Lee Morof's Real Estate Blog

When it comes to buying Bloomfield Hills real estate, people focus on the basic questions: Are there enough bedrooms? Is it in a good neighborhood? How is the school system? While these are important points, you also need to focus on the quality of the house itself.

The quality and maintenance of a house can be overlooked when buyers get excited about investing in a home. Fortunately, there are a few areas you can check to get a quick idea of how the Bloomfield Hills real estate was built and how well it’s been maintained.

1. Look at the foundation. A few small cracks may not be a big deal, but multiple cracked areas could spell trouble. Also, try to see a home in the rain, so that you can look for water pools that could turn into basement leaks.
2. Take a look under the kitchen sink and bathroom vanities. Any signs of water damage could mean more serious plumbing issues.
3. Don’t overlook the utilities. Rusty water heaters, beat up furnaces and older model air conditioners could mean costly upgrades in the near future.
4. Peek into the attic. You want to see plenty of insulation, neatly run electrical lines and absolutely no sign of any moisture. If something looks off to you, make sure your home inspector really checks out the area.
5. Inspect the sidewalk, driveway and deck. Landscaping, concrete and wood decking in need of repair can lead to big bills down the road.
6. Examine everything you can see on the outside. Look at what you can see of the roof. Are there any shingles missing? Has part of it discolored? Are the gutters in good condition? Also, examine all of the brick and siding.
7. Open the electrical box. You want to see everything neatly organized and the area each breaker covers clearly indicated.

Remember, buying a home is a huge investment. Do your research and have everything checked out by a professional.

If you’re looking to buy Bloomfield Hills real estate, I can help.  Please call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

Sellers need to know if you are serious about buying their home. Earnest money is a good faith deposit  that demonstrates to the sellers that you are serious about purchasing their home. This deposit can, and probably will be, forfeited if you walk away from purchasing the Bloomfield Hills real estate.

What is a standard earnest money deposit? There is no set amount, but 1% to 3% of the agreed upon sale price of the Bloomfield Hills real estate is typical. The amount varies depending on your local customs.

Here are a few precautions you should take to protect your earnest money:

• Never give an earnest money deposit to the seller – not even if you’re buying a home that is for sale by owner (FSBO).
• Make the deposit payable to a reputable legal firm, escrow company, title company, or well-known real estate brokerage.
• Verify that your deposit will be put into a separately maintained trust account, and only dispersed according to the terms of the real estate contract.
• Never authorize a release of your earnest money until the purchase transaction closes.

Is your earnest money refundable if you cancel the Bloomfield Hills real estate contract?  Laws vary from state to state, so be sure to read and understand your contract before signing it. Some states have a grace period in which to cancel the contract. If cancelled, both parties must sign mutual release statements before your earnest money is refunded.

When you are ready to find your next Bloomfield Hills home, I can help. Give me a call 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
www.NorthWoodwardHomes.com

If you are considering buying new Bloomfield Hills real estate, you may have more fellow buyers than you might think. According to the census report released in May, over the last year, sales of new, single-family homes have increased by 19.8%!

This positive sign for the housing market, and its economic ripples into other sectors, are signs of life for a reviving economy. As such, this means investing in new Bloomfield Hills real estate right now could be a wise investment.

Buying new construction over existing homes has advantages you may not have considered:

1. You choose the options: Depending on the builder of your new home, and how far along he is in the construction process, you may be able to change floor plans and interior design options that you would have to live with in existing homes.
2. Flexible closing dates: Because you are negotiating with the builder, and not the current homeowner, you may find more flexibility in setting a closing date that works for your schedule.
3. Energy Savings: New home construction often uses more energy-efficient approaches to building and newer, more efficient appliances. If your home is Energy Star certified, it could be up to 30% more energy efficient than an older home.
4. Fewer Repairs: The odds are that a new home will need substantially fewer repairs to its structure, appliances, HVAC, roof and other big ticket items than a 20-year-old home will need.

If you’re looking for more information on new Bloomfield Hills real estate, I can help. Give me a call today 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
www.NorthWoodwardHomes.com

Like any commodity, you’re going to make money if you buy Bloomfield Hills real estate when the prices are low and sell when the prices are high. So why haven’t you, and millions of others like you, bought a home during the major downturn in the real estate market?

When pushed for an answer, many potential buyers respond that they’re afraid, unsure or allowing their emotions to guide them. They’re worried that the prices of Bloomfield Hills real estate will have another huge drop. Or they’re unsure if the prices have reached the rock bottom so they can get the very lowest price possible.

Stop allowing your emotions to guide you. Face the facts. The real estate market is steadily improving.  Those low prices are gradually moving higher and higher. It’s time to get off the fence and buy while real estate prices are still low. Then you’ll have the pleasure of selling after the prices go higher.

If you’re still unsure if now is the best time for you to buy Bloomfield Hills real estate, consider these additional factors:

1. Rent will increase each year no matter what the real estate market does. What is the maximum interest rate you could ever pay, and what would your mortgage payments be at that rate? Have your mortgage broker do the math for you. Is that more or less than you’d pay for rent 10 years from now?
2. Interest rates are at historical lows. Do you really want to miss out on both low home prices and low interest rates?
3. You can deduct the mortgage interest from your taxes. In most cases, you can deduct all of your home mortgage interest. This can save you a bundle.

If you’re ready to buy low, give me a call today 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
www.NorthWoodwardHomes.com

Whether you’ve bought and sold a dozen homes or you’re a first-time home buyer, you probably know that after you purchase Bloomfield Hills real estate, there is usually no option to return or exchange it. Because of this finality, you need to be sure your contract spells out all the conditions you want met before the deal can close. In real estate contracts, these conditions are called contingencies.

Contingencies are the requirements that both the buyer and the seller must meet in order for the closing contract to be valid. If something does not meet specific criteria, the contract must be renegotiated or it becomes null. Below is a list of contract contingencies every buyer should include in their bid — so that you don’t end up with an unexpected fixer-upper on your hands!

• Home Inspection Contingency – This is a really important contingency because you want to make sure there are no problems with the Bloomfield Hills real estate. If any serious problems are discovered, such as wood-destroying pests, lead-based paint or a damaged roof, you can renegotiate your contract to account for the costs you’ll incur during repairs.
• Loan Contingency – This allows the buyer to shop around for a loan so that they can get financed under a particular interest rate and not get locked into high mortgage payments that they cannot afford. If a buyer can’t secure a loan that meets the contingency parameters, then the contract can be voided.
• Home Insurance Contingency – This means that you’re asking the seller to provide proof that the home is currently insured. This is needed because, in recent years, homeowners living in states with a history of household toxic mold, earthquakes, or hurricanes, have been surprised to receive a flat out “no” from the insurance carriers. You want to make certain that the home is insurable before you buy it. If there are serious issues with the home, insurance companies might reject it or charge astronomical rates.

If you would like to know more about contingencies or need help buying Bloomfield Hills real estate, 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
www.NorthWoodwardHomes.com

If you’re looking to purchase Bloomfield Hills real estate, you’ll probably come across many terms you don’t know — including concurrent ownership. This essentially means that more than just one individual can own property. You might be extremely interested in the details of concurrent ownership if you’re purchasing a property with another person, are married or have children.

It’s always good to educate yourself, so that you can assess all the options and maybe show off to your Bloomfield Hills real estate agent and loved ones if you happen to come across this term during your house hunt. Below is the basic breakdown of the four main types of concurrent ownership.

1. Joint Tenancy with the Right of Survivorship – This means that owners retain equal share of the property. In the event that one of the owners dies, their share of the property is distributed equally among the remaining owners. Be sure to use specific language in your deed or will, otherwise the property might be considered tenancy in common.
2. Tenancy in Common – One or more people own the property, but the shares might not be equal. Also, if one owner were to die, the property would be passed by will or inheritance, and not necessarily to the other owners.
   3. Tenancy by Entirety – This type of concurrent ownership is usually between a husband and wife. It states that the entirety of the property passes to the spouse upon one of their deaths. A divorce in most cases will change the tenancy of entirety to tenancy in common.
3. Community Property – Not all states recognize this type of joint ownership. However, if your state does, then all property acquired during a marriage is communal, while anything owned before the union or that has been inherited or gifted would remain separate property in the case of divorce.

By knowing the definition of concurrent ownership, you’ll be able to ensure that any communally owned property will be distributed the way you see fit in the case of an unexpected death.

Whether you’re thinking about purchasing Bloomfield Hills real estate by yourself or with multiple people, I’d love to help. Please call me 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

The process of buying a new home is daunting enough without having to track down all the various paperwork necessary at the last minute. Don’t endure extra stress! Get your paperwork together early, so that you can feel piece of mind when purchasing Bloomfield Hills real estate.

You should have the list of documents below in hand before you make an offer on a home. This will ensure the purchase process is as quick as possible. Every mortgage lender’s requirements can be different, so double-check with yours for a comprehensive list.

• ID – This might seem like a no-brainer to most people, but just make sure you have official identification.

• Pay stubs – Your lender will want proof that you’re still earning an income, so inquire about how many months worth they’ll want you to provide.

• Gift letter – If someone else is helping you with your down payment, the mortgage lender will want to know if you’re receiving a gift or a loan. If someone else is loaning you money, your lender will want to take that debt into account before approving your mortgage.

• Tax returns – Your lender is going to want almost any financial document you can think of. Bring at least the last two years of tax records to be on the safe side.

• Bank account statements – Bring at least the statements from the most recent two months, especially if the bank where your accounts are is not your mortgage provider. Also bring any other financially-related paperwork — that includes proof of child-support or alimony payments.

• Divorce decree – Especially if it’s recent, you’ll want to be able to prove that you’re no longer responsible for your ex’s debts.

In short, if you receive anything at all in the mail regarding your personal finances, make copies and bring them with you when you’re seeking mortgage pre-approval. You never know what the bank will ask for, so try to have everything.

If you want to learn more about preparing Bloomfield Hills real estate purchasing paperwork, I can help.   Call me today 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

Don’t you just love it when the evening news finally shares some good news?  I do too!  So, I want to do my part and share some good news with you today:  Bloomfield Hills homes and homes nationwide are becoming more affordable.   In fact, according to the National Association of REALTORS®, housing affordability is close to reaching an all-time high. 

Big Benefit to Buyers

Exactly how does this benefit the buyers of Bloomfield Hills homes?  A typical buyer can pay much less in mortgage costs for the same home, or buy a better home without increasing their monthly payment.

Reasons for Improvement

There are several reasons housing affordability is improving:

1. Lower mortgage rates.  The primary reason Bloomfield Hills homes are now more affordable is that we have the lowest mortgage rates in history. 

2. Declining house prices.  As with all things real estate, local markets dictate housing prices, but, overall, prices of homes have dropped across the nation.  Some markets encountered only minimal price declines while others experienced major declines.

3. Higher wages.  You probably don’t feel like there’s been an increase in wages, but there has been a small one.  In 2009, the average wage rate rose 3 percent and is up an additional 1.2 percent so far this year.

The Bottom Line

If you’d like to buy a home, have good credit and a steady job, the real estate market has never looked more favorable.

Ready to buy a home?  Let me help you find the home of your dreams and get it at a great price.  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

On June 16, the Senate approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives.  If the plan passes, it means you’ll have until September 30, 2010, to close on your Bloomfield Hills real estate and qualify for tax credits of up to $8,000.  (First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.)

Who Qualifies?

Originally, you had to sign a contract to purchase a home by April 30, 2010, and close no later than June 30, 2010.  With this extension, anyone who had a signed purchase agreement by April 30 would have until September 30 to close on the sale of that home.

Why the Extension?

Mortgage lenders have been swamped with borrowers trying to get their Bloomfield Hills real estate home purchases approved by June 30.  Many potential borrowers are having difficulty meeting that deadline. 

The National Association of REALTORS® (NAR) estimates that 180,000 buyers are likely to miss the June 30 deadline “because of delays in the process.” That’s particularly true of short sales, the NAR noted.

Is it Approved?

Unfortunately, an extension of the deadline for the federal homebuyer tax credit remains tied to Senate legislation that would extend unemployment benefits, complicating efforts to get the deadline extended before the expiration date of June 30. 

But don’t give up hope.  If lawmakers extend the deadline after June 30, the language in both the House and Senate bills will apply retroactively.

Have questions about the federal tax credits?  Or any other questions about Bloomfield Hills real estate?  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I’ll respond promptly and personally.

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

April has a lot of important and semi-important dates in it. The tax deadline, Good Friday and Easter are just a few. What is April 5th, though, and what does it have to do with Bloomfield Hills real estate buyers? Well, the biggest news is that the government has stepped into real estate and short sales.

Home sales are down nation-wide, despite the Obama administration’s efforts with the first-time buyer’s tax credit. Many homebuyers are waiting for a better interest rate or to see if home prices will drop more. Meanwhile, owners of Bloomfield Hills real estate are preparing for the spring selling season, without any idea whether they’ll actually be able to sell or not.

Part of the reason for this situation is because of the depreciated housing values. For instance, many potential buyers want to take advantage of the repeat buyer’s tax credit, but can’t. They currently own a home that’s facing foreclosure, are trying to sell that home, but can’t because it’s underwater. This puts a wrench in the whole market.

The government’s solution is short sale. There’s always been the option for those facing foreclosure to opt for short sale, but (thanks, in part, to the many scams out there) few choose this option. The Obama administration has decided that, if they can’t help with foreclosure, they’ll pay people to accept short sale.

Starting April 5, 2010, the government is encouraging delinquent borrowers who can’t be helped through loan modification programs to go through a streamlined short sale process. Many potential short sellers have gotten offers the lenders won’t agree to, which this program called HAFA (Home Affordable Foreclosure Alternatives), is geared towards fixing. Here’s how:

• The servicing bank that allows the short sale gets $1,000.
• The homeowner gets $1,000 to go towards a second loan.
• The homeowner gets $1,500 in relocation assistance.

Even with this program, lenders are wary of short sales. Depending on the price of the short sale, there’s a possibility that lenders could lose a large amount of money. However, under the new program, real estate agents will be working with the lender to determine the value of the home and what the minimum price should be. If the short sale offer meets or exceeds that minimum, the lender has to accept it.

The hope is that this program will slow the tide of foreclosures, free homeowners up to become repeat buyers, sell more homes and, ultimately, improve the flow of the real estate market. The good news about all this is if the program does even a quarter of what the administration plans, there may not be enough Bloomfield Hills real estate to go around!

Have questions about the new HAFA program or any other real estate incentive programs?  I’m happy to answer your questions.  Give me a call 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