuff is worth.  But if you’re not using it, someone else can, and you get the cash in hand. If you find items that are more valuable, sell them on eBay.  Every little bit helps.

Rich Relatives?

Hey, if you have’em use’em. This is no time to feel shy about asking for a gift. Purchasing Bloomfield Hills real estate is a wise investment.  Many relatives who might otherwise be unwilling to give cash for frivolous items are happy to help loved ones buy a home.

Sell Something Big

Having precious jewelry or antiques is a great asset.  Consider selling items you’ve been holding onto as investments, in order to get the home of your dreams.

There are many ways to come up with the down payment and financing you need to buy Bloomfield Hills real estate.  I can help you buy your dream home!  Give me a call today at 248-514-2640 or send me an email at info@NorthWoodwardHomes.com.

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

With the current economy, it may seem like a better idea to rent a condo instead of buying one. Let’s explore some of reasons why it’s still better to buy Troy Michigan real estate rather than rent.

Throwing Money Away

When you rent that’s basically what you’re doing. You give your money away in exchange for a ‘perishable’ item—one month of living space. Once that month is over, the money is gone and you didn’t get anything of long term value in return.

When you buy Troy Michigan real estate you still spend money for a month of living space, but in addition, you’re building long term equity. It may take longer and property may not increase in value as quickly as it did in the past, at least for now, but the money you spend becomes a back end asset instead of just disappearing.

Tax Breaks

When you buy a home, you can deduct the interest and property taxes that you pay every year on your income taxes. That can be a sizeable amount of money.  If you buy your first home in 2009, you get an even bigger tax break of $8,000 as a result of President Obama’s stimulus plan.  

Saving Money

Yes, you actually end up saving money in the long run if you buy a home or condo rather than renting. According to The New York Times, over a 16-year period you can save as much as $5,000.00 by owning your own home.  And, that number doesn’t include the $8,000 tax credit first-time home buyers get when they purchase a principle residence in 2009.

The bottom line is that the housing market troubles have nothing to do with the ‘evils’ of homeownership. They have to do with bad lending practices, and people wanting more than they can afford.

Choose your Troy Michigan real estate home or condo wisely.  Only buy what you can afford to pay for each month, and pay attention to the loan you are being offered. If you need any advice on the best types of loans or condos available, I’d like to help. Call me 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 biggest barriers to selling your Troy Michigan real estate are often those you create yourself such as:

1. Wanting a quick sale.
2. Not knowing how to price your home correctly.
3. Not knowing how to present your house to its best advantage.

When you first begin to think about selling your home it seems easy. Put a sign on the lawn and list it. Once the shine wears off of the desire to do it all yourself, you might need some tips to help sell your home: 

Clean It Up

That’s the first and foremost advice. Nothing deters a Troy Michigan real estate sale faster than a messy house. Living in your home while trying to sell it makes it difficult to keep it clean, but if you’re serious about wanting to sell your home, it’s worth the extra effort.  You may want to learn how to clean your home fast for those times when a buyer calls and wants to see your home in 15 minutes or less.

Take Good Pictures

Where do you think people search first for homes for sale?  Online!  Newspapers used to be the first place people looked for homes.  But now, approximately 80% of all home buyers look online before searching anywhere else. 

Due to cost and space limitations, newspapers usually display only one photo of the front view of the home.  On the internet, where space is abundant, buyers expect to see lots of exterior and interior pictures, in fact, the more the better. If you aren’t experienced at getting good room photos that show off your Troy Michigan real estate home to its best advantage, hire a photographer or a real estate agent who can do it for you.

Hold an Open House

Or several. Selling your home takes time. If you are busy and can’t fit opening your home up to viewers into your schedule, you may want to list your home with one of the Troy Michigan real estate agents who can do it for you. It’s better to leave your home in the hands of a professional real estate agent so you aren’t tempted to hover over buyers as they walk through. Hanging around discourages buyers from talking to each other about the qualities of your home and from taking the time to view and consider the true potential of your home.

Want to learn more about how to stage your home for a successful sale?  I’m prepared to send your FREE book, “Staging Tips to Prepare Your Home for Market.” There are absolutely no strings attached!

There are pitfalls you can get tripped up on when selling your Troy Michigan real estate. If you’d like to work with one of the Troy Michigan real estate agents who can help you maneuver around those pitfalls, send me an email now at info@NorthWoodwardHomes.com or give me a call today at 248-514-2640.

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

All the talk is about how the President’s stimulus plan helps out new and first time home buyers.  The good news is that it also helps homeowners.  You can get stimulus plan benefits from your existing Troy Michigan real estate too.  Add a little green living to your environment and you’ll be pocketing some change at the end of the year from your income tax return.

Under the stimulus plan, both eco friendly new home purchases and eco friendly improvements on existing homes are tax deductible. Now’s the time to make your home more energy efficient and get a tax break at the end of the year for your efforts.

Going green saves money, makes your living environment healthier, and improves the world we live in. To reap the benefits from the stimulus plan, you can make major home improvements such as adding solar power or moderate priced home improvements such as adding low flow water fixtures.

You need to make your home improvements soon to get the stimulus plan benefit.  The plan only allows for the tax benefits through the year 2010.  Why wait?  Use this as motivation to get your projects started (and completed) now.

Here are a few additional eco friendly home improvements to consider for your Troy Michigan real estate:

• Re-cover your roof: The color of your roof can make a big difference in how well your attic retains or refracts heat and cold.
• Install an energy efficient Energy Star furnace: Make sure it has a high SEER rating (seasonal energy efficient ratio).

With a little work and a reasonable investment, your Troy Michigan real estate will not only pay you back in dividends for years to come, it could get you a great tax break.

If you need more ideas for how to make your home energy efficient and get tax credits, give me a call 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 new stimulus bill gives first-time home buyers a tax credit of $8,000! Whether the Troy Michigan real estate you purchase is new or a re-sale there are always things you can do to make improvements. Here are a few ideas on how you can use the tax break for your new home.

1. Put in all new modern appliances. $8,000 will buy a nice set of kitchen and laundry appliances, and enough groceries to fill up that new refrigerator for several months on top of it.
2. Furnish a room. Many times a new home means old furniture just won’t fit in or fill it up. $8,000 goes a long way to decorating a new room or two.
3. Add on a porch or deck.  The stimulus money can be used to add value to your Troy Michigan real estate by making additions like a patio, deck or porch. It will make your new home even more enjoyable too. Construction jobs not only help the economy, but they create jobs in the community—a double bonus that you are making happen!
4. Buy a car. Okay, maybe your new home is perfect as it is. That’s lovely. Use your stimulus tax incentive to put a big down payment on a new car. The huge down payment will keep your monthly payments low and affordable while helping out the other big industry failing in the current economy.

The key to the President’s stimulus plan is to spur the economy and give people money to spend—so go ahead and spend it. Buy those items you’d have trouble buying for your Troy Michigan real estate without the extra help.  And, feel good about it because you’re stimulating your local Michigan economy. 

Are you ready to purchase a new home?  Have questions about how the stimulus helps first-time buyers get Troy Michigan real estate? I’ll be happy to assist you in finding the right home for you at the best price.   Email me at info@NorthWoodwardHomes.com or call 248-514-2640 now for more information.

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

There are several indications that the new stimulus bill passed by Congress will have a positive influence on the struggling housing market. If you are considering buying your first home and would like to purchase Troy Michigan real estate, the stimulus plan may help make that happen.

How the Stimulus Bill Stimulates the Bottom Line

The biggest effect the stimulus plan will have on new home buyers is a tax incentive. We all want to get more money back on our tax returns and the stimulus bill has an $8,000 tax credit for first-time home buyers purchasing Troy Michigan real estate in Oakland County.

How You Qualify

In order to qualify for the stimulus tax incentive you must:

• Not have owned a home in the past three years.
• Use the new home as your primary residence.  
• Have an income of less than $75,000 per person or $150,000 per couple.

No action is necessary other than reporting the purchase on your income tax filings.  You must keep your home for at least 36 months in order to not have to pay back the incentive in the following tax year. If, however, you keep your new home for 36 months or longer you never have to repay the incentive.

There is no cap on return for this incentive either. Even if you would not normally be entitled to the full amount according to your taxable income level, you will still receive the entire $8,000 amount in return.

Purchase Troy Michigan Real Estate and Stimulate Interest

The stimulus bill also gives first-time home buyers a chance to get into those big ticket houses. Houses with market values over $417,000 will be eligible for lower interest rates to make them more affordable. The luxury home industry has stagnated in the failing real estate market and this should give it a vital boost.

President Obama’s stimulus plan is serious about improving the housing market. The bill gives people looking to buy Troy Michigan real estate reason to hope. 

Interested in more information on how the stimulus plan can help you purchase a home?  Call me at 248-514-2640 or email info@NorthWoodwardHomes.com.  I’ll never share your contact information with anyone for any reason.

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

According to the Better Business Bureau, contractor problems are one of the most common consumer complaints.  With those kinds of statistics, buying a newly constructed Troy Michigan real estate home calls for a knowledgeable individual.  Here are a few things you can do to make sure your contractor  doesn’t end up as your complaint:

Know What Your Warranties Cover

There are two types of warranties.  One is called an express warranty, and is given to you by the contractor.  Usually, this warranty lasts between one to ten years, with one year being the most common.  It covers everything from cosmetic flaws to serious defects.

The second type of warranty varies depending on the state you live in.  It’s an implied warranty that states the residence has to be habitable.  To have your defect covered by this warranty, you have to be able to prove that it’s a health or safety hazard. 

Have warranty questions?  I’m in a unique position as a licensed Troy Michigan real estate broker and lawyer, to assist you with all facets of purchasing your new home.  And, I’ll keep you from making a mistake that could cost you thousands.

Find Real Defects

If you spot a defect, you need to find out whether it’s an acceptable imperfection or a real defect.  For instance, small cracks in the interior of new Troy Michigan homes for sale are normal defects.  The only cracks that need to be repaired are those longer than 3/16 of an inch, according to the National Association of Home Builders’® performance guidelines.  In addition, hammer marks or nail pops only count if you can see them from more than six feet away.

Document Everything

Once you find a real defect, document everything.  Take photos and make detailed notes.  You may want to hire an independent inspector or structural engineer to give your house a full examination.

Buying new Troy Michigan real estate can be enjoyable when you work with a REALTOR® like me who has the knowledge and experience to guide you through the homebuying process.  Call me today at 248-514-2640 or email me at info@NorthwoodwardHomes.com now.

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