economic economic - Wisconsin REALTORS® Association
Transcription
economic economic - Wisconsin REALTORS® Association
PRODUCT SHOWCASE PUBLIC POLICY Resources on Revised Forms. Mark the Date for REALTOR® & Government Day ’08. January 2008 WISCONSIN $5.00 A PUBLICATION OF THE WISCONSIN REALTORS® ASSOCIATION MAGAZINE TM NEWS.WRA.ORG 2k WISCONSIN ECONOMIC prediction The Future of Wisconsin’s Economy in 2008 YO U R S O U R C E F O R T H E L AT E S T R E A L E S TAT E N E W S 20 08 THE YEAR OF OPPORTUNITY If you’re a real estate broker in search of a genuine opportunity, RE/MAX invites you to join our team. As a RE/MAX franchise owner, you’ll partner with the world’s largest and most successful real estate company. How does RE/MAX attract so many new franchisees? By helping our broker/owners meet the practical challenges they face. As the only major privately owned franchise network, RE/MAX remains solely accountable to our people. We’ve developed dozens of initiatives proven to help broker/owners recruit, develop and retain the best agents in the business. 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WISCONSIN January 2008 | Vol. 24, No. 4 ® A PUBLICATION OF THE WISCONSIN REALTORS ASSOCIATION 6 Features 12 2k MAGAZINE™ Interest Rate Freeze Will Help Few President Bush’s interest rate freeze on subprime mortgages may help considerably fewer people than the estimated 1.2 million facing loan refinancing or modifications. 14 Mortgage Cancellation Relief – Is it Law? Legislation was recently signed into law that will relieve borrowers from having to treat forgiven mortgage debt as income and paying taxes on that “phantom” income. 22 Picking the Best – Candidate Endorsements Want to know how the WRA decides which statewide candidates to support? Here’s an outline of the process, which was established last year by the WRA’s Political Strategy Group. Articles 3 WISCONSIN ECONOMIC prediction What does the future hold for Wisconsin’s economy? How has subprime lending affected the outlook for Wisconsin? And will the U.S. economy beat the forecasts? Find out here with our annual 10 It’s Time to Renew Your ZipForm 20 Best of the Legal Hotline 21 ZipForm renewal begins February 1. Find out what you need to do to renew ZipForm or download this free member benefit if you’re not already using it! How does the electronic age affect real estate practice? In many ways, from use of the REALTOR® trademark to MLS listings. Find out more here. 15 It’s Not Too Late to Attend Winter Convention Revised forms are now available – with an optional use date of January 1. Check here for WRA resources to help you understand the changes. Sales Tip – It’s a New Year! New Year, new approach, new attitude – Marcus Wally starts the year off right with tips to help you increase your sales in 2008. 24 REALTOR® & Government Day ‘08 Winter Convention is right around the corner. We have a great program planned – with designation courses, workshops, continuing education and winter fun! Product Showcase Help lobby your legislators regarding key issues affecting real estate. Join us for REALTOR® & Government Day ’08 and let your voice be heard! economic forecast. news.wra.org 1 Inside W W Bill Malkasian WRA President Bill Malkasian WRA President the wra with Bill Malkasian elcome to 2008. Again, thank you to all of you for renewing your membership and for your commitment to the Wisconsin REALTORS® Association. I’m looking hat a difference a year two makes2008. in describing forward to an exciting andorchallenging the status of the real estate industry. This month’s In this month’s lead storyretention. is aboutAsomething that issueedition, focusesour on customer year ago, this everyone is topic talking about right now – the economy. The leadership would have called for a different set of stories and staff ofthis themonth WRA are going out ofmarket. their wayIt’stoainform and thansenior we feature in the current different educate the Wisconsin media and public about the market here market, so whether you’re new to the field or you’ve been in contrast to the rest of the country. The message is that we are around for a while, these articles are worth a quick read. faring relatively well here in Wisconsin compared to other parts of our nation. Talking about the market, the WRA’s real estate statistics for the second quarter can be found on page 4. The market is down 7.2 Also, we are in the process of preparing the year-end numbers for percent from the same quarter a year ago, however, the most 2007, which will be released in February. We hope to have another important point is that Wisconsin is still outpacing the rest of strong message to deliver to the Wisconsin media about the state the Midwest and the nation as a whole. Considering the flurry of the housing industry here in our state. of news about the financial markets you’ve been reading and hearing we’re quite told the press, The WRAabout leadership team pleased, is going as to we Washington, D.C.,toinhave early a stable real estate here in Wisconsin. February to visit withmarket our Congressional delegation as part of the National Association of REALTORS® federal policy meeting. This is As we turn the corner into the last quarter of 2007, you will want an opportunity for WRA leadership to meet with policy makers to to take a look at Mike Theo’s article on page 22 on the Wisconsin discuss the real estate market and give them input into legislation Way Project. The regulations. WRA is working other regarding lending It’s ourwith chance to organizations give them the on property tax issues, and there are some progressive and Wisconsin perspective on these issues. innovative suggestions on educating the public about the Moving to the subject of education, like to congratulate the challenges elected officials face withI’dthese issues. I’m proud ® who attended Management Conference nearly 300 REALTORS that we’re at the forefront of this effort. on December 13 in Pewaukee. The feedback from those who Speakinghas of politics, Joe Murray wrote a piece aboutwas the alikely attended been very positive and upbeat. The event great rematch between incumbent Kagen and former Speaker opportunity for brokers to visit Steve with other brokers from around the John to Gard in thenotes 8th Congressional District. If inyou thought state compare about what’s happening their areas.the 2006 race was tough, wait until the 2008 campaign gets under Iway. hopeIf you thoselive brokers whoin attended have gone back to spread and vote the 8th Congressional District, you the word to their agents about the importance of education and should take a moment and read this story. why they should attend the upcoming WRA educational programs. And have note several Tom Larson’s article about Supreme We great programs on taprecent for this winter: Court Winter cases that affect real estate, including economic development Convention (www.wra.org/winterconv08); Designation Week corporations being subject to open laws, (www.wra.org/designationweek); and meetings/records out-of-state continuing applying open records law to property assessment records, education (www.wra.org/celasvegas). In a changing marketplace, the application loss doctrine to have residential real education is oneofofthe theeconomic most important tools you to keep up estate, and a case the ripeness of declaratory judgment on trends and issues,about advance your professionalism, network, and actions. arethings so important realaestate – which is learn newThese waysissues of doing that can to make difference in your bottom line.reason the WRA Board of Directors voted affirmatively part of the to continue to include $15 of member dues in support of the Legal We have no plans to cut back on the quality education programs Action Fund. The Legal Action Fund Program is one of the most we offer – we’re here to serve you – and we plan to continue important programs the association has today for members. You to offer some of the best education programs in the nation for can find more information on the Legal Action Fund by visiting REALTORS®. www.wra.org/legal/legal_action/legal_action_fund.asp. 2 In the political arena, you’ll want to check out the article by Michael Theo on our method for endorsing statewide candidates (page 22). Last year we went through an exhaustive process to determine our And on a final, personal note, there I’d like candidate endorsement method, andaretheseveral articleitems by Mike tells toyou call howyour we attention do that. to: •Also, Thethe WRA’s Annual isConvention is right around corner,through and Legislature coming back together for athe January there’s time –to and register. It’s a great27opportunity for us to April floorstill period on February we have our annual ® welcome Spranger,Day 2007-2008 WRA Chairman, and the &Mike Government (www.wra.org/rgday). I realize it’s a REALTOR rest of the 2008 leadership and to but saythis thank-you challenge to get people to cometeam to Madison, is one oftothe most important events let our Legislature Roger Rushman and we thehave 2007toleadership group. know what’s going on in our industry and to help shape public policy. Thanks to •theSpeaking of Roger, I’d likestaff to express my sincere thanks to local boards, leadership, and Government Affairs Directors him on behalf of the WRA staff and membership. Roger has for helping to promote this important event. personally led us through many challenges, and we’re all You’ll also want read Tom year. Larson’s story on town moratorium indebted to himtofor a great authority (page 28). It’s a very important case, and it emphasizes •why AND … congratulations to one of our WRA staff weLASTLY have a WRA Legal Action Fund. members on 30 years of service. Kitty Kuhl, senior vice Now that youofhave renewed your membership, you’ll wantwith to review president business services, celebrates 30 years the Kristi Mikalsen’s important information on ZipForm renewal WRA this month. I wish to personally thank her for creating– a valuable memberand benefit. Readreal carefully that you understand the foremost premier estatesoeducation program what changes there are with the renewal, especially in the country. You can send your note of thanks toconsidering Kitty at [email protected]. have forms revisions this year. And finally, we have an all day Board of Director’s meeting on January 25 to review our financial audit (which is in excellent See you at by convention! condition, the way) and to discuss issues of importance for the first half of 2008. Look for an update on the director’s meeting from me next month. As usual, please let me know if you have any questions, concerns or comments Bill Malkasian about the association – I’m always available. You can e-mail me at [email protected] or give me a call. Happy New Year! Bill Wisconsin Real Estate Magazine, January 2008 news.wra.org Wisconsin Real Estate Magazine™ is published by the WISCONSIN REALTORS® ASSOCIATION. Trademark issued pursuant to Wisconsin state statute; federal trademark is pending. Mike Spranger, ABR, CRS, GRI, Chairman [email protected] Mike Mulleady, GRI, Chairman-Elect [email protected] John Flor, ABR, CRS, e-PRO, GRI, RRS, Treasurer [email protected] William E. Malkasian, cae, President [email protected] Editorial Staff: William E. Malkasian Publisher n o t e s f r o m t h e w r a College Scholarships Available Robert Uhrina Managing Editor Terry O’Connor Publication Editor Nicole Breithaupt Senior Designer Wisconsin Real Estate Magazine, USPS 597-850, ISSN 15480526, is published monthly by the WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Road, Ste. 201, Madison, WI 53704. Periodical postage paid in Madison, WI and additional mailing offices. An annual subscription rate of $5 is included in membership dues and a copy is mailed to every paid REALTOR® and affiliate member of the association. Nonmember subscription rate: $60. POSTMASTER: please send address changes to the WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Rd., Ste. 201, Madison WI 53704-7337. The selection process is now underway for the 2008 Wisconsin REALTORS® Foundation REALTOR® Children’s Scholarship program. This program awards college scholarships to children of WRA members. The Foundation is offering 10 scholarships in the amount of $750 each. The deadline for submitting an application is March 7, 2008. The application is available online at www.wra.org/ChildScholarshipAppl or by contacting Sandy at [email protected]. ZipForm Renewal Begins February 1st Permission to reprint or quote any material from this issue is hereby granted, provided the Wisconsin Real Estate Magazine is given proper credit in all articles or commentaries, and the WISCONSIN REALTORS® ASSOCIATION is provided with a copy of any reprint. Here's How to Renew Your Subscription Advertising of third party products and services herein does not imply endorsement by the WRA unless specifically stated. Furthermore, the WRA does not endorse, approve, or otherwise warrant the accuracy or legality of any information or content contained in advertisements. Any questions regarding advertising policies should be directed toward the editor. If you’re not familiar with ZipForm: Contact Us: 4801 Forest Run Rd., Suite 201 Madison, WI, 53704-7337 (608) 241-2047 • (800) 279-1972 legal hotline: (608) 242-2296 • (800) 799-4468 general fax: (608) 241-2901 products/education fax: (608) 241-5168 legal hotline fax: (608) 242-2279 president fax: (608) 242-2267 e-mail: [email protected] By: Kristi Mikalsen ZipForm is an electronic forms product. There are two options available for this product – an online version and a downloadable desktop version. Either of these options are available to REALTOR® and Legal Section Members of the Wisconsin REALTORS® Association free of charge as a benefit of membership. To download ZipForm visit www.wra.org/ZipForm. If you’re currently using ZipForm: When your ZipFormDesktop or ZipFormOnline software is within 30 days of expiring, a message will appear when you open your software indicating that the program license is expiring. To renew ZipForm, you must be a member of the WRA. For details on how to renew your ZipFormDesktop or ZipFormOnline, visit the WRA’s step-by-step instructions at www.wra.org/ZipForm. NOTE TO DESKTOP USERS: The renewal process DOES NOT update the forms. To update forms you must perform a forms update either from within the program or by visiting www.zipform.com/support/ updates.asp, selecting Wisconsin and then the Wisconsin REALTORS® Association library or your company's custom library. Web site: www.wra.org 3 Wisconsin Real Estate Magazine, January 2008 3 News Januar y 2008 R E A L T O R® NEWSWIRE Internet Forecast as Realty Medium Chicago Tribune Report: Wisconsin Economies Not Adversely Affected by Mortgage Problems Oshkosh Northwestern A new report issued by the U.S. Conference of Mayors states that fallout from the mortgage crisis will be minimal in Wisconsin compared to much of the rest of the nation. Global Insight Inc. prepared the report for the mayors’ group. Its researchers found that while U.S. economic growth will be slashed by about $166 billion because of the crunch, none of that decline will come from Wisconsin. Among the Wisconsin areas studied, and their gross metropolitan product growth expected next year, were: Appleton, at 2.7 percent; Eau Claire 2.8 percent; Fond du Lac, 3.1 percent; Green Bay, 2.9 percent; La Crosse, 3.1 percent; Madison, 3.4 percent; Milwaukee, 2.5 percent; Racine, 2.3 percent; and Sheboygan, 2.6 percent. The report covered Wisconsin’s Kenosha County in the Chicago metro area, which researchers said will be losing $3.9 billion. Meanwhile, parts of westcentral Wisconsin are included in the Minneapolis area part of the study, which is not expected to lose anything on account of the mortgage crisis. 4 10 Proven Ways to Drive Traffic to Your Site for Free Realty Times, Russer, Michael J. Real estate agents do not have to spend a ton of money to increase Web site traffic. They can take advantage of local search optimization with Google Local, and they can make their business listing stand out by offering a comparative market analysis, neighborhood report or buying guide to site visitors at no cost. Business listings also can be posted on Yelp and InfoSpace, and site content can be posted on the social bookmarking site Real Estate Voices. By posting property photos on Flickr, agents can take advantage of the site’s online community platform, which allows users to comment on photos and link back to their Web sites. Agents should consider posting their video virtual tours on Google Video and their property listings on Google Housing Search. Those who write articles can gain publicity for themselves and their Web sites by publishing through EzineArticles.com, and agents whose sites feature free market statistics, articles and resource guides can be featured on the Librarian’s Internet Index. Localism, a social community site that posts real estate information for consumers, also might bolster site traffic as long as agents are members of ActiveRain. Wisconsin Real Estate Magazine, January 2008 Borrell Associates expects a 37-percent reduction in newspaper real estate advertisements by 2011 due to substantial gains in advertising dollars devoted to real estate agent and developer Web sites. The consulting firm projects newspapers’ revenue from print real estate ads to fall to an annual $3.19 billion in 2011 from $5.16 billion in 2006. Newspapers’ revenue from online real estate ads totaled $380 million in 2006 and could decline, with Borrell Associates analyst Andrew Martin noting that publishers will see profits fall $0.75 for every $1 decrease in advertising. The report anticipates a gain in spending by real estate firms on their own Web sites to $10.7 billion in 2009 from $7.82 billion in 2007. Newspaper Association of America Marketing Director Charlie Diederich, who expects newspapers to recover much of the real estate ad business they lost once the housing market picks back up, says home buyers will likely view both online home listings and openhouse ads printed in the Sunday paper. “To make the biggest purchase of their life,” he reasons, “people are going to do both.” Parking Lots Make Downtown Milwaukee Prime Real Estate Milwaukee Business Journal (WI), Millard, Pete Milwaukee officials report that parking lots throughout the city’s downtown corridor represent millions of dollars in future real estate investment. Both local and national developers are eyeing the lots as potential building sites because they are the last vestiges of open space in downtown. The more than 20 surface parking lots are located along four main corridors--East Clybourn, North Van Buren, North Milwaukee and North Water streets--and together occupy almost 40 acres. Before many of these lots can be developed, though, Milwaukee leaders must formulate a plan to replace them with strategically located parking decks that will serve downtown commercial and residential buildings. news.wra.org News Top News Stories in and Around the Industry 8 Best Practices for Real Estate Professionals for 2008 Survey Finds Consumers Trust Real Estate Agents With weak home sales taking a toll on realty agents’ incomes, real estate career development expert and RealtyU President Bill Shue lists several steps agents can take to generate business and maintain their earnings. Shue recommends that property professionals formulate a business plan, take continuing education courses to hone their skills, and become well-versed in staging dwellings so that their listings attract attention amid fierce competition. They also would be wise to start blogs, join such social networking sites as ActiveRain and RealTown, and obtain specialty designations from the National Association of REALTORS®. Additionally, real estate agents should take steps to boost traffic to their Web sites by using search engine optimization to bolster their search engine rankings. Finally, Shue suggests they find a mentor who is successful in the business and learn from that individual. Advice and other information from top-producing agents also can be found in audio files and Web pages at iSucceed.com. A December survey by the research firm Housing Predictor reveals that real estate agents are perceived as trusted advisors by a majority of respondents, with only 18 percent stating that they would not use an agent down the road. More than 80 percent of poll participants sought the same agent during their home search on two or more occasions. Of the minority who were not satisfied with the services offered by their agents and who expect to sell or purchase a home without an agent’s assistance at some point in the future, most believed their agents acted in their best interests. eMediaWire House Listings Up, Sales Down Milwaukee Journal Sentinel, Lank, Avrum D. Monthly data released earlier this week by Metro Multiple Listing Service Inc. in Wauwatosa shows that home listings are up but sales down this year in the four-county Milwaukee residential property market. From January through November, a total of 37,440 residences were listed in Milwaukee, Ozaukee, Washington and Waukesha counties. However, the data shows that only 42 percent--or 15,647--actually changed hands. That is 1.1 percent more listings, but 13.2 percent fewer sales, than through the first 11 months of last year. Last month, both sales and listings declined by 10.4 percent and 4.1 percent, respectively. Finally, building permits for single-family homes and duplexes in most of the four-county region declined 23 percent in November versus a year ago. Wisconsin Real Estate Magazine, January 2008 American Chronicle, Colpitts, Mike Rural Development Initiative Grants Chosen Farm Futures More than $6 million is being awarded by the USDA Rural Development’s Rural Community Development Initiative Program. A total of 38 community-based development organizations, Native American tribes and other groups in nearly two dozen states will receive grants to promote economic growth in low-income rural areas. Acting Agriculture Secretary Chuck Conner states, “These funds support USDA’s partnership with rural America. In Wisconsin for example, workshop training will assist federally recognized tribes in their ongoing efforts to provide healthy, energy efficient affordable housing for their families. This ‘green affordable housing initiative’ is an excellent example of how rural community leaders are investing in the future of their community.” REALTOR® Newswire is a monthly news service prepared exclusively for the Wisconsin REALTORS® Association by Information, Inc. Reproduction, use, or inclusion of this material in other publications, products, services or Web sites is not allowed without prior written permission from the Wisconsin REALTORS® Association. 5 The Future of Wisconsin’s Economy in 2008 2k WISCONSIN ECONOMIC prediction by Dr. David Ward T his marks the fifth year that I have written an economic forecast for the Wisconsin REALTORS® Association. As the quote from the Federal Reserve suggests, the dynamic nature of our new, global economy is a cause for much humility among economists. We continue to see economic challenges and changes – many appearing without much warning – that affect the U.S. and Wisconsin economies. Despite those changes and challenges, the data indicate that we are now in the 75th month of economic expansion since the brief recession of 2001. This expansion has continued well beyond the post-war average of 51 months of recovery and is remarkable in many respects. The Subprime Economy Economic forecasts for the last half of 2007 and for 2008 are dominated by the current crisis in the subprime mortgage market. High oil prices and tepid auto and retail sales are taking a back seat to the credit crunch caused by the financial 6 engineering of subprime securities. The essence of this crisis is the uncertainty of the value of securities that were issued on pools of subprime mortgages. This problem has spread across the financial sector and has had a global impact on the availability of credit. To date, the subprime mortgage problem has manifested itself in rising mortgage default rates, massive write downs for Wall Street investment bankers, and the failure of at least two large hedge funds that used extensive leverage to boost returns on subprime mortgage investments. Daily revelations of additional losses related to subprime securities has increased uncertainty on Wall Street and global financial markets. The subprime mortgage crisis has worked its way throughout the global financial system and has raised credit availability problems for home lenders and business lenders and now threatens the municipal bond market. Wisconsin Real Estate Magazine, January 2008 news.wra.org “If past performance is a reasonable guide to accuracy of future forecasts, considerable uncertainty surrounds all macroeconomic projections.” – Federal Reserve – 11/2007 Recent actions by the Federal Reserve Bank and the European Central Bank to inject liquidity into the credit markets are a sign of the pervasive effects of the subprime problem. The Wisconsin Economy How will this subprime economy play out in Wisconsin? As I have written in most of my previous forecasts, the Wisconsin economy is diversified and continues to grow at a steady pace. This economic balance keeps us from booming in good times and busting in bad times. For 2008, the economic forecast for Wisconsin, as offered by Global Insight’s report to the Wisconsin Department of Revenue, suggests that Wisconsin will follow the U.S. forecast. Wisconsin personal income growth, the basis for consumer spending, is projected to be 4.3 percent compared to the projected U.S. growth rate of 5.2 percent. Wisconsin personal income growth continues to be influenced by slow growth in the Milwaukee and Racine metro areas. Low growth rates in these regions offset higher growth rates in the Madison, Appleton, Green Bay and La Crosse metro areas. • Wisconsin business, particularly the technology business sector, is expanding and creating wealth. A buyout and initial public offering of just two companies, Tomo Therapy and Nimble Gen, produced nearly a half a billion dollars in wealth creation for investors. Angel investing in the state continues to rise as the number of formal angel groups in the state approaches 20. A number of economic trends in the Wisconsin economy could boost economic growth prospects for 2008. • Wisconsin will not be hit by the subprime crisis as hard as most other states. Mortgage foreclosures in Wisconsin are half the national average. • Wisconsin consumers have above national average credit scores and lower debt levels. • Regional economic development groups like New North, Thrive, M-7, Centergy, and Grow North are beginning to have a positive impact on economic development and technology transfer. • Booming export sales are employing manufacturing workers in Wisconsin. Exports in 2006 were over $17 billion dollars, a 50 percent increase over a three-year period. WI Economic Prediction ... continued on page 8 Statistics compiled by the Federal Deposit Insurance Corporation (FDIC) show why the Wisconsin economy is and will perform better than most states: State One year change in Single Family Housing permits One year change in the Housing Price Index Non-Business Bankruptcies per 1000 residents Wisconsin -12.5% +2.5% 2.78 Michigan -35.8% -3.7% 4.59 Minnesota -23.4% -.1% 2.16 California -35.3% -3.6% 1.94 FDIC Data for the third quarter of 2007 Wisconsin Real Estate Magazine, January 2008 7 WI Economic Prediction ... continued from page 7 The U.S. Economy in 2008 The current set of economic problems has led to very cautious predictions for 2008. About 20 of economists now think we could have a recession in 2008. Alan Greenspan puts the chance of recession at 50 percent. The Federal Reserve in its first ever forecast for the U.S. economy pegs 2008 growth in Gross Domestic Product (GDP) at 1.8 percent to 2.5 percent. The White house lowered its forecast of GDP growth in 08 to 2.7 percent. And Global Insights sees growth in GDP of about 2.8 percent. These forecasts are typical of the thinking in the economic community as of December 2007. But these forecasts were hardly out the door when we saw unexpectedly high Black Friday and Cyber Monday retail sales beating forecasts by about 10 percent. Thereafter came a robust report from the Business Roundtable. That survey of companies with aggregate sales of $4.3 trillion showed that over 75 percent of the firms expected no change or positive growth in sales, hiring, and capital investment. Additional data late in 2007 showed that the U.S. economy had its best quarter in four years (4.9 percent economic growth in the third quarter of 2007), productivity surged, and corporate insiders bought more shares in the third quarter of 2007 than any other time in the last four years. Despite very serious problems in the housing sector, the U.S. economy continues to be very resilient. It is important to keep in mind the sheer size of the U.S. economy. Many discount the U.S. economy in favor of emerging market economies. Yes it is true that China and India are growing their economies at a double digit rates and are creating global market opportunities. And the U.S. growth rate has been around 3 percent over the last three years. But keep in mind that if the U.S. economy grows 3 percent on a base of nearly $14 trillion, that produces nearly a half a trillion dollars in economic growth. By contrast, if China grows at 10 percent on a 8 base economy of less than $4 trillion, that produces less than a half a trillion in economic growth. Why the U.S. Economy May Beat the Economic Forecasts The U.S. economy has less economic risk (risk of recession) than at any time in its history. In the last 16 years we have had one very short, very mild recession. This large, nearly $14 trillion dollar economic engine is in my view less risky today because: • As we have lost low value, cyclical manufacturing jobs and product, we have also reduced the cyclical risk that goes along with manufacturing. • We spend more on health care (now about $1 of every $6 of economic activity in the U.S.), and most of that sector is not subject to short term recessionary risk. • And as the number of retirees increases, the portion of national income drawn from transfer sources funded by assets or taxes increases. Put simply, we derive more of the national income from Social Security and pensions and that income too is far less subject to downturns in the national or global economy. But the real reason I believe the overall economy will do well in 2008 is all about politics. 2008 is a presidential election year. The table below shows growth in the GDP in presidential election years and the year before election year since 1972. The good news is that in a year of presidential politics, it is highly unlikely that the subprime mortgage crisis will Growth in US GDP-in election yrs. GDP Growth-the yr. before election 1972 9.8% 8.5% 1976 11.4% .1% 1980 8.9% 11.7% 1984 11.2% 8.7% 1988 7.7% 6.2% 1992 5.7% 3.3% 1996 5.7% 4.6% 2000 5.9% 6.0% 2004 6.6% 4.7% Year Wisconsin Real Estate Magazine, January 2008 news.wra.org be ignored by either the White House or the Congress. Both will act to fashion some sort of assistance or bailout. That said, the bad news is that no matter what the politicians do, it will take some time to normalize mortgage and credit markets and additional time to prime the pump to boost home building and sales. Why Housing and Home Sales Won’t Perform as Well as the Economy: The overall economy is in our view likely to grow 2-3 percent in 2008. Unfortunately, housing will be a drag, not a contributor to economic growth. How long this will persist is the subject of much speculation. In Wisconsin and the national economy, housing starts, permits, and sales continue to decline on a year over year basis. The good news is that the rate of decline seems to be slowing. The longer term problem that needs to be resolved is the normalization of mortgage credit markets. The subprime issue involves about $2 trillion in collateralized subprime securities. The valuation of those securities is one issue that will take some time to work out. The recent appearance of investment and hedge funds who will speculate in subprime securities, many of which sell for 30 cents on the dollar, suggests we are beginning to work our way out of this mess. A larger issue is to restore credit capacity to the housing sector. The Federal Reserve is proposing rules to regulate mortgage underwriting and to raise standards to avoid future defaults. The White House and Congress are also proposing measures to help. Keep in mind that 2008 is an election year. All of these steps will help. But housing tends to run in long cycles. We had an uninterrupted housing boom of about 15 years. Because of the number of credit issues and the longer lead times to ramping up economic activity in housing, we could see this period of consolidation last for several years. Unfortunately for Wisconsin, the national subprime mortgage effects wash over us as well. We generally take care of our financial business but can’t avoid the spillover effects of the national housing bubble. On the other hand, even in this subprime crisis, houses will continue to be built (the current rate suggests 1.1 million new starts in the U.S. next year) and homes will be bought and sold at a projected rate of 6.3 million, similar to rates in the early part of this decade. Dr. David J. Ward is the founder of NorthStar Economics, Inc., a private economic consulting firm in Madison, Wisconsin. Dr. Ward earned a BBA, MBA and Ph.D. in finance from the University of Wisconsin – Madison, and completed a 31-year career in the University of Wisconsin System in July of 2000. Dr. Ward has extensive experience in strategic economic planning, and his work on “Wisconsin and the New Economy” has been widely recognized throughout the state and the Midwest. He was instrumental in planning and presenting at the statewide Wisconsin Economic Summits I, II, III and IV that have led to New Economy strategies and regional economic planning efforts in Northeastern, Central, and Northern Wisconsin. Best of the Legal Legal Hotline Real Estate Practice in the Electronic Age Recent changes to the Code of Ethics are based on the philosophy that REALTORS® must be honest and truthful in all real estate communications and advertising. This includes information shared with customers, clients and the pubic whether in person, in print or on the Internet. The Code applies to REALTORS® regardless of what medium is used. Scope of Article 12 By Tracy Rucka A buyer has filed an ethics complaint claiming an agent made misrepresentations about the property condition. The buyer is using e-mails sent to him and pages printed from the agent’s Web site as evidence of the misrepresentation. Does the Code of Ethics apply to the content of an agent’s Web site or e-mails and text messages sent to clients and customers? Yes. Article 12 has been amended to clarify that the true-picture standard of the Code of Ethics applies to all REALTOR® communications. The standards are the same whether you communicate in person, by e-mail, through text messages, over the Internet or by other print medium. The full text of the Code of Ethics including 2008 changes and additional Standards of Practice are available at www.wra.org/codeofethics. Article 12: REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. (Amended 1/08). Accordingly, a REALTOR® can be found in violation of the Code for misstatements or gross exaggerations made even in e-mail or text messages. The consequences of a violation of the Code of Ethics include letters of reprimand or warning, fines, requirements to attend education, suspension or termination of membership. 10 Wisconsin Real Estate Magazine, January 2008 Identify Yourself Does an agent have to use the term REALTOR® in their advertisements, on their Web site or in e-mails? According to the Code of Ethics, REALTORS® must identify their status as real estate professionals in all communications in a readily apparent manner. Although the Code does not require a member to use the term REALTOR®, the recipient of the communication must readily understand that the member is a professional real estate broker or salesperson. The Code of Ethics provisions mirror Wisconsin law, which requires licensees to disclose the broker’s name in advertising – except in cases of rental of real estate owned by the licensee or occasional sales of real estate owned by the licensee – when the licensee must identify the licensee’s status. This obligation extends to e-mail, text messages, Internet or other electronic methods of communication. Use of REALTOR® Trademark Can a member use “REALTOR®” in the URL, i.e. Guaranteedrealtor.com? Can a member’s company create an image or logo which incorporates the word REALTOR® or the “R” logo? Can a team within a company use “REALTOR®” in their group or team name, i.e. REALTOR®Team? Members are licensed by the National Association of REALTORS® to use, with limitations, the member marks. Style, color, punctuation and the appearance of the marks is restricted. As a general rule it is appropriate to test each use by asking whether it indicates membership in the NAR or is it a synonym for a real estate licensee? If it is used as a synonym for a broker or agent, then the use is incorrect and violates NAR policy. The NAR Membership Marks Manual (MMM), available online at www.realtor.org/letterlw. nsf/pages/trademarkmanual, restricts the use of REALTOR® marks. • When using “REALTOR®” in URLs, “The term REALTOR® may not be used with descriptive words or phrases. For example, Number1realtor.com, numberonerealtor.com, chicagorealtors.org or realtorproperties.com are all incorrect. news.wra.org Legal A REALTOR® can be found in violation of the Code for misstatements or gross exaggerations made even in e-mail or text messages. • The MMM gives examples of prohibited uses of REALTOR® logos at www.realtor.org/letterlw.nsf/pages/mmmPartThree#ThreeIII. • The use of the marks must be within the context of a member of the association, not an individual team within a real estate company. One may ask if the phrase “member of association” were substituted for REATLOR® in the team name, would it contextually make sense? See examples at www.realtor.org/letterlw.nsf/pages/ mmmPartOne#OneIV . “MLS” in Domain Names A REALTOR® has a company Web site and the URL northwoodsandlakesmls.com. Can a REALTOR® use a URL with “MLS” contained in it? Unlike the term REALTOR®, MLS is not a membership mark. However, recent changes to the Code of Ethics will apply the true picture in advertising to the use of MLS in domain names by REALTORS®. A REALTOR® must portray a true picture, and that includes in the use of domain names. If the domain name presents less than a true picture the member may be subject to an ethics complaint. The new Standard of Practice, which has not yet been numbered, provides: REALTORS® shall not: 1) use URLs or domain names that present less than a true picture, or 2) register URLs or domain names that, if used, would present less than a true picture. The new Standard of Practice will ensure that REALTORS® present a true picture in their URLs and domain names. The application of this new Standard of Practice is demonstrated in new Case Interpretation #12-20. A violation of the Code of Ethics was found when a broker used “MLS” in his domain name because it lead the consumer to believe that he or she was going to a Web site owned or operated by an MLS, and that he or she would have access to the all the MLS information on the member’s site. The intent of the new Standard of Practice is to protect consumers from being misled by false or manipulative advertising. Case Interpretation #12-20 will be available in the 2008 Code of Ethics and Arbritation Manual. Company Listings on an Agent’s Web site An agent has created her own Web site that shows all of her company’s listings, not just her own. The agent gives the impression that all of the listings are hers. When buyers have become aware that she is not the listing agent, they have complained. Is this a violation of the Code of Ethics? An agent’s advertising must meet three standards: the Wisconsin Administrative Code, the Code of Ethics and office policy. Wis. Admin. Code § RL 24.04 provides, in part, that advertising must not be false, deceptive or misleading and must be in the name of the broker. Article 12 of the Code of Ethics provides that all REALTOR® advertising must portray a true picture. Finally, office policy may place additional restrictions on advertising by agents in the office. An agent enters into a listing on behalf of the broker/owner of the real estate company. Although all of the licensees working for the broker/owner will work on behalf of the seller, it appears to be deceptive or misleading to imply that the licensee herself is the actual listing agent on each of the companies’ listings. The buyer could file a complaint with the Department of Regulation and Licensing for a violation of § RL 24.04(1). An ethics complaint could also be filed alleging the agent did not portray a true picture on her Web site. Although the agent may display her company’s listings, she needs to clearly identify the listings as company listings and not imply or state they are all her own. MLS listings Can an agent display another company’s MLS listings on his or her own Web site? When an agent wishes to advertise another broker’s listings, permission of the seller and listing broker are required under § RL 24.04. The IDX rules as adopted by the local MLS are one source of such permission. The display of other companies’ MLS listings is limited by the terms and conditions of local policy. Before an agent displays another company’s MLS listings, the agent should obtain a copy of the local MLS rules to assure compliance with IDX policy. Recent change in MLS policy approved by NAR leadership authorize the MLS to impose financial penalties up to $15,000 on participants or subscribers as discipline for violations of MLS rules so compliance cannot be taken lightly. Tracy Rucka is a Staff Attorney for the WRA. Wisconsin Real Estate Magazine, January 2008 11 Legal Interest Rate Freeze A Blessing for Few Homeowners By Debbi Conrad O n December 6, 2007, President Bush announced that his administration and a coalition of lenders had negotiated an agreement with lenders to freeze interest rates for five years on some of the subprime mortgages that are scheduled for interest rate adjustments in the coming months. Specifically, lenders will make streamlined refinancing or loan modifications available for homeowners with loans that meet the criteria. The interest rate freeze feature targets the approximately 1.2 million subprime, adjustable-rate mortgage loans on owneroccupied homes that originated between January 1, 2005, and July 31, 2007, and have an initial interest rate reset between January 1, 2008, and July 31, 2010. These subprime mortgages – typically loans provided to borrowers with spotty credit histories – had introductory interest rates of around 7 to 8 percent that will reset to levels as high as 11 percent, adding hundreds of dollars to typical monthly mortgage payments. Qualifications Only homeowners who have FICO scores less than 660 and are facing an increase in monthly payments greater than 10 percent will be eligible for fast-track loan modifications and the fivemonth interest freeze. These borrowers cannot have missed any mortgage payments, must have less than three percent equity in their homes, and must be living in their homes. Borrowers who do not meet the “FICO test” may qualify for loan modifications after individual reviews of their current income and debt obligations. Although the Bush administration says up to 1.2 million ARM loans may be eligible for refinancing or modifications, the Center for Responsible Lending estimated that only around 145,000 will actually see any relief because most will be excluded by the plan criteria. 12 Exclusions The refinancing and loan modification relief does not apply to the estimated 22 percent of all subprime borrowers who are delinquent on their payments and does not help the hundreds of thousands of borrowers whose introductory interest rates reset to unaffordable levels before January 1. The plan excludes owners of second homes or investors because they do not live in the property facing foreclosure and people who are financially secure enough to pay the higher mortgage payments. In addition, the plan will not cover “payment option” adjustable rate loans that are not typically considered subprime loans but also will face significant rate resets. In other words, the plan will assist homebuyers with bad credit and minimal equity in bad loans who somehow have managed to make their mortgage payments at the introductory rate. It is hard to imagine that this will encompass as many homeowners as was hoped, but the government and the lenders were reluctant to engage in a wholesale bailout of consumers who made illadvised financial decisions. Download a PDF about the interest rate freeze plan at www.wra.org/irfreeze08. Default and Foreclosure Rates The Mortgage Bankers Association has reported that 5.59 percent of all home loans have payments that are more than 30 days late and 1.69 percent of all home loans are in foreclosure. In Wisconsin, 4.61 percent of all home loans were 30 or more days overdue and 1.95 percent of home loans are reportedly in foreclosure. Interest Rate Freeze ... continued on page 13 Wisconsin Real Estate Magazine, January 2008 news.wra.org National Mortgage Statistics • Number of families who now hold a subprime mortgage: 7.2 million • Proportion of subprime mortgages in default: 14.44 percent • Number of subprime mortgages made in 2005-2006 projected to end in foreclosure: 1 in 5 • Families with a subprime loan made from 1998 through 2006 who have or will lose their home to foreclosure in the next few years: 2.2 million • Projected maximum equity that will be lost through foreclosure by families holding subprime mortgages: $164 billion Correction In the November issue of Wisconsin Real Estate Magazine, the article • Proportion of subprime mortgages made from 2004 to 2006 that come with “exploding” adjustable interest rates: 89-93 percent entitled “Commercial Association of • Proportion approved without fully documented income: 43-50 percent Future,” mistakenly referred to Bill Mal- • Proportion with no escrow for taxes and insurance: 75 percent kasian as Chairman of the WRA. Bill Source: Center for Responsible Lending – A Snapshot of the Subprime Market, December 10, 2007: www.responsiblelending.org/issues/mortgage/ quick-references/a-snapshot-of-the-subprime.html REALTORS® – New Leadership, New Malkasian is President of the WRA. Debbi Conrad is Director of Legal Affairs for the WRA. of Wisconsin How do your investments compare? COMMISSION ADVANCES OVER $317,000,000 ADVANCED NO CREDIT CHECK SIMPLE APPLICATION All you need is a signed contract with no contingencies except financing. We do business with real estate agents throughout Wisconsin. Local Office... Personal Service CALL US NOW! 262-798-3820 www.ce-wisc.com Affiliate Member: NAR, WRA and Greater Milwaukee Association of REALTORS® Official Registered Supplier for Realty Executives International Wisconsin Real Estate Magazine, January 2008 Fractional Real Estate Ownership. An easier way. With more than 80 years of combined experience and over one billion dollars in successful transactions, Wangard specializes in tenancy in common (TIC) real estate investments. We provide sophisticated investors with an opportunity to escape the hassles of conventional real estate ownership while taking advantage of the many benefits that only investment real estate offers. Monthly cash flow. Tax sheltered income. Capital gains tax deferral. Leveraged yields. Truly apples and oranges when it comes to investment returns. We invite you to contact us to learn how vision, integrity, and talent can make a difference to your investment portfolio. Exceptional underwriting. Unmatched value. Predictable results. Call 262-717-0700 or visit wangardadvisors.com MILWAUKEE | INDIANAPOLIS | HOUSTON WANGARD A D V I S O R S 13 Legal Mortgage Cancellation Relief – Is It Law? By Kevin King A s the real estate market turned recently, some homeowners have found themselves “upside down” on their mortgages – in other words, they owe more on their mortgage than the fair market value of their property. In attempting to avoid foreclosure, the homeowner may seek to sell the property as a “short sale,” negotiating with the lender forgiveness of the amount of the shortfall. Similarly, under a foreclosure, the lender may elect to forgive that portion of the mortgage debt that is unsatisfied from the foreclosure sale proceeds. Under current law, when any portion of the debt is forgiven, that amount becomes taxable as income to the borrower. For example, assume a family needs to sell their home. They find that the values of homes in their area have not increased and they can sell for only $89,000. At the time of the sale, the outstanding balance on their mortgage is $92,000. Thus, there will not be enough cash at settlement to repay the lender the full balance of the mortgage. In some circumstances, the lender might forgive the amount of the balance that exceeds the purchase price ($3,000 in this example). What happens to the borrower when a portion of mortgage debt is forgiven? Under current law, the amount of forgiven mortgage debt (the $3,000 in this example), is treated as income, and taxed at ordinary income rates. Thus, the borrower, who has experienced a true economic loss, is required to pay tax on this “phantom” income, even though no cash has changed hands and even though he has experienced a loss. The National Association of REALTORS® has supported for many years an exclusion from taxation of this phantom income that is generated when a portion of the mortgage debt is forgiven. Last month, the House of Representatives agreed in an overwhelming bipartisan vote of 386 - 27. The legislation provides a permanent rule that eliminates the requirement to pay tax on forgiven mortgage debt on a principal residence, up to $2 million. There is no income restriction on those who are eligible for the relief. 14 Wisconsin Real Estate Magazine, January 2008 As adopted in the House, the proposed new law will apply to either an original or a refinanced mortgage, but only up to the amount of the original purchase price of the property (plus the cost of any improvements). This rule is consistent with other mortgage rules and is designed to prevent abuses where cash in excess of these amounts has previously been obtained. Will the proposed new law apply to commercial real estate? Current law already provides a similar rule that grants relief to debt-burdened commercial real estate and rental properties. The new proposal would grant relief for principal residences sold by their owners or to borrowers who arrange a “workout” with a lender that reduces the outstanding balance of the mortgage. If it is enacted, homeowners would be treated the same as owners of commercial and rental property when mortgage debts are forgiven. A harsh reality of tax law change is that any benefit provided to taxpayers must be “paid for” with a revenue offset. In order to “pay for” the mortgage cancellation relief, other revenue potentials are being considered, including possible changes impacting owners of vacation and/or rental properties and their ability to exclude up to $500,000 of gain from taxation upon the sale of such properties after converting them into the owners’ principal residence. What happens now? The legislation still needs the approval of the Senate and then the signature of the president. There appeared to be momentum to get this done in 2007 but the House and the Senate must agree on the details for this to become law. Once this is accomplished, the final bill is sent to the president for his signature. Stay tuned – we will keep you updated as events occur. UPDATE: On December 20, 2007, President Bush signed into law the Mortgage Forgiveness Relief Act. Kevin King is General Counsel for the WRA. news.wra.org 2008 WINTER CONVENTION January 21-23 Education Lake of the Torches Resort Casino & Convention Center Lac du Flambeau, WI $ESIGNATION#LASSESs/VER7ORKSHOPS #ONTINUING%DUCATION! %XHIBITSs!CTIVITIES-ORE Visit: WWWWRAORGWINTERCONVFORALISTOF WRA Winter Convention Schedule HOTELSANDNEARBYRECREATIONAMENITIES January 21- 23, 2008 Monday: 1.21.08 Exhibits and sponsorships available! Contact Debbie Thacker at 800.279.1972 for more information. Monday, January 21, 2008 Positioning Properties to Compete in the Market Registration: 7:30 a.m. CE 1: 8:30 a.m. – 12:00 p.m. CRS Elective – Positioning Properties: 8:30 a.m. – 4:30 p.m. CE 2: 1:00 p.m. – 4:30 p.m. Snowmobiling, Skiing, Fishing: 2:00 p.m. – 5:00 p.m. (make your own reservations) (Qualifies for the Certified Home Marketing Specialist (CHMS) and a one-day elective course for CRS). Instructor: Martha Webb Staging is receiving national attention. Now is the time to develop the knowledge and skills to integrate staging into your business. Created by Martha Webb, author and producer of Dress Your House for Success, this course will help you take control of the staging movement. Build new skills to offer sellers a proven method of optimizing price and minimizing market time and add value to your services. Upon completion of this course, students will be able to: Integrate and manage staging in full service real estate, use dialog skills to help overcome real and perceived barriers to engage sellers in the positioning process and increase confidence in this role, gain the knowledge and expertise to recommend and oversee positioning options that will help a variety of sellers in any market meet their selling goals. Topics covered include: s 3TAGINGTECHNIQUESANDDIALOG Exhibits Open: 4:30 p.m. – 6: 30 p.m. Welcome Party – DJ & Karaoke: 5:00 p.m. – 7:00 p.m. Chili Cook-Off: 5:00 p.m. – 7:00 p.m. Tuesday: 1.22.08 Registration: 7:30 a.m. Exhibits Open: 8:00 a.m. – 5: 00 p.m. ABR Elective – Foreclosure Opportunities: 8:30 a.m. – 4: 30 p.m. Opening Session: Rich Agent ... Poor Agent: 10:00 a.m. – 11:45 a.m. Broker Lunch: 11:45 a.m. – 1:00 p.m. s #ONSULTATIVERECOMMENDATIONS CE 3: 1:00 p.m. – 4:30 p.m. s 0SYCHOLOGYOFCOLORANDBUYERAPPEAL Workshops: 1:15 p.m. – 2:45 p.m. s 3TEPSOFTHESTAGINGPROCESS Workshops: 3:00 p.m. – 4:15 p.m. Tuesday, January 22, 2008 ABR Elective: Foreclosure Opportunities for Buyer/Clients Instructor: Dave Sayas Real estate foreclosures have been increasing and will likely continue to do so. This course will not only teach you how to spot opportunities for buyer/clients, but also how to counsel homebuying clients on the perils of risky finance programs. s (OWTOCOUNSELYOURBUYERCLIENTSTOHELPTHEMAVOIDFORECLOSURE proceedings Reception & DJ: 4:15 p.m. – 7:00 p.m. Wednesday: 1.23.08 Registration: 7:30 a.m. Exhibits Open: 8:00 a.m. – 1: 15 p.m. General Session: Nothing But Ideas: 9:00 a.m. – 10:30 a.m. Workshops: 10:45 a.m. – 12:00 p.m. s (OWTHEFORECLOSUREMARKETCANBENElTYOUANDYOURBUYERCLIENTS CRS Lunch: 11:45 a.m. – 1:00 p.m. s "ANKOWNEDREALESTATE2%/SnPREANDPOSTFORECLOSURES CE 4A: 1:00 p.m. – 4:30 p.m. Opening Session: Rich Agent … Poor Agent Instructor: Jerry Rossi Workshops: 1:15 p.m. – 2:45 p.m. visit www.wra.org/winterconv08 Michael Vance, Dean of the College of Disney, and Creator of “Out of the Box Thinking,vSAYSh35##%33ISTHEBUILDINGANDMAINTAININGOFSPIRITUALPHYSICALPHILOSOPHICALPSYCHOLOGICALAND lNANCIALGOALSv!2)#(!'%.4ISTHEEPITOMEOF6ANCESSUCCESSDElNITION2)#(!'%.43DONTMAKE-),,)/.3OFDOLLARSTHEYSIMPLYEARNALLTHEYDESIREINHARMONYWITHTHEIRPERSONALVALUES ANDLIFESTYLE2)#(!'%.43DONOTSUCCEEDBECAUSETHEYAREBETTERTHEYSUCCEEDBECAUSEOFTHELITTLETHINGSTHEYDOEVERYDAYTOBETHEBESTTwo lucky winners will receive a $150 WRA credit. Must be present to win. Register Today! 1-800-279-1972 or www.wra.org/winterconv08 Education Course Schedule Sales & Marketing Management w w w. w r a . o r g / C o u r s e S c h e d u l e Date January 16-17, 2008 January 18, 2008 Course Location ABR Brookfield ABR elective-Innovative Marketing Brookfield (1) Fee represents cost of the 4 modules, new WRA members receive a $40 discount. $ January 21, 2008 January 22, 2008 Additional fees for non-members # Winter Convention ## Group discounts available February 12-15, 2008 February 12-15, 2008 February 12-13,2008 February 12-13, 2008 February 12-13,2008 February 14-15, 2008 February 14, 2008 Positioning Properties to Lac du Flambeau Compete in the Market (CRS elective) Positioning w/convention Foreclosure Opportunities Lac du Flambeau (ABR elective) Foreclosure w/convention GRI Course 2/CRS201 Baraboo GRI Course 3/CRS202 Baraboo ABR Baraboo ASP RE Staging Course Baraboo CRS201-Listing Strategies Baraboo CRS202-Sales Strategies Baraboo Foreclosure Opportunities Baraboo February 14, 2008 CRS204-Creating Wealth Through RE Investments Baraboo QuickStart Module 1, 2, 3 & 4 SRES QuickStart Module 1 & 2 QuickStart Module 3 & 4 Baraboo Brookfield Madison Madison Now available online! QuickStart sales training program www.wra.org/QuickStartOnDemand February 12-15, 2008 February 21-22, 2008 March 20-21, 2008 April 3-4, 2008 Early Reg. 260 130 $ Regular Reg. 270 140 $ ATD 290 160 185 195 215 225 155 235 165 255# 185 195# ## 335 ## 335 ## 260 ## 325 ## 285 ## 285 ## 130 205# 345 345 270 335 295 295 140 225# 365 365 290 355 315 315 160 ## 285 295 315 250 (1) 375 240 (1) 240 (1) 260(1) 385 240(1) 240(1) 280(1) 405 # # ## Conference and Conventions Register Date Course Time Location $ Early Reg. Winter Convention 800-279-1972 January 21-23, 2008 Lac du Flambeau Appraisal Conference 800-279-1972 March 11-12, 2008 Appleton 255** ** Section members receive a discount Appraisal CE Appraisal continuing education modules available on VHS and DVD Real Estate Continuing Education Date Course Location Time January 17, 2008 2007-08 CE 1 & 2 Marinette 8:30 – 4:30 $ Regular Reg. 145 265** $ ATD 165 285** 8:30 a.m. – 4:30 p.m. Register # 920-897-2899 January 24, 2008 2007-08 CE 4A & 3 Brookfield 8:30 – 4:30 January 21, 2008 2007-08 CE 1 & 2 Lac du Flambeau 8:30 – 4:30 Must register for Winter Convention 800-279-1972 27/m; $35 nm Must register for Winter Convention January 22, 2008 2007-08 CE 3 Lac du Flambeau 1:00 – 4:30 January 23, 2008 2007-08 CE 4A Lac du Flambeau 1:00 – 4:30 Must register for Winter Convention January 30, 2008 2007-08 CE 4A & 3 Madison 8:30 – 4:30 February 7, 2008 2007-08 CE 1 & 2 Madison 8:30 – 4:30 February 7, 2008 2007-08 CE 1 & 2 Manitowoc 8:30 – 4:30 Brookfield 800-279-1972 27/m; $35 nm 920-553-6227 800-279-1972 27/m; $35 nm February 13, 2008 2007-08 CE 1 & 2 8:30 – 4:30 800-279-1972 27/m; $35 nm February 20, 2008 2007-08 CE 1 & 2(Commercial) Appleton 8:30 – 4:30 800-279-1972 30/m; $38 nm March 3-4, 2008 2007-08 CE1, 2, 3, & 4A 8:30 – 4:30 March 13, 2008 2007-08 CE 3 & 4C(Commercial) Appleton 8:30 – 4:30 800-279-1972 30/m; $38 nm March 18-19, 2008 2007-08 CE 1, 2, 3 & 4A Merrill 8:30 – 4:30 715-627-4885 March 26, 2008 2007-08 CE 3 & 4A Madison 8:30 – 4:30 Madison Milwaukee Madison Madison 8:00 – 5:00 p.m. 8:00 – 5:00 p.m. 8:00 – 5:00 p.m. 8:00 – 5:00 p.m. Pre-license * Plus books 16 January 14-17; 21-24, 2008 February 4-7, 2008 March 3-6; 10-13, 2008 April 7-10, 2008 Sales Pre-license Broker Pre-license Sales Pre-license Broker Pre-license Wisconsin Real Estate Magazine, January 2008 Las Vegas 800-279-1972 800-279-1972 27/m; $35 nm 325* 255* 325* 255* 325* 255* 325* 255* 335* 265* 335* 265* news.wra.org Education Mark Your Calendar! “My husband and I visited Las Vegas and had an absolutely FABULOUS time! Oh, and by the way, I happened to attend the Continuing Education class which was excellent. It’s the only way to “do” Continuing Education class!” Sherry Wittemann, Shorewest REALTORS® – Moreland Real Estate Continuing Education 2007-2008 Sales Pre-license Madison, WI Visit: www.wra.org/SalesPL Broker Pre-license Madison & Milwaukee, WI Visit: www.wra.org/BrokerPL Buyer Agency Course & Electives Eau Claire, Brookfield & Baraboo, WI Visit: www.wra.org/ABRcourses March 3 & 4, 2008 Tuscany Suites & Casino Las Vegas, NV www.wra.org/CELasVegas GRI Course 1 Complete GRI Course 1 in one of four ways Visit: www.wra.org/GRIcourses Out of State Real Estate CE March 3-4, 2008 Las Vegas, NV Visit: www.wra.org/CELasVegas SRES Class February 21-22, 2008 Visit: www.wra.org/SRES Commercial CE CE 1 & 2 February 20, 2008 CE 3 & 4C March 13, 2008 Appleton, WI Visit: www.wra.org/CommercialCE QuickStart Modules 1 and 2: February 12-13, 2008 Modules 3 and 4: February 14-15, 2008 Baraboo, WI Visit: www.wra.org/quickstart Wisconsin Real Estate Magazine, January 2008 17 Education Ho-Chunk Casino, Hotel & Convention Center Baraboo, WI February 12-15 2008 CRS 204 (February 14-15, 2008) GRI Course 2 (February 12-15, 2008) This four-day program includes CRS 201 (Listing Strategies for the Residential Specialist), so you can earn required credits toward your CRS designation while earning your GRI designation. GRI 2 also covers environmental issues, personal promotion, business ethics, PDAs and digital cameras, creating a Web presence, e-marketing, tying technology together and selling new homes. ASP Real Estate Staging Course (February 12-13, 2008) This four-day program includes CRS 202 (Effective Sales Strategies) to help you work toward your CRS designation and your GRI designation at the same time. The course covers real estate investments and exchanges. Calculator required. (The ASP™ designation helps you sell homes faster for more money!) Do it for them. Do it for yourself. Get your ASP Real Estate Agent designation and start selling homes faster for more money through the power of staging. You can earn your ASP designation by simply attending the two-day ASP course. This two-day training course is specifically designed for licensed real estate agents wanting to list and sell more homes by communicating the benefits of staging as a marketing tool. You will learn what staging is, how to communicate the benefits to sellers, how and why to stage a listing and specific technique to help your clients stage. Certified Residential Specialist (CRS) Opportunities QuickStart (February 12-15, 2008) GRI Course 3 (February 12-15, 2008) Earn two designations in half the time! CRS 201 is featured as part of GRI Course 2 and CRS 202 is featured as part of GRI Course 3. After you earn your GRI, take additional CRS classes of your choice and complete your CRS education requirement. CRS 201 (February 12-13, 2008) Listing Strategies for the Residential Specialist (included in GRI Course 2) The quality of your listing skills can give you a strong competitive edge. Only those professionals who learn proven listing strategies will win over the client and increase their conversion rate. “Listing Strategies” provides you with the important skills necessary to conduct successful listing presentations, price a home to sell, close the transaction and market and promote effectively. The course takes you through an actual listing presentation that helps you understand the key steps in this process and create a system for success. CRS 202 (February 14-15, 2008) Effective Sales Strategies (included in GRI Course 3) Top sales associates enjoy a competitive advantage because they understand what motivates and influences their customers. “Sales Strategies” gives you the inside track to win over prospective buyers by teaching you the necessary strategies to make your sales quick and efficient. You will learn how to work with today’s new buyer through counseling, salesmanship and negotiation. These effective strategies will give you customers for life. For a complete Designation Week schedule & to register, visit www.wra.org/designationweek 18 Creating Wealth Through Residential Real Estate Investments (Also elective course requirement for the ABR® Designation, elective course for Resort and Second-Homes Property Specialist (RSPS), and qualifies toward the CIPS and CRS designations.) More people have become wealthy investing in real estate than many other investments. Agents who want to learn the specific secrets to smart real estate investments can discover them in this course. Students will learn how to identify the right opportunities, compare real estate with other investments and create additional wealth – for themselves and their clients. This high-energy course explores another way to generate sales that has been overlooked, and the results can be life changing! This class is a must for any real estate professional looking to create wealth through residential real estate investment. Wisconsin Real Estate Magazine, January 2008 The QuickStart program assists agents in learning the business of real estate. The program begins with how to build relationships with buyers and sellers including prospecting, pricing properties, responding to concerns and making presentations to buyers and sellers. The course includes contract issues, agency relationships and negotiating strategies. The QuickStart program also discusses various methods of communication, goal setting, time management and incorporating technology into a real estate agent’s business plan. The program is designed to help agents become confident in their practice as well as focused on their personal business plan. Completion of the QuickStart program (four days) and passing the exams fulfills the requirements for GRI Course 1. (Day 1) QuickStart 101 – Sellers as Clients (Day 2) QuickStart 102 – Working with Buyers (Day 3) QuickStart 103 – Contracting and Negotiating (Day 4) QuickStart 104 – Effective Communication and Business Planning Accredited Buyer Representative (ABR®) (February 12-13, 2008) The Accredited Buyer Representative (ABR®) designation is the benchmark of excellence in buyer representation. The overall goals of the ABR® designation courses are to educate and prepare buyer’s reps to provide the kind of service and fidelity to buyers that sellers have always enjoyed, and to offer methods for building your buyer representation business. In each course module you will examine a different topic, and together they create a comprehensive guide to help you become an effective, efficient, and profitable buyer’s representative. Approved for 2007-08 CE #4. Does not fulfill the NAR ethics requirement. news.wra.org Education Product Showcase Forms Update New and Revised Products The Department of Regulation and Licensing has finished revisions to the WB-1 Residential Listing Contract - Exclusive Right to Sell and WB-36 Buyer Agency/Tenant Representation Agreement. The optional and mandatory use dates for these forms are January 1, 2008 and July 1, 2008, respectively. Following are the new forms and a variety of WRA products to help you with the new changes. NEW EDITION ... 2008 Wisconsin Real Estate Law Manual New Forms Video On Demand and on DVD The new edition of Wisconsin Real Estate Law will provide a complete updating of the 2007 edition based on the significant changes resulting from approval of the new WB-1 and WB-36 forms. Each chapter of this respected treatise is updated to reflect changes in real estate agency relationships created by the new forms, new legislation and court decisions that affect Wisconsin real estate transactions (shipping January 21). Watch for FREE or Purchase Online at www.wra.org/formsupdate Now available! Watch the On Demand presentation by attorney Dave Sayas of the new WB-1 and WB-36 forms. Dave provides a line-by-line examination of each form and its effect on your practice. The On Demand format is available free of charge to members at www.wra.org/formsupdate. A DVD of this presentation is available for $14.95. New WB-1 & WB-36 Forms Residential Listing Contract (WB-1) Buyer Agency/Tenant Representation Agreement (WB-36) Purchase Online at www.wra.org/forms Don’t delay. Order printed versions of both new forms from the WRA now. Forms are available in packs of 25 with quantity discounts available. And while you’re at it, you can add your logo or insert custom language into the forms with a minimum order of 1,000 (of either form). Prices start at $17.75 for 25 forms. 20 Wisconsin Real Estate Magazine, January 2008 Written by Scott Minter, UW Law School & Debra Peterson Conrad, WRA Purchase Online at www.wra.org/lawmanual Price: $45/members; $53/nonmembers. REVISED EDITION ... Explanation of the State of Wisconsin Residential Listing Contract and Offer to Purchase Published by the Wisconsin REALTORS® Association Purchase Online at www.wra.org/BRELO Revised for the new WB-1 form, this 40-page booklet is an excellent tool when discussing the Residential Listing Contract or Offer to Purchase. Used side-by-side with the forms, it is intended to help your customers and clients understand the complexities of the transaction (shipping January 21). Prices start at $15.00 for 20 brochures. The WRA also offers brochures with consumer-friendly explanations on other industry topics including: Buyer Agency, Your Rights as a Home Buyer or Seller (Agency Law), Protect Your Family From Lead in Your Home (English and Spanish versions), Seller Disclosure Law, Underground Storage Tanks, and Environmental Issues Affecting Residential Real Estate. For descriptions of these brochures visit www.wra.org/consumerbrochures. news.wra.org tip sales REALTOR® WALLY’S WISDOM NEW YEAR, NEW APPROACH, NEW ATTITUDE Happy New Year! Welcome 2008! As a professional sales agent, I know that each New Year brings change, opportunity and challenges. Focusing on the difficulty and anxiousness Marcus a. Wally that accompanies change gets us nowhere. Focusing on new opportunities allows us to expand our horizons. And knowing that positive begets positive allows us to face the challenges that are present in all occupations. Real estate is no exception. As I travel around the county facilitating courses, I have the privilege of listening to REALTORS® share their stories about how their business is going. We all hear negative stories about the housing market, and some of us may even be experiencing a slowdown in our own personal book of business (I know here in Florida I am). But the most critical factor to our success is to not allow attitudes of others (including the media) to dampen our enthusiasm for helping willing buyers and sellers achieve their goals and objectives. After all, we are here to fulfill the American Dream of everyone owning his or her own home. According to the U.S. Census Bureau, homeownership in the United States currently stands at 68.2 percent, so we have a way to go to get to that 100 percent mark! We must remember that the real estate business is cyclical and if you are experiencing a slowdown for the first time, here are a few sales tips. Real estate is a long-term investment. And as far as I’m concerned, there’s no better choice! The incredible boom has created a misconception that real estate is a high yield, short term investment, which is not true. We must clear up any misunderstandings that consumers have in order for the market to turn around. We can play a major part in steering our industry back into bright sunshiny days! There’s no such thing as a bad market. Regardless of where we are in the cycle, there are plenty of people that need to buy and sell. In many parts of our country we are experiencing a full blown buyer’s market. This type of market offers lots of choices for buyers. As market leaders, our job is to rethink market value and share realistic expectations with the owner. With our help and knowledge, buyers and sellers can negotiate a “good deal”! professional tools, direction and guidance, they are in for a long, hard road. Sell them on our value! Economic indicators remain good. Interest rates are still at historically low levels, which means money is cheap. Our population is growing (unlike a number of foreign countries), so housing is needed. Many parts of our country are experiencing employment gains, the nation’s inflation rate is under control and the gross domestic product is growing. With these factors, 2008 will be a healthy sales year. So bring on the New Year and keep a positive attitude. One of my favorite quotes is: Your attitude sets your altitude. Don’t hang around anyone who disagrees. Bad news should be put in perspective. This is where we come in – and come in strong! We must set the story straight with all with whom we come in contact. When the media reports on the foreclosure rate, they don’t specify that the problem is predominantly with subprime loans, which by the way, are held by less than 10 percent of homeowners. Most subprime loans will never go into foreclosure, and not all those that do will be foreclosed on. The foreclosure rate on prime loans is only 0.6 percent. Real estate is a local business. Keep yourself current on the local issues in your community. You and I must be the local experts – the sought-after professionals that consumers choose to do business with. Read, listen and learn! Stay focused and work hard! Control what you can. It’s a New Year and we must adopt new marketing campaigns. We must get the message out that NOW is a good time to buy. We must work with FSBO’s and convince them that without our Become an international salesperson, as with our weak dollar buyers are coming to America from all corners of the globe wanting to invest. Enroll in some advanced education courses. It is a proven statistic that REALTORS® with NAR designations earn more money. Adhere to our golden rule … the REALTOR® Code of Ethics. An ethical professional is always listed as one of the top values in national surveys. Work well with your competitors – you need them. We are all players on the same team; we just wear different colored jerseys! And, don’t forget: If you always do what you’ve always done, then you’ll always get what you’ve always got! Embrace change! Face those challenges and find the opportunities. Empowerment is the name of the game. If there were one thing I could give you it would be a positive mindset. Your mind is so powerful it greatly impacts your business. Adjust your mind to a “can do” attitude and then move on to a “will do” attitude. Develop those personal relationships, go slowly, and make them meaningful and lasting. Take the proactive approach and introduce yourself to someone new every day! Add them to your database! So blow your horns and toast to tomorrow. Our business is vibrant and we need to capture the consumers and show them this! Wishing you the very best for a healthy and prosperous New Year! Marcus A. Wally, MBA, GRI, CIPS, AHWD, RSPS, TRC, is an active Florida REALTOR® in St. Augustine, Florida – “OUR NATION’S OLDEST CITY.” Marcus is the founder and broker of NEW WORLD REALTY, which manages coaching and facilitation of education classes around the world. He has an MBA from the University of North Florida in Jacksonville. Marcus entered the real estate profession in 1991. He is a NAR faculty member for the Certified International Property Specialist (CIPS) program, and is a member of the AT HOME WITH DIVERSITY faculty. Marcus can be reached at 904-669-1081 or by e-mail at [email protected]. Wisconsin Real Estate Magazine, January 2008 21 Public Affairs Picking the Best How we decide which candidates to support E lections matter. The outcome of political campaigns at all levels of government – federal, state and local elections – can and will impact your business. The winners of political elections will be the ones who decide the fate of the hundreds, or even thousands, of proposed laws and rules that, if passed, you will have By Michael Theo to deal with each and every day. So whether you love or hate politics, elections matter. That is why at all levels of our organization – National Association of REALTORS®, Wisconsin REALTORS® Association and many local boards – we carefully analyze candidates for key public offices and endorse those whom we feel will be most supportive of homeowners, property rights and real estate professionals. At the WRA, the process of endorsing candidates for statewide office is an extensive one designed to choose the strongest candidate on real estate related issues, inform our members of that endorsement and the rationale behind it, and stress the need for REALTORS® to support and vote for that candidate. 22 Wisconsin Real Estate Magazine, January 2008 Our endorsements are based on real estate related issues. It is understood that some REALTORS® may base their votes on other, non-real estate related issues; however, it is the job of the WRA to analyze and report on where the candidates stand on REALTOR® issues only. Who makes these decisions? Recently the WRA established a permanent standing committee called the Political Strategy Group (PSG). This important new committee includes the entire WRA leadership team and is chaired by the Chairman of the WRA Board of Directors. In addition, the committee includes five past WRA chairmen and two members-at-large, for a total of 17 members. The PSG is an advisory group with two charges: to provide recommendations to WRA leadership and appropriate committees regarding the endorsement of candidates for statewide public office, and to provide recommendations to WRA leadership, appropriate committees and affiliated organizations regarding issue advocacy and grassroots lobbying activities. The PSG provides recommendations for endorsing candidates for statewide office to the Trustees of the REALTORS® Political Action Committee (RPAC). The recommendations of the PSG are advisory only. The RPAC Trustees is the group responsible for making endorsement recommendations on all state races to the news.wra.org Public Affairs WRA Board of Directors. (State races include all constitutional offices – including governor, Supreme Court, etc. – as well as state legislature. The RPAC Trustees also make recommendations to the NAR regarding candidates for U.S. congress.) Finally, it is the Board of Directors who has the sole authority to make the final decisions on endorsing candidates for state office. So how are these endorsement decisions made? As the first group to consider an endorsement for a statewide candidate, the PSG begins by considering whether or not an endorsement is warranted in a given race based on the following considerations: • Importance of the office to REALTORS® and property owners. • Ability of the WRA and its members to effectively participate in the race. • Relationships with candidates and with their supporters and opponents. Next, when considering an endorsement recommendation, the PSG uses, but is not limited to, the following criteria: 1. Voting record and/or related activities. 2. Responses to verbal and/or written interview questions. 3. Relationship with the real estate industry and REALTOR® organizations. 4. Past REALTOR® support. 5. Bipartisan (non-partisan) basis. 6. Ability to win (electability), including opinions by outside and staff experts. 7. Polling and other research. 8. Current and potential future committee assignments or appointments, leadership and/or future higher office potential. 9. Campaign financial and organizational needs. 10. Applicable statewide (or congressional district) voting characteristics. 11. Ability of campaign staff. 12. Electoral history of candidate. 13. Involvement of political party campaign or leadership committees. 14. Existing or likely supporters and opponents. 15. Favorability of incumbents (additional consideration for favorable incumbents, i.e., incumbents with a 60 percent or better voting record). 16. Ability of WRA actions to influence the outcome of the race. 17. Consequences of winning or losing. 18. No dual endorsements in the same race. 19. All criteria factors must be considered and considered in total. 20. No endorsement. A motion by the PSG to recommend a WRA endorsement of a candidate for statewide office must be approved by a two-thirds (66 percent), super majority vote of the members present. At least 12 members of the committee must be present in person or via conference call. In conjunction with an endorsement recommendation, the PSG also provides the WRA Board of Directors recommendations for actions to be taken by the association should the endorsement be approved. The proposed endorsement plan includes communications with members, processes for members to voice their opinion on the endorsement, the specific role of staff and members interacting legally with endorsed candidates and campaigns and volunteer opportunities for members with endorsed campaigns. Wisconsin Real Estate Magazine, January 2008 It is the job of the WRA to analyze and report on where the candidates stand on REALTOR® issues only. Again, the PSG is an advisory body only. Its recommendations are considered by the RPAC Trustees and the RPAC Trustees decide what endorsements will be passed on to the WRA Board of Directors. The Directors have the sole authority to make candidate endorsements for state office. This is indeed an elaborate process, but one designed to thoroughly vet candidates and their campaigns and, once endorsements are made, mobilize all the assets of our organization to help elect the endorsed candidate. Elections matter. They matter because political campaigns elect government officials that will decide issues that directly impact you, your family, your business and your quality of life. So it matters that you stay informed about and involved in the important upcoming elections of 2008. For more information or to comment, contact Michael Theo at [email protected]. Michael Theo is Vice President of Legal and Public Affairs for the WRA. 23 Public Affairs REALTOR® and Government Day Help Lobby Your Legislators at REALTOR® & Government Day 2008 Day |08 REALTOR® & GOVERNMENT February 27 | 1:00-6:00 pm Monona Terrace | Madison We hope to fill the building with more than 500 REALTORS® from every corner of the state to lobby lawmakers on issues that will improve the quality of life for Wisconsin homeowners, property owners and REALTORS®. And we want you to be a part of it! What is REALTOR® & Government Day? By jOE mURRAY REALTOR® & Government Day is the one day each year when we ask REALTORS® to invest their time to come to Madison and meet with their state legislators to discuss the key issues facing our industry and Wisconsin property owners. There is no lobbying effort more effective than REALTOR® constituents visiting Capitol offices and making face-to-face presentations on key issues such as health care reform, property taxes, land use, property rights and license regulations. Along with fellow REALTORS® from your area, you can help explain to your state senators and Assembly representatives the real impact of proposals they will be voting on during this legislative session. What are the Key Issues in 2008? With this legislative session scheduled to end in March 2008, the following issues constitute our priorities for the remainder of the session. This list could obviously expand or shorten as the session progresses. 24 Wisconsin Real Estate Magazine, January 2008 news.wra.org Public Affairs There is no lobbying effort more effective than REALTOR® constituents visiting Capitol offices and making face-to-face presentations on key issues. Pier Legislation (AB 297 / SB 169) Residential Property Taxes – (“Hope” Program) Exempt from new restrictions all existing piers that were not illegal when originally placed and guarantee the right of all riparian owners to place a pier. (WRA supports) Exempts the first $60,000 of a primary residence’s value from the school property tax, but increases other taxes to make up the lost property tax revenues and makes no other changes on the spending side of the equation. (WRA opposes) Shoreland Zoning Rules (NR 115) Ensure that revisions to the state’s shoreland zoning regulations adequately protect the rights of property owners, while at the same time protecting Wisconsin’s water resources. (WRA opposes as drafted) Health Care Reform Support reforms that help independent contractors and sole proprietors, but oppose the “Healthy Wisconsin” (governmentrun) health care proposal. (WRA opposes as previously introduced) DNR Secretary (AB 504) Takes away the governor’s power to appoint the Department of Natural Resources secretary and gives it to the unelected Natural Resources Board. (WRA opposes) Campaign Finance Reform Gov. Doyle has called a special session on campaign finance reform, thereby raising the possibility that the Legislature will vote on numerous proposals that will likely differ substantially between the Senate and Assembly. While no agreement is likely, the WRA must monitor closely to ensure that any proposal will not unreasonably restrict our ability to participate in the election process. Charter Towns Legislation Changes annexation requirements that limit the ability of property owners to choose which local unit of government provides them with services. (WRA opposed bills as originally introduced, but has negotiated changes to the bills that have caused us to change our position to neutral.) Global Warming Task Force A gubernatorial task force on global warming has dispersed into numerous working committees, many of which are now beginning to adopt recommendations for the full task force that restrict land use, community growth and development. WRA must monitor closely and comment appropriately. License Law Issues • Unauthorized practice of law – The Supreme Court is considering a petition from the State Bar to define the unauthorized practice of law in a manner that restricts current real estate licensee practices. • Commercial license reciprocity – Allows commercial practitioners to conduct business in Wisconsin but only if they work cooperatively with Wisconsin licensees, and enhances penalties for unlicensed practice. • Commercial liens – Eliminates the prior notice provision of statutory law and expands the scope of coverage. Joe Murray is Director of Political and Governmental Affairs for the WRA. 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To advertise, contact the WRA: 608.241.2047 | 800.279.1972 ')) %)& NORTHWESTERN WISCONSIN 6HYHQ2IILFHV6HUYLQJ ))' %'&& Masterjohn 'DYLG UHDOW\#PDVWHUMRKQFRP ) ZZZPDVWHUMRKQFRP Cheryl L. Eskridge A HEART for REAL ESTATE! Serving Northern Wisconsin & Also serving the Austin Texas Area! Northern Wisconsin Two Offices Serving Oneida, Vilas Iron, Price & Lincoln Counties Escape to the Nort hw oo ds ! Broker Associate ABR,CRS,GRI,PMN Direct Ph: 512-749-6833 I love referrals!! [email protected] www.heartforrealestate.com Licensed in Wisconsin as Cheryl Eskridge Real Estate Licensed in Texas with Stanberry & Associates, REALTORS® PETE MORGAN Broker/Owner 866.356.9944 northwoods-realty.com of Minocqua Dane County 2OBIN7INISTORFER-"! "ECKY!LEXANDER 3/,$ Boulder Junction • Mercer • Minocqua Manitowish Waters • Area Referrals Jim Tait III Boulder Jct. 877-385-2077 &ULLTIME2EAL%STATE!DVISORS#ONSULTANTS 3PECIALIZINGIN s"UYER2EPRESENTATION Jim Tait Sr. 7ATERFRONT0ROPERTIES 6ACANT,AND s Minocqua 800-677-8248 s WWW2EAL%STATEBY2OBINCOM www.jimtaitrealestate .com 4ATEREALESTATE?INDD !- Public Affairs Town’s Authority is Questioned Supreme Court Ruling Confirms Town Moratorium Authority is Unclear By Tom Larson O n December 12, the Wisconsin Supreme Court confirmed that the law authorizing local governments to temporarily ban development on private property is unclear and sent the issue back to the lower court for further review and clarification. The case now goes back to the Wisconsin Court of Appeals, which will hopefully issue a favorable ruling for property owners by declaring that towns do not have the legal authority to temporarily stop all development within the community. In the case of Wisconsin REALTORS® Association v. Town of West Point, the Supreme Court reached a tie vote (3-3) on whether towns have the legal authority to enact moratoria on new development. Three justices (Justices Louis Butler, David Prosser and Patrick Crooks) would have ruled that the town did not have the authority to enact a moratorium, while three others (Justices Shirley Abrahamson, Ann Walsh Bradley and Patience Roggensack) would have ruled that the town did have the authority. The newest Supreme Court justice, Justice Annette Ziegler, recused herself from the case and did not participate in the decision. Tom Larson is Director of Regulatory and Legislative Affairs for the WRA. For more information on this case, please contact Tom Larson ([email protected]) at (608) 240-8254. (EALTH#OVERAGE -ADE%ASY RELAX... The case is important to property owners who are often unable to build upon or develop their property during the moratorium, which often lasts up to two years. The ban on development during this time period negatively impacts the value of affected property while also thwarting the opportunity to grow the economy and tax base of the local community. The Court’s split decision confirms the concerns raised by the Wisconsin REALTORS® Association and Wisconsin Builders Association on behalf of property owners about the questionable legal authority of towns to temporarily stop all development within the community. This ruling also sends a strong warning to towns that are either contemplating a development moratorium or have a current moratorium in place: Proceed at your own risk. 28 Anthem individual healthcare plans are designed to fit your unique lifestyle. Solutions with choices are easy, just call... 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