Last week, the Governor unveiled her proposed 2010-2011 budget. Unfortunately, this plan addresses two-thirds of the deficit through tax increases and stimulus money, while only touching upon state government’s much needed cost-saving reforms. Unfortunately, this proposal is a $400 million tax increase over the next 2 years followed by promises of cuts down the road.
The Michigan Association of REALTORS® has a long-standing position against any taxes on our industry. This proposal is a vast improvement from her 2% tax on services proposal of a few years ago, as it excludes business to business transactions and real estate commissions. Yet it falls short of making the significant government reforms necessary to balance the state budget into the future.
You may recall that the Michigan Association of REALTORS® banded together with other members of the business community to form a coalition to push for government reform before taxation. The “
One Voice for Reform” coalition urges real reform without tax increases in order to balance the state budget. REALTORS® are fighting for survival and have a deep concern for the future of the state. The coalition knows that some of the choices to be made are tough, but difficult decisions are being made everyday by families and job providers across Michigan and government has a responsibility to do the same.
Since the beginning of 2010, members of the coalition have met with over 128 Legislators from both parties and both chambers to discuss our structural deficit and the importance of enacting cost saving structural reforms to balance the budget. These meetings will continue until we have met with all lawmakers. Members of our organizations, including the real estate industry, have been enacting cost saving reforms for almost a decade and are unwilling to pay higher taxes to support status quo government spending.
We are disappointed in the Governor’s budget plan and we encourage all legislators to go further to enact meaningful cost-saving structural reforms before moving on to tax reform in order to balance the budget by the September 30
th deadline.
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Lowering the state sales tax from 6% to 5.5% beginning December 1, 2011, and expanding it to consumer services. (Exclusions: non profits, industrial processing, health care, social assistance, education, construction, remodeling, real estate and insurance commissions, and services directly connected to business operations)
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The Michigan Association of REALTORS® has received the majority of housing statistics for January. With 80% of Michigan’s local associations reporting, the average sales price of a home in Michigan rose over 20% from January 2009, further signaling a trend in stabilized prices across central, western, and upper Michigan.
Both the Flint and Grand Rapids associations reported significant increases in home sale units. Home sales in the Flint area increased by 67 units over 2009. Similarly, Grand Rapids experienced a 60-unit increase from 2009. Their selling prices also increased, with Grand Rapids experiencing an average of $10,000 more per home.
Eleven local reporting units showed increases of 25% or better in average sales price, while 14 reported a better than 10% increase in units sold. The Antrim Charlevoix Kalkaska Association, for example, reported the highest increase in home sale prices, averaging just over $95,000. While several associations, including Hillsdale, Lenawee, and Traverse area, experienced a decrease in units sold, their average sale prices did increase significantly.
These positive results can be attributed to a number of factors. Purchasers have had an extended opportunity to take advantage of the first-time home buyer tax credit. Another important factor may be that buyers are receiving better interest rates, and, while carefully panning and budgeting, are able to afford more house for their money.
As the housing market heads into spring, the long-term implications for this upward trend are optimistic. If the numbers continue to rise as they have this past month, the market may be well on its way to stabilization, if not prosperity, in the near future.
Statewide statistics are compiled by the Michigan Association of REALTORS® and are published monthly at mirealtors.com. View all January statistics here.
The Michigan Association of REALTORS® recently launched a three-part short sale survey. Over 900 REALTORS® participated in the second part of the survey, offering their insights on the short sale process from the perspective of a seller. Part 2 concentrates on the expectations, frustrations, and rationale of a buyer and the many obstacles that may encumber the short sale purchase process. MAR’s continued hope for the survey is to gather and quantify insights that we can pass along to you, your colleagues and other industry members. Thank you for your continued participation.
If you haven't already, please take a few moments to complete part 2 of the MAR Short Sale Survey. Survey closes this Friday, February 19th.
Take part 2 of the short sale survey
http://www.surveymonkey.com/s/shortsales_part2
MAR is pleased to continue it's partnership with one of the nation's premier community image marketers, CGI Communications. Through a 3-year campaign which began in 2009, CGI has helped MAR build an innovative technology strategy to promote association awareness as well as communicate to members in new dynamic ways.In late 2009, MAR launched it's first video magazine series in partnership with CGI. View the 1st magazine here. Stay tuned for a second video series to launch in late spring.
CGI Sales Executive, Brian Villinsky and his associate, will soon be contacting MAR members to demonstrate not only what CGI is doing for the association, but what CGI Communications can also do for your business.
To learn more about CGI Communications products and services available to REALTORS®, contact Brian Villinsky directly at (800) 398-3029 ext. 246 or brianv@cgicommunications.com and visit http://www.elocallink.tv/web/main/myorg/myorg.php
With the help of McClelland & Anderson, we are taking the most commonly asked questions from our legal hotline and putting them in E-news. We will be featuring a different question each issue.
QUESTION: A landlord is currently in the foreclosure process on his investment property. The landlord has tenants that claim they no longer have to pay rent due to the foreclosure. Is this true?
ANSWER: NO. The tenants are still responsible for the payment of rent to the landlord under the terms of their lease, despite the property being in foreclosure.
Last year, MAR launched MongoFAX, a free tool for members of the Michigan Association of REALTORS
®. This handy program instantly faxes paper documents, such as disclosure packages, signed contracts, etc., directly to any e-mail address. All you need is an ordinary fax machine and MAR’s designated MongoFAX Cover Page.
You may have noticed, however, that the e-mail domain for sender and recipient is limited. Here is a simple work-around that will allow you to use MongoFAX to send documents to e-mail addresses that are longer than 23 characters.
When a user’s email address is too long, MongoFax can easily create an “e-mail fix” in their system to accommodate it. It is simply a shortened version of the email domain that the sender can type into the cover page while sending a MongoFAX.
By doing so, the MongoFax systems will automatically associate the shortened version with the full-length -mail, and route the documents accordingly. Also, if a non MongoFAX user’s (perhaps a recipient) email address is too long for the cover page, MongoFAX recommends sending the documents to yourself and then forwarding documents along with your confirmation from your own email account.
To utilize this work-around, please contact Kevin Ames at:
kames@mongonet.net and begin using Mongofax today.
Throughout the United States there is a growing concern about the high costs of long term care and the impact those costs have on financial security, retirement planning and quality of family life.
In response to this concern, MAR members, and their eligible relatives, can now receive a premium discount on Great American Life long term care insurance products through the MAR Edge member benefit program.
For more information on the long term care insurance discounts please contact Great American Life’s long term care help line at 800.557.5721.
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