Lee Morof's Real Estate Blog

When considering whether you should purchase Southeast Michigan real estate, you want to take into consideration the five-year rule. That’s the minimum number of years many experts believe you need to own a home in order to break even on it when you sell it.  Some experts are now suggesting seven years, but in this article I’ll be talking about the five-year rule.

What happens if you own your Southeast Michigan home for less than five years? Often, you’ll lose money because:

1. You pay thousands of dollars in closing costs each time you buy Southeast Michigan real estate. That money does not build equity or increase the value of your home in any way.
2. In the first five years of your home loan, a much higher percentage of your monthly mortgage payment goes toward interest than toward paying down the principal of the loan balance.

How do you beat the five-year rule?

1. Purchase a property you intend to fix up and rent it out at a rate equal to or higher than the mortgage payment.
2. Buy towards the lower end of what you can afford, and make extra payments to pay down the principal.

Why own for five years minimum?

1. After five years, due to the structure of amortized mortgages, the cost of owning a home equates to the cost of renting.
2. The five-year mark is where you typically start to build equity in your home.
3. Rental prices continue to rise; eventually your mortgage payment could be less than a rent payment.

If you’re interested in learning more about home ownership and want to look at Southeast Michigan real estate for sale, 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
www.NorthWoodwardHomes.com

Buying a home used to be celebrated. It was a sign of growing up and “getting somewhere.” Yet, tell someone you bought real estate in southeast Michigan now days and you might just get wide eyes and a gasped, “You did WHAT?”

If you’re still trying to decide if buying real estate in southeast Michigan is for you, consider all the reasons why people are still buying homes. 

Well, first, you have the reasons that have stood the test of time:

• Once you buy a house, it’s yours until you decide to sell it.
• You experience pride of ownership. 
• There’s also a sense of security in owning your own home, which is something missing in renting.

While those traditional reasons are tried, tested and true, there are others:

• Mortgage rates hit an all-time low, which became a big incentive for some buyers.  Potential buyers looked at the interest rates and figured they could never get a better deal on a mortgage.
• Home prices are lower too. Yes, the media says home prices may decline more, but the key word is “may.” The experts can predict all they want, but you don’t know for sure until it happens. Some first-time buyers looked at the prices, weighed their decision on “what if the prices start rising again” and signed the deal.

What about you? If you’re looking at the possibility of buying real estate in southeast Michigan, what would get you to sign on the dotted line? Put your requirements and goals in writing, and make them realistic. When all the cards are right, there’s nothing left to do but play your hand.

If you’re looking for a great property to own, I can help. Call me 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

It’s a war out there. If you’re still sitting in your robe and slippers, sipping a cup o’ joe while you casually read the Sunday comics – with the absolute knowledge that your house is going to sell – you haven’t been paying attention. The percentage of homes for sale in Southeast Michigan versus qualified potential buyers has made this an extreme buyer’s market.  

It’s time for some tough love, sellers – some straight talk.

If you’re not ready to do more than spruce up your lawn a little, you won’t win the battle. You won’t even win a skirmish. In short, if you’re not doing everything you can (or pushing your agent about him doing everything he can) to get your home taken off the list of homes for sale in Southeast Michigan, you’re not a motivated seller.

Motivated sellers use all the knowledge they can squeeze from their agent. Unless it’s a matter of money (they don’t have any), they don’t argue when the agent mentions things like home staging. They ask, “What are my options?”

Motivated sellers don’t think “negotiation” is a bad word. They consider it common business sense. For example, if a home inspector looks your home over and notices a few issues, offer to fix those issues immediately. If a potential buyer offers you $5,000 less than your listed price, actually think about it. You may not get another buyer anytime soon.

Motivated sellers don’t consider taking photos of the house “a waste of time,” or posting them online as “useless.” They listen to real estate agents (their own or in posts like these) and do what they can to implement what’s been learned.

If you aren’t a motivated seller, why is your home listed? Now isn’t the time to test the waters, because the waters are full of sharks, barracudas and other dangerous things with big teeth. Before you wonder why that house of yours is still one of the homes for sale in Southeast Michigan, think about it. Are you a motivated seller?

If you’re a motivated seller looking for a real estate agent who can help you win this war, call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com today.

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

You have a for sale sign in front of your home for sale in Southeast Michigan. Even though the real estate market is slow, you still see other houses being bought. What’s the matter with yours? Why is your home still sitting on the market? Is it you? Is it your home? Is it your agent? It may just be your online marketing (or lack of it).

Do Upload Photos
The internet is one of most popular places for homebuyers to do their initial shopping.  If your home for sale in Southeast Michigan isn’t online, it needs to be there. If it is online, it needs pictures. If it has pictures, pay attention to the following issues:

• Dark or grainy pictures
• Images with closed windows, drapes and/or blinds
• Photos of rooms with clutter
• Only one photo, and it’s of the front of the house
• Images that haven’t been adjusted to look their best online

Finally, ask yourself, if a picture says a thousand words, what are the photos of my home saying? If your pictures don’t look friendly and inviting, and if they don’t make your home look its very best, you might as well take your home off the market.

Do Add Data
Don’t forget to add important information. Think about it. How many other homes are being sold online? What makes yours better/different? In other words, why should a buyer take the time to look at your house in person?

Buyers aren’t mind readers. They can’t look at a picture and see that your home has 4 bedrooms and 2.5 baths.  You have to tell them that.  If your house also has a large backyard, walking paths nearby or green home features, by all means, brag about it.

Don’t Restrict Showings
People need to see your home in person before they’ll decide to buy it. Unfortunately, many sellers make the mistake of having restricted showing hours, needing appointments for a showing and not being available when they have a prospective buyer.  Instead…

• Do use a lockbox, so you don’t have to be there for an agent to show the house.
• Don’t set restricted hours.  This makes showing the home at the buyer’s convenience difficult, and you definitely want it to be convenient for your potential buyer.

There are several areas where marketing can go bad and become a missed opportunity for selling your home. However, if you make it convenient, show your home at its best and don’t overprice, you’re well on your way to changing “for sale” to “sold.”

If you want an agent who will market your home for sale in Southeast Michigan to its best advantage, give me a 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

Setting the asking price for your home for sale is one of the most important decisions a Southeast Michigan real estate homeowner has to make in the selling process.  Why is it so important?

1. You only get one chance to make a good first impression.  With so many competing Southeast Michigan homes for sale, yours has to pop out immediately as a good value or buyers will move on, unlikely to return. You get one stab at your home’s debut, and it’s easy to blow it.

2. Set the price too high and you could hurt your chances of selling your home.  The amount of traffic a home gets in the first week on the market is about 5 times what it gets the following weeks.  The traffic continues to decrease every week. You might say, “Well, I’ll just lower my price.”  This hurts almost as much as it helps.  It conveys to buyers (the few who are still considering your home) that your home was overpriced and may still be.

3. Setting the price too low can be almost as harmful. Buyers who are looking in a specific price range may not consider your home because of the low price tag.  They assume it will not fulfill their needs or worry that there’s something wrong with it.

How do you know what that magic number should be for your home?  Here are 3 factors to take into consideration when setting your asking price:

1. Neighborhood sales prices:  Recent closed sales in your immediate neighborhood offer the most pertinent data for predicting the sale price of your home.  List prices of homes still on the market should be taken into consideration also, because they show the current pricing trend.  A professional Southeast Michigan real estate agent will do all this research for you as part of their services.

2. Condition of your home:  If your home has been better maintained, is more up to date and shows better than the other homes for sale, it will sell faster and for more money. Updates, even those as minor as having current paint colors, impact pricing.  Updated kitchens and baths are especially important to buyers.

3. Appraisal value:  As the seller, you can get an appraisal on your home before putting it on the market.  You’ll have to pay for it, but it may be worth it to get access to this pricing tool.

Are you ready to sell your Southeast Michigan real estate?  Let me do the research for you and help you set the best price to get your home sold.  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

Rejection is a hard thing to face in life, whether it’s from a potential client, a potential boss or a potential home seller.  As a Southeast Michigan real estate buyer, your stress level might be reduced if you’re aware of some of the reasons a seller may reject your offer.   

Before I give you the list of reasons, I’d like to mention that even if you and your buyer’s agent do everything right, the seller may still reject your offer.  It frequently has nothing to do with you.

With that said, here are 5 common reasons sellers reject offers on their homes: 

1. The offer wasn’t enough for them to pay off their mortgage. For most sellers, the bottom line is paying off their mortgage. If your offer won’t cover the mortgage, they cannot accept it.

2. They may have just been testing the waters to see what they can get for their home.

3. Their plans may have changed. People put their homes on the market because they need to move, they want to upgrade their home, or they can no longer afford their home. If the circumstances change, they may not need to sell their Southeast Michigan real estate.

4. Their deal may have fallen through. Perhaps your seller was buying another house contingent on the sale of their property. If something went wrong with that deal, they may not be able to sell their home to you.

5. You may be asking too much of them. The seller may not have the time or money to make any repairs they think are insignificant. Perhaps you want to close too soon or would like to move in to the home before closing.

Don’t get depressed when a seller rejects your offer. There may be many reasons for their refusal.  Help your Southeast Michigan real estate agent develop a counter offer, or move on to a new opportunity.  There are a lot of homes on the market.  You may be pleasantly surprised when you start looking again and find a home that fits your lifestyle even better.

When you’re ready to buy a home, I can help you find a great home and negotiate to a successful “Yes, we’ll accept your offer.” 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

Have you ever seen a child right after a huge chewing gum bubble pops on his face? A mess everywhere, eyes wide, mouth in an “O” – rather reminiscent of the real estate industry when its own bubble popped. Homeowners panicked and began trying to sell their Southeast Michigan homes.

As more pushed to unload the instantly unwanted “step child” of homeownership, the Southeast Michigan real estate market became glutted, resulting in lower sales prices. Two years later, some owners are still trying to sell their homes, still panicking, and still worried about what the future will bring. However, you might be like some homeowners, who are indecisive about selling their homes or who realize they don’t really want to sell.

Stop.

Take a deep breath.

Quit worrying for a moment and ask yourself… Why am I selling?

There are good reasons to sell:

• Your house has become hard to afford.
• You’re getting older and need to move somewhere that doesn’t take as much maintenance.
• You need to relocate for your job.

But there are a lot of not-so-good reasons to sell:

• You’ve read so much about people who have been unable to sell their homes that you became alarmed and put yours on the Southeast Michigan real estate market “just in case” you want to sell it later.
• You’re simply tired of your home.  If that’s the case, all you actually need to do is update or redecorate your home to make it sparkle again.
• You’d just like to see what you can get for your home.

It may seem strange for a Southeast Michigan real estate agent to speak against selling homes. However, my first motivation is always doing what’s best for my client, including giving them the best advice I can. So, I urge you to take a moment and think about it:  do you really need to sell your home now?

Even if your home has lost some of its value, there are many ways that your home is still very valuable:

• Building credit – Home ownership is still a good way to build credit. With good credit you can borrow for other major expenses, such as a new car.
• Building equity – The average home equity for the U.S. is approximately $38,000. When you consider how much your home costs, that may not seem like much. However, when you are ready to sell, that equity will be there to put toward your next home purchase or your retirement savings.
• Saving money on taxes – Owning a home offers several tax benefits. For most Americans, the biggest benefit is deducting the annual interest paid on a mortgage.
• Living well – There’s a reason why homeownership is still called the American Dream.  It simply feels good to live in a home you love.  That you can decorate any way you want.  A home that’s your very own.

Now think about why you bought your home in the first place. Do the things still exist that made you value the home enough to buy it?  If yes, maybe you should stay.

If you do need (or want) to sell your Southeast Michigan real estate, I can help. Call me today 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

There has truly never been a better time to think about buying a new home. The current economy has created a buyers’ market like never before. This works to your advantage, and the fact that the real estate market is recovering means that buying Southeast Michigan real estate as a future investment is a smart move.

Consider New Construction
Builders are faced with unsold homes in developments and are willing to make deals. They are interested in all reasonable offers, and, especially if you have pre-approved financing, will negotiate with your real estate agent to give you better price and terms. It is in their best interest to get their existing homes sold.

Best Mortgage Rates in Current History
You can take advantage of the low mortgage rates to get fantastic payments on your new Southeast Michigan real estate. These low rates won’t last forever, so if you have good credit and solid employment, buy now to make your new home truly affordable.

Tax Credits
If you or your spouse has never owned a home, or if neither of you have owned a home as a principle residence in the past 3 years, buying a home now makes financial sense. You will get a large tax rebate at the end of the year for making a home purchase now.  However, you must act immediately because you have to have a binding contract signed no later than April 30, 2010, and close on the home no later than June 30, 2010, in order to qualify for this first-time home buyer tax credit. 

If you’re a repeat home buyer, you too might qualify for a tax credit.  Again, you must act fast.  The same dates apply for this repeat home buyer tax credit as for the first-time home buyer tax credit. 

Affordability and Availability
The market is wide open for buyers now, and finding the perfect home at a reasonable price is easier than ever before. Waiting too long can prove to be a very costly decision. The market is getting stronger and tax credits are coming to an end. Over the course of the next year, it will become increasingly more difficult to buy Southeast Michigan real estate at prices and rates now available.

If you would like more information on the intelligence of buying a new home now, please call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I look forward to talking with you!

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

It can happen to even the best Southeast Michigan real estate for sale. It has great curb appeal and the interior shows well. So, why isn’t it selling? 

Even if your home is the best home in the neighborhood, it can still end up languishing on the market  as others around it sell. So, what can you do to get your home sold?

Check Your Price

Being over priced, even by a relatively small amount, is the most common reason homes don’t sell.  The wrong price can prevent potential buyers from even looking at your home.  Keep your emotions out of the calculations.  Of course, you love your home and think it’s very valuable.  But, you need to look at it as an impartial outsider.  Examine the facts and figures presented by your real estate agent, and take his or her expert advice.  Price isn’t the only factor to consider.

Picture It

Homes marketed with only one or two photos are passed by. The more photos the better, but any old photos won’t do.  You need quality photos.  Consider hiring a professional real estate photographer,  or work with a real estate agent who will get professional photographs for you. 

Promote It Online

These days almost 80% of all buyers start their home search online.  Make sure your home is marketed on multiple websites to get the broadest possible exposure.  In addition to using multiple photos as mentioned above, a great online marketing tool is a virtual tour.  Ask your agent to create a professional virtual tour for your home.

Market it Everywhere

Advertise your home in as many ways and as many places as possible.  Here are a few ideas:

• Colorful flyers
• Home magazine ads
• Postcard mailings
• Emails to other agents and potential buyers

If you would like more information on how to get a stagnant home moving, 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

Whether you are new to home buying or an experienced home buyer, you should take a minute to read this information before you set out to purchase Southeast Michigan real estate in Oakland County.

Look Before You Leap

Anyone who has bought a home in the past knows how good one can look when you walk through it. Even after you close on the sale and move in, all looks good, for a while. Then you begin to notice the little things. Things you should have known to look for when viewing. Be sure to have your home thoroughly inspected by a professional home inspector. 

Avoid Problems at Closing

Title company issues can put a damper on your closing and possibly cause you to be without a home.  How? Once your current home is sold and the new owners want to move in, you’ll be looking for a place to live until you can get the closing issues resolved.   Or, if you’re renting and your lease is up, you’ll need to get out or sign for another term.  Work with a professional Southeast Michigan real estate agent who can successfully guide you through the home buying and home closing process.  

Avoid First-Time Buyer Mistakes

Beyond the hidden problems of a home there are typical first time buyer mistakes to avoid when looking for Southeast Michigan real estate such as:

• How to estimate the cost of fixing up an older home.
• How to negotiate a better price and terms.
• The burdens of a long commute and how to decide how far is too far.

Buying a new home is fun and exhilarating, if you do your homework first to avoid making costly mistakes.

Whether you just want a recommendation for a professional home inspector or are looking for a new Southeast Michigan home, I can help.  Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com now.  You’ll be glad you did! 

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