Lee Morof's Real Estate Blog

Considering deflated real estate values, you might wonder if buying national and Troy Michigan real estate still makes good financial sense.  According to the National Association of REALTORS® eighth annual Housing Opportunity Pulse Survey, nearly 8 out of 10 respondents believe buying a home does make good financial sense. 

Surprised?  Let’s examine three reasons Americans believe buying national and Troy Michigan real estate remains a good financial choice:

1. Lower home prices and low mortgage interest rates are making homes more affordable. 

2. Almost 7 out of 10 believe that home values have stabilized in their area; the same number expects home sales to remain about the same through the end of the year.

3. The rate of foreclosures is also seen as stabilizing; 51 percent say the rate is about the same as last year.

Another big advantage for you may be the tax benefits of home ownership.  You will still, as always, be able to deduct the interest you pay, as well as other real estate related items on your income tax return. For most people that deduction equates to a sizeable chunk of money. It can mean the difference between owing the government more money at the end of the year, and getting a refund.

If you would like more information on how owning Troy Michigan real estate can make sense for you, give me a call 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

If you’re in the middle of buying Troy Michigan real estate, for which you’re hoping to get a Homebuyer Tax Credit of up to $8,000, you have more time to finalize it. 

After a close brush with the deadline, Congress passed a 90-day extension of the Homebuyer Tax Credit closing deadline.   The extension applies only to buyers who have written, binding contracts in place as of April 30, 2010. The new closing deadline is now September 30, 2010. 

Extending the tax credit closing deadline will provide additional stability to Troy Michigan real estate and real estate markets nationwide.  Additionally, the National Association of REALTORS® (NAR) estimates that this new extension will help about 180,000 to 200,000 homebuyers who already signed purchase agreements and were likely to miss the June 30 deadline.

Those are two of the reasons the NAR worked closely with Congressional leaders on both sides of the aisle to get this extension approved.  Voter pressure on House members also helped to push this bill through.

Have questions about the Homebuyer Tax Credit or any other questions about Troy Michgian real estate or Oakland County real estate?  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I’m happy to help.

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

Modern technology is a wonderful thing, creating easy “connectivity” between people all over the nation.  But it’s also causing problems in many areas, and buying Troy Michigan real estate in Oakland County is one of them.

Here’s the problem: Many people selling Troy Michigan real estate may live in another city or state. In this case, negotiations may be conducted over the phone, through email, via Yahoo conversations – some even use Twitter for real estate deals and information.

At the same time, this also means that legal documents may be passed through email, uploaded to a website for easy viewing or through any number of other online methods. PDF documents, for instance, have become a very popular way to pass on legal forms because they’re easy to fill out, don’t have to printed, etc.

As the buyer, you can’t afford to take the seller’s word that they’ve accepted your position – especially through email. For instance, a buyer recently had a home sale fall through. The seller accepted the terms through email, told the buyer that the seller had signed the contract and sent it on to the agent. Somehow, even though the buyer was positive the contract had been agreed upon, the house was sold to another buyer.

Although laws change from state to state, it’s always best to have the contract in printed form, with an actual signature – in ink. Without the actual contract, all you have is an email. Although emails can be legally binding, they don’t hold a candle to having the printed and signed contract in hand.

Here are a few tips to make sure your housing purchase goes off without a hitch:

• Meet in person – This may be a difficult prospect, especially if the seller lives out of state. However, if you can’t meet them in person, their agent should at least be local. Meeting with the home seller’s legal representative (i.e. Real estate agent) is the next best thing.
• Get it in writing, and get it in print – Who wants to wait for the post office to deliver a paper contract when you can get it from an email? Well… you do. Yes, it might slow the process of buying a house and closing the deal, but so will having the seller back out.
• Verify the important points – Make sure you and the seller really do agree on the terms of the contract before you put your signature on it. You, or preferably your buyer’s agent, should go over the contract with the seller’s agent who should go over it with the seller.

It’s a great time to buy Troy Michigan real estate, but don’t let technology lose you the contract. Cross your t’s and dot your i’s – on paper!

If you’re looking to buy a home, as a licensed real estate attorney and broker, I’ll make sure all those t’s are crossed and i’s are dotted for you. 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

Everybody has a horror story of some kind, when talking about Troy Michigan real estate. There are just some things most people don’t think about when searching for property to buy or sell, whether you’re the buyer, the seller or even, yes, the agent.

Exhibit A
Sheryl (name changed to protect the innocent) is exhibit A. Now, she thought she’d bought a nice house at a good price. Everything seemed to be perfect. The one place that Sheryl went wrong was forgetting to do a home inspection on that beautiful piece of Troy Michigan real estate.

After a pleasant day of moving in, she went to take a shower. Turning on the faucet, she noticed the water pressure wasn’t what it should be. Ignoring the indications of worse yet to come, she flipped from faucet to shower. Only a few lonely, sad drips came from the showerhead. To compound the issue, she discovered that the washer didn’t have enough pressure to get her clothes clean, washing dishes was an exercise in futility and if a hose was turned on in the garden the second story toilet wouldn’t flush.

After much ado, many phone calls and two plumbers, Sheryl found that the beautiful tree in the front yard that had sealed the deal had also burst the pipes. She now had to pay to have the tree removed (it couldn’t be saved), as well as the pipe dug up and replaced. In addition, she owed the water company for all the water lost through the break.

The moral: Don’t skimp on the details just because you’re under pressure.

Exhibit B
Bob, a real estate agent (again, name changed), still loves open houses. They’re a big deal for him and he makes plenty of contacts that way. However, even Bob, who has been in the industry for years, forgot to do a last walk through before a certain open house started. Unfortunately, he and the potential buyers found an unpleasant surprise in the upstairs bathroom, deposited thoughtfully by the current owner. In trying to take care of the surprise, he found the toilet was blocked and the bathroom fan didn’t work. Needless to say, the potential buyers didn’t stick around to tour the rest of the house.

The moral: A short walk-through can save a lot of embarrassment.

With any Troy Michigan real estate, there’s always the chance that you’ll miss something. A homebuyer’s checklist or home seller’s checklist is a great way to make sure you don’t. If you do, try to take what comes with a grain of salt, a lot of patience and as much of a smile as you can muster.

If you’re trying to find a great home without the horror, I can help. Call your Michigan Real Estate Expert at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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

Thinking about buying Troy Michigan real estate?  If you’re looking at condos you need to be aware that there are condominium associations that oversee condo developments just like there are homeowner’s associations that oversee subdivisions.  However, they may not work the same and can vary widely from condo to condo.  Here are a few things you need to ask the association before signing that contract: 

1. What’s the ratio of owner-occupied to tenant-occupied units?  More owner-occupied units means better marketability if you want to resell.

2. Do the assessments rise with inflation?  This doesn’t sound like a good thing, but matching assessments with the rate of inflation means the ability to build reserves for any future repairs.

3. What does the assessment cover (trash collection, condo maintenance, etc.) in the Troy Michigan condo?  Some association assessments may not cover recreational facilities, for instance, while other condos’ assessments may cover a broad range of areas.

4. What is the turnover in the building?  If it’s high, that’s an indication of issues you may not be familiar with.

5. How much of the assessments do they keep in reserve and for what?  How do they invest the money?  If you’re paying fees and assessments, you want to make sure they aren’t spent frivolously.

6. Are they involved in a lawsuit?  If the condo is in litigation, those reserves can disappear quickly.

7. How reputable is the builder?  If you can, visit other projects and ask the residents how they feel about their place.  Get an engineer’s report to find out if the building is in good shape.  Any problems that are there when you buy are yours once you sign the contract.

8. What are the condominium’s bylaws, restrictions, covenants and grandfather clauses?  You want to make sure you can live with them.  In addition, you’ll want an attorney to look over the documents with you.

9. Is more than one association involved?  The larger the development, the more likely that there are umbrella associations.  Several associations can mean several assessments.

When you purchase Troy Michigan real estate and select a condo, it can be a dream come true if you choose well.  Make sure you do your homework! 

If you’re looking for a condo that perfectly fits your lifestyle and needs, I can help.  Call your Michigan Real Estate Expert today at 248-514-2640 or email Lee at info@NorthWoodwardHomes.com for more information.

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

Some pet owners love their pets like children and, if you’re one of them, when you look for Troy Michigan real estate you’ll be understandably concerned about choosing a home that your pet would be comfortable in.  There are definite ways to make sure you get just that; here are just a few of them:

1.  The features of the home are particularly important.  Before you go shopping for a pet friendly house, 
make a list of things your pet likes.  Also make a list of things your pet might destroy.  For instance, many cat owners find their pets ripping up the carpet.  A home with wood floors might be ideal.  If you have a dog, it’s probably important to have a fenced yard.  Many things are easy to overlook, but you’ll be sure to consider them if you make a list first.

2.  The home’s layout might be hard on your pet.  If you have an older pet who has a hard time climbing stairs, a one story Troy Michigan real estate home would be easier on your pet than a two-story home.  Low windows or window ledges are perfect for cats, as well as an out of sight place to store a litter box.  In addition, remember your pet’s size.  The larger the animal, the more yard or bigger space you might need.

3.  The Home Owner Association (HOA) may not allow pets, and those that do allow pets usually have pet restrictions.  Before deciding on a home, make sure that the HOA allows your particular pet.  Don’t take it for granted!  You may end up with severe penalties.

4.  County and City code restrictions may also be an issue.  Several cities also have restrictions on the number of pets, the species and the type.  The pit bull ban is a very good example. 

5.  A pet friendly neighborhood is the best place for you and your pet.  Look around the neighborhood and see if the neighbors are walking their dogs or have cats sleeping in windows.  Consider if the way they seem to take care of their pets is similar to yours.  If it isn’t, you might want to find another Troy Michigan real estate home for sale.

If you’re looking for a home that’s perfect for you and your pet, 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

Most people are familiar with the new stimulus plan that helps many get tax rebates for buying a home. The incentive is centered on first-time home buyers and a lot of people automatically assume they aren’t eligible because they have owned a home in the past. This incentive shouldn’t be dismissed so quickly. It is worth as much as $8,000 during the calendar year of 2009 and is a great reason to consider entering or re-entering the Troy Michigan real estate home buying market. Yes, that’s right “re-entering” the market.

Three Year Rule

If you have not owned a Troy Michigan home in the past three years, for tax purposes you are considered a first-time home buyer and are still eligible for the tax credit. This, however, includes you and your spouse if you are married so neither of you can have purchased a home in the last three years.

Principle Residence Rule

Even if you have owned a home in the last couple of years, if it has not been your primary residence, you may still be eligible for the tax break. This means that if you own property that you use as rental or other investment Troy Michigan real estate such as flipping or reselling, you may still be able to get the tax incentive if you purchase a new home for you and your family to actually live in.

The new stimulus plan rules may be confusing but a qualified real estate professional can guide you through the possibilities.

If you are entitled to the tax rebate, 2009 should be the year you buy your new home. The tax rebate on a new home purchase is only good for the year.

If you purchased a Troy Michigan real estate home any time during the 2009 calendar year and didn’t know you might be entitled to the rebate, now is the time to check into it.

If you have any questions regarding the new stimulus tax breaks for first-time home buyers, please give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I’d be happy to help.

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

Buying REOs is a very popular method of buying Troy Michigan real estate for investment.  If you’re just getting started accumulating investment property, this is one way you can get very good deals and amass a great deal of property quickly.

REO stands for Real Estate Owned and is the acronym banks place on properties they have taken back from mortgage defaults. REOs are considered non-performing assets meaning they have value but are not bringing in any money—bad for the bank, good for you.

Buy REOs at Foreclosure Auctions

Foreclosure auctions are a great way to get fantastic deals that you might not be able to convince a bank to go with prior to the event. Some savvy investors try to catch properties while they are in pre-foreclosure  which avoids a property being bid up in an auction atmosphere.  To do that, you often have to convince the holding bank to “short sale” a property and sell it for less than the note they were holding on it. At a foreclosure auction, the bank is usually desperate to unload the [city] real estate and often settles for far less than the actual value without all of the short sale paperwork.

Do Your Homework

If you choose to buy properties at auction do your homework. Use foreclosure worksheets to determine the true value of a property and what your maximum bid should be in order to realize a profit from its eventual sale or use as a rental. Doing this prevents you from getting caught up in the moment and over-bidding on a piece of Troy Michigan real estate that has a lot of competitors bidding on it.

If you would like more information on how to acquire REO properties, I can help. Contact me 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

If you’re wondering if it’s the right time for you to buy Troy Michigan real estate, you might want to think about the pros and cons of renting versus buying.  Here are a few of them, which might help you make up your mind:
 
Let’s first go over the advantages of renting a home

• You don’t have to worry about finding a mortgage lender
• You don’t lose equity as the real estate market rises and falls; then again, you don’t gain equity either.
• You don’t have to put down as much money up front
• You have fixed rental fees that won’t fluctuate during the length of your lease
• All you have to do is leave when your lease is up.  You don’t have to worry about selling your home.
• You don’t have to pay for maintenance of the home other than normal cleaning.  

Now let’s go over the disadvantages of renting

• Your investment never goes up. You never gain equity.
• You don’t gain an investment, in which you can use the equity for other things as you grow older.
• You’re generally not free to do your own maintenance.
• You can’t decorate or renovate your rental home any way you want.
• You can’t receive some great tax breaks that go with homeownership.
• It’s possible for the home to be sold out from under you – sometimes with little warning.

Both renting and buying a Troy Michigan home has its advantages.  Whether you buy a home really depends on your personal life, and factors like job stability and personal finances.  Some people are more than ready to have a permanent place to call their own, and others just don’t mind moving about.

One thing is sure – most Americans don’t want to spend their entire lifetime renting.  At some point, buying a home is going to be a good investment and create equity for your future. 

 If you’re considering buying one of the Southeast Michigan homes for sale, there’s no better time to do it than now with home prices and interest rates at their lowest in decades.  Let me show you some of the great home buying opportunities available in today’s Troy Michigan real estate market.  Call me at 248-514-2640 today or email info@NorthWoodwardHomes.com now!

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