Lee Morof's Real Estate Blog

The national and Bloomfield Hills real estate markets are constantly fluctuating, falling somewhere between more inventory and lower prices and less inventory and higher prices. People are often frightened when the home inventory rises, but a declining real estate market may just be the perfect time to find your next home.

Here are 4 reasons why you should consider buying Bloomfield Hills real estate in a down market. 

1. Inventory. When the market is down, more homes are for sale. This means you have more homes to choose from, which makes it easier to find a home in your dream neighborhood or closer to work or school.

2. Negotiation. There’s a reason down markets are called “buyers’ markets.” Sellers want to sell their homes, and they are often willing to do whatever it takes. This means you have the advantage and can buy a home for a great price. You can also ask the seller for other incentives like paying all or a portion of your closing costs.

3. Mortgage Rates. When the real estate market begins falling, interest rates get cut. This can mean considerable savings for you over the course of your mortgage. You can even buy a larger home within your price range than you can when the market is booming.

4. Investment. Even though doom and gloom is forecasted in a down market, your home will still most likely go up in value or at least retain its value. Keep in mind that your home is your most personal investment. It is a place where you will create memories and maybe even raise a family.

If you’re considering buying a home, let me help you find a wonderful home at a great price. 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

Technology has improved our lives over the last ten years, but it’s also caused some problems along the way for Bloomfield Hills real estate buyers.

As a buyer, you naturally want to take advantage of every tool and service available to make it easier to find the home of your dreams. However, the Internet, which is one of the most common places for people to shop for Bloomfield Hills real estate nowadays, has also become a place where the unscrupulous hang out.  You can’t believe everything you read online, even when it comes to shopping for homes online. 

If you’re trying to find a home, here are two things you need to be aware of:

Home Valuation Sites
Many potential buyers find an interesting home and then research the home value. This is commendable and just plain good sense. You want to make sure you’re not overpaying. Thanks to the Internet, we have sites like Zillow and Realtor.com that provide home valuations.

The problem is that these sites hardly ever agree on the home value. They can differ as much as 20% or more. While home valuation sites are an excellent place to get a ballpark estimate, you shouldn’t base your buying price on their information alone. Hire a reputable Bloomfield Hills real estate agent who knows the surrounding area and recent sale prices.

Dream Home or Nightmare
One of the best things to happen for real estate agents and sellers alike is the ability to post digital photos and walk-through videos of the homes they’re selling. This is also great for you, as the buyer, because you can view the homes without going anywhere.

Unfortunately, many buyers take those images and videos at face value. Thanks to some high-tech graphics programs, however, you can’t guarantee that what you see is what you get. Videos and images can both be manipulated to show you the best face of any piece of property.

Any time you see a home online that you’re interested in, it’s a good idea to check Google Maps and use the Street View  option. At the very least, you can usually see the front and sides of the home. If you’re still interested, visit the home in person, or, if that’s not possible for some reason, ask your Bloomfield Hills real estate agent to visit the home and take pictures for you.

If you’re trying to find your dream home, 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

When home values started dropping in 2007, a lot of homeowners panicked and immediately began putting their houses on the national and Bloomfield Hills real estate markets. The supply of homes for sale rose to a staggering amount and prices dropped lower, fueling more homeowners to “get out while they still could.”  However, as 2009 rolled to a close, a new trend that may mean a calming of the panicked markets began.

Meet the Nesters
During the real estate boom, house flippers popped up from everywhere. In fact, flipping houses became such a big industry that cable channel A&E began producing “Flip This House” for those who wanted to try it themselves. Houses had become financial investments, a way to build equity or even immediate cash. However, as prices dropped for national and Bloomfield Hills real estate, investors found their investments failing.

So, if you can’t build equity, you can’t invest and you can’t flip homes, what good are they? Ask the “nesters,” who’ve decided that a home is something to hold on to and a good investment anyway.

2009 showed a 20% increase in the first three quarters for home construction according to NAHB (National Association of Home Builders),  and another 8.7% increase in the last quarter of the year. The amount spent on remodeling in 2009 hit $114 billion by October. What are these nesters doing?

While some paying for remodeling are trying to raise the quality of their home to sell it, most are fixing it up to live in. Most people move to get more space, but these nesters would rather expand the place they live in than buy a new home. As well, many contractors believe the number of home improvement bids have gone up thanks to the $1,500 energy tax credit for raising the energy efficiency of a home.

Whatever the reason, the rise in nesters may mean an evening out of the housing supply. Although the national and Bloomfield Hills real estate markets may not stabilize immediately, a drop in the number of homes hitting those markets could make all the difference in a housing recovery.

If you’re looking for a beautifully remodeled home, 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

Have you heard of the first-time homebuyer’s tax credit extension? Last month, President Obama signed the extension to help first-time homebuyers (who didn’t get their sales in by November 30th) buy a house that meets their needs. What about those who already own Bloomfield Hills real estate, are doing well and want a larger home?

To those who already own a home, Merry Christmas! The Workers, Homeownership and Business Assistance Act of 2009 didn’t just come with an extension; it came with improvements. Those in governmental positions of authority reasoned that if someone wanted to get a bigger home, they should get some kind of help too, thus further helping the overall real estate market.

If you own a home, you can now receive up to $6,500 in tax credits for buying Bloomfield Hills real estate for sale, either a single-family home or condo. The actual wording is “$6,500 or 10%.” Here are a few of the important points you need to know:

• Income Qualifications – Your modified adjusted gross income (MAGI) as a single taxpayer must be less than $125,000 ($225,000 if you file jointly). Partial credit may be received by those with a MAGI of less than $145,000 (single) and $245,000 (jointly).

• Home Ownership Qualifications – You must have lived in the home you own for five consecutive years out of the past eight to qualify. You do not, however, have to currently own the home you’re using to qualify. The key terms are “five consecutive years” and “in the past eight years.” If you lived in your home for five years straight, but sold it two years ago, you are still eligible for the tax credit. If you’re filing jointly with a spouse, both you and the spouse have to qualify.

• Cost Qualifications – The cost of the home doesn’t have to be more than the home you already own, but it does have to cost less than $800,000. As a side note, the government has put a definitive cap on the housing costs. If the home you’re looking at is a solid, non-negotiable $801,000, it isn’t eligible for the credit.

• Purchase Date – The final date for the purchases to be secured is April 30, 2010. The actual closing date must be finalized before June 30, 2010.

Most couples move into a home thinking they will “eventually” get a bigger home once they have a family. Then the family comes along, the house is full and they can’t buy a larger home due to financial issues. The tax credit is a perfect opportunity for families to find Bloomfield Hills real estate that will fit their expansion needs. Take a chance and look around; your dream home may be only a city block and $6,500 away!

If you’re looking to expand and take advantage of the tax credit, 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

Buying newly constructed Bloomfield Hills real estate in Southeast Michigan isn’t much different from buying an “already used” home.  What variances there are, however, can make all the difference between buying a diamond or a lemon.  Here are a few tips to keep in mind when buying new construction:

Tip #1: Don’t use the builder’s sales agent – hire your own.
If they’re the builder’s agent, they’re being paid to represent the builder, no matter what they tell you.  Your own Bloomfield Hills real estate agent, who is representing you, is required to tell you the negatives as well as the positives.  The builder’s agent doesn’t have to tell you the drawbacks of the transaction.

Tip #2: Find your own lending agency.
Again, if you go through the builder, the lending agency may offer you a deal that isn’t in your best interest.  In addition, the builder may actually own the lending company, and will have full information on your personal progress.  Your Bloomfield Hills real estate agent can refer you to a reputable lender, if you don’t already have one of your own.

Tip #3: Talk to a Bloomfield Hills real estate agent and lawyer.
Although standard agreements are made to keep everyone out of court, they aren’t necessarily in your best interests.  Ask about cancellation rights and make sure you understand both your liability and your commitments.  Also, check your contract to make sure it doesn’t contain warnings about health issues. 

I’m not your usual REALTOR®.  I’m both a real estate broker and lawyer who can keep you from making a costly mistake when buying a new home.  And, I’ll help you purchase it at the best price and terms to meet your monthly mortgage budget.  Contact me now for more information.

Tip #4: Decide what options or upgrades you want.
Remember that the profit margin for many builders is highest in upgrades.  Find out if your lender allows the options and upgrades you’ve chosen to be added to the loan.   If your lender doesn’t allow this, the cost of the upgrades will come out of your pocket in cash. 

Tip #5: Research the builder.
It’s amazing how many people think a builder is good, simply because they can build a house.  Unless you’re a licensed home inspector, the chance of you catching a cut corner or shoddy building practices is slim to none.  Check out the neighbors’ homes and talk to them.   Are the homes a consistent size or are they shrinking in size?  Do the neighbors have consistent complaints about the quality of their homes?  Also, check public records for lawsuits.

Owning newly constructed Bloomfield Hills real estate and knowing that you’re the first person to live in the home can be a wonderful, exciting experience.  Make sure that you protect yourself so you can enjoy it worry free!

Are you thinking about relocating to Bloomfield Hills, Michigan and buying newly constructed real estate?   Click here to learn more about the community of Bloomfield Hills.  

Talk with me before you start shopping for Bloomfield Hills real estate.  If you visit a builder prior to working with me, I won’t be able to legally represent you with that builder.  To find out more about how I can help you save money and get the best terms when buying newly constructed real estate, call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com now.

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

Are you considering purchasing Bloomfield Hills real estate in an active golfing community?  There are many areas in Bloomfield Hills that offer an upscale, active lifestyle, loaded with amenities.  Some are across the street from a gorgeous golf and country club; while many are in golf communities that offer a clubhouse, golf course, tennis courts, pool, spa, fitness center, restaurants…and much more! 

If you’re unfamiliar with the Bloomfield Hills area, Learn more about Bloomfield Hills Michigan real estate and the local community.  

Some of the top golf communities in Bloomfield Hills are:

• Bloomfield Hills Country Club 
• Forest Lake Country Club 
• The Heathers Club 
• Wabeek Country Club 

You’ll probably need assistance in finding the type of golf community that is right for you.  If you’re looking for a 55+ golf community, keep in mind the area you choose should have residents who share some of the same interests as you do. 

When you choose a golf community to live in, you’ll want to look for a few things:

1. Location – When looking at Bloomfield Hills homes in golf course communities, you always want to be aware of location.  For instance, are the nearby roads easy to navigate?  Is it close to shopping?  Are there arts and cultural activities close by?
2. Security – Be sure the community is security conscious.  Often, golf course communities have the added security of a gated community. 
3. Amenities – Find out what amenities the golf course community has.  Determine if they’re important to you and worth the extra cost.  Is there an indoor golf course? Do you want tennis courts? How about restaurants?  Swimming pool?  Exercise facilities?
4. Home location – When you find the right golf course community, you need to pay attention to the homes within the community.  Think about factors like how close the home is to the entrance or to the fairways. Are you willing to risk a golf ball hitting a window once in a while? These are questions you need to ask yourself when choosing Bloomfield Hills real estate in a golf community.
5. Rules – Another thing you should be aware of before making your purchase is the golf community’s homeowner association’s rules and regulations, often called CC&Rs, regarding home improvements, additions, etc. You should also look into golf course annual membership fees and know what they’ll be.

Many people are looking for their perfect home in popular golf communities. Living in one of these communities provides many perks such as golfing as much as you want any day of the week.  Do your research before purchasing and you won’t have any surprises down the road.

Whether you’re looking for a home in a golf community or some other type of active retirement community, I can help!  As a licensed Bloomfield Hills real estate agent and lawyer, I’ll help you find and buy the home of your dreams at the best price and terms.  And I’ll keep you from making a costly mistake.  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I look forward to hearing from you.

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