A Letter To Our Members

By John A. Meyer, SRA, 2007 MiCREA Chairman

The MiCREA board of directors is always working in your best interest and it is my pleasure to announce that we have launched a new statewide appraiser Web search that includes all MiCREA members. This is a project the MiCREA board has been looking into over the last year and we are very pleased to be able to provide this feature to our membership. This provides extra exposure at no additional costs to you. More on this new feature can be found in a separate story in this edition of MiCREA Monthly.

We also have the MAR Convention & Expo to look forward to. This year will feature an appraisal track with knowledgeable presenters to address your industry concerns. The educational aspect of the convention is invaluable, but remember the networking functions like the golf outing can also enhance your business. I look forward to the Convention because this is a time I get to meet MiCREA members from across the state.

Thank you to all our members that have participated in the MAR recent call to action campaigns. It takes every MAR member, including MiCREA members, to make these a success. I heard that MAR had complaints from lawmakers that the REALTORS® had flooded their inboxes. This is an easy way you can ensure the real estate industry’s viewpoint is heard. Please continue to participate in the future.

As you can see MiCREA never stops working for its members and this summer has been busier than ever. I hope all of you are enjoying the beautiful weather we’ve had and find time not only to succeed in your careers, but to also enjoy your friends and family this summer.

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Your Appraisal Questions Answered

Q: A client calls to order an appraisal but asks you to check some sales in the area to see if the owners opinion of value is “reasonable”. Before you go out, can you take a quick look at MLS material & the subjects tax records and give him any assurances?

A: No. It goes against USPAP to provide a value for a subject property without having appraised the property. It states that an appraisal may not be based upon a predetermined value. USPAP also makes it clear that if an appraiser states, writes, or otherwise transmits a value to another party, the appraiser is, in fact, reporting findings of an appraisal. Reporting a value without having done the analysis is also an ethics violation.

If an appraiser has any input into the comps that are generated, they are guiding the results, which means that the appraiser is guiding the resulting value, or range of value, that their client will conclude to. Thus it is a violation of USPAP.

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Earlier this month, Governor Granholm signed the new Michigan Business Tax (MBT) into law at her ceremonial office in Lansing. As you may already know, the new tax replaces the Single Business Tax (SBT), set to expire on December 31st of this year. Members of both the House and Senate, representing both sides of the aisle were present at the signing. The new MBT will provide incentive for new businesses to locate in Michigan, while helping retain those companies who already have established roots in the state.

Your MAR staff was involved in various workgroups with legislators and other industry professionals in crafting the best tax solution for Michigan’s small business industry. To see how the MBT will affect your business, be sure to utilize the MBT Estimator. The Estimator gives an approximation and comparison of your tax liability. The new business tax, like the existing SBT, will be imposed on businesses with annual gross receipts in excess of $350,000. The new structure is composed of a modified gross receipts tax (at a rate of 0.8%) and a business income tax (at a rate of 4.95%).

While the signing of the new MBT is a huge bipartisan step in turning Michigan around, much work is needed for a 2008 budget solution. After a two week break, legislators are expected to come back this week to start hashing out the 2008 budget. Talks still loom of various revenue enhancement strategies, such as luxury taxes or a potential income tax hike. With Michigan’s struggling economy, everything is on the table. As always, your MAR staff will keep you informed of any new updates or potential threats to the real estate industry. Be sure to check out www.mirealtors.com for the latest information.

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The MiCREA Web site has added a new find an appraiser search function. This new search will allow members and consumers to find a MiCREA member by county and city. Another search option is using the interactive map of Michigan to click on the area you want. Appraisers are listed only if they are MiCREA members. Information shown on the site includes first and last name, company name, city and phone number. This data will be updated once a month. If you find your information is incorrect, please contact your local association so they can update your information in the NRDS system.

Find an Appraiser.

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Receive Your Full Member Benefits - Update Your Information

In order to receive your full member benefits from your local, MAR , MiCREA and NAR, it is important that you update all your contact information with your local association. Your local association adds your information to the database that is uploaded by the state as well as national association. If you have not done so in the last six months, it is a good idea to contact your local association and verify they have the correct information including the email address you would prefer to receive REALTOR® related communications sent.

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NAR Provides Appraiser Power Tools Blog

Power Tools are your source for current trends, research, Web sites, books, and other useful information related to the housing market and real estate specialties. Written by the information specialists at NAR's Information Central, these blogs keep you up to date on your field of interest.

Visit NAR's Appraiser Blog.

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MiCREA Monthly
July 2007

• Chairman's Letter

• Your Appraisal Questions Answered

• Governor Signs New MBT Plan; 2008 Budget Negotiations to Start

• New Appraiser Search Added to Web Site

• Receive Your Full Member Benefits - Update Your Information

• NAR Provides Appraiser Power Tools Blog