Sellers are obligated to disclose all major property issues, but buyers should double-check the disclosure statement before signing any sort of contract. Below is important information about Southeast Michigan real estate disclosures:

• If you know it, disclose it. Don’t try to hide anything negative about a home because it could come back to bite you. There are standard documents that sellers can fill out, but know that verbal disclosures can also be documented.
• Things you should disclose. Disclose all renovations, whether or not you were required to obtain a permit. Other normal disclosures include property line disputes, termite problems, indoor pets, consistent neighborhood disruptions and appliance issues.
• Disclosures and inspections are not the same thing. Some people get these confused. A disclosure is something the seller fills out and gives to the buyer. An inspection is conducted by an independent party and might bring to light home issues of which the seller is unaware.
• Improper disclosure can result in a lawsuit. If buyers quickly discover that their new home has serious undisclosed issues or renovations that were hidden and aren’t up to code, they can ask their real estate agent to confront the seller’s agent and seek a settlement. If the seller does not cooperate, the buyers have the right to file a lawsuit.

If you’re getting ready to sell your Southeast Michigan real estate and would like help deciding what to include in the disclosure or if you’d like to buy a home and want to be sure you’re getting all the proper disclosures, I can help.  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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There are an abundance of beautiful, well-maintained Royal Oak Michigan homes for sale right now. But there are very few buyers looking at them because it’s cold and dreary. They’d rather wait until spring. That means great prices for you right now!

Here are a few tips to help you catch a winter bargain:

• Ask to see summer photos: Want to know what the yard is like in the summer? Look at photos from last summer.
• Try light therapy: This makes everything look better. It’ll boost your mood and help you make a rational (not emotional) decision on which home is right for you.
• Use your imagination: If there’s something you don’t like about the house, imagine what it will look and feel like in warmer weather. The natural light will be brighter, the air will be fresher and the grass will be greener.
• Offer less: If the homeowners want to get the home sold this winter, they’re going to be more open to considering your offer, even if it’s several thousand dollars less than the asking price. If they’re unwilling to go as low as you’d like on the price, ask for other concessions. You might get the seller to pay for part of your closing costs, buy a home warranty plan or to leave the pool table that fits so perfectly in the family room.

If you’re willing to brave the cold and ignore the winter blues, you could save a bundle when buying one of the Royal Oak Michigan homes for sale. Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com and tell me what you want in a home. I’ll put together a list of great buys for you.

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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Follow these steps to get preapproved for a mortgage:

1. Get referrals. Ask family, friends, neighbors and your Bloomfield Hills real estate agent for referrals to a lender with whom they have had a good experience. Talk to several lenders to compare service, rates and other options.
2. Review your credit report. If anything unexpected appears on your report, do what you can to resolve the issues before you apply for preapproval.  Lenders will review your credit report before preapproving you for a home loan.
3. Provide financial information to the lender. This usually includes documentation of your income, recent statements for all your checking and savings accounts, assets and debt (for instance, credit card debt and car payments).

Even though the preapproval process is rigorous, obtaining a preapproval still does not guarantee that the lender will ultimately fund your loan. Lenders still need to look at property appraisals, verify your information and potentially check your credit again before agreeing to give you a mortgage.

Preapproval helps you narrow the focus of your Bloomfield Hills real estate property search to properties that are within your financial reach. It also helps you check out lenders to find one that is the best match for your situation.

When you find the Bloomfield Hills real estate of your dreams, you’ll be ready to move to the next step!

If you’re looking for more information on the home buying process, I can help. 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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Minimize the risk of receiving an inaccurate appraisal by …

• Meeting the appraiser at the house. Show them around your Southeast Michigan real estate, just like you’d show a potential buyer. That way you can highlight some of your home’s unique features that they might otherwise overlook. Also, if they have any questions about when things were updated or replaced, you’ll be there to share all relevant information — instead of them just taking a guess.
• Establishing that he or she is geographically competent. Appraisers that don’t know the area can misquote, so be sure to ask them questions, such as how far their office is from the property and if they have access to local MLS data. If you feel the appraiser doesn’t meet geographic competency standards, then you can raise the issue with your lender.
• Providing him or her with comparables. You probably know the neighborhood better than the appraiser, so supply information on recently sold homes that you think are similar to yours. He or she might not use them, but it can’t hurt.
• Record any mistakes. Always ask for a copy of the appraisal to review, because appraisers make slip-ups all the time. Especially if the value is low, be sure to look over the details of the appraisal and call out any discrepancies. If this is the case, you won’t be able to change the designated value, but you can file a complaint against the appraiser. If the mistakes are big, ensure you get a second appraisal.

Don’t let an inaccurate home appraisal ruin your future financial goals. Take Southeast Michigan real estate appraisals seriously, be proactive, do your homework and definitely review the final version.

If you’re getting ready to sell your home or purchase a new one and have questions about appraisals, please call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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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Start 2012 off right by setting new life and financial goals for yourself. If you’ve been renting and are planning to remain in Royal Oak, then it’s definitely time for you to consider buying a house. Here are some benefits you should take into account:

• You’ll build equity. If you take out a loan, you’ll be using someone else’s money to turn your property into a piggy bank and eventually make money as your home appreciates. Plus, when you put your Royal Oak Michigan home up for sale down the road, you don’t have to share the proceeds — what’s not to like about making money with your bank’s money!
• You’ll receive tax breaks. The government supports purchasing houses by giving you significant tax breaks on your federal taxes. And when it comes time to sell, you don’t have to pay capital gains taxes either, until you hit a certain ceiling.
• You’ll be able to count on consistent payments year to year. If you can get a fixed-rate mortgage, you won’t need to worry about an annual increase in your payments. When you’re renting, you never know what your payments could be from lease to lease, which makes it hard to determine if your current residence will always be within your budget.

While the appreciation on a house you purchase might not shoot up as fast as it did a decade ago, buying a home is still a wise long-term investment. Paying rent is no investment at all.

If you’re on the fence about the benefits of purchasing one of the Royal Oak Michigan homes for sale in the New Year or would like to see what’s available, please call 248-514-2640 today or email me at info@NorthWoodwardHomes.com for more information.

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 one of the lucky owners who has a home for sale in an area that stays beautiful all year long, you can still find a few tips here to help get your home ready to sell.

Six tips to help you sell your home this winter:

1. Keep it cozy. You want your home to be warm so people can comfortably take their time viewing your Bloomfield Hills real estate. Saving money on heating costs isn’t worth it if it means freezing out your potential buyers.
2. Turn up the light. Keep curtains and blinds open during the day. Turn on your lights, both inside and out, at night. Put your lights on timers if you won’t be home until after dark. Use motion detectors to light up in the evening when a potential buyer approaches your doorstep.
3. Point out cold-weather benefits. Have mass transit within walking distance? That’s a big benefit in bad weather because you don’t have to de-ice or dig your car out of the snow in order to get to work.
4. Take advantage of good winter locations. If your home is in a location that people flock to in the winter, such as an area with great outdoor winter sports such as skiing or a warm-weather area like Florida, now is the time prime time to promote your house! Put all you’ve got into marketing the benefits of living where it’s always sunny or where winter living is fun.
5. Set the mood. Play soft, classical music. Toss afghans or throws across the back of your sofa. Hang plush robes in your bedroom or bathroom.
6. Clear away snow and ice. Shovel a path through the snow so potential buyers don’t have to get out their snowshoes. De-ice your driveway, sidewalk, steps and porch to prevent slips and falls.

If you’re ready to sell your Bloomfield Hills real estate this winter, I can help. Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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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To increase your level of knowledge and improve your success in investing in Southeast Michigan short sales, here are the definitions and important information about four acronyms:

BPO: This stands for Broker Price Opinion 

A BPO is, essentially, the same thing as an appraisal. In a short sale transaction, the lender hires a broker to appraise a home. The broker assesses the house both inside and out to determine its current market value.

If a BPO has not been ordered by the lender or if you cannot find out what the value of that BPO is, you may be at a big disadvantage when trying to submit a short sale package.

The closer your short sale offer is to the BPO, the better chance you have of the short sale transaction going through.

NOD: This stands for Notice of Default

This is the first official stage in the foreclosure process. The lender has a right to file the Notice of Default after the very first late payment, but the NOD is not usually filed until 60 to 90 days after a late or missed mortgage payment.

In some states, the Notice of Default is also attached to the home, generally on the front window, like a big scarlet letter. It states that the borrower is in default, behind in the mortgage payments, and if the payments are not paid up, the lender will seize the home.

This is a crucial step in purchasing a short sale, because if the lender has not issued an NOD, they won’t consider your short sale offer.

NOT: This stands for Notice of Trustee’s sale

The NOT is a recorded notice that a trustee’s sale has been scheduled.  That means the clock has really started ticking! If all late payments, fees, and penalties aren’t paid up, the property will be auctioned off to the highest bidder. The minimum amount is usually whatever the lender needs to pay off the first loan and other fees.

The buyer who wins the auction gets the property as-is. This includes all liens, whether or not the lien has been recorded. Title insurance is generally not available for up to two years. This can be a significant risk for a buyer.

Many properties don’t sell at auction so they go to the lender and become REOs or Bank Owned Properties…

REO: This stands for Real Estate Owned by the lender

An REO, also known as a Bank Owned Property, is a property that goes back to the lender after an unsuccessful foreclosure auction. So when you hear the term REO, it means that the lender now owns the home.

Usually, the lender asks a real estate agent to list the property for sale. The initial listing price is often high. Hire a real estate agent who is knowledgeable about short sales to negotiate the price for you and help you navigate the complicated short sale process through to a successful closing.

If you’re interested in investing in real estate or Southeast Michigan short sales, I can help. I’m a Certified Distressed Property Expert and real estate lawyer.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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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Shop Around For Better Closing Fees

The Good Faith Estimate (GFE), as required by RESPA, is presented to you after you apply for a loan to purchase your Southeast Michigan real estate. It gives you a heads up as to what fees you should expect at closing.

If you don’t like the numbers you’re seeing on the GFE, shop around with other lenders. If you were approved for one loan, you can likely be approved for another.  Collect comparable GFEs and see how the interest rate, monthly payments, points, and closing fees stack up. Your best bet is to tell your lenders that you’re comparison shopping, so they give you the best numbers possible.

Common closing fees you can expect to see on your Good Faith Estimate include:

• Appraisal Fee – Fee for an independent appraisal of the value of the property. This fee often ranges from $350 to $500. Note that payment for this fee is sometimes required prior to closing.
• Credit Report Fee – This is the cost of acquiring a credit report.
• Title Insurance Fee – This is the fee paid to a title company for research and insurance related to the title of the property.
• Processing Fee – The processing fee covers the cost of the person who handles collecting the paperwork, such as credit reports and employment history, for underwriting. Sometimes, the processor is the loan officer.
• Loan Origination Fee – Also called underwriting fee, administrative fee or processing fee, the loan origination fee is charged by the lender for evaluating and preparing your mortgage loan. This fee can cover the lender’s attorney’s fees, document preparation costs, notary fees, and similar charges.
• Application Fee – This fee covers the processing of an application for mortgage insurance.

All loans have fees; there’s no escaping them.  If there aren’t any fees, the cost of making the loan has been wrapped up in other areas such as the interest rate or points.  So as you comparison shop, remember to look to the long-term cost of the loan, not just settlement fees.

That said, with some comparison shopping and negotiation, you may be able to decrease your fee amounts without the price being woven elsewhere into the loan for your Southeast Michigan real estate.

Whether you’re ready to buy or need more information before taking the plunge, I can help. 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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Here are the stats (courtesy of AgBeat.com) you need to know about first-time home buyers before selling your Bloomfield Hills real estate:

• Long-term survey averages show that 4 out of 10 buyers are typically first-time buyers. This segment is critical to a housing recovery because they help existing home owners sell and make a trade.
• The median age of first-time buyers was 31 and the median income was $62,400, up from $59,900 in the 2010 study.
• The typical first-time buyer purchased a 1,570 square foot home costing $155,000.
• First-time buyers who financed their purchase used a variety of resources for the down payment: 79 percent tapped into savings; 26 percent received a gift from a friend or relative, typically from their parents; and 7 percent received a loan from a relative or friend. Nine percent sold stocks or bonds and 8 percent tapped into a 401(k) fund.

Ninety-four percent of entry-level buyers chose a fixed-rate mortgage. Fifty-four percent of first-time buyers financed with a low-down payment FHA mortgage, and 6 percent used the VA loan program which requires no down payment.

What this Information Means to You

If you’re selling an existing, entry-level home, you’ll most likely be selling to a first-time home buyer with a median age of 31 and a median income of $62,400. First-time home buyers are most likely to get a fixed-rate, FHA mortgage. Gear your marketing toward that buyer to have more success.

If you’re ready to sell your Bloomfield Hills real estate, whether it appeals to first-time buyers or other types of buyers, I’ll market it to get it sold as quickly and for as much as possible. Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

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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This economy has made it challenging to get acceptable offers from prospective buyers. While this is extremely discouraging, the lack of offers might mean it’s time to bite the bullet and lower the price on your Royal Oak Michigan home for sale. Then you might be able to sell quickly and start a new lease on life.

Below are reasons you should lower your price now to sell fast and start anew:

• It costs time and money to keep a house on the market. Maintaining a house and waiting for the right offer is a full-time job. There is constant cleaning, upkeep and improvements that can cost you time and money — which you could be investing into your new house.

• Your home may be overpriced. If you aren’t receiving any offers, have your real estate agent pull information on comparable properties in your neighborhood that have recently sold. This will give you get a better idea of where you should be priced.

• Your real estate agent recommends it. He or she knows your market and can tell if your property has been for sale longer than expected. If a property sits on the market too long, potential buyers might suspect that something is wrong. If your house has more days on market than your agent expected it to have, then it’s probably time to reduce the price.

Consider dropping your price so you can accomplish your New Year’s resolution early in 2012. Reducing your price might also draw attention to your property, increase activity and bring more people through the doors.

If your Royal Oak Michigan home for sale isn’t currently listed with an agent, and you’re ready to get it sold, please call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I’ll implement my proven 30-Day Marketing Plan to get your home sold as quickly as possible.

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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