Lee Morof's Real Estate Blog

As home buying picks up pace with spring in full bloom, there are a few tips every Bloomfield Hills real estate buyer should keep in mind:

1. Plan to stay in the property more than 5 years.  Typically home values appreciate 7% per year; that number has been 2% to 5% recently, so it will take longer to break even and begin making a profit or building equity in your home.
2. Do the math.  First, figure out what price range you can afford.  Then, calculate how much income is left after paying the mortgage, taxes and insurance.  Use an online affordability calculator to make this easier.
3. Explore the neighborhood.  At various times of the day and night, visit the neighborhood of a Bloomfield Hills home you are interested in.  Find out if it’s an area in which you’ll enjoy living.  How are the schools, the traffic, the noise and the neighbors?
4. Find the right agent.  Interview at least three Bloomfield Hills real estate agents.  Make sure they’re experienced, knowledgeable and professional and that your communication styles mesh.  They will be overseeing the most expensive decision of your life, so take the time to find the best person for the job.
5. Shop for your mortgage.  Shaving even a half a percentage point off your mortgage rate can save you thousands of dollars.
6. Get pre-approved. Before you start house hunting, get pre-approved for a mortgage. You’ll save yourself the grief of looking at houses you can’t afford. Being pre-approved will also improve your chances of getting the sellers to say yes to your offer. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.
7. Hire a home inspector. Have the property checked out by a professional home inspector. Even if you and your agent carefully look over the home, there can be hidden problems only a home inspector can find.

If you’re looking for a Bloomfield Hills real estate agent to help you buy a home, I’d be honored to be considered for the job. Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to schedule a time to interview me.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
www.NorthWoodwardHomes.com

Is your family starting to feel cramped in your current house, or are you ready to quit renting and start investing? With the extra day added into this leap year, you have an additional 24 hours this month to decide if you’re ready to take a big jump and purchase Bloomfield Hills real estate.

Not sure how to decide if this is the year? Whether you’re a property-purchasing pro or a first-time home buyer, take a look at the three points below to determine if you’re prepared to take the leap and invest big.

1. You have a sizeable down payment. Knowing what you can actually afford is half the battle. A good estimate is to triple your household income, and that will roughly be what you’ll want to spend. Whatever you’ve saved as a down payment can go on top of that or, if you’re frugal, can just be used to reduce your monthly payments. The larger the down payment you have, the smaller your mortgage payments will be, and it could possibly get you a better interest rate.
2. You have a good real estate agent. It’s important to find a trustworthy, competent agent before you find your dream house. Take the time to thoroughly interview agents and get referrals. You’ll want to make sure you have someone who is knowledgeable about the Bloomfield Hills real estate market to help you make one of the biggest decisions of your life.
3. You have a brag-worthy credit score. Strike while the iron is hot! If you’ve taken the time to build up and ensure a great credit score, use your good standing to take advantage of today’s low interest rates.

If you meet all three qualifications, consider taking advantage of this month’s extra day, as well as the low interest rates and home prices, and leap into a new home. Please call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com if you have questions concerning your credit score and down payment, or want to work with a knowledgeable Bloomfield Hills real estate agent.

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

As a buyer, finding the right Bloomfield Hills real estate and deciding to place an offer can be overwhelming enough without the stress of discovering you’ve entered into a multiple-offer situation.  Yes, even in this buyer’s market, you can find yourself competing against other buyers.

Purchasing a house is emotional, and when it comes to having to negotiate for your dream house, you need to keep a level head and understand your options. Be prepared for the following scenarios:

• Seller can just accept the best offer. If it’s a property that you absolutely can’t let slip away, you might want to give the seller exactly what they’re asking for. There is a chance you could get a deal with a low bid, but you need to talk with your Bloomfield Hills real estate agent and decide if it’s worth taking the risk. You could also end up paying more than the buyer would have accepted, but at least you’ll have the house.
• Seller can let all parties know that there are multiple offers. In this case, you know there is competition. That means there’s a chance, even if you do give them their asking price, that you might not be the only potential buyer putting in a full price offer on the home.  
• Seller can counter one offer and wait for a response, but not dismiss others. If you’re the offer that’s being countered and you know other parties have placed bids, it’s likely you’re the highest proposal. You’ll want to negotiate with the seller and hopefully meet somewhere in the middle.
• Seller can counter one offer and reject all others. All you can do is hope that you’re the best offer!

There are advantages and disadvantages to all of these scenarios, but make sure you take each into consideration before submitting a proposal or counter-offer. Also, talk to your agent and ask how multiple-offer negotiations are handled by the agency that has the house listed for sale.

When bidding on Bloomfield Hills real estate with multiple offers, you’ll have to move quickly. Have a plan and be prepared for any and all situations.

If you’d like to speak with an agent who is a skilled negotiator, including multiple-offer negotiation, please call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

You know that you can lend money to your child to help him or her buy Bloomfield Hills real estate.  But you’d like to explore some of the other financial arrangements to determine which option is the most advantageous for you and your child.

Here are four additional ways to help your child buy Bloomfield Hills real estate:

1. Give the down payment as a gift.

Before deciding whether to make the money a gift, consider what moral message you may be sending.  You don’t want your child to develop a sense of entitlement and take for granted that he or she can come to you any time they need money.

If you decide you do want to give part or all of the down payment as a gift, consult with your financial adviser to determine the amount you can give away without incurring tax liabilities.

2. Co-sign the bank loan.

This could be all the help your child needs to get a mortgage. It might make sense if he or she is close to graduating college and already has a job lined up or has a solid but irregular income that would disqualify her or him from getting loan approval.

However, there are big risks associated with co-signing a loan. You’re responsible if your child fails to keep up payments, which means the bank will come after you for the money. If your child is late with a payment, it impacts your credit score. If you want to get another loan for a home or some other big expenditure, you may find the co-signed loan uses up your borrowing ability.

Before co-signing a loan, get legal and financial advice.  Also, if your child is married, be sure to have his or her spouse sign the loan and any other written documents that provide the terms of your agreement.

3.   Set up a shared-equity arrangement.

In this arrangement, everything is open to negotiation.  Typically, a written contract spells out that the child (as the homeowner) is responsible for mortgage payments and gets the tax deduction that comes with it, and you (as the investor) are responsible for providing the down payment.

Some of the conditions you’ll want to agree on before finalizing the agreement are who pays the property taxes, whether or not your name will be on the loan and when the investment will be paid back through either selling or refinancing the Bloomfield Hills real estate.

Because of the flexibility inherent in this type of arrangement, it’s crucial to involve your lawyer and have a document drawn up that spells out everything in detail.

Set up a lease-to-own agreement.

Basically, you buy an investment property and rent it to your child.  You can set the terms of the agreement, but here’s how lease-to-own arrangements typically work:

The renter is buying the right to purchase the house later for a given price.  There’s often a large upfront option fee of 1% to 3% of the home’s purchase price.  Or, the option fee can be added to the monthly rent. Usually, some or all of the option fee is credited as a down payment on the purchase of the house.

During the rental period, you still own the home and are legally responsible for it, but your child maintains the property as his or her own. Be sure to have a legally-reviewed contract signed by all parties involved.

If you’re interested in purchasing Bloomfield Hills real estate in Oakland County, Michigan for your adult child or as an investment, I can help.  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

You know my recommendation is that everyone should have a professional property inspection before they close on a house. Wouldn’t it also be a good idea to discover problems with a piece of Bloomfield Hills real estate before you ever make an offer? With some attention to detail, you can find out a lot about the condition of Bloomfield Hills homes.

Here’s a pre-offer, do-it-yourself Bloomfield Hills real estate property inspection checklist to get you started:

• Basement – A basement can give you information about the structure of a house, especially if the basement is unfinished. You’ll want to make sure there are no cracks, the electrical wiring is organized, and there is no evidence of water damage. If there isn’t a basement, examine the exposed foundation on the exterior of the house.
• Electrical panel – Upon examination, it should look orderly and neat. If it is, that doesn’t mean you’re in the clear, but a disorganized panel can often be a sign of shoddy electrical work throughout the house.
• Faucets and fixtures – Is there hot water? Does the shower drip? Does the oven work? Does the toilet run? Not every problem is a major issue, but it’ll give you a good idea of how much care went into the property’s construction and maintenance.
• Attic – Not only should you be looking at available storage space, you’ll want to see how well the insulation was fitted. That can make a huge difference in your monthly electric and gas bills.
• Roof – Missing shingles or interior water damage in homes are bad signs.
• Windows – Make sure they all open and close properly and that you can’t find any drafts, gaps or condensation.
• Interior and exterior finishings – Check out the baseboards and siding to see what kind of shape they’re in. If the builders didn’t pay much attention to what you CAN see, imagine what the internal structure might look like.

Want to work with a professional Bloomfield Hills real estate agent who can help you weed out badly-built or poorly-maintained Bloomfield Hills homes before you make an offer?  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

With the wide array of Bloomfield Hills real estate on the market today, how do you narrow your search without missing out on that perfect home?

Here are 4 steps you can take to narrow your search for Bloomfield Hills homes.

Step 1:  Decide on your top priority.  Is it location, price, number of bedrooms or something else?  Once you’ve decided on the most important feature, concentrate your search there.

Step 2:  Search for homes.  Most people start their Bloomfield Hills home search online.  There are many Bloomfield Hills real estate web sites you can browse through.  Unfortunately, there are two big challenges to searching online:

1. Home listings quickly become out of date and may have incomplete or inaccurate information.  Overcome this challenge by enlisting the help of a Bloomfield Hills real estate agent.  Your agent can quickly get all the current details on Bloomfield Hills homes for sale.
2. You can spend hours searching online without finding what you’re looking for.  Overcome this challenge by setting a limit on the amount of time you spend searching online.  Use a timer to remind you when your time is up, then walk away from the computer.

Step 3:  Get comparables.  After you‘ve narrowed the list to your favorite neighborhoods, get a few sales price comparisons that include homes that have sold in the last six months as well as those with contracts pending.  Make sure you are comparing apples to apples, which means to compare homes that are the same size, same style and in the same neighborhood.  Your real estate agent is the best resource for this type of information.

Step 4:  Double check availability.  Once you’ve made your top picks of Bloomfield Hills homes to view, have your agent make sure the properties are still available and don’t have pending offers.  You don’t want to waste your time going to see a property that is no longer for sale.

Let me do the work for you.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com to find out how I can streamline the search process for you.

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

Buying your first home is exciting, but it can also be expensive, especially if you’re unaware of the mistakes frequently made by many first-time home buyers.  Here are six common mistakes many Bloomfield Hills real estate buyers make and how to avoid them:

1. Going it alone.  Buying a home involves a lot of little (and big) details.  Additionally, buying a home is the most expensive purchase you’ll most likely ever make.  All that adds up to needing a professional on your side.

2. Hiring your cousin.   Although your cousin (or cousin’s best friend) may be a Bloomfield Hills real estate agent, it doesn’t mean she’s the right agent for you.  Do your homework.  Interview at least three buyer’s agents to find the agent who meets all your criteria.  If your cousin meets all your criteria, then hire her.  But only after you’ve done all your homework.

3. Working with the seller’s agent.  One of the most costly mistakes you can make when buying a Bloomfield Hills MI home is working directly with the agent who is selling the home you want to buy.  They are not looking out for your best interests.  They are looking out for the best interests of the seller.  Instead, hire your own buyer’s agent. 

4. Assuming your lender is giving you the best deal.  Lenders are not required to give you the very best terms.  It’s your responsibility to shop for a mortgage the same way you shop for anything you buy.  Consider this:  You’re not just buying a home; you’re buying a very expensive financial product — a mortgage loan.  Getting the best mortgage terms can save you thousands of dollars.  For example, if you get a mortgage for $250,000, at 5 percent interest and keep that loan for a full 30 years, you end up paying $229,910 in interest alone.  Insist on the best mortgage terms, or find a new lender who’s willing to give them to you.

5. Making an unappealing offer.  Yes, this is a buyer’s market, but that doesn’t mean sellers automatically accept any offer that comes their way.  Make your offer impossible to resist by offering the highest price you can, making the largest down payment possible, getting preapproved for a mortgage and attaching a copy of the preapproval letter to your offer.

6. Forgetting about resale potential.  Statistics show that the average first-time home buyer only stays in a home for four years.  That means you need to consider the home’s resale potential now, before buying it.  You may love the hustle and bustle of life on a busy street, but the majority of buyers do not.  You may only need 2 bedrooms, but the average buyer wants 3 or more bedrooms.

If you have any questions about buying Bloomfield Hills real estate or avoiding the mistakes many first-time homebuyers make, give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

If you’re looking at Bloomfield Hills homes to buy, you’re probably overwhelmed by everything you need to take into account before making your final choice.  You have to think about the Bloomfield Hills home’s size, location, price and condition, to name a few. 

Some of the most important features to carefully examine are those that cannot be easily or inexpensively changed.  You can easily and relatively inexpensively repaint the bright pink walls and replace the avocado refrigerator.  But what about the power lines hanging across the backyard?  You may never be able to get those removed.

Here are a few difficult to fix flaws you may want to steer clear of:

• Odd smells coming from businesses in the neighborhood such as farms, garbage dumps and recycling centers 
• A busy road
• Noise from businesses, trains, airports or flight paths
• Super steep driveway or road to the home
• Traffic from busy shopping centers or entertainment facilities
• A floodplain 

Watch out for flaws that are expensive and difficult (or even impossible) to fix.  They can significantly decrease your enjoyment of the home, while you live there.  They can also lengthen your Bloomfield Hills home’s time on the market and reduce its resale value, when you’re ready to sell.

Shopping for a home to buy in Southeast Michigan?  Let me help you find a home that is free of tough to fix flaws.  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
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

Trends for national and Bloomfield Hills homes come and go depending on many factors including the needs and desires of buyers, changes in technology and economic issues.

Here are some 2011 design trends predicted for national and Bloomfield Hills homes.

Kitchens Continue to be the Heart of the Home
People still love kitchens that are open and airy.  Popular kitchen countertops will embrace the green movement switching from granite to crushed recyclable glass under a solid, smooth surface.

Energy Efficiency Remains Important
According to The Joint Center for Housing Studies, homeowners and builders alike continue to make homes more energy efficient.  This is led by regional certification programs as well as national green building standards.

Vintage is Hot
Reproductions from the 1950s, ‘60s and ‘70s will be a hot design trend in home furnishings.  Think of the furniture in the hit TV show “Mad Men.”

Bold Lighting Touches are Added
In addition to functional lighting, bathrooms will boast chandeliers.  Ooh, la la!

Ceilings Become a Focal Point
Ceilings will no longer fade into the background with the addition of architectural enhancements such as domes and bold paint options including metallic colors.

 Whether you’re looking for trendy or traditional Bloomfield Hills homes, I can help you find your perfect fit.  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

As a potential buyer of a Bloomfield Hills home, you may be looking at foreclosures as a way to get a good home at a great price. The Saga of the Housing Bubble continues, however, and it might just have you, the homebuyer, looking at regular housing with a more favorable eye.

In October, numerous mortgage services voluntarily suspended foreclosures nationwide, including Bank of America, J.P. Morgan Chase, Litton Loan Servicing and GMAC Mortgage/Ally Financial. The suspensions include pending foreclosures as well as foreclosure sales, as the mortgage services investigate flaws in their foreclosure processes. For those of you looking at a foreclosed Bloomfield Hills home through one of these companies, it may be a long wait.

Twenty-three states initiated a foreclosure moratorium. In addition, they have begun probing all lenders’ foreclosure processes in those states. Thanks to nationwide, coordinated efforts of State Attorneys General, 17 more states as well as 17 non-judicial foreclosure states have expressed interest in joining the probes. In short, a foreclosure freeze “craze” has begun, upsetting real estate investors and homebuyers alike.

In general, this craze isn’t expected to last long. As well, the lenders don’t expect to find many problems because most foreclosures are believed legitimate. In short, it seems to be simply a matter of improperly reviewed and improperly handled foreclosure documents. Although it’s only expected to last a few weeks, some buyers are left sitting with an offer on the table and no closing.

With the foreclosure processes in question and sales halted, buying a foreclosed Bloomfield Hills home may not be as ideal as you think – at least for a little while. Don’t give up hope on owning your own home, however. Instead, take a few minutes to look over the other homes for sale. Your dream home and great deal may not be a foreclosure after all!

If you’re looking for a beautiful home of 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