Lee Morof's Real Estate Blog

Now is a great time to get into the investment real estate market. Not only does investment property give you a real tangible asset for your portfolio, investors in Michigan real estate can also get investments at great prices right now.

Here are four ways investors in Michigan real estate can make money from potential investments that you might want to consider.

• Rental properties.  Not everyone enjoys owning rental property, but it is one of the most profitable ways to make money from real estate.  Rental properties give you a constant residual income that lasts as long as you keep the property.

• Flipping. While the house flipping craze of the 80s and 90s cooled down with the current mortgage and housing crunch, for serious investors who take the time to know what they are doing, it is still a viable means of making money in real estate.  This is typically a shorter term method of real estate investing.

• Rehabbing. Buying a house to live in while you fix it up and resell it is similar to flipping, except that most rehabbers take longer to renovate the home, and use it as their primary residence while doing the work. There are three reasons this is a more comfortable way to flip real estate investments. First, you have a place to live and don’t have to pay a mortgage on another property.  Second, you don’t have to feel as pressured to sell in a short period of time the way you do a flip.  Third, you may receive all the homeowner benefits like tax breaks and no capital gain tax.

• Subdivide. This form of investment requires a little advance preparation and investigation. When you discover a sizeable piece of land at a good price, find out if it is zoned so you can subdivide it.  If it is, you can profitably sell off individual parcels to those who want to build on it.

If you are one of the investors in Michigan real estate and would like more information on investment tips that makes sense for you, I can help. Contact 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

When you’ve found the perfect home for sale in Southeast Michigan and had your offer accepted, you’re ready to think about getting into your new home. Moving to a new home, and in some cases, to a new location all together, can be an exciting event.  It can also be a difficult thing, especially for children. 

When a move means a new home, new school and new friends, children realize they’re leaving their comfort zone for the unknown.  This can be frightening, especially to very young children.

Along with packing up boxes and making plans for a move, parents need to spend time thinking about how to make the transition as easy as possible for kids.  Following are some suggestions for doing just that:

• Make a scrapbook:  Let your kids take pictures of friends and places they would like to remember.  Then put together a scrapbook you and your kids can take to your new home and look at, especially when homesickness strikes.
• Listen to your kids:  Children often have fears that they don’t share with their parents.  Your children may be very ambivalent about moving, but afraid to say so or don’t know how to put it into words.  Take time to discuss the move with your children.  Ask them how they feel about the move and then talk out any fears they may have.  Don’t dismiss the fear of making new friends by simply saying “of course you’ll make new friends.” Explain that you’ll also be without friends and together you’ll meet new people.
• Visit your new home:  If possible, take your children to the home you’ll be moving into.  Let them visit their new school, walk around the neighborhood and play at the local park.  Giving them a chance to visit the place they’ll soon call home will help alleviate some of their fears and perhaps even get them excited about the move.  If physically visiting your new home isn’t possible, virtually visit it.  Help your children explore their new hometown online. 

Want to move to a new home?  I can help you find the right home for sale in Southeast Michigan that meets your needs and budget.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

The government’s first-time and repeat-buyer tax credits gave homeowners with homes for sale in Southeast Michigan a lot of hope. The potential for getting their homes sold seemed infinitely higher. The credit expires at the end of this month though, and many homes are still on the market. If yours is one of them, what should you do?

Don’t Panic!
The first inclination for many homeowners with homes for sale in Southeast Michigan is to panic.  Often, it’s during the hard periods of life that something miraculous happens. You find the job of your dreams after searching for two years for any kind of job at all. Your life has been plagued by bad relationships so often that you’ve quit looking and then – out of nowhere – your soul mate walks up. You need to sell your house, money is tight, you might have to walk away… and a buyer appears, ready to close immediately.

Don’t scoff; it happens. In fact, life is so full of “sudden happenings” that the miraculous becomes common. By allowing panic to get in the way, you may be locking the door that opportunity knocks on.

Look At Your Options
Sometimes, we’re so full of worry that we miss obvious possibilities. Now is a perfect time to take a deep breath, clear your mind of worry (as much as possible) and look at what you’ve done to sell your home. Once you’ve outlined what you’ve done, you’re then free to look at what you can still do. Here are a few things you might not have considered:

• Research owner financing – Owner financing opens the door to many potential buyers, but it also provides benefits to you. For instance, if you have a lot of bills that need to be paid, the down payment from the buyer may be enough to take care of the important ones. Additionally, monthly payments from the buyer may be enough to keep you afloat while you’re looking for a job, trying to pay rent or feed your family.

• Create a “honey do” list – If you’ve lived in a home for several years, you’ve probably become used to cracks in the walls, peeling paint or squeaky doors. Invite an honest friend or your real estate agent to look around for you and help you create a “honey do” list. If you’re handy, a lot can be fixed with very low cost. If you’re not, hiring a handyman may be something to consider.

• Reassess your marketing – If your home hasn’t had a single view and has been on the market for quite a while, you may not have the marketing reach you think you do. If pictures of your home are on the Internet, make sure they show the home’s best features.  Talk with your real estate agent about marketing techniques they recommend using.

It’s hard to blow off worry during times of high stress. However, if you can step away for just a minute to clear your head and think, you just might find your miraculous answer for taking your home off the list of homes for sale in Southeast Michigan.

If you’re ready to sell your home, I’m here to help.  Turn the marketing of your home and worrying about it over to me.  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

Surprising numbers of potential homebuyers are holding off on buying homes for sale in Southeast Michigan. They see the housing prices drop and are waiting for them to go lower. They see the mortgage rates and are waiting for them to drop further. If this is you, you might want to rethink your strategy and take a real look at potential homes for sale in Southeast Michigan.

Here are two crucial reasons why you might not want to wait any longer:

1. Interest Rates on the Rise – Thanks to the Federal Reserve buying $1.23 trillion worth of mortgages, interest rates have been kept somewhere between 4.93% and 5.09% for a 30-year fixed-rate loan.  That’s about 0.4 % lower than it might be without the Fed’s help. However, by the end of 2009, the Federal Reserve had already started implementing a phase out of the mortgage program. With the Fed program closing at the beginning of this month, it’s not a question of whether mortgage rates will rise, but when, how much and how fast.  The experts don’t expect them to climb very high, stopping somewhere between 5.5% and 6% by the end of 2010.

2. Lower Home Prices – Home prices, predicted to drop another 5% in 2010, will also make some difference in overall cost. Putting the falling home prices together with the currently low interest rates, you still have a chance to get a great home at a great deal – for a little while longer.

Instead of waiting for lower costs that may never come, consider where you are now:

• Do you have good credit?
• Are you pre-approved (not pre-qualified) for a mortgage loan? Do you know how much home you can afford?
• Are you certain (or as certain as you can be) of your job stability?

It’s very possible that the market will never be better than it is right now for buyers. It’s a buyers’ real estate market, with the scales tipped to make homeownership as cheap as it can get. If you can afford to buy now, but are waiting for things to get even better, reconsider – you might wait yourself into a market you can no longer afford!

Ready to take advantage of this buyers’ market and purchase one of the homes for sale in Southeast Michigan?  I can help. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

May your blessings outnumber the shamrocks that grow, and may trouble avoid you wherever you go – Irish blessing

St. Patrick’s Day is coming up and, as you know, it’s the perfect time for a whole bunch of tomfoolery. What you may not know is that it’s the perfect time for an open house for homes for sale in Southeast Michigan. However, if you’re going to do it, it needs to be done right – and the best time to get started is now.

Themed Open Houses
Okay, we (as in real estate agents) often say, “Don’t get your personality all over the house you’re selling” and we mean it. That’s not to say that you can’t have a little bit o’ fun with a themed open house party, though. Here are a few tips to get you started on the right path for getting those homes for sale in Southeast Michigan sold:

1. Keep your St. Patrick’s Day decorations minimal, but the atmosphere fun. In other words, pick decorations that are bland, but still lighten the mood of the home.

2. Lights for the evening, windows for the day. If your open house happens during the day, use as much natural lighting as possible. If it’s in the evening, use lighting that isn’t harsh or overbearing.

3. Offer tasty, “smell good” snacks. You don’t have to make a meal to feed an army, but a few Irish snack dishes can go a long way. You don’t have to stick to Irish food, however. A backyard barbecue is a wonderful way to show off the home’s entertainment possibilities.

4. Keep the alcohol low, if available. You’re not trying to throw a rip-roaring party, but there are two things to consider with alcohol. One is that it’s St. Patrick’s Day and almost a national drinking day. Two, is that the more relaxed a potential buyer feels, the more positive they’ll feel about the house (this is not to say that you should get the visitors drunk, however).

The main purpose of holding an open house is to get potential buyers to come and see what homes for sale in Southeast Michigan have to offer. You want to show off the inside, but you also want to show off the outside and the home’s ability to entertain guests. If you have a real estate agent, discuss the open house with them. If you don’t have an agent, give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com. 

May you live as long as you want, and never want as long as you live.  Happy St. Patrick’s Day!

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

With rising real estate sales, many investors in Michigan real estate are starting to wonder if Real Estate Investment Trusts are once again a potential opportunity. Home sales have gone up for the past six months in a row, homebuilding price indexes are rising and investors are turning optimistic. Is it really a good time, though?

What are REITs?
REITs are Real Estate Investment Trusts. These trusts invest in property then sell shares to people or businesses. If the REITs make a profit, that profit is split between shareholders as dividends. Many investment trusts cover a full portfolio of Southeast Michigan real estate and other real property, rather than just one property. In the past, they’ve been incredibly popular because they trade like stock and dividend yields are normally at the top of the market.

Not All REITs Are Created Equal
It’s important to remember that real estate investment trusts come in different shapes and sizes. As well, REITs report rental income, rather than sales, as revenue. Keeping rental income in mind, it becomes obvious REITS with long-term leases and high occupancy rates are generally better than others to invest in. Also, the higher the occupancy, the easier it is to raise rental rates (although this is probably not good business at this time due to the current real estate market).

Investing in REITs Now
If you’re thinking of investing in REITs now, don’t forget that they may only benefit in a particular market. For instance, many individual investors in Michigan real estate are purchasing unfinished homes at steep discounts, investing a little more to finish the homes and then renting them out. As most real estate agents, blogs, articles and magazines will tell you, the rental market is doing quite well, so this may be a viable option for you.

No matter what type of Southeast Michigan real estate you’re thinking of investing in, remember that any type of investment is risky. Is it time to invest? Ultimately, only you can make that decision. Do your research, check your funding, then – and only then – make an informed decision.

If you’re one of the investors in Michigan real estate and are interested in finding good Southeast Michigan real estate investments, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

The extension of the homebuyer’s tax credit, as well as the expansion to include upgrade homebuyers, has a lot of people looking for their dream home. Many are looking for that dream home in the listings for Southeast Michigan foreclosures. Why?

The Law of Supply and Demand
Quick marketing lesson: every market is dependent on the law of supply and demand. When the demand for a product is higher than the supply, prices go up. When there’s more product than demand, prices go down.

This is what’s happening now, especially with Southeast Michigan foreclosures. Around the U.S., the supply of homes has doubled in the past two years, reaching as high as a ten-month supply. While homebuyers have been reluctant to buy a foreclosure in the past, people are starting to rethink the situation because:

• Foreclosures are usually less expensive than traditional homes for sale.  In fact, some buyers have found their dream home and bought it for pennies on the dollar.
• Foreclosed properties are generally in better condition than they used to be.  In the past, foreclosed homes had a higher than average amount of repairs needed compared to other homes for sale. This is no longer necessarily true. Many foreclosured homes have been lovingly taken care of by their previous owners.
• Potential buyers of Southeast Michigan foreclosures have a wider variety from which to choose. They aren’t stuck with just one type of house in one neighborhood. For the careful new homebuyer, the possibilities really are almost endless.

Most foreclosed homes aren’t money pits. To protect yourself, make sure your Southeast Michigan real estate agent includes in the contract that you want to have the home inspected, and that if the home inspection finds major problems, you then have the right to walk away from the deal.

If you’re looking for a great home at a great price, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

Valentine’s Day is just around the corner.  Are you wondering what to get your loved one? Buying Michigan foreclosures in Oakland County may not be on the top of your list, but maybe it should be. Do you need some extra room? Is it time to spread out? Are you a repeat buyer?

You’ve probably heard the term “buyer’s market” more often than you care to, but if you want to expand your living quarters, you might want to pay attention.

What is a buyer’s market?
The typical reply might be something like, “A buyer’s market is where the supply is greater than the demand; the heavier the supply, the stronger the buyer’s market.” What you really need to know is that a buyer’s market is heavily tipped in your favor. Mortgage rates, housing supply and negotiations are all pointed towards helping you find – and buy – the home of your dreams.

What’s so great about buying Oakland County Michigan foreclosures or other homes for sale now?
Whether you’re a first-time buyer or currently own a home and want to upgrade, there are plenty of reasons to get into the action now:

• Home prices are lower than they’ve been in 12 years.
• Foreclosures are going for rock-bottom prices as lenders try to make up their losses.
• The number of programs to help buyers get into a new home is higher than it’s ever been.
• Between government programs, lenders’ programs and private programs, the chances of getting into a home you can afford are high.
• Many sellers are eager to find qualified buyers. If you’ve been pre-approved for a mortgage, you have a better stance in negotiations.
• Mortgage rates are lower than they’ve been in a long time, but are slowly starting to rise again.

These are just a few of the reasons.

Why buy foreclosures?
Foreclosures are selling at much lower prices than other homes. In fact, many expect to save at least 30% when buying foreclosed property and that percentage isn’t unrealistic.

If you’ve been trying to figure out what to buy your Valentine, and you’ve been thinking about buying a home, look around at Oakland County Michigan foreclosures. Not only can you find a fantastic deal, but you’ll also be able to celebrate Valentine’s Day in a new home!

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

The National Association of Realtors (NAR) recently released the results of its annual suvey of homebuyers and sellers and they once again confirm that it makes little sense to try and sell your home by yourself.

In 2009, the FSBO seller had a 6% chance of selling to someone that he or she did not already know. Add to that the fact that, on average, he or she would have sold for 25% more had they hired a REALTOR, you have to wonder why anyone would even try. The most important reason given by the FSBO sellers to try to sell by themselves was to avoid paying a commission. So, those that succeeded, ended up netting 19% less assuming they “saved” a 6% commission.

The most difficult tasks reported by the FSBO sellers were, among other things, setting the right price, understanding and preparing the paperwork, selling within the needed time, attracting buyers, having enough time to devote to the sale and helping the buyer obtain financing.

If you’re thinking about selling your Southeast Michigan real estate, I can help you get top price.  Call me  today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

Everybody wants to know how the housing market is doing, especially if they own real estate in Oakland County, Michigan. I try to keep the newsy pieces to a minimum and spend most of my Internet space on helpful pointers, but a lot of readers have asked about the market. In response to high demand, here’s a peek at the current national foreclosure trends and how it looks for Michigan foreclosures:

Foreclosure Trends
It’s a wonderful thing to own any kind of real estate (although I’m partial to Oakland County, Michigan, of course). Unfortunately, many people have lost their homes due to foreclosure since the housing crisis started; there have been over 7.8 million since 2007. California, Florida, Arizona, Nevada, Illinois and Michigan foreclosures have been topping the count, adding up to 62% of the nation’s foreclosures.

California’s numbers reached 349,435 foreclosures last month, and it was feared that those numbers might escalate. However, there’s some good news there. Even though homeowners are still teetering, lending institutions are caving in under government pressure to work with those homeowners. For that matter, they may even be working with the government to stem the deluge of foreclosures.

HousingPredictor.com conducted a survey of homeowners that shows we may have as many as 25 million foreclosures before everything is said and done, mainly due to homeowners who are tired of watching housing prices fall. Such a glut of the market could cause some serious repercussions for the economy. However, again, there are some positive points.

For instance, current mortgage interest rates are ranging from as low as 4% to 5.5%, cut almost in half from the “housing boom” years. While housing prices may be dropping, the fall is slowing down. As well, lower prices mean more affordable homes. While this may not be a good thing for homeowners, it’s an excellent thing for home buyers.

As prices drop and homes become more affordable, the glutted housing market of foreclosed and for sale homes is slowly shrinking. As the reserve market (the number of houses per capita that are for sale) shrinks, consumer confidence will build up (something we desperately need). Housing demand will rise, surplus will shrink, and prices will stabilize.

Of course, in the meantime, while you’re waiting for things to stabilize, hold on to Oakland County real estate. Take advantages of the tax breaks available to upgrade your existing property, maybe get the renovations done you’ve always wanted. There are still opportunities in this market – you just have to find them!

If you’re a buyer looking for a great home, act now to find amazing bargains on Michigan foreclosures or short sales.  I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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