Renaissance 21 Plan


Abandon the Mark-to-Market valuation method and replace it with a new RE “Averaging” to compute property values.


We can’t buy our way out of the current, nationwide economic mess we’re in, but there is a way to work our way out of it.


The key is to capitalize on the ingenuity and professional skills that already exist in every community throughout this nation while, at the same time, working with government to target the investment of their enormous pool of emergency funds in grass roots areas where the problems exist.


The totality of the national mortgage crisis equals the sum of all the mortgage defaults in all the communities throughout the nation.


With this in mind, it’s essential that our core strategy be based on breaking down the national problem into all of its constituent, local parts; moreover, we must develop a rebuilding effort centered on local professional who understand their real estate markets and who can deal with these markets in a timely, competent and effective manner.


One of the key issues that’s been targeted as a cause of this crisis is the mark-to-market method for valuating real property.  This method computes property value based on comparable values; that is, the value of similar properties in the same market area.

The problem is, this method reflects only the lowest, most depressed values in the area.  This is how many owners ended up with upside down mortgages which meant their property was worth less, much less in many cases, than the value of the mortgage, or debt, on the property.

In order to move forward, we must abandon the Mark-to-Market method.

Next, let’s take a page out of the IRS’s playbook that permits certain taxpayers who have enjoyed a sudden increase in income to compute their current tax liability by “averaging” their income over the prior three-year period.  Averaging is designed to help mitigate one’s tax liability in the current year if it’s substantially greater than the tax liability over the previous three years.  In other words, if you’ve had three mediocre years in terms of income and then hit it rich in the fourth year, averaging your income is the smart way to go.

Who wants a higher tax liability if they can avoid it?  And, using this method in the reverse, who wants to own a piece of real estate whose current value is substantially less than it was over the previous three years?

I don’t mind if you call this method “Reverse Averaging” since the IRS method minimizes a liability whereas this method maximizes an asset.


We need leaders of all major National Associations representing RE appraisers, brokers and lenders, as well as officials working in the new office of economic recovery, to gather at a summit meeting NOW and establish emergency standards and guidelines to govern the appraising and financing of all real estate properties trapped in this crisis.


This effort, which is aimed at economic renewal, would be given a name, Renaissance21, and would be implemented at the local level by real estate professionals including appraisers, brokers, lenders and builders.


All distressed properties will be reappraised.

What follows will vary.

Some of the affected properties will be refinanced.

Others will be acquired by the Renaissance21 project, renovated and resold or leased.


The most effective and efficient way to solve this national crisis is at the local level and in the process, it would restore property values, restore peoples financial status, restore public confidence, and ultimately reignite the American Dream.