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
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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
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Wisconsin Real Estate Magazine, January 2008
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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
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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.
Wisconsin Real Estate Magazine, January 2008
25
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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
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(%!4(%2%+
OR
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Blue Cross Blue Shield of Wisconsin ("BCBSWi") underwrites or administers the PPO and indemnity policies; Compcare Health Services Insurance Corporation ("Compcare")
underwrites or administers the HMO policies; and Compcare and BCBSWi collectively underwrite or administer the POS policies. Independent licensees of the Blue Cross and Blue
Shield Association. ®ANTHEM is a registered trademark. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association.
Wisconsin Real Estate Magazine, January 2008
news.wra.org
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