I wouldn't normally post a press release but this one has the potential to further devastate the economy here in Michigan.  Should this bill pass, it's conservatively estimated that it will cost Michigan 19,000 in the first year alone.

If you are a Realtor, these types of things are why you should be supporting you state associations political action fund.

LANSING, Mich. - The Michigan Association of REALTORS(R) and the Michigan Chamber of Commerce today unveiled a TV ad addressing Governor Granholm's 2% excise tax on services that will result in a $1.4 billion tax increase on families and job providers. The ad began airing today and highlights just some of the services the administration wants to tax.

"With the housing industry already in trouble, this proposal will make it more expensive to build, buy, or sell a home in Michigan, said Brad Ward, Director of Public Policy and Legal Affairs for the Michigan Association of REALTORS(R). "This proposal will further impact realtors who, as business owners and job providers, will have to pay a tax for the use of business services like accountants and legal assistance."

The Governor's plan calls for a 2% "excise" tax on hundreds of personal and business services such as home sales and home repairs, tax preparation, movie tickets and TV services, janitorial services, insurance and employment services, and more. The 30-second TV spot is aimed at educating and informing the public about the proposal.

"The Granholm Administration has called for a major tax increase that will hit every family pocketbook and every job provider in Michigan by taxing the daily necessities that run households and business operations," said Tricia Kinley, Director of Tax Policy & Economic Development for the Michigan Chamber of Commerce. "The sheer number of layoffs, home foreclosures and families and businesses leaving Michigan says it all.

"Michigan cannot afford a tax increase. We urge legislators to reject this idea," Kinley concluded.

The Michigan Association of REALTORS(R) is a professional trade organization for real estate professionals. It serves its members by advancing the interest of REALTORS(R) and promotes and protects private property rights of Michigan citizens.

The Michigan Chamber of Commerce is a statewide business advocacy organization representing over 7,000 employers, trade associations and local chambers of commerce. The Michigan Chamber was established in 1959 to be a strong advocate for Michigan's job providers in the legislative, political and legal process.

The press release sounds impressive:
Coldwell Banker Schmidt Realtors Inc., headquartered in Traverse City, Michigan, and headed by CEO Ken Schmidt, merged with Woodland Realty, based in Holland, Michigan, and AJS Realty in Grand Rapids, Michigan. The newly formed company will have the largest real estate presence in northern and western Michigan. The company does business as Coldwell Banker Schmidt Realtors in Northern Michigan and the Upper Peninsula, Coldwell Banker Woodland Schmidt in Western Michigan and Coldwell Banker AJS Schmidt in Grand Rapids. All told, the company now has more than 600 sales associates and nearly 40 offices.

The largest real estate presence in Northern Michigan.  But does it really make a difference?  No disrespect to my friends at Coldwell Banker Schmidt Realtors^® but sellers don't really care how many agents you have, especially if they are spread throughout half the state.  Sellers want results.  They don't care, for the most part, about how big your company, or office is.  They want to know about you, the individual agent.

This chart shows the top 10 offices in my local area, based on the sales volume of their agents.  Rather than name names, I've just listed whether they are a national franchise, or a  non-affiliated office.

Top Ten Offices Based on Agent Dollar Volume

			Units	Volume
Rank	Office	Agents	Per	Per
			Agent	Agent
1	Franchise	3	18.667	$2,013,021.67
2	Franchise	12	19.083	$1,908,965.42
3	Franchise	22	12.909	$1,258,258.09
4	Independent	6	9.333	$1,222,500.00
5	Franchise	8	9.25	$966,943.00
6	Independent	5	7.6	$795,682.40
7	Independent	2	7.5	$738,750.00
8	Franchise	1	6	$705,900.00
9	Franchise	18	6.4444	$622,623.67
10	Independent	3	5	$563,300.00

As the chart shows, more agents isn't necessarily the best thing for home sellers.  More important is the reputation, and professionalism of the individual agents.  In the chart above, if you combined numbers 1 and 2, with 15 agents they would exceed the sales volume of #3 with 22 agents.

Congratulations to Ken and the Schmidt family but locally, it doesn't mean a thing.

On Tuesday Foreclosure.com released their latest figures showing that July registered the highest number of new
residential foreclosures in 2006, with Michigan, Colorado and Ohio among the states hardest hit.

Michigan currently has the highest new foreclosure rate per household, with one in every 1,085 homes currently in foreclosure. This marks the highest foreclosure rate for a state this year.

According to Foreclosure.com's monthly nationwide data report, there were 28,130 new residential foreclosures in July - a 4.95 percent increase over June and a 10 percent increase from July 2005.

While the company tracked an overall increase in new foreclosures, July statistical data reveals the active foreclosure inventory for the month dropped to 86,562 - a decrease of 3.12 percent from June. The decline in active foreclosures can be attributed to many of these properties being purchased, according to Foreclosure.com.

"New residential foreclosures across the nation are up this year, driven in large part by increases in adjustable rate  mortgages," said Foreclosure.com President and CEO Brad Geisen. "That means investors and homebuyers - if they haven't already - will be able to find many great bargains in this segment of the real estate market."

"Put simply, foreclosures are hot and getting hotter," Geisen added. "And this is just the beginning."