Lee's Blog

Troy Michigan Real Estate: Why FSBO Isn’t the Way to Go When Selling Your Home

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Tue, 08 Dec 2009 10:04:25 -0600

If you own Troy Michigan real estate and are thinking of selling, whether you have a single-family home or condo, For Sale by Owner (FSBO) sales aren't near as successful as those sold by real estate agents. In fact, by 2006, the average price for a FSBO home was at least $50,000 less than agent-run sales.

Why is that? Are agents, including Troy Michigan real estate agents, just naturally better at it? Although I'd love to say yes, the reality is that there are just some things FSBOs don't know. Because they don't know it, they make mistakes. Some of the most common are:

1. Incorrect pricing - The Troy Michigan real estate market can only bear so much. By pricing their homes and condos too high, many FSBOs fail to sell. If your home isn't selling, this may be the reason.

2. Not understanding everything involved - Selling a home, whatever the type, takes a lot of time, energy, ability, effort and know-how. For instance, accessibility is especially important, and a lot of FSBOs can't be available to show the property when a buyer wants to see it.

3. Screening - You can waste a lot of time on unqualified buyers. You can also lose money by taking an offer that's lower than it should be. Screening buyers can take a lot of time and effort, especially if you don't have the experience to spot them.

4. Financing questions - The prospective buyer wants to know their financing options. As a FSBO, you need to be able to answer financing questions and explain their options. To do this, you'll need to build a network of financial experts.

5. Knowing contracts - You need to be well versed in legal jargon, so you can handle contracts, agreements and disputes. Make sure everything - the negotiations and the agreements - are in writing.

These five points are just a few of the things you need to know to sell your Troy Michigan real estate on your own. If you're not prepared to do it all, hire an experienced agent to do it all for you!

If you're trying to sell your home or condo and need someone who knows the ropes, 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

2009-Another Bad Year for the For Sale By Owner (FSBO) Seller

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Mon, 23 Nov 2009 10:20:38 -0600

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 her 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.

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

Market Snapshot For Selected Cities In Oakland County Michigan, August 2009

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Sat, 03 Oct 2009 12:21:16 -0500

Market Updates

Residential Real Estate Statistics for Selected
Cities in Oakland County Michigan

August 2009 Compared to August 2008
Information Source: August 2009 Metropolitan REALTOR®

OAKLAND COUNTY	SALES	MEDIAN SALE PRICE
BERKLEY	-47.0%	-17.0%
BEVERLY HILLS	+21.0%	-17.0%
BIRMINGHAM	+26.0%	-38.0%
BLOOMFIELD HILLS	-17.0%	+50.0%
BLOOMFIELD TWP.	-22.0%	+37.0%
FERNDALE	+72.0%	-43.0%
ROYAL OAK	+14.0%	- 4.0%
SOUTHFIELD	+41.0%	-40.0%
TROY	+ 8.0%	-18.0%

Summary:
With some exceptions, the trend of increased sales volume, decreased median sale prices and listing decreases continue. At some point, this once in a lifetime opportunity for buyers will end. Interest rates remain low and homes that were previously unaffordable are now affordable. Add to that, the $8,000 First-Time home buyer tax credit that expires on November 30, 2009, and you have the best time to buy in the last 50 years.

Don't miss out! If you are considering buying, you can view the homes that I have listed or search the Multiple Listing Service, yourself, 24/7 on my website.

If you already own a home and have seen its value decline, call me for a free consultation at (248) 514-2640 regarding lowering your property taxes.

Learn how these Statistics Affect YOU!

BUYERS:

It's still a Buyer's Market
Now is the Time to Buy
Interest rates are low
The Federal Reserve has lowered interest rates
There are lots of homes to select from
Sellers are more motivated to sell, which could mean more concessions for you

SELLERS:

It's possible your home may be on the market longer
Homes that are Priced Right will sell faster
I'll help you net the Most Money from the sale of your home
You need aggressive marketing to get the exposure for your home
Utilize my 30-Day Marketing Plan...about 85% of the homes listed by me are sold through my 30-Day Marketing Plan

ACT NOW:
It's particularly important for you to hire the best REALTOR® to handle your Southeast Michigan real estate transaction. I'm not your typical REALTOR®...I'm unique. Besides being a REALTOR®, I'm also a real estate lawyer with over 20 years experience. Whether you're buying or selling, I'm highly qualified to guide you through any real estate transaction. Fill out the form below for more information about how these statistics personally affect you. I'm always happy to answer any questions.

Are you ready to buy or sell Southeast Michigan real estate in Oakland County? If you want to talk or need more information, give me a call at (248) 514-2640 or contact me now!

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

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

Market Snapshot For Selected Cities in Oakland County Michigan-June 2009

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Fri, 07 Aug 2009 11:04:13 -0500

Market Updates

Residential Real Estate Statistics for Selected
Cities in Oakland County Michigan

June 2009 Compared to June 2008
Information Source: June 2009 Metropolitan REALTOR®

OAKLAND COUNTY	SALES	MEDIAN SALE PRICE
BERKLEY	-38.0%	-17.0%
BEVERLY HILLS	+ 9.0%	-39.0%
BIRMINGHAM	+81.0%	-41.0%
BLOOMFIELD HILLS	N/C	+21.0%
BLOOMFIELD TWP.	-23.0%	+ 9.0%
FERNDALE	+73.0%	-10.0%
ROYAL OAK	+ 4.0%	-24.0%
SOUTHFIELD	+90.0%	-40.0%
TROY	-10.0%	-18.0%

Summary:
With some exceptions, the trend of increased sales volume, decreased median sale prices and listing decreases continue. At some point, this once in a lifetime opportunity for buyers will end. Interest rates remain low and homes that were previously unaffordable are now affordable. Add to that, the $8,000 First-Time home buyer tax credit and you have the best time to buy in the last 50 years.

Don't miss out! If you are considering buying, you can view the homes that I have listed or search the Multiple Listing Service, yourself, 24/7 on my website.

If you already own a home and have seen its value decline, call me for a free consultation at (248) 514-2640 regarding lowering your property taxes.

Learn how these Statistics Affect YOU!

BUYERS:

It's still a Buyer's Market
Now is the Time to Buy
Interest rates are low
The Federal Reserve has lowered interest rates
There are lots of homes to select from
Sellers are more motivated to sell, which could mean more concessions for you

SELLERS:

It's possible your home may be on the market longer
Homes that are Priced Right will sell faster
I'll help you net the Most Money from the sale of your home
You need aggressive marketing to get the exposure for your home
Utilize my 30-Day Marketing Plan...about 85% of the homes listed by me are sold through my 30-Day Marketing Plan

Are you ready to buy or sell Southeast Michigan real estate in Oakland County? If you want to talk or need more information, give me a call at (248) 514-2640 or contact me now!

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

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

May 2009 Residential Sales Statistics For Oakland County Michigan

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Tue, 21 Jul 2009 15:38:56 -0500

Residential Real Estate Statistics for Selected
Cities in Oakland County Michigan

May 2008 Compared to May 2009
Information Source: July 2009 Metropolitan REALTOR®

OAKLAND COUNTY	SALES	MEDIAN SALE PRICE
BERKLEY	-48.0%	-25.0%
BEVERLY HILLS	-21.0%	-22.0%
BIRMINGHAM	+18.0%	-38.0%
BLOOMFIELD HILLS	-50.0%	+73.9%
BLOOMFIELD TWP.	-9.0%	-11.0%
FERNDALE	+5.0%	-46.0%
ROYAL OAK	+10.0%	-29.0%
SOUTHFIELD	+55.0%	-38.0%
TROY	+7.0%	-17.0%

Summary:
The May 2009 Sales figures reflect the continued trend of increased sales volume with decreased median sales prices. The good news is that for Oakland County, listing inventory is down by 21%. At some point supply and demand should stabilize.

These numbers also make it clear that buyers should buy now. There has never been a better time to buy a home. First-time home buyers should move even faster as the First-Time home buyer Tax Credit is set to expire on 12/01/2009. Interest rates remain low and home prices have come way down from 5 years ago.

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

Where Banks Are Concerned "Loss Mitigation" is an Oxy-moron!

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Sat, 18 Apr 2009 08:16:23 -0500

It is time to vent. I am a RE/MAX Associate Broker/Attorney representing home buyers and sellers in Oakland County Southeast Michigan. I have a short sale listing where the seller has already submitted the hardship package to the bank. We have recently had a flood of offers and I immediately submitted them to the bank. I then called three times during the week that followed and finally, after one week spoke to a "loss mitigator" who I could barely understand due to a heavy foreign accent. I suspect this bank is outsourcing this task to India. That said, they have ordered a broker price opinion after doing nothing for the first week.

I have also been working with a first time home buyer who has wanted to see some bank owned homes. They have all been disasters. Two had flooded basements and mold because the banks shut off the power and because of that the sump pumps did not do their job. In one instance, we were never able to see the house because Rinky Dink Realty does not answer its phone or have voice mail.

If the banks really want to mitigate their losses with regard to defaulting mortgage loans and bank owned properties, they need to overhaul how they are handling "loss mitigation". They need to hire more people who have experience in residential real estate to respond quicker to the short sale offers to avoid buyers walking away in frustration and list the properties with qualified realtors and maintain the properties so that their conditions don't detriorate further. Otherwise "loss mitigation" should be changed to "loss aggravation".

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

Goodbye To My Dog Tyler

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Wed, 14 Jan 2009 15:55:22 -0600

Dear Tyler,

My heart is heavy. I had to let you go. You just couldn't do it any more. I know you tried, but you just didn't have the strength any more. The cancer that we found almost a month ago, got the best of your almost 16 year old body. We hoped that it was just an infection but, because I loved you, I was not going to torture you with any radiation or chemotherapy. I opted for the antibiotics and antiinflammatories and hoped. The vet said you would let me know when it was time and you did. You picked a day that I was around and available to put you out of your pain. It was hard to say good bye to you. I loved you as much as any person could love a dog. It was easy to love you. You were a great dog. You had a zest for life and I know you loved me with all of your heart. When I rescued you from where you were 14 years ago, you knew to come with me without hesitation. You knew that a great life with me was ahead of you. I felt your love when you caught a frisbee like a top NFL receiver catches a football and brought it back for more. I felt it when I took you up to Northern Michigan and you swam out to fetch a water toy at the dog beach in Harbor Springs and brought it back for more. I felt it because you let me know that your favorite place was always next to me. You welcomed my wife, Teri into our pack and then our son. You showed both of them almost as much love as you did me. I know that you are now gone forever and I cannot bring you back. If I could, you know I would. So, over time, Tyler, when my crying stops, I will focus on the great times that we had together. I will always love and miss you.

Love, Lee

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

November 2008 Home Sales Figures Give Cause for Optimism

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Tue, 13 Jan 2009 11:18:47 -0600

November 2008 home sales figures for Oakland County Michigan, as compared to November 2007, give cause for cautious optimism. For the county, sales are up 32% and listings are down by 18%. However, sale prices continue to drop. In Troy, Michigan median sale prices were down by 15% and in Royal Oak and Ferndale, prices tumbled by 21% and 41%, respectively. On the other hand, Birmingham and Bloomfield Hills saw inreases of 13% and 61%. So long as we don't see an increase in bank owned homes on the market we should start to see some stabilization of the housing market. If you are thinking about buying, NOW is the time. With recent interest rate decreases on 30 year mortgage loans, buyers can buy more of a home than could for the last ten years. If you need to sell, it can be done but you must be realistic about where the market is or don't try selling it. Home owners who plan on staying in their homes in Oakland County Michigan may want to protest the taxable value determined by their city assessor's office if it is significantly above 50% of the homes fair market value.

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

Thank You Birmingham For First Night

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Thu, 01 Jan 2009 19:51:23 -0600

Every New Years Eve, our family attends Birmingham's First Night, an alcohal free event sponsored by The Cultural Council of Birmingham /Bloomfield. The evening features live entertainment and crafts geared toward families. This year's performances were well worthwhile. The magic by Jason Hudy featured a levitating illusion that wowed the crowd. Puppeteer Brad Lowe was first provided an explanation of how marionettes are made. He then performed a soundtracked show about a fisherman who caught a magic fish that he let go. When the fisherman's wife learned about this, she nagged the fisherman to return to the fish and ask to have her wishes granted which, once granted, only led to more wishes. This years, First night also included a Steel Band, face painting, a model train exhibit, and crown making. Of course, there are so many options that you cannot do everything. If you want to have a safe and fun New Years Eve with your family, be sure to attend next years First Night.

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

2008-Another Bad Year For The For Sale By Owner (FSBO) Seller

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Sun, 28 Dec 2008 11:38:04 -0600

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 the home. The NAR Report gives 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 though 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 increase your chance of success, most likey end up netting more money, and find the process a whole lot more easy and convenient as you would by trying to go at it alone without the help of a professional.

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

Southfield Martial Arts Institute Gets the Whole Family Involved

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Tue, 28 Oct 2008 16:05:29 -0500

In the Spring of 2008, I learned that my elementary school age son was being picked on by a bully at his school. Almost immediately, I decided it was time for the both of us to learn self defense. I called a couple of Dojos in the area only to learn that my son and I would have to learn separately. I then contacted the Southfield Martial Arts Institute located at 29100 Southfield Rd., Southfield, Michigan, (248) 569-7030. www.southfieldmartialarts.com. Fortunately, this Dojo has family Karate classes three times per week. The experience has been amazing. The Dojo is run by Master Willie Adams, a 10th Degree Black Belt, and several other very talented and patient Senseis who teach Okinawan Isshinryu style Karate. Above is a photo taken at the Dojo's Beginner Junior Tournament on October 25, 2008 that featured sparring, Black Belt demonstations, awards, and a luncheon following the tournament. A great time was had by all especially the precious children who all had big smiles on their faces as they wore their award medals. This Dojo not only teaches self defense technique that could save your life, but also respect for yourself and others, focus, and provides a sense of accomplishment. I highly recommend it.

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

The Catch With Bank Owned Homes

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Thu, 02 Oct 2008 16:19:40 -0500

Today I began working with a new buyer who wants to start by looking at bank owned homes because, naturally, she wants to get a "good deal". We looked at three homes and they were complete disasters. One had terrible structural problems. The other two had water and mold problems. None of these homes are financeable due to their condition. In other words, unless the buyer is paying cash, she will not be able to get a mortgage loan. Now, some will say, "well, there is a program with the bank where I can get money for the repairs." O.K. then. Will somebody give me a real example of this happening recently where major repairs like mold remediation and structural problems exist? Every lender I have spoken with knows about the program but none of them have done it. They also tell me that the paperwork and red tape are huge. In my experience, it just makes more sense to purchase a home that is functional so you can get financing and then give the home your personal touches with paint, carpeting, etc.

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

Home Seller Does Not Want To "Give His Home Away" Part 2

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Fri, 12 Sep 2008 15:47:21 -0500

I received this email from a potential seller. The email and my response are well worth posting and his response to me is an example of how realtors can benefit from being straightforward about pricing with sellers. First the email:

We are interested in listing a single family residence in Birmingham. We are not in any rush to sell the property and fully realize the market is currently depressed. We do not want to give the home away in the currently depressed market but thought we should list it at this time. We want to avoid wasting your time or our time if you are not genuinely interested in listing it with an asking price of $450K which may well be $100K over current market value or appraisal. If interested please respond to this email

Now, my response:

Wow! Very interesting email. First, if you don't need to sell at this time then don't. We are experiencing a severe buyer's market and homes listed at the top of the market are not selling. Realtors who list properties at the top of the market are either incompetent or using their sellers to attract buyers to sell other home to. Moreover, by listing a home they know or should know will not sell, they are only perpetuating a buyers market.I don' t want anyone to give their home away either. As you know, youi cannot sell a stock on the New York Stock Exchange for a price above market. The same is true for a home in a buyer's market. If a buyer falls in love with your home and agrees to the above market price, the transactioin will fail because the home will not appraise and the buyer won't ge the financing. If you are certain that the $450,000 amount is $100,000 above market, then I respectfully am not able to help you.If you are not certain, I would be happy to do a market analysis free of charge.

His response:

Though I've had some negative experiences with realtors and I'm too old not to be cynical your frankness makes me think you're someone I could work with. I have to be concerned about the fact that many realtors in the current market in Michigan would be hungry for any sales opportunity and as a result would not necessarily act in the best long term interests of a seller. I accept your offer for a "market analysis" of the residence.

I know many realtors who list homes at any price. I see it happen all the time after I walk away from sellers who want to overprice their homes. The sellers always seem to find a desperate or incompetent realtor and the home never sells.

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

Email and Response to Seller Who does Not Want to "Give His Home Away"

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Wed, 10 Sep 2008 20:25:19 -0500

I just received this email from a potential seller. The email and my response are well worth posting. First the email:

Now, my response:

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

Good June 2008 Housing Figures For Birmingham, Michigan

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Thu, 14 Aug 2008 17:31:58 -0500

Good news continues for Birmingham, Michigan's housing numbers. In June 2008, as compared to June 2007, total homes on the market declined by 26% and the Median Sale Price increased by 52%. Total sales were down by 33% which was probably due to the decrease in inventory.

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

Housing Bill to Provide Relief to Oakland County Michigan

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Fri, 25 Jul 2008 12:37:59 -0500

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@NorthWoodwardHomes.com
Call: 248-514-2640

Accurately Priced Home Sells Above List Price

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Sun, 20 Jul 2008 11:20:42 -0500

I am a RE/MAX Associate Broker/Attorney selling homes in Oakland County, Michigan. Recently, one of my law practice's former clients asked me to help her sell her vacant home in Troy, Michigan. I had previously been her attorney with regard to a condominium purchase from a by owner seller. The Troy home had been on the market for about a year with no offers and the listing had expired. I met her at the home. The home was not in bad shape but did need some painting, minor staging, and some minor repairs. She agreed to do these things and I went back to the home about two weeks later after doing a market analysis. The home was ready for market. Surprisingly, her previous realtor made none of the suggestions that I had made.

When it came to pricing, the previous realtor listed the home between the middle and top of the market in a market that declined in value. I convinced the seller to price the home between the middle and the bottom of the market because I had determined that that was where the buyers were buying so it only made sense to price the home in that range. I was right! The home sold for for an amount above list price within one week after mulitiple showings and multiple offers. The competing buyers and their agents knew the home was priced right and the fear of loss caused the winning buyer to pay more than list price. The result was a happy seller able to move on with her life without the entanglement of a vacant home sitting on the market.

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

Another For Sale By Owner (FSBO) Disaster, Part 2

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Mon, 30 Jun 2008 11:47:13 -0500

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

An Example Of How a Mortgage Lender Lost Money For No Reason At All

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Fri, 27 Jun 2008 15:10:48 -0500

In July of 2007, I had a short sale listing with a well known 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

New Lending Guidelines May Be Helping Housing Market

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Thu, 26 Jun 2008 16:00:31 -0500

The good housing numbers continue for Oakland County Michigan. 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. 37% of the homes sold were bank owned down from approximately 50%. I believe the worst is over as, in all fairness, the banks are no longer lending money to individuals with poor credit scores. As less bank owned homes are placed on the market, the laws of supply and demand will eventually stabilize home prices.

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

More Good News For Oakland County Michigan Home Sales

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Tue, 24 Jun 2008 16:23:33 -0500

The good housing numbers continue for Oakland County Michigan. 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.

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

Ferndale, Michigan Home Sold IN Fourteen Days

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Fri, 06 Jun 2008 13:08:55 -0500

I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County, Southeast Michigan. Like the rest of the country, we are in a buyers market with more homes than buyers to buy them. Many home sellers think that they can list a home at a price they have in mind and then "see what happens." In my opinion, that can be a huge mistake and here's why. In a buyer's market, you usually have a pool of buyers who have been looking for a while for a home, usually more than thirty days. To attract those buyers, your home must first be in excellent condition. Second, you must price the home somehwhere between the middle and the bottom of the market as those are the homes that the buyers are looking at. Naturally, they are looking for the best deal. At the present time, in Oakland County, Michigan, one of every two homes sold is bank owned. The reality is that if you want to sell, you have to compete with the bank owned home. Most buyers will pay about a ten percent premium above a bank owned home because bank owned homes are usually in rough shape and have had the appliances removed. After thirty days, new buyers trickle into the market. If the existing pool of buyers have rejected your home due to its price or condition, you will be fighting an uphill battle. Some sellers I recently worked with in Ferndale, Michigan understood all of this and listed their beautiful home at a price around ten percent above the bank owned competiton. Within fourteen days, a first time home buyer who had previously looked at more than one hundred homes made an offer that was ninety six percent of the list price, right after he looked at the home.

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

Arrogant Listing Agent Blows A Chance To Sell Listed Home

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Tue, 20 May 2008 12:48:46 -0500

I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County, Southeast Michigan. I am currently working with a very motivated buyer who has already sold his home. Last week, we wrote and submiited an offer on a home that he was interesed in. The amount offered, net of a needed seller contribution toward the buyer's closing costs and downpayment, was approximately 88% of the listed price. This was not an offer we expected the seller to sing "I'm In The Money" about but, considering that the home was overpriced, was not a bad faith offer.

The listing agent called me the next day and, in a haughty tone of voice, told me that the seller rejected the offer "outright" and would not be making a counteroffer. I asked Mr. "My Morning Breath Doesn't Stink" what his seller was looking for and his response was, "sorry, but the ball in your court." Politely, I told him that I disagreed with him and that he probably wouldn't be hearing from me again.

The buyer was furious and rightly so. He had made his best offer and, if he would have increased the amount, would have had to get a gift from a relative or friend which was something that he did not want to do.

This week, a similar offer was made on another home, his second choice. Except that this time, the listing agent came back with an acceptance and a very appreciative tone. She and her seller must understand that in this market. an offer is an opportunity, to move forward with your plans. Last I checked, the other home was still on the market.

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

Bush's Veto Threat Of Housing Bill Is Another Example Of Poor Leadership

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Fri, 09 May 2008 10:52:58 -0500

On Thursday May 8, 2008, the United States House of Representatives passed a Housing Aid Bill that would allow struggling homeowners to refinance their subprime mortgage loans through the Federal Housing Administration and provide funding to states to buy and fix up foreclosed homes. Bush has threatened a veto claiming that the bill would penalize prudent homebuyers and reward those that "gambled" that home values would rise. As to the funding provision to the states, Bush claims that it rewards the lenders who helped cause the problem. Total projected cost of the bill is estimated to be $17.7 billion over five years.

First, let's put this is perspective. According to some accounts, we are spending around $1 billion per month in Iraq, an amount that Congress doesn't seem to have any trouble funding. So, any claim that we cannot afford the cost of the Housing Bill is just disingenuous. In addition, the bill provides that homeowners would be required to share any profits from selling or refinancing with FHA.

Second, the contention that the bill would penalize prudent homeowners is shortsighted Bushspeak. I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County in Southeast Michigan. Currently, one of every two homes sold here is bank owned foreclosed. This influx of housing inventory has caused all homes in the area to decline in value by as much as thirty to forty percent over the last few years. By reducing the number of foreclosed homes on the market, "prudent" homeowners will see their home values stabilize and, eventually, climb. To say they would be penalized is absurd.

Third, to contend that subprime borrowers "gambled" shows how disconnected this President is from reality. Subprime mortgage borrowers typically had very little choice when it came to financing available to them to buy a home. For the most part, the choice was to buy a home under those terms or not. What the subprime borrowers did not expect was that they would be laid off or outsourced during a recession that no one wants to admit has happened.

George W. Bush's approval ratings are amongst the lowest of any President in our nation's history. His, or his conrollers', veto threats of the current Housing Bills and the reasons for them, are more examples of why he is so unpopular.

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

Foreclosure Bill Has Some Good Ideas To Help Housing Market

Lee Morof, Associate Broker/Attorney (RE/MAX Showcase Homes) — Sun, 27 Apr 2008 18:26:37 -0500

I am a RE/MAX agent in Birmingham Michigan. I primarily represent home buyers and sellers in the North Woodward Area of Oakland County, Southeast Michigan. Currently, approximately one of every two sales in Oakland County, Michigan is a bank owned home. Of course, this has caused huge downward pressure on home values and has perpetuated our buyer's market. A bill currently before the United States House of Representatives has some provisions that I believe would help. First, the bill provides for a $7.000 tax credit for those buying bank owned homes and would provide $4 billion in grants for communities to buy and fix up foreclosed homes. The naysayers in the house contend that this would unfairly award purchasers who would have bought anyway and would devalue other homes. In addition, the naysayers think that this would encourage banke to foreclose on more homeowners. I believe that the bill's detractors are misguided. First, these measures would help reduce the huge inventory of bank owned homes and, in turn, would help get supply to meet current demand. This will help home values not hurt them. The bill also includes the issuance of $10 billiion in tax free mortgage revenue bonds to help homeowners refinance subprime loans. This part of the bill has white house support and would naturally result in fewer foreclosure. All combined, these measures should help reduce the glut of bank owned homes on the market much faster than would occur otherwise.

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