Metro Detroit Real Estate Voice

Do you know The Code of Ethics? Or is it Chinese?

2007-04-05T14:54:00Z

Somtimes I wonder. So many agents get into this business and I notice, even the experienced ones don't really know it. Even the most basic thing, like the Code of Ethics. I am Chairman of a large Association of Realtors in Metro Detroit and I am always being asked for advice on the procuring cause issues, Code violations, etc.. And I ask myself, "How can an agent be in this business and not know the answers to those questions themselves?". I mean, come on, there are local agents in my Association that don't know the difference between our Association and the MLS (ours is separate).

So for all of you out there that are having trouble understanding the Code of Ethics, I have it here for you below. And if you still don't get it, choose the second link, NAR has done a great job translating it for you.

http://www.realtor.org/mempolweb.nsf/pages/printable2007Code

http://www.realtor.org/mempolweb.nsf/pages/foreigncode

Many leave a regular job for a career in real estate. What's out there to go the other way?

2007-03-14T14:44:00Z

I'm not making any announcements here, but I actually have been grooming myself the last 10 years for that distinct possibility, if it ever came up. I have a very successful real estate career and in fact, have never done anything else. (Started when I was 19, now 38.) Seven years ago I became a licensed appraiser, and five years ago decided to do mortgage origination for my own clients (legally). All this done in a compliant manner and never wear a conflict of interest arises. So my skills are very diverse and have a very complete knowledge of the entire real estate transaction, from all angles. I even majored in Corporate Finance/Business Administration in college. I'm tech savvy, understand the market, issues pertaining to real estate Brokers, agents, loan officers, appraisers, underwriters, corporate underwriters like Fannie Mae DU, etc. Let's say, VERY DIVERSIFIED. All of this has helped me be a better Realtor.

So for all of you who left the corporate world for real estate, what do you see out there for a guy like me or any other real estate professional? Google, Zillow, FirstAm, FNIS, Move f/k/a Homestore, Chase, GMAC, TransUnion, and every other giant corporation that is involved with financing, transacting, servicing, and anything "elsing" the real estate industry . . . will they pay big money for the knowledge we have from the trenches?

Hey, the first person that lands me a 9 to 5, paying $150,000, with stock options, company car, full benefits, 4 weeks paid vacation yearly, and a corner office, all in a warm climate can have my Point2 website, since it is payed in advance through June!

Real Estate & Porn . . . Love, Sex, Fetishes, & Voyeurism. Rated: R

2007-03-07T18:00:00Z

Is it dirty or is it just dirt? Is it a fascination or just simple pleasure? Can it be tasteful or do you prefer the raunchy kind? It almost seems like people just can't get enough of it. I'm talking about the . . . . . . . . . . . . . . . . . real estate porn industry and we may be the purveyors of this new type of ***.

It seems like there is more interest in www.openhouses.com than www.open blouses.com. I'm talking about the information available to consumers about real estate and our business in all forms of media. It has gone from the the hidden, back door alley ways of the past, where only professionals had the goods, to a multi-billion dollar industry. The public is insatiable, it seems, with entire TV networks dedicated to 24/7 real estate, books, magazines, websites, podcasts, videocasts, and audio casts. There is nothing covered up and you can get anything you want. You can be the neighborhood peeping tom . . . from the comfort of your home. 30 years ago if you wanted to know your neighbors secrets, you had to work for it. Now, click a few buttons and you'll see their IRS liens, HELOCs, and filthy financial activities. This is not sensationalism, this is real stuff. There is even books on this topic, Sex and Real Estate: Why We Love Houses by Marjorie Garber.

Will this liberal desire for more and more real estate information be the burning flame that burns our industry in the end? What sparked this blog was a phone call from a client who asked me for some advice to appeal his tax assessment. I thought he really needed me or was going to hire me as an appraiser, to represent him in front of the assessor. In fact, he asked if he could email me the info he had and see if it is applicable. Well, I could not believe my eyes--there it was, an Excel centerfold of 3 full-figured comps which he received from Zillow (not pillow) with other items linked to video and virtual tours to show the tax appeal board of review. With his laptop and portable video projector in tow, this guy may be real estate pornographer or what?

So are we the cause or the affect? Is the public dangerous with so much frisky freedom of information? All I know is I may be guilty as charged . . . www.thepropertypimp.com Click here to see a naked house.

The hard numbers . . . *Metro Detroit Real Estate Statistics (download)

2007-03-06T14:32:00Z

Statistics that may make you cry. Download latest document containing Metro Detroit listing and sales statistcs comparing 2006 to 2005....(read more)

CONTEST: Perform a CMA and win a Lowe's gift card. Deadline March 17th, 2007

2007-02-28T17:36:00Z

Goes to show how ineffective writing gives ineffective results. Reposted here is a post from the other day regarding the value of the most coveted house in the free world, The White House. Read the former post and see the details of what you need to do. In their last contest Point2 gave away $100 per day for 10 days to total $1,000. I figure the prize in my contest is not petty since Point 2 revenues (low guestimate) is about $5,000,000 plus per year. $1,000 represents .0002% of revenue. My prize is pretty healthy when you look at it that way. Good luck

14:57 E.S.T., February 26, 2007: Associated Press, Washington, D.C. Department of Public Information, United Nations: United Nations Secretary-General, Mr. Ban Ki-moon and White House Press Secretary, Tony Snow would have no comment today on the validity or financial consideration on what could be the most famous real estate deal in history.

Of course they have no comment, because a Realtor has not been retained for proper advice and representation to sell one of the most famous parcels of residential real estate in the world. Imagine getting the phone call to go out on what would be the most important listing appointment in history. It is doubtful that such a treasure would ever be sold, but lets just pretend for a minute you are being called to list this property. What would be the list price you propose? How did you come up with the price, comparables, etc.? The citizens of the United States are now your sellers, you don't want to let them down.

CONTEST: I am a licensed appraiser and although I have not given this any serious time consideration, I have come up with a figure. The agent(s) to contribute value estimate and approach to value closest to my number by 11:59 PM (EST) St.Patrick's Day will win a $20 gift card to Lowes. All submissions must be posted as comment to this blog. Keep it simple.

Here are your details to work off of:

1600 Pennsylvania Avenue
Washington D.C. 20500

18 acre parcel of land, fence, with ornate gardens/land improvements such as an outdoor swimming pool, jogging track, tennis court, and putting/practice green. Located in the most desired location of downtown Washington, D.C
Sandstone facade capsules 55,0000 square feet of living area with 132 rooms of which 16 fare amily-guest rooms, 32 bathrooms, 2 kitchens, bowling alley, movie theater, & game room.
Other amenities include state-of-the-art security systems, elevators, television, radio, public address systems, and secret underground bunker capable of withstanding nuclear attack. Bunker and certain areas will be off limits for showings and advertising.
Condition of property: assumed all systems and improvements to be in "close to new" condition as a result of constant overseeing by maintenance staff.
Original cost of construction and year built: $232,373 U.S.D., 1792 A.D. Possible lead contamination: exterior is coated with a mixture of lime stone dust, rice glue, casein, and lead.

Good luck!

BTW, the day our government starts selling national treasures is the day I defect. [ap] [ip]

Secret exposed: The purchase of the White House by the United Nations. The real question, what is it worth?

2007-02-26T19:12:00Z

Here are your details to work off of:

1600 Pennsylvania Avenue
Washington D.C. 20500

18 acre parcel of land, fence, with ornate gardens/land improvements such as an outdoor swimming pool, jogging track, tennis court, and putting/practice green. Located in the most desired location of downtown Washington, D.C
Sandstone facade capsules 55,0000 square feet of living area with 132 rooms of which 16 fare amily-guest rooms, 32 bathrooms, 2 kitchens, bowling alley, movie theater, & game room.
Other amenities include state-of-the-art security systems, elevators, television, radio, public address systems, and secret underground bunker capable of withstanding nuclear attack. Bunker and certain areas will be off limits for showings and advertising.
Condition of property: assumed all systems and improvements to be in "close to new" condition as a result of constant overseeing by maintenance staff.
Original cost of construction and year built: $232,373 U.S.D., 1792 A.D. Possible lead contamination: exterior is coated with a mixture of lime stone dust, rice glue, casein, and lead.

Good luck!

BTW, the day our governement starts selling national treasures is the day I defect.

Agents make so much money? What the heck do they do to deserve it?

2007-02-24T17:10:00Z

Real estate agent fees/costs: What do agents do to deserve the commissions they earn....(read more)

Income tax day coming soon: Deduction tips and one agent's experience with the I.R.S.

2007-02-23T04:18:00Z

The "Audit Team" of the Internal Revenue Service has a slogan: "We've got what it takes, to take what you've got". They won't admit this is their slogan, but a trusted source tells me it is. At the end of this post you can read my audit story and how it has changed me.

I was inspired by the blog post from Gail MacMillan about the "$25 gift limit" for tax purposes. Made me think about my aggressive tax tactics and the fact that I love my accountant. I hired this guy many years ago when he made a comment to me when we first met. I said, "I don't want to be too aggressive with deductions. I don't want to be audited." He replied, "Audited? Audited? !@#$ the IRS!!!" I hired him on the spot.

So I thought I would give a few tips and welcome everyone to share some of their own.

Gifts--who says it has to be for a closing? I give "just for the heck of it" gifts all the time to "my advocates"--people who I know go out of there way to refer me. I like gift cards in denominations ranging from $5 to $25. They are easy to account for because you get a receipt. When it comes to closings . . here is the gray area . . . $25 per customer per closing. Some closings have 4 customers or more(husband/wife sellers, husband/wife buyers).
Contract labor: I go out of my way to write checks to people no matter what. Never for more than a few hundred dollars. (think about what I am saying here)
Transactional costs: Back to closing gifts. There are limits on gifts but if you want to buy that Home Warranty or need to kick in a couple hundred into the transaction because it "makes the deal", I deduct a whole category of expenses like this every year. I bet your client will be real happy if you offered to pay for the appraisal or the survey in lieu of a gift.
Meals: Why eat alone? Get belly to belly and let those referrals regurgitate. You don't need to have a receipt to get a deduction. The IRS requires you to just keep note of when, where, who, and why to have a business meal. Don't forget the Dutch Treat rule: If you split the bill with a friend who refers you business and you normally bag your lunch at a cost of $1.50, then your $11.50 expense is now $10. So 1/2 of $10 is a $5 deduction (business meals are 50% deductible).
Children: Who says you can't have your own little sweatshop? Pay your children to do actual work like licking stamps, working the night shift cold calling, passing out your business card outside of funeral homes, etc.. The limit you can pay tax free is around $5,000 per child that is an age competent to perform the tasks. Pay them consistently and what you would pay someone else (min. wage or more), keep records, and issue them a W-2 each year. You won't have to withhold taxes or and they don't pay taxes as long as you are not a corporation, they are under 18, and you pay them under the maximum limit amount. You get a deduction and they get money to learn how to manage. They can buy there own clothes, there own video games, school supplies, car, and even college.
Health Insurance: Besides regular health insurance deductions, one most self-employed people miss is the "coordinated medical" premium you pay on your auto insurance. This is a medical insurance premium. This will vary by insurance company and your State. In my case, I have 3 cars, a motorcycle, and a boat. The coordinated medical premium on all 5 add up to about $430 per year. It's not much, but it'll save you $50-$125 in taxes depending up your situation.

I was audited for tax year 2005. But not for all the "unique" things I deducted. It was for mileage. All I can say is you must keep a mileage log if you are going to use the mileage method, as opposed to actual cost method. The IRS knows our industry and they know it normal for a real estate agent to drive 20,000-35,000 miles a year. I thought it was impossible to keep written records. What a hassle. Who has time? Now what I do, and it takes just a minute, I keep a date book on my night stand. Since my wife just can't keep her hands off me, she just has to wait a few more minutes until I go over my day, and write down all the places I went and approximately the distances. Your first and last appointments of the day are considered commuting miles and not business miles.

So what is your "unique", legal business expense, deduction tip, or IRS story? Remember, they don't put people in jail for aggresive deductions. The worst that could happen is you don't get the deduction and have to pay the tax/penalty. Internet is free in jail, so don't worry. Always check with a tax professional since I am not one.

Realtor(s) allegedly committed homicide, this is pretty sick!

2007-02-21T12:47:00Z

Realtors and others may be responsible for a local homicide. Homicide in Detroit, Michigan...(read more)

Point2 CEO, Brendan King speaks on the launch of www.ILovePoint2.com

2007-02-20T15:26:00Z

Saskatchewan, Canada REPOST--ACCIDENTAL DELETION OF FIRST POST.

February 19, 2007

For immediate release:

Brendan King, CEO

Point2 Technologies Inc. ...

Point2, the leader in real estate website technology puts shivers into the spine of Realtor.com with its new NLS. CEO, Alan Dalton, of Move, Inc., the parent company and 49% shareholder in Realtor.com . . .

Brendan King and Alan Dalton are great guys, but read on . . .

BRENDAN KING, LEFT ME A VOICE MAIL THIS MORNIING, SHOWING HIS LOVE FOR http://www.ilovepoint2.com/

Now that I have your attention, Al Block from Detroit did several things to try to win the " $100 Get The Word Out Campaign ". But Jay Thompson and Mr. Tarvin are just kickin' his butt.

So what do you have to do to win this?

I purchased www.iLovePoint2.com to show my support and admoration. Check it out.

All I have to say is you guys are lucky I'm going snowmobiling with my family this week and won't have the time create my online "devotional" or "love letter" honoring our beloved Point2. So there is still a chance to get your hands on the coveted $100 (hope it is US Dollars)

BTW, how do you make snowmobiling tax deductible? . . .snowmobile with your clients.

This post is for entertaiment purposes only and do not necessarily reflect nor are endorsed by Point2 Technologies, Inc., Brendan King, or any Point2 members.

Will you be my Valentine? Are you feelin' the love?

2007-02-14T15:36:00Z

Sorry, I couldn't resist to ask the question. It sometimes feels like the longer I am in this business, the less love I feel. I don't mean from friends and family, but from consumers, market forces, and government. Not feelin' the love.

Especially due to the market in Detroit, when someone sees the RE/MAX logo on my shirt or my Realtor "R", it is almost as if I am wearing a scarlet letter. I get the look as if they know someone close to me has "died". But what they are thinking in their mind, "Poor SOB, with all these layoffs and foreclosures, his family must be headed to the "soup line". BTW, Chrysler announced about 4,000 more layoffs to cut the third shift at the Warren facility near Detroit. Go ahead Realtors--keep driving your Lexus, the Nissans, etc. It'll just be a matter of time until you get the same looks as I do. Not feelin' the love.

We talk about lovin' our fellow Realtors. Donna Bacher discussed unethical "behaviour" (Canadian to English translation via Babelfish= "behavior"). Realtors not following states laws on agency disclosure makes us that do look like idiots when we "whip it out". The buyers (who are supposed to sign upon first physical meeting) ask, "What's that? I'm not signing anything." Even though every Realtor they bump into is supposed to get a sig immediately. Also, Realtors that are selling there souls for a quick buck, not looking at a long term business. I'm talking about allowing companies like Zillow, House Values, HomeGain, and Lending Tree to sell you leads and ultimately making you their slave. Yes, slave--leads are all you own in this business--you put someone in control of it and you are nothing more than owned by them. And last, the MEO's--MLS entry listing agents. For $295 a seller pays for MLS entry service only. No problem with what they are charging, just a problem with allowing the consumer to be "open game" and leaving the selling agents to have to deal with the mess.

Even though I still love this business and I still love the "Realtor ideals" . . . I guess, I need some love. Please leave your loving comments.

Agents in 6 states pay sales tax on commissions--do you? Are you next?

2007-02-14T02:47:00Z

Attached is a proposal from the State of Michigan that may tax over 120 services, including real estate and real estate related services. The document says 6 states are currently taxing real estate services specifically.

CAN ANYONE TELL ME IF YOUR STATE DOES? DON'T TELL ME CANADA BECAUSE WE HAVEN'T DECLARED WAR ON THEM YET. BUT SERIOUSLY, if you know what state does, please reply.

BTW, I AM PLANNING TO OVER THROW MY STATE GOVERNMENT SO I THOUGHT IT MAY BE A GOOD IDEA TO DO SOME RESEARCH FIRST. ATTENTION MICHIGAN AGENTS . . . any ex-military among you that wish to join in or offer advice?

Thanks for your help.

Will exchange appendages for your foreclosure and REO contacts.

2007-02-09T19:28:00Z

Assuming you are outside my market area of Detroit, Michigan, it would be of no harm to share your contacts??

I am a veteran Realtor of almost 20 years and a licensed appraiser for 7 years. I have a lot to offer banks, mortgage insurers, etc. in handling their BPO's, REO properties, and asset loss mitigation. I also am skilled in mortgage origination as I own a partial share of a local mortgage company. Therefore, fully understand how the mortgage finance and asset management works.

Give out of the kindness of your heart and the next time the Super Bowl is in Detroit, you'll have a free place to stay. Or, I'll just give you my right arm!

Who is the site administrator for RELIBERATION??

2007-02-08T15:11:00Z

My control panel says I need to contact the site administrator to enable cross-posting and a file folder.

Who is the contact? Or is there one?

State of Mighian, Governer Jennifer Granholm proposes to tax services . . . real estate.

2007-02-08T14:35:00Z

Just days after her Michigan "State of the State" address to the Michigan Legislature, a proposal to tax services by 2% is gaining momentum. We are already allowing foreign competition ruin our Detroit/Michigan manufacturing business, so the proposal to fix the State's budget problem . . . tax the service industry. Our service sector, especially housing, is what is keeping this state alive. Tax it and kill it. It is hard enough to sell homes in Metro Detroit, the last thing needed to discuss is a tax on real estate services, whether I pay it "our-of-pocket" or pass it on to the seller/buyer. Michigan real estate sales are already being taxed by the Headly Amendment of 1994. Michigan home sellers pay .75% of the sales price to the State. That is $1,500 on an average sale of $200,000. So now, for example, if the real estate fee of 6% split by two Brokers is $12,000, each Broker will be responsible to submit the 2% tax on the gross $6,000 received. That is $120 each or $240 total. Who pays it and how? The listing Broker is technically paid by the seller, and then the listing broker pays the cooperating agent. Will the listing Broker be responsible for the tax if the cooperating broker does not file properly? Have the seller pay it in addition to the transfer tax? Have the buyer pay as a sales tax for buying a house, just like buying a car? All I know, it is getting more difficult to produce the bottom-line to support my business, my family, etc.. Tax my commissions in addition to heavy self-employment taxes most Realtors alread pay???

As much it would be good to say, "Great, tax services, just exempt real estate due to it already being taxed." That is not a fair argument. The costs of services will rise and people will make a choice then to not utilize those services. If those services have less money to spend in the economy, the tax revenue from regular sales taxes will plummet. Michigan needs to wake up and provide a tax system that is "investment based". Meaning, create a tax code that is win-win. We need to "fire up" this economy, not give incentives to "not spend money".