Michigan Association of REALTORS®

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A Letter To Our Members By John A. Meyer, SRA, 2007 MiCREA Chairman What a wonderful summer this has been! I continue to be amazed by the beauty in this state we live in. Earlier this summer, we spent some time in the Petoskey/Harbor Springs area. In July, I spoke at the Michigan Mortgage Lenders annual meeting at Crystal Mountain, and we just got back from a long weekend in Grand Haven enjoying Lake Michigan and its beaches. We have a lot to be thankful for, even though business may be slower than we would like, and the ramifications of the easy money available from the sub-prime market are haunting us. I think this current mortgage crisis is a great opportunity for us to step up our professionalism and spend more time researching our markets for the best information available, so that we are viewed as the experts when it comes to the value of properties and what is happening in the markets we serve. This is what we are paid to do, isn’t it? We need to be telling the client what our research shows, not what they want to hear to make the deal. This is partially to blame for the current mortgage mess, although there is plenty of blame to go around elsewhere. One way to increase your knowledge and professionalism is to become better educated on current topics at the 2007 MAR Convention & Expo in Mt. Pleasant. We have an Appraisal Track aimed at some of the hot issues facing the appraisal industry. There is a session on Michigan Property Tax Appeal Basics offered on Wednesday which should be good general information and another niche to get involved in. On Thursday, there will be sessions on Methamphetamine Contamination in Properties, When Good Houses Go Bad, Mortgage Fraud and the Real Estate Industry, Highest and Best Use Analysis, and Confidentiality. In addition to the education, it is a great opportunity to meet with other appraisers from around the state to see what they are doing to analyze the market and adapt to the many changes we face. I hope I will see you there. At the next MiCREA board meeting, we will be discussing BPO’s and declining markets. I have had more than one call regarding BPO’s, and we will see if we can come up with some information to pass along on what MAR can do to assist in stopping the misuse of these reports. As far as declining markets go, I know there are areas where this is happening and I know of areas where the market is increasing, with many ranges in between. How are you analyzing this? Have you read FNMA’s Announcement 7-11, Collateral Valuation Practices & Declining Markets? You need to! These are just some of the things we should all be talking about. A great place to do this will be the MAR Convention & Expo in Mt. Pleasant. See you there! top 2007 Convention Offers Great Value with Approved Appraiser CE MiCREA is pleased to present its members with a value-packed appraisal lineup at the MAR 2007 Convention & Expo in Mt. Pleasant on September 26 – 28. The appraisal track will offer the following: Wednesday, September 26 Michigan Property Tax Appeal Basics – Michael Lohmeier; 2 Hours Appraisal CE Approved Confidentiality – Kern Slucter; 2 Hours Appraisal CE Approved Thursday, September 27 Methamphetamine Contamination Response in Kalamazoo County – Jim Rutherford When Good Houses Go Bad – Craig Harrington; 2 Hours Appraisal CE Approved Real Estate Appraisal and Mortgage Fraud, Highest and Best Use of Land – Carole Bullion There are numerous other topics being covered during the Convention that will appeal to appraisers such as technology. MiCREA members should also plan to make the most out of their Convention experience and take advantage of networking opportunities such as the President’s Golf Outing. Visit the MAR Web site and register today for the 2007 Convention & Expo. Register before September 8th to qualify for the early-bird rate! Get full access to the Convention for only $179/person and only $119/person if you are a first time attendee! top Your Appraisal Questions Answered Q: Can a licensed appraiser perform a BPO that is USPAP compliant? A: A Broker Price Opinion is exactly that – a price opinion given by a real estate broker. Real estate appraisers may give an opinion on the value of real property but are subject to the requirements of USPAP that apply to all appraisal practice: the Definitions, the Preamble, the Conduct, Management, and Confidentiality sections of the Ethics Rule, the Competency Rule, the Jurisdictional Exception Rule and the Supplemental Standards Rule. The only exception is when you have a duel license as both an appraiser and a real estate broker. If that is the case you must make it clear to the client "which hat you are wearing". Meaning if you are a dual licensee you are allowed to give a BPO provided that you clearly identify that your roll is as a real estate broker and not as a licensed appraiser. If you have questions regarding BPO’s or need additional information, please e-mail MAR. top NAR Finds That Despite Rising Gas Prices, More Buyers Want Oversized Garages Home buyers in increasing numbers want garages with two or more spaces in their homes, according to the 2007 Profile of Buyers’ Home Feature Preferences, released today by the National Association of REALTORS®. Since the last survey in 2004, oversize garages saw the biggest growth in terms of what recent buyers considered very important in a home, gaining 16 percentage points to 57 percent. Among buyers who purchased homes without this feature, 56 percent of them said they would have paid more for an oversize garage, compared to only 6 percent in the 2004 survey. Story Continued... top	MiCREA Monthly August 2007 • Chairman's Letter • 2007 Convention Offers Great Value with Approved Appraiser CE • Your Appraisal Questions Answered • NAR Finds that Despite Rising Gas Prices, More Home Buyers Want Oversized Garages

A Letter To Our Members

By John A. Meyer, SRA, 2007 MiCREA Chairman

What a wonderful summer this has been! I continue to be amazed by the beauty in this state we live in. Earlier this summer, we spent some time in the Petoskey/Harbor Springs area. In July, I spoke at the Michigan Mortgage Lenders annual meeting at Crystal Mountain, and we just got back from a long weekend in Grand Haven enjoying Lake Michigan and its beaches.

We have a lot to be thankful for, even though business may be slower than we would like, and the ramifications of the easy money available from the sub-prime market are haunting us. I think this current mortgage crisis is a great opportunity for us to step up our professionalism and spend more time researching our markets for the best information available, so that we are viewed as the experts when it comes to the value of properties and what is happening in the markets we serve. This is what we are paid to do, isn’t it? We need to be telling the client what our research shows, not what they want to hear to make the deal. This is partially to blame for the current mortgage mess, although there is plenty of blame to go around elsewhere.

One way to increase your knowledge and professionalism is to become better educated on current topics at the 2007 MAR Convention & Expo in Mt. Pleasant. We have an Appraisal Track aimed at some of the hot issues facing the appraisal industry. There is a session on Michigan Property Tax Appeal Basics offered on Wednesday which should be good general information and another niche to get involved in. On Thursday, there will be sessions on Methamphetamine Contamination in Properties, When Good Houses Go Bad, Mortgage Fraud and the Real Estate Industry, Highest and Best Use Analysis, and Confidentiality. In addition to the education, it is a great opportunity to meet with other appraisers from around the state to see what they are doing to analyze the market and adapt to the many changes we face. I hope I will see you there.

At the next MiCREA board meeting, we will be discussing BPO’s and declining markets. I have had more than one call regarding BPO’s, and we will see if we can come up with some information to pass along on what MAR can do to assist in stopping the misuse of these reports. As far as declining markets go, I know there are areas where this is happening and I know of areas where the market is increasing, with many ranges in between. How are you analyzing this? Have you read FNMA’s Announcement 7-11, Collateral Valuation Practices & Declining Markets? You need to!

These are just some of the things we should all be talking about. A great place to do this will be the MAR Convention & Expo in Mt. Pleasant. See you there!

top

2007 Convention Offers Great Value with Approved Appraiser CE

MiCREA is pleased to present its members with a value-packed appraisal lineup at the MAR 2007 Convention & Expo in Mt. Pleasant on September 26 – 28. The appraisal track will offer the following:

Wednesday, September 26

Michigan Property Tax Appeal Basics – Michael Lohmeier; 2 Hours Appraisal CE Approved
Confidentiality – Kern Slucter; 2 Hours Appraisal CE Approved

Thursday, September 27

Methamphetamine Contamination Response in Kalamazoo County – Jim Rutherford
When Good Houses Go Bad – Craig Harrington; 2 Hours Appraisal CE Approved
Real Estate Appraisal and Mortgage Fraud, Highest and Best Use of Land – Carole Bullion

There are numerous other topics being covered during the Convention that will appeal to appraisers such as technology. MiCREA members should also plan to make the most out of their Convention experience and take advantage of networking opportunities such as the President’s Golf Outing. Visit the MAR Web site and register today for the 2007 Convention & Expo.

Register before September 8th to qualify for the early-bird rate! Get full access to the Convention for only $179/person and only $119/person if you are a first time attendee!

top

Your Appraisal Questions Answered

Q: Can a licensed appraiser perform a BPO that is USPAP compliant?

A: A Broker Price Opinion is exactly that – a price opinion given by a real estate broker. Real estate appraisers may give an opinion on the value of real property but are subject to the requirements of USPAP that apply to all appraisal practice: the Definitions, the Preamble, the Conduct, Management, and Confidentiality sections of the Ethics Rule, the Competency Rule, the Jurisdictional Exception Rule and the Supplemental Standards Rule. The only exception is when you have a duel license as both an appraiser and a real estate broker. If that is the case you must make it clear to the client "which hat you are wearing". Meaning if you are a dual licensee you are allowed to give a BPO provided that you clearly identify that your roll is as a real estate broker and not as a licensed appraiser.

If you have questions regarding BPO’s or need additional information, please e-mail MAR.

top

NAR Finds That Despite Rising Gas Prices, More Buyers Want Oversized Garages

Home buyers in increasing numbers want garages with two or more spaces in their homes, according to the 2007 Profile of Buyers’ Home Feature Preferences, released today by the National Association of REALTORS®.

Since the last survey in 2004, oversize garages saw the biggest growth in terms of what recent buyers considered very important in a home, gaining 16 percentage points to 57 percent. Among buyers who purchased homes without this feature, 56 percent of them said they would have paid more for an oversize garage, compared to only 6 percent in the 2004 survey.

Story Continued...

top

MiCREA Monthly
August 2007

• Chairman's Letter

• 2007 Convention Offers Great Value with Approved Appraiser CE

• Your Appraisal Questions Answered

• NAR Finds that Despite Rising Gas Prices, More Home Buyers Want Oversized Garages

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