Lee Morof's Real Estate Blog

These gray, dreary winter days can really sap your energy and dull your enjoyment of life. To survive the winter doldrums, brighten your home.

Use These Easy Tips:

1. Open your home’s window treatments during the day to let the light brighten and warm your room. Close them again as soon as night falls to retain heat.
2. Brighten dark rooms with few windows by placing spotlights on the floor behind furniture.
3. Add a mirror. Wherever a mirror reflects light in a room, it visually doubles that light.  Place a mirror opposite a window to immediately brighten your space. No window?  Hang a large mirror above a console table and place a pair of lamps in front of the mirror.
4. Install higher watt bulbs in rooms that tend to be dark.
5. Eliminate dark corners by adding recessed lighting.
6. Use full spectrum lighting in areas where you read, knit or do other up-close work.
7. Lighten living areas with colorful throws and pillows.
8. Lift the winter blues by adding flowers and plants to your decor. Colorful indoor blooming plants include the African violet, Cyclamen, Orchid and desert cactus.  Use tropical flowers to transport yourself mentally to climates where the sun always shines.
9. Do A Little Winter Cleaning:
   1. Wash the inside of your windows. Fireplace and candle soot coats windows with a dingy film that blocks the sun.
   2. Polish your furniture. Shiny furniture reflects ambient light.
   3. Wash ceiling light fixtures in soapy water. Light is muted when filtered through dirty light fixtures.

Lighting can change how you (and potential buyers) feel about your home. It’s one of the easiest and least expensive ways to quickly improve the ambiance of your home.

If you’d like to sell your home, I can help. Contact your real estate professional today.

Knowledge is power. That’s true whether you’re running a Fortune 500 Company or investing in Southeast Michigan short sales.

To increase your level of knowledge and improve your success in investing in Southeast Michigan short sales, here are the definitions and important information about four acronyms:

BPO: This stands for Broker Price Opinion 

A BPO is, essentially, the same thing as an appraisal. In a short sale transaction, the lender hires a broker to appraise a home. The broker assesses the house both inside and out to determine its current market value.

If a BPO has not been ordered by the lender or if you cannot find out what the value of that BPO is, you may be at a big disadvantage when trying to submit a short sale package.

The closer your short sale offer is to the BPO, the better chance you have of the short sale transaction going through.

NOD: This stands for Notice of Default

This is the first official stage in the foreclosure process. The lender has a right to file the Notice of Default after the very first late payment, but the NOD is not usually filed until 60 to 90 days after a late or missed mortgage payment.

In some states, the Notice of Default is also attached to the home, generally on the front window, like a big scarlet letter. It states that the borrower is in default, behind in the mortgage payments, and if the payments are not paid up, the lender will seize the home.

This is a crucial step in purchasing a short sale, because if the lender has not issued an NOD, they won’t consider your short sale offer.

NOT: This stands for Notice of Trustee’s sale

The NOT is a recorded notice that a trustee’s sale has been scheduled.  That means the clock has really started ticking! If all late payments, fees, and penalties aren’t paid up, the property will be auctioned off to the highest bidder. The minimum amount is usually whatever the lender needs to pay off the first loan and other fees.

The buyer who wins the auction gets the property as-is. This includes all liens, whether or not the lien has been recorded. Title insurance is generally not available for up to two years. This can be a significant risk for a buyer.

Many properties don’t sell at auction so they go to the lender and become REOs or Bank Owned Properties…

REO: This stands for Real Estate Owned by the lender

An REO, also known as a Bank Owned Property, is a property that goes back to the lender after an unsuccessful foreclosure auction. So when you hear the term REO, it means that the lender now owns the home.

Usually, the lender asks a real estate agent to list the property for sale. The initial listing price is often high. Hire a real estate agent who is knowledgeable about short sales to negotiate the price for you and help you navigate the complicated short sale process through to a successful closing.

If you’re interested in investing in real estate or Southeast Michigan short sales, I can help. I’m a Certified Distressed Property Expert and real estate lawyer.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

Looking to buy a new house? Do you have a specified budget in place? Are you going to need to take out a loan? In such a tumultuous Troy Michigan real estate market, there are many frustrating financial hurdles that you need to jump before you can purchase your home. However, with a pre-approved loan you could reduce stress and move in quicker.

Troy Michigan real estate buyers have an advantage if they are pre-approved for a home loan. A pre-approved loan is when a bank provides you with an amount they would be willing to lend you for a home and a period of time for which this offer is good. They determine this amount based on several criteria that you must provide and prove, such as your current income, bank statements, income tax returns and credit history. 

Perks from pre-approval

• Know what you can afford –Using a mortgage calculator, you can see an estimate of the monthly mortgage payment to help you determine if it is within your budget.  By obtaining a pre-approved loan, you’ll know exactly how much money you can spend on a house.
• Gain credibility – Troy Michigan real estate agents and sellers take you more seriously if they have proof that you can come up with the money to purchase the property.
• Save time – When you know exactly how much you can spend, you won’t waste your time looking at houses out of your price range. This allows you to spend more time scrutinizing the houses you can afford.
• Close quicker – With a pre-approved loan, you’ve already completed part of the time consuming work toward getting your mortgage. Without pre-approval, you might endure heartache if you find your dream home, but can’t find the funds.

If you’re searching for Troy Michigan real estate without a pre-approved loan, stop wasting time. Analyze your income, talk with a lender and get pre-approved before beginning the house hunt.

Need a referral to a reputable mortgage provider in Southeast Michigan?  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

Considering deflated real estate values, you might wonder if buying national and Troy Michigan real estate still makes good financial sense.  According to the National Association of REALTORS® eighth annual Housing Opportunity Pulse Survey, nearly 8 out of 10 respondents believe buying a home does make good financial sense. 

Surprised?  Let’s examine three reasons Americans believe buying national and Troy Michigan real estate remains a good financial choice:

1. Lower home prices and low mortgage interest rates are making homes more affordable. 

2. Almost 7 out of 10 believe that home values have stabilized in their area; the same number expects home sales to remain about the same through the end of the year.

3. The rate of foreclosures is also seen as stabilizing; 51 percent say the rate is about the same as last year.

Another big advantage for you may be the tax benefits of home ownership.  You will still, as always, be able to deduct the interest you pay, as well as other real estate related items on your income tax return. For most people that deduction equates to a sizeable chunk of money. It can mean the difference between owing the government more money at the end of the year, and getting a refund.

If you would like more information on how owning Troy Michigan real estate can make sense for you, 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

Most people make New Year’s resolutions to improve themselves.  If you’re a Troy Michigan real estate home owner, this year consider making a few New Year’s Resolutions to improve your home.  Here are 6 ideas to choose from:

1. Renovate.  Choose one project you really want to do, and get it done this year.  Add on a deck, make minor kitchen renovations or install a new bathroom floor.

2. Practice home safety.  Troy Michigan real estate home owners can practice fire safety by ensuring their home smoke alarms work and holding fire drills. Prevent poisoning by keeping cleaners, medications and beauty products in a place where children can’t reach them and using child safety locks.  Avoid falls by having bright lights over stairs and steps and on landings. Also, keep stairs clear of clutter.

3. Test for radon.  Radon is a significant contaminant that affects indoor air quality worldwide. The United States Environmental Protection Agency (EPA) says that radon is the number one cause of lung cancer among non-smokers. Even if you live in an area that typically doesn’t have radon problems, the US EPA recommends testing your home for radon because testing is the only way to know your [city] home’s radon levels.

4. Do one thing to go green.  Change to Compact Fluorescent Lights (CFL), install a low-flow shower head, use green cleaning products or start recycling.

5. Check water quality. Drinking water quality varies from location to location, depending on the condition of the source water from which it is drawn and the treatment it receives. Every community water supplier must provide an annual report to its customers. Read your report to find out what your water contains. 

6. Private wells and homes drawing water from other sources such as lakes and rivers are not regulated. If your drinking water does not come from a public water system, you alone are responsible for assuring that it is safe. Routine water testing is essential.

7. Reduce your utility bills.  Troy Michigan real estate owners should review electric and gas expenses for the previous 12 months and make a plan to reduce them. There are many ways to save on energy bills:  increase your insulation, weather strip windows and doors, purchase energy efficient appliances, install energy efficient windows and adjust home temperatures.

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

Do you own Troy Michigan real estate with a small room that’d you’d like to make larger, but you don’t have the money in your budget to tear down a wall or add on to the room?  By using a bit of creativity, you can make that tiny room look larger without breaking the bank.

Here are 8 low-cost decorating tips to make any room in your home look bigger:

1. Leave open space.  Place taller pieces of furniture along a wall rather than out in the open space.  To prevent blocking the view into a room, use shorter pieces of furniture like an ottoman or a low table.   The more open space you can see, the larger the room will look.

2. Brighten the room.  A well-lit room looks larger, whether it’s brightened with natural or artificial light.  Remove heavy, dark draperies to let the natural light into the room.  Install track lighting or recessed spot lighting, which is perfect for a small space.

3. Lighten up the floor and ceiling.  Open up the room by using a white or very light color on the ceiling.  Use light-colored flooring such as light oak or a light-colored carpet to make the room appear bigger.

4. Reduce the amount of furniture.   This goes back to leaving open space.  Keep only those pieces of furniture that you really love or really need in the room.  Get rid of everything else.

5. Switch to glass.  Using a glass-topped dining table, end table or coffee table gives the appearance of an open space, even though there isn’t.

6. De-clutter.  Too much stuff makes even a large room seem small.  Organize anything you must keep.

7. Choose light colors.  Light, cool colors like pale blue and light green can make the smallest space feel open and airy.

8. Use a monochromatic scheme. Take those light colors one step further by using colors all in the same family. When you look around a room that has the same color scheme for the furniture, flooring and walls, you believe there’s more space than there really is.  Contrasting colors break up a space. Furniture is less interrupting and blends with the space if its color matches the wall.

Are you looking for Troy Michigan real estate with large rooms?  I can help.  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

Ask anyone about their experiences with Troy Michigan real estate agents, and you will no doubt hear a variety of responses. This is why there are so many myths about agents circulating. A good real estate agent is worth every penny you spend for their expertise. Let’s examine some popular myths about Troy Michigan real estate agents.

1. They make too much money. The truth is that the median salary for real estate agents  in 2009 was approximately $54,000. Agents have to pay business expenses such as broker’s fees, professional organization memberships and MLS listing fees.  One of their biggest expenses is marketing homes for sale for buyers and sellers like you. These expenses quickly add up and take away a large percentage of their commission.

2. They won’t get you a good deal because they make a commission on the sale price. Yes, real estate commissions are based on a percentage of the sale price. However, the commission on a $185,000 home is $5,550, while the commission on a $200,000 home is $6,000. That’s a difference of $450, which is hardly worth creating a negative impression by getting you a bad deal.

3. They say anything to make a sale. Professional Troy Michigan real estate agents work for you, and they want you to have a positive experience with them. After all, most of their business comes from referrals. They want you to be happy so you will tell your friends and family about their excellent service.

4. They don’t do anything you can’t do on your own. The truth is that buying and selling real estate can be a complicated and time consuming process. Sure, you can order home inspections and surveys on your own. You can even negotiate for your terms. However, professional Troy Michigan real estate agents are trained to do this and have experience at it. As a result, they’ll save you money, time and make your life less complicated throughout process.

Don’t underestimate the value of a professional real estate agent.

Let me help you save time and money when buying or selling your home. 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 new home takes a lot of preparation. Without knowing what you are walking in to, you are bound to run into road blocks. A good Troy Michigan real estate agent can help you understand the intricacies involved in purchasing your new home. Some of the most common problems that buyers run into are avoidable.

Buying the Best is Nice… but

If you’re looking at the most expensive house in the neighborhood, in the city or in the state, you’re asking for problems.  The chance that it will go down in value, be difficult to make payments on if anything changes in your lifestyle, or be hard to sell in the event of a foreclosure is high, which makes it tough to get a mortgage.
 
If you must have the most expensive home, pay the most you can as a down payment.  That will lower the risk and make it more likely your loan will be approved.  If you can’t afford a big down payment, you’re probably looking at a formidable roadblock to a loan. 

Being Unprepared

Walking into a mortgage lender unprepared is like shooting yourself in the foot. Have your financial information in hand. If there are any problems with your credit, be prepared to explain them. Have a good budget including the estimated new mortgage to show you can handle the loan.  Think like a Boy Scout and be prepared.

Not Taking All Costs into Consideration

A big mistake many prospective home buyers make is not realizing there are many costs associated with buying Troy Michigan real estate besides just a new mortgage. There are closing costs, legal costs, insurance costs, property taxes and deed and recording fees.   All of these have an impact on your wallet and most need to be paid at closing.

Want to know more about how to prepare to purchase Troy Michigan real estate or Oakland County real estate?  I’d be happy to walk you through the entire process.  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

Are you buying Troy Michigan real estate chiefly as an investment or as your primary residence? Does it need a little updating or a big overhaul? When you consider that buying Troy Michigan real estate is a major purchase, no matter what the reason, it’s always a good idea to look at the potential pros and cons.

Pros of Buying a Fixer Upper
Location – The fixer upper you’re considering could be in a great neighborhood. It might even be on the best street. But, because it needs work, you could get a home in a location you might otherwise not be able to afford.

Cost – It’s almost always cheaper to buy something broken than to buy something that works. Well, the same can be true for any kind of real estate investment. Buying a fixer upper may be a good alternative, if you want to own a home but can’t afford a high mortgage payment.

Style – It’s your home. When you remodel, redecorate or renovate, you get to choose what you want it to look like. Maybe it has a big picture window just dying for a window seat. Maybe you like soft mauve walls instead of the institutional green currently there. That’s okay, because you can fix it up to fit your personal style.

Cons of Buying a Fixer Upper
Cost – You may be able to save money on the selling price of a fixer upper, true. However, the savings could be totally lost once you start looking at the cost of renovations. Before you sign on the dotted line, do what any homebuyer should do and get a home inspection. Figure out how much you’ll be spending all together instead of basing your costs exclusively on the selling price.

Location – Often, fixer uppers are in less than pleasant neighborhoods or on streets with other homes in equal disrepair. Especially if you’re flipping houses, the chance of getting your investment back isn’t very likely. When buying a fixer upper – for any reason – make sure you weigh its location against the cost.

Style – Quite simply, your personal style might take more energy and knowledge than you have available. For instance, if you don’t know anything about drywall, plasterwork or woodwork, that window seat you want so badly may not be possible. As well, if you only have an hour or so a day to work on the home, it could be in a state of disrepair for a long time before it’s finished.

If you’re thinking about buying fixer-upper Troy Michigan real estate, always look at the pros and cons of the specific house. You could make a great investment or end up with a money pit.

If you’re looking for a fixer upper that needs some tender loving care, 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

If you’re in the middle of buying Troy Michigan real estate, for which you’re hoping to get a Homebuyer Tax Credit of up to $8,000, you have more time to finalize it. 

After a close brush with the deadline, Congress passed a 90-day extension of the Homebuyer Tax Credit closing deadline.   The extension applies only to buyers who have written, binding contracts in place as of April 30, 2010. The new closing deadline is now September 30, 2010. 

Extending the tax credit closing deadline will provide additional stability to Troy Michigan real estate and real estate markets nationwide.  Additionally, the National Association of REALTORS® (NAR) estimates that this new extension will help about 180,000 to 200,000 homebuyers who already signed purchase agreements and were likely to miss the June 30 deadline.

Those are two of the reasons the NAR worked closely with Congressional leaders on both sides of the aisle to get this extension approved.  Voter pressure on House members also helped to push this bill through.

Have questions about the Homebuyer Tax Credit or any other questions about Troy Michgian real estate or Oakland County real estate?  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I’m happy to help.

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