Michigan Association of REALTORS®

Michigan Business Tax: Pushing Businesses Out of Michigan, Putting Michigan Out of Business

In current form, the new Michigan Business Tax (MBT) devastates the commercial real estate industry in Michigan. Many businesses have been unaware of the negative impact the MBT has on their business only to come to terms with it on their first quarterly tax filing, due this month.

While some industries benefit from the MBT, many, including the commercial industry, see dramatic tax increases. The MBT's 22% “surcharge” makes a difficult situation untenable and commercial real estate values will be hurt. Without prompt action, there is grave concern that our commercial real estate values will drop at a time when the real estate market as a whole is particularly vulnerable.

While Michigan attempts to recruit new business ventures, the treatment of commercial real estate under the MBT poses a significant disincentive to invest in our state. The negative effects of this tax on Michigan property will ultimately lead to declining economic growth and less tax revenue.

Please take the time to familiarize yourself with these issues, spread the word, and keep an eye out for upcoming MAR® Calls-to-Action to contact your Legislator. Also, please let the MAR® know of any commercial deals that have fallen through due to the burdensome tax at 1-800-454-7842. Click here for more information.

There is still time to attend the 2008 Broker Summit! Walk in registrations are welcomed at the Hyatt Regency in Dearborn. For just $149, hear from nationally recognized speakers, such as top economists Lawrence Yun & John Tuccillo at their only Michigan appearances this year. Other speakers include Sherry Chris, President & CEO Better Homes and Gardens Real Estate and Steve Harney, one of the top 250 Power Brokers in America by RISMedia, and all sessions are CE Approved!

Head to Dearborn tonight for a bonus preview session and welcome reception, or tomorrow April 16th, for a day of education. To view speaker handouts, session descriptions, and a complete list of events visit the Broker Summit Web site.

The Michigan Association of REALTORS®, along with the National Association of REALTORS® is once again organizing the annual Midyear visits to Washington D.C. This year’s visits will take place May 12-17th. The purpose of this trip is for members to interact with government officials on the federal level and have their voice heard regarding legislation that directly impacts the real estate industry. These “Hill visits” impact the legislative process by allowing members to express their concerns or support with particular legislation that the Senator or Representative may vote on. There have been a number of hill visits already scheduled, with additions to follow. If you would like to be included in the meetings, plan on arriving at the designated time and place for that particular Legislator. Please check the link below frequently to see when the visits have been set up with various Representatives or Senators.

The MAR Political Action Committee is pleased to invite its 2007/2008 investors of $200 or greater to a reception in their honor during NAR’s Midyear meeting. The reception will take place Wednesday, May 14 from 5 – 6:30 pm within the Omni Shoreman Hotel in Washington D.C. at Robert’s Restaurant and Terrace. Invitations will be mailed and those who wish to attend are asked to reply by May 9 to Theresa Gray at tgray@mirealtors.com or 800.454.7842.

April is fair housing month. MAR embraces fair housing by recognizing the activities, courses and initiatives held across Michigan by local associations and other organizations. These initiatives inform real estate professionals and consumers about requirements, rights and responsibilities under fair housing laws. MAR has developed a special section on our Web site to acknowledge these special initiatives and to increase the awareness of the range and scope of fair housing programs held across our state. To see your fair housing program or event on mirealtors.com, email details about the program to Joe Kras at jkras@mirealtors.com.

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: I am a listing broker and my seller has just recently accepted a purchase agreement. Today, I received another offer for this property. Does license law obligate me to present this offer to my seller?

ANSWER: NO, unless your listing agreement provides to the contrary. Rule 339.22307(5) states:

A licensee shall not be subject to disciplinary action for failing to submit to the seller any additional offers to purchase which are received after the seller has accepted an offer and the sales agreement is fully executed, unless a service provision agreement requires that subsequent offers be presented.

To avoid some type of breach of fiduciary duty claim from a seller-client, REALTORS® who do not wish to present additional offers are strongly encouraged to include a provision in their listing agreement form which expressly states that additional offers received after a binding purchase agreement is signed will not be presented to the seller.

In a crowded real estate field, you must be a good marketer in order to generate business.

To snag the customer, you've got to find a way to stand out, experts say. "Real estate is an emotional business and, because the market has changed so much, visibility is often more important than ability," says The Personal Marketing Company Chief Marketing Officer Rob Murry.

Appeal to emotions. To distinguish yourself from the competition, create a brand that makes an emotional connection with your target audience. Once prospects find a real estate practitioner whose personality they like or with whom they can connect, they are more likely to select that agent over a competitor.
Be consistent. An agent's brand, once established, should be applied consistently in all of his or hermarketing media in order to attract business, entrench brand recognition, and keep the agent in the forefront of house-hunters' minds. "This is all about perception," according to Murry.
Market your specialty. Consumers think that all real estate agents are the same. Because they don't see any differentiators, they don't see the perceived value, and are more likely to want to pay less if they think they can get the same thing somewhere else. But when you're a specialist, you have a unique value and are known for something specific. Position yourself as a specialist and market yourself as such to get the business.

Source: RISMedia, Beth McGuire (04/10/08)
REALTOR® Magazine Online