Lee Morof's Real Estate Blog

Are you considering buying a fixer-upper in order to get a great deal on Southeast Michigan real estate? If you are able to make a few home improvements yourself, you may be able to save thousands on the purchase price of investment property.

Several things are important to think about before you buy that fixer-upper.  The first is the condition of the house.  Some repairs are so expensive and difficult to make that you might not be able to recoup your initial investment. Basic repairs that you can reasonably expect to complete are:

• Removing old wallpaper, patching the walls and painting the interior and exterior.
• Replacing worn-out flooring and carpet.
• Repairing any broken windows or light fixtures, including ceiling fans. 

If you venture too much farther into home improvement territory, you may find that you bit off more than you can chew.  As a rule, heating and central air conditioning repairs are expensive.  Similarly, foundation repair and re-roofing are usually too much for the average handyman to tackle.

Other projects that are often not cost-effective are complete kitchen and bathroom remodeling and replacing the main plumbing of your Southeast Michigan real estate.  Any improvement that involves building an addition or tearing out walls probably won’t have a good return on your money.

After you find that fixer-upper in just the right state of disrepair, too derelict to catch anyone’s attention, but without any repairs beyond your abilities, you’ll want to make sure that the location is good.  If the Oakland County real estate you’re considering buying, in Southeast Michigan, is near a busy highway or close to a rail yard, you may have trouble finding a buyer after you’ve fixed it up. 

To get the best return on your investment, you need to find a fixer-upper with the right combination of location and condition.  I can help you find a great buy on investment property, call me today at 248-514-2640 or email info@NorthWoodwardHomes.com.

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

If you lost your real estate because of Michigan foreclosures, you probably haven’t given up on your dream, of owning a home.  You may be scared to try for financing – afraid you’ll be turned down and embarrassed in the process. 

There are few guidelines that lenders follow to determine when you’ll qualify for financing after foreclosure.  Arming yourself with this information will help you overcome your fears and qualify for a mortgage again.

Foreclosure With Extenuating Circumstances
Generally, lenders will take into consideration any extenuating circumstances surrounding Michigan foreclosures on your home.  Was there a death or illness that prevented you from earning money to pay your mortgage?  Did you have a job transfer that came with a steep pay cut?  Were you severely injured and temporarily disabled as a result?

You can add a memo to your credit report that explains any lapses in credit worthiness to potential lenders.  This report can be up to two hundred words and will be shown to all who look at your credit report.

Many lenders will shorten the waiting period for documented extenuating circumstances.  The customary waiting period after a foreclosure is at least seven years.  But with documentation, the waiting period can be shortened to as little as three years.

Deed-in-Lieu of Foreclosure and Short Sale
You may be wondering what the waiting period for financing is for deed-in-lieu of foreclosure or in the case of a short sale.  Fortunately lenders aren’t quite as strict if you were able to avoid an actual foreclosure sale.

The waiting period for a deed-in-lieu of foreclosure is four to seven years.  If there were special circumstances surrounding the deal, you may be able to qualify in as little as two years.  The lender may require a certain down payment or credit score as a condition of approval.

Getting financing after a short sale is the easiest.  Generally the lender will only require a two year waiting period before they’ll approve financing. 

The good news about financing after becoming one of the Michigan foreclosures is that it is possible.  Your dreams of owning Troy Michigan real estate don’t have to end because you’ve had a foreclosure in your past. You may just have to be a little more patient.

Whether you’re ready to buy your next home or simply have a question about southeast Michigan real estate, I’d love to help.  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

Thinking of selling your Southeast Michigan real estate For Sale by Owner?  Consider this!

The National Association of Realtors (NAR) has recently published its 2008 Profile of Home Buyers and Sellers which is based on a survey of approximately 10,000 people who bought homes between July 2007 and July 2008.  During this period of time, the average for sale by owner (FSBO) home seller did poorly.  According to the data, FSBO sellers only had a 7% chance of selling to someone that they did not already know.  To make matters worse, that FSBO home seller sold the home for 29% less than he or she would have had they used the services of a REALTOR® to sell their home. 

The NAR Report provides some insight as to why the numbers are so bad for the FSBO home seller.  The survey also asked how the home buyer actually found the home that he or she purchased. 34% found the home through a REALTOR® and 32% through the internet.  Most FSBO home sellers attempt to sell their home by placing a For Sale By Owner Sign on the front lawn of the home and do little else if anything.  By doing so, they effectively eliminate 66% of all buyers who might be looking for a home such as theirs!

If you’re thinking about selling your home by yourself, think again.  By hiring a REALTOR® you’ll increase your chance of success!  Most likely you’ll end up netting more money, and find the process a whole lot easier and convenient than you would by trying to go at it alone without the help of a professional.

Are you thinking about selling your home?   Preparing your home for market is very important, especially in today’s real estate market.  Homes that have been “staged” sell quicker and for more money.  Order your free book, “Staging Tips to Prepare Your Home for Market.”  Absolutely no obligation or strings attached!

Ready to work with one of the best Southeast Michigan real estate agents, one who can help you get Top Dollar for your home or property…and keep you from making costly mistakes?  Learn more about my 30-Day Marketing Plan that gets proven results. 

Give me a call at 248-514-2640 or drop me an email at info@NorthWoodwardHomes.com now for more information.

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

Whether you are facing retirement or have already said good-bye to your working years, you may be wondering if you should sell your home and move. Although this is not an easy decision, there are some important points that can help you make up your mind. Before you buy Southeast Michigan real estate, ask yourself these four questions.

• What activities do I enjoy? Make sure you buy a home in a location that gives you the opportunity to do what you like. Southeast Michigan provides lots of natural scenic beauty.  There are year-round outdoor activities and sports for an active lifestyle.  In the summer you can go boating and fishing on local rivers and lakes.  Oakland County has many public and private golf courses:  Just click on my Community Guide to find golf courses in the community of your choice.  Winters are great for skiing, snowmobiling, snowshoeing, ice hockey, ice skating…and much more. 
• Will my family be able to visit me? Your children and grandchildren will want to visit you after you move. They also need to be able to reach you easily in the event of an emergency. When you buy Southeast Michigan real estate you’ll be close to the Detroit Metropolitan International Airport, local bus transportation, and AMTRAK train stations.
• Do I like the area year-round? Unless you plan to split your time between two homes, you need to make sure you like the area year-round. Oakland County in Southeast Michigan offers many social and cultural activities throughout the year for your enjoyment.
• Can I afford to live here? Check the cost of living and government taxes to find what works best with your retirement budget.

Are you planning to move after you retire? Lee Morof can help you find and buy Southeast Michigan real estate that will meet your unique needs.  Learn why Lee is not your Typical REALTOR®. If you’re interested in finding out more about Southeast Michigan homes for sale, call Lee at 248-514-2640 or email info@NorthWoodwardHomes.com today!

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

Whether it’s election year politics, the White House responding to poor public opnion or a probable veto override or political payback to the lending industry, Congress and the White House will shortly enact housing legislation which will provide relief to Oakland County, Michigan which has been hit hard by a huge rise in foreclosed homes on the market. Presently one in every two homes sold in Oakland County is bank owned as the result of a bank foreclosure. It is expected that the new law will save an estimated 400,000 homeowners from foreclosure by allowing them to refinance into more affordable loans backed by FHA. The law will provide $3.9 billion to areas hit hard by the housing crises to buy and fix up foreclosed homes. Lastly, the legislation will give the Treasury Department power to spend unlimited amounts to keep Fannie Mae and Freddie Mac solvent. The net result of the new law will be a reduction in foreclosed properties on the market which, in turn, will cause prices to stabilize.

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

I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County, Southeast, Michigan. About a year ago, I posted a blog entry about a law client of mine that decided to sell his home by himself on land contract to buyers he found through Craig List. For the record, I did advise him against it. According to the National Association of Realtors Survey of Home Buyers and Sellers, on average, FSBO sellers sold their homes for 25% percent less in 2007 than they would have, had they used the services of a realtor. Moreover, the fact of the matter is that if someone needs to buy a home on land contract, red flags should be flying all ove the place. I regularly advise my clients that if a bank has decided that the buyer will not pay the bank back, what makes you think they will pay you back?

Now, a year later, the client wishes he had listened to my advice. First, he sold the home for 32% less than the lowest comparable sale. Second, he has been in and out of court as the buyers rarely made their payments on time. Now, the seller has taken the home back through court proceedings and the home has been destroyed on the inside. I do feel bad for the client but you have to wonder, will he listen to my advice the next time? For his sake, let’s hope so.

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

In July of 2007, I had a short sale listing with a well known Southeast Michigan real estate mortgage lender having a first lien. I was able to negotiate a $135,000 sale for the seller which was fair market value at the time. After several months of deliberation, the bank denied its approval for the short sale and ended up foreclosing. Now, approximately one year later, the bank sold the home for $95,000. Amazing!!!!!

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

The good housing numbers continue for Southeast Michigan real estate in Oakland County. May 2008 sales are up by 9.3%, pending sales are up by 15.6%, and listing inventories are down by 7.43% as compared to May 2007.

This statistical information has been obtained from Realcomp, the REALTORS MLS. Realcomp is Michigan’s largest Multiple Listing Service. Although not guaranteed, these statistics are from data Realcomp believes to be reliable. This information is not to be reproduced, redistributed, or combined with data from other sources without expressed permission from Realcomp.

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

Birmingham Michigan posted some nice housing numbers in February 2008 according to the April Edition of Metropolitan Realtor. Total home sales were up 26.32% as compared to February 2007. The median sale price was up by 9% and the number of on market listings declined by almost 8%. While one month does not necessarily represent a trend, the fact that all of these categories posted encouraging figures, gives cause for optimism. I suspect that many buyers who have been waiting on the sidelines, have jumped at this current opportunity to live in Birmingham. Prices have dropped considerably over the last few years and interest rates have remained low as well. Hence, many are now able to live in an area that they previously thought they could not afford. 

Looking for Southeast Michigan real estate in Birmingham?  Give me a call today at 248-514-2640 or email info@NorthWoodwardHomes.com now!

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

Accordingly to the recently released 2007 National Association of Realtors (NAR) Profile Of Home Buyers And Sellers, the number one reason given by For Sale By Owner (FSBO) Home Sellers as to why they attempted to sell their homes without Realtor assistance was to avoid paying a commission. An examination of the survey results indicates that home sellers should avoid the FSBO process altogether. First, in 2007, the by owner seller had a seven percent (7%) chance of selling his or her home to a buyer that they did not know. In addtion, according to the survey, the median sale price was thirty four percent (34%) higher for Realtor assisted sales compared to by owner sales. By owner sellers also indicated that the most difficult task they faced was understanding and preparing the paperwork necessary to sell their home.  If you’re thinking about selling your Southeast Michigan real estate, 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