Lee Morof's Real Estate Blog

Recently released figures indicate real estate nationwide and Southeast Michigan real estate in Oakland County are continuing to steadily improve. Here are seven signs that demonstrate the upturn:

1. Housing affordability has risen dramatically. This is due to a combination of reduced real estate prices and record-low mortgage rates.
2. Housing starts are increasing, driven mostly by multifamily starts.
3. Existing home sales increased in January, which is now three months of gains out of the past four months.
4. At the end of January, total housing inventory fell to a 6.1 month supply. According to Lawrence Yun, NAR chief economist, ”The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers.”
5. There are plenty of home buyers and investors competing for foreclosure sales in almost all markets.
6. Purchases of homes by all types of buyers from seasoned investors to first-time home buyers are on the rise.

Most economists agree that the market is improving. Frank Nothaft, Freddie Mac vice president and chief economist says, “Our outlook anticipates gradual, but steady, improvement in the economy and the housing market, supported by low interest rates and brightening job market prospects.”

This is excellent news for the spring and summer Southeast Michigan real estate buying season that’s just around the corner. If you’ve been considering buying or selling a home, now’s the time to start that process so you’re ready for the hottest season we’ve seen in years.

Thinking about buying or selling Southeast Michigan real estate? Please contact me today at 248-514-2640 or email info@NorthWoodwardHomes.com. I can help you achieve your goals.

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

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Setting your clocks forward means it’s time for a seasonal safety check!  On Sunday, March 11, Daylight Savings Time will be upon us.

As you circle your North Woodward home in Southeast Michigan, setting clocks ahead, make sure to do this short safety checklist.

• Change the batteries: Batteries in smoke detectors and carbon monoxide detectors need to be replaced. Also check batteries in thermostats, phone accessories and portable electronics. Don’t throw those batteries away! Old but still working batteries can be used in children’s toys, electronic devices and remote controls.
• Buy new alarms: Replace any smoke alarms older than ten years; replace any carbon monoxide alarms older than five years. Sensors in these units degrade and lose their effectiveness over time.
• Replace light bulbs: While you have the stepstools and stepladders out to reach the smoke detectors, check for light bulbs that are out.
• Find the flashlights and replace their batteries: Having the flashlights where you need them is the first step to being able to use them.  Change their batteries to make sure they work when you need them!
• Check first-aid kits: With spring and summer coming, bumps, scrapes and stings will be on the rise.  Check your first-aid kit and replace any missing supplies.  Don’t forget your car’s first aid kit – buy one or replace any missing items.
• Check and discard expired medications: Expired medications can cause medical problems due to change through aging.
• Clean the dryer vent: Check and clean the dryer vent for buildup that can become a fire or carbon-monoxide hazard.
• Reset timers on outdoor lights: Avoid wasting electricity by resetting timers on outdoor lights so they’re not on during daylight hours.
• Replace the water filter in your refrigerator: Isn’t it hard to remember to do this? Why not make it another time-change activity. Follow manufacturer’s instructions for replacing the water filter.

Remember to discard used batteries and expired medications properly.  Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com with questions on your Southeast Michigan, North Woodward home’s safety.

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

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With the current economy, homeowners are finding themselves in sticky situations when it comes to keeping up with their mortgages. If the possibility of foreclosure is within your future, you might want to determine whether you’re a candidate for a Southeast Michigan short sale.

A short sale is when the owner and the bank agree to sell the home for a loss. Short sales are more beneficial to the homeowner’s financial future because it tends to damage their credit score by reducing it around 100 points instead of the 300 points a foreclosure might inflict. If you are starting negotiations with your bank to try and list your home as a Southeast Michigan short sale, consider the following three qualifications.

1. Foreclosure has NOT already taken place. A short sale can still happen during the foreclosure process if you’re still in pre-foreclosure and you have only received notices from your bank. However, if your home is already in foreclosure and is up for auction, it is too late.
2. You have NOT filed for bankruptcy. If you have, then you are ineligible for a short sale. Banks cannot pursue collection of debt if you’ve filed for bankruptcy — so you can’t work with them on selling your home.
3. You owe more than your home is worth. The best way to determine whether your home would qualify for a Southeast Michigan short sale is to ask an experienced real estate agent to estimate your home’s current value and compare it to how much you still owe. If you owe more than it’s worth, then you may qualify for a short sale.

Don’t wait until it’s too late! If you’re having trouble paying the mortgage on your home and meet the three qualifications above, it might be time to talk to your bank.

This subject can be extremely confusing. As a Certified Distressed Property Expert and Attorney, I am uniquely qualified to help!  Please call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com, if you are searching for more short sale information.

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

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The mortgage application process can be confusing — so you only want to have to go through it once when buying Bloomfield Hills real estate.  Keep these tips in mind as you complete the application process to make sure you get the answer you want: Approved!

• Make Sure Your Credit is Clear: If there are any lingering issues on your credit report, get them resolved prior to application and get your credit in high standing for the best loan rates.
• Lower Your Debt: If you meet the income requirements, but have substantial debts elsewhere – car payments, student loans, credit card debt – your application may be denied.  Budget, save up and pay off as much as you can.
• Have the Required Income: With the tightening of regulations, any wiggle room you may have had before is gone. You must meet the income requirements for the loan.  Remember that not all income may be counted toward your loan – rental property income, for instance, is often excluded.
• Negotiate the Repair of Any Condition Issues with the Seller: Lenders are leery of extending loans on any properties that could later be deemed distressed.  Issues turned up during the appraisal process should be addressed for loan purposes, as well as your own comfort and safety.
• Follow the Instructions: The stacks of paperwork documenting your application are a nuisance, yes, but they are required.  Do the work and make sure your application is complete.

Put these tips into action and your application is more likely to be approved.

If you’re ready to buy Bloomfield Hills real estate, I can help. Whether you need help finding a reputable lender or a home to buy, 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
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

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Whether you’re looking to buy or sell a home, finding the perfect Southeast Michigan real estate agent can be tough. The process is often overwhelming and you want to ensure that you have the right person by your side — someone trustworthy, hard-working and who knows what they’re doing!

That is why it’s extremely important to thoroughly do your research when it comes to Southeast Michigan real estate agents. You need to interview several agents, follow through on referrals and ensure they have the proper credentials.

All the acronyms after agents’ names can be confusing, so here are a few that describe specializations you might need:

• SRES – This stands for Senior Real Estate Specialist. The SRES designation is for agents who work with buyers and sellers over the age of 55. If you’re over the age of 55 or are helping your parents who are over the age of 55 buy or sell, you may want to find an agent with an SRES designation.
• NAR’s Green Designation – This designation means the agent has had training in green building qualifications and sustainable business practices. Look for an agent with these acronyms if green living is on your home checklist.
• SFR – This acronym stands for Short Sale & Foreclosure Resource – As the certification indicates, these are agents who specialize in short sales and foreclosures. With the economy forcing many homeowners into one of these categories, it could be valuable to have an expert with this designation help you successfully navigate the tricky processes.

Just because agents have an acronym or two or three after their names doesn’t necessarily mean they’re the right fit for you. However, the designations can give you some clues as to their level of knowledge and areas in which they specialize.

If you have more questions about real estate acronyms and designations or are looking for a qualified, professional Southeast Michigan real estate agent, 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

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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

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With prices still low, it continues to be a buyer’s market for those interested in Southeast Michigan real estate. Some of today’s most profitable buying opportunities are with Southeast Michigan short sales and REO properties. Not sure what short sales or REOs are? Here’s a synopsis of each:

• A short sale property is when the sale price of the property falls short of the balance owned on the mortgage. As a result, the real estate transaction can involve a lot more time and negotiation than a straight purchase, as the seller’s lender has to sign off on any agreements. The up side for the buyer is that you can make a nice profit because Southeast Michigan short sales are priced at or below market. To successfully purchase a short sale property, hire a Certified Distressed Property Expert who has experience and knowledge negotiating with sellers and lenders.
• A real estate owned (REO) home is a property that is owned by the lender after an unsuccessful foreclosure auction. Usually, the lender asks a real estate agent to list the property for sale. The initial listing price is often high. Hire a Southeast Michigan real estate agent who is knowledgeable about REOs to negotiate the price for you and help you navigate the complicated process through to a successful closing.

According to a Housing Pulse survey, short sales were the largest segment of the distressed property market during November 2011, at 17.6% of total home purchase transactions.  The reason for this popularity is clear: price. The average price of short sale properties is close to 20% lower than non-distressed properties, and REO properties are discounted by an even higher percentage.

If you have the time and patience to wade through the short sale process, or are willing to invest in repairing an REO property in less than move-in ready condition, you can reap financial benefits from your patience and hard work.

If you would like to discuss your particular situation, and whether Southeast Michigan short sale and REO properties might be good options, 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
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

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The latest statistics indicate that the U.S. real estate market is at or very close to the bottom right now.

On January 18, Bloomberg News reported, “Confidence Among U.S. Homebuilders Climbs to Highest Since 2007.” Bloomberg said, “The confidence measure, which increased for a fourth straight month, improved in all four regions of the U.S. This is ‘yet another indication of the gradual but steady improvement that is beginning to take hold in an increasing number of housing markets nationwide,’ Bob Nielsen, chairman of the National Association of Home Builders and a builder from Reno, Nevada, said in a statement.”

The official data on home prices might not show the recovery yet, because they are always months behind, but most other data indicates that in general the housing market has hit the bottom.

Right now, homes in America are the best value they’ve been in many generations. And right now, mortgage rates are off-the-charts low. In short, now is the time to buy Southeast Michigan real estate.

The reasons to buy now are incredibly basic:

• U.S. home prices are more affordable than ever – by far.
• Mortgage rates are down to record-low levels.
• You can often pay below-market prices on short sales and REOs.

Of course, there is no guarantee that this is the bottom. But with prices this low and with very few other great places to invest your money, now’s the time to seriously consider buying Southeast Michigan real estate. If you can buy now and hold on to it for a few years, it could be one of the lowest-risk, highest-reward investments you ever make.

If you’re still not convinced real estate is one of the best values out there right now, please give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I will share specific numbers with you about our Southeast Michigan real estate market in Oakland County.

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

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If you’re a Bloomfield Hills real estate homeowner, what could be better than surprising your valentine with an updated bathroom this Valentine’s Day?  Below are some ways to do this inexpensively in your Bloomfield Hills home’s bathroom:

1. Paint the walls: This is one of the cheapest things you can do to upgrade your bathroom while still making an impact.  Choose pale or neutral colors to make the room seem larger.
2. Paint the cabinetry:  A new coat of paint can make the existing cabinets look like new.
3. Change cabinet hardware: Little touches make a big impact.
4. Replace the existing mirror:  Put in a mirror that you know your valentine will love. Or, replace the medicine cabinet.
5. Switch light fixtures: Newer, more modern light fixtures will completely change the look and feel of the room.
6. Upgrade water fixtures:  If it’s all brass, change to chrome, the new neutral.
7. Update accessories: Change the trash cans, shower curtains, window curtains, towels, new towel rods, shelves, etc.
8. Apply tile transfers: They’re a creative and unique yet inexpensive way to give tile a whole new look.  These waterproof, washable stickers go over your existing tile.
9. Install dimmer switches:  They enhance the mood in the room.
10. Decorate with live plants:  Live plants and fresh flowers symbolize life and vitality.  Place plants and flowers sparingly in a small bathroom; use larger plants in a more spacious room.
11. Add candles – Who can forgo candles on Valentine’s Day?  Be sure to place them where they won’t be a fire hazard. Remember, they come in all colors and sizes, from simple white votives to colorful red-column candles. Use whatever sets the mood for your current room.

A few simple changes can make sure your bathroom retreat is the perfect fit for your Bloomfield Hills real estate home and lifestyle.

Bloomfield Hills homeowners, if you’re looking for more helpful hints on upgrades or how to maintain your home, subscribe to this blog.  It’s fast, free and easy.

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

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The reality of today’s real estate market means that there are many opportunities to purchase Southeast Michigan short sales.  While the process can still be confusing, it is increasingly common. Here are a few tips on how to make sure you leap through the extra hoops a short sale requires with ease and grace:

• Avoid short sales with multiple mortgage lenders: Offers on Southeast Michigan short sales with two different lenders are at a much higher risk of being declined. The first mortgage lender will likely only allow a small percentage to go to the holder of the second mortgage – who will therefore be likely to veto a deal, on the hope that more funds would be generated in a foreclosure.
• Check the Real Estate Agent’s Short Sale Track Record: Agents with experience with short sales are much more likely to be able to successfully navigate the system than those new to the vagaries of short sales.
• Make Reasonable Offers: Short sales can be better deals, but they are unlikely to be magically cheap.  No matter what, the bank isn’t going to give the home away just to avoid foreclosure.  You want to put together an offer that makes the buyer and the bank happy.
• Follow Up on the Details: With the bank involvement, there will be more negotiation and more detail.  Keep your i’s dotted and t’s crossed to make sure the process doesn’t stall.
• Allow For Extra Time: Short sales are not a short process, so if you are truly in a hurry to close a deal, consider other options.

If you’re looking for a real estate agent with experience in Southeast Michigan short sales, give me a call.  As a Certified Distressed Property Expert and Attorney, I can help you navigate the system and close on your new home. You can reach 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

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