his vision for the future his for the future vision
Transcription
his vision for the future his for the future vision
PUBLIC POLICY FORUM WRA legislative agenda moving on all fronts BEST OF THE LEGAL HOTLINE Personal sales & purchases March 2004 $5.00 A PUBLICATION OF THE WISCONSIN REALTORS ASSOCIATION ® NEWS.WRA.ORG Spam.. Spam... and More Spam How e-mail filters may screen more than you want page 4 Home Loans for Veterans Who is eligible, how they work and where veterans can find out more page 11 2004 Technology To-Do List Laptops, digital cameras, smart phones and more page 15 CE in Vegas! Complete your 2003-2004 CE requirements on the Vegas strip page 16 SPECIAL REPORT GhisOVERNOR D OYLE vision for the future 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 �� ��� ���� ������ ������� ��� ��� �������� �� ����������� ���������� ������������������������� ������������������������������������������������������������������� ��������������������������������������������������� ��������������� ������������������������������������������������������������������������������������������������ ������������������������������������������������������������������������������������������� ������������������������������������������������������������������������������������������������ �������������������������������������������������������������������������������������� ���������������������� ���������������������������� ����������������� ������������������������������� ������������������� ��������������������������������������������������������������������������� ��������� ����������������������������������������������������� ���������������������������������������������������� ����������������������� ���� ��������� ������� ����� �������������� ��� ������ ��������������� WISCONSIN REAL REAL ESTATE ESTATE MAGAZINE MAGAZINE WISCONSIN THE OFFICIAL OFFICIAL PUBLICATION PUBLICATION OF OF THE THE WISCONSIN WISCONSIN REALTORS REALTORS®® ASSOCIATION ASSOCIATION THE MARCH 2004 2004 MARCH VOL. 20, 20, NO. NO. 77 VOL. Contents 2004 Technology To-Do List 12 Special Report: Governor Doyle His Vision For Wisconsin’s Future Page 15 An overview of key elements in the Grow Wisconsin plan working to ensure Wisconsin remains a great place to live, work, buy a home and raise a family. Complete Your 4 Spam, Spam and More Spam Real Estate or 5 Inside the WRA with Bill Malkasian Appraisal CE 6 In the Spotlight – Kitty Jedwabny 8 Legal Hotline – Personal Sales & Purchases 10 REALTOR® Affiliations with Title Companies 11 Home Loans for Wisconsin Veterans WRA Legislative 16 Upcoming Education Agenda Moving 19 Member Benefits On All Fronts 23 TIF Law to Provide Needed Boost to Economy 24 2003 RPAC Awards 25 REALTOR® Referrals Requirements on the Vegas Strip Page 16 Page 20 Cover photo by Alvaro Ignacio Barros, designlogoworks.com WISCONSIN REAL ESTATE MAGAZINE, March 2004 3 Wisconsin Real Estate Magazine is published by the WISCONSIN REALTORS® ASSOCIATION Wisconsin Real Estate Notes Walter Hellyer, CRB, CRS, GRI, Chairman [email protected] Kitty Jedwabny, CRB, CRS, Chair-Elect [email protected] Jeff Kitchen, CRS, GRI, Treasurer [email protected] Spam, Spam and More Spam! William E. Malkasian, CAE, President [email protected] How e-mail filters may screen more than you want Editorial Staff William E. Malkasian Publisher A s an increasing number of businesses begin to comply with the CANSPAM Act of 2003, e-mail recipients who use spam filters must be careful so that they don’t miss out on information they want to receive. If a spam filter deletes or segregates e-mail containing the words “unsubscribe” or “opt out,” a recipient may not receive electronic newsletters or other messages from associations and other groups that include reminders about education, events or products because those e-mails will include an option to unsubscribe or opt-out. For example, all WRA e-mails include an unsubscribe message because so many include information about classes, events and publications for which a fee may be charged. If your spam filter weeds out messages that contain the word “unsubscribe,” you may not be receiving any e-mails from the WRA, including DR Hot Tips or the new REALTOR® Online Resource Package. The CAN-SPAM Act of 2003 defines commercial e-mail to include all electronic messages that advertise or promote a product or service. Commercial e-mails, under this law, must include an opt-out or unsubscribe message and an opt-out or unsubscribe mechanism to which the recipient may address his or her request to not receive any future e-mail. Commercial e-mails must also include a return e-mail address, a physical postal address, and a clear and conspicuous notice that the message is an advertisement or solicitation. For further discussion of this law, see Legal Update 04.01, “Federal Anti-Spam Legislation,” at www.wra.org/LU0401. Robert Uhrina Managing Editor Laura Connolly and Erin Glodowski Publication Editors Wisconsin Real Estate Magazine, USPS 597850, ISSN 1096—9829, 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 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. Contact 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 [email protected] www.wra.org 4 WISCONSIN REAL ESTATE MAGAZINE, March 2004 Inside the wra with Bill Malkasian A s Wisconsin faces the challenges of a tough economy, we can’t help but wonder what the future holds for the Badger State – for residents and real estate professionals. With interest rates falling and home sales skyrocketing, the housing market has been sensational. But can it last forever in the wake of conditions such as higher property taxes and a smaller workforce? Bill Malkasian WRA President “With interest rates falling and home sales skyrocketing, the housing market has been sensational. But can it last?” In early January, I had the opportunity to speak with Governor Jim Doyle in person about the state of the Wisconsin economy. While there were no fortunetellers or crystal balls, it was an enlightening experience to hear what lies ahead. As part of our discussion, I asked Governor Doyle to prepare a feature story for this month’s issue of Wisconsin Real Estate Magazine, giving REALTORS an opportunity to hear his vision for the future and how we can all work together to make Wisconsin a better place to live. Another feature in this month’s issue showcases WRA Chair-elect, Kitty Jedwabny of Coldwell Banker, The Real Estate Group. Kitty currently leads the WRA’s Strategic Planning Committee and is slated to become the next Chair of the Board in October 2004. One of Kitty’s immediate goals preparing for her new post is to begin visiting with REALTORS across the state to gauge their interest in leadership roles within the WRA. If you are interested in serving as a board member or a participant on one of our committees, please let Kitty or me know. You can e-mail Kitty at [email protected]. Next, we are eager to report on a number of exciting results from the current Legislative session, which ends March 11. The WRA has played an important role at the forefront of these discussions. Be on the lookout for a full report in the April issue of Wisconsin Real Estate Magazine. Finally, don’t miss our new REALTOR Referral section on Page 26. It’s an exciting way for you to promote yourself, get your name in front of more than 15,000 REALTORS and generate referral business from other areas of the state. Space is limited so be sure to lock in your position early. For details, contact Rob Uhrina, our VP of Marketing and Communications, or drop him an e-mail at [email protected]. As always, we love to hear your feedback. I encourage you to express your opinions in a letter to the editor, addressed to me at [email protected] or 4801 Forest Run Road, Suite 201, Madison, Wisconsin 53704. I look forward to hearing from you! Sincerely, Bill Malkasian WISCONSIN REAL ESTATE MAGAZINE, March 2004 news.wra.org 5 In the Spotlight Kitty Jedwabny, CRB, CRS Chair-Elect of the WRA Board of Directors Meet the WRA’s chair-elect, Kitty Jedwabny. She is the manager-owner of Coldwell Banker, The Real Estate Group in Appleton, WI, and she is also a partner in a construction company, J&S Homes, Inc. Kitty has participated in numerous REALTOR® committees at local, state and national levels. Locally, she has served the North East Wisconsin Association as the chairperson for seven different committees, fifteen years as the local director, and twice as board president. Kitty makes her home in the Appleton area with her husband Rick, has raised two sons who are in real estate, and is the very proud grandmother of Jade and Logan. WRE: How did you get started in the real estate business? believe is a consultant to help real estate professionals grow their business. Kitty Jedwabny: I saw a sign that said, “Share the American Dream. Buy a Home.” At the time I was on my way into the hospital where I worked in emergency services. There had been a car accident with several children, two of whom didn’t survive. At that moment, I made an instant decision to share the dreams rather than the nightmares, and I enrolled in real estate school shortly afterwards. Although being in this business is more than sharing dreams, it is very rewarding to help people make the best investment possible with their home. WRE: What qualities do you think make a successful REALTOR®? In the early years of my career, new construction was my passion. With the help of a good friend at F&M Bank, I was able to start my own construction company called J&S Homes. At the time, I was an agent for Jim Temmer at Century 21 Temmer Realty. We eventually became partners in both J&S Realty and Century 21 Temmer Realty, and in 1992 we merged with Coldwell Banker Bytof Realty and then changed our name to The Real Estate Group. My role has become what I like to 6 KJ: Agents make themselves successful by being leaders who are willful and fearless, but also modest. They must have a great sense of urgency. WRE: What tips would you give to someone just starting out in the real estate industry? Go into the office! Never forget the old-fashioned American credo that hard work and determination pay off. Get a mentor, read something pertinent to the business each day, dress for success, and be involved in your community. WRE: What changes do you see in the real estate industry during 2004? I don’t see a lot of changes, but there should be a continuation of many trends, including the growth of large companies while small companies still struggle to provide the same services. Small companies are also feeling the pressure on the other side from discount services. As Steve Murray stated in this publication last month, customers are expecting to receive more service for what they pay than they did in the past. Increasing use of technology is another continuing trend that we are all familiar with. Having a Web site, e-mail and cell phone is not an edge anymore. They are just part of the daily business. As chair-elect, how do you see the WRA’s role in the Wisconsin real estate industry developing? The new Wisconsin Real Estate Magazine is a good example of the future role of the WRA. This communication piece encompasses a monthly package of all the benefits you can receive – legal analysis, pertinent industry information, educational opportunities and updates on public policy efforts. The WRA is delivering services that are not only applauded by its members, but by its peers nationwide. I know Bill Malkasian and his group will continue to make the WRA the mark by which all other real estate associations are judged. WISCONSIN REAL ESTATE MAGAZINE, March 2004 Legal Matters Uniform Dwelling Code To Be Enforced Statewide BY THOMAS CULLEN O n December 3, 2003, Governor Jim Doyle signed into law the Home Safety Act (2003 WI Act 90) which requires the state’s Uniform Dwelling Code (UDC) (Comm. 20-25 WI Admin. Code) to be enforced in all municipalities throughout the state. The UDC is a uniform statewide building code for one- and two- family dwellings built since June 1, 1980. The UDC sets minimum standards for fire safety, structural strength, energy conservation, erosion control, heating, plumbing and electrical systems, and general health and safety in new construction dwellings. Prior to the new legislation, municipalities with a population of 2,500 or less could choose, by resolution, to not enforce the UDC in their communities. Municipalities over 2,500, on the other hand, were required to enforce the UDC. In those municipalities that chose not to enforce the UDC, an administrative building permit was issued for new construction, but there was no review of the building plans and no field inspection of actual construction. It is estimated that approximately 900 municipalities in Wisconsin elected to not enforce the UDC. Municipalities and counties that provide enforcement can enter into intergovernmental cooperation agreements whereby the governmental entities can share the cost of enforcement. Enforcement activities can be performed by full or part-time in-house inspectors or contracted out to qualified private inspectors. In cases where the Department of Commerce enforces the UDC, they plan to hire inspection agencies on either a local or countywide basis. The new legislation went into effect on December 18, 2003. The Department of Commerce estimates that it will take three to six months to get the enforcement system into place. In the meantime, home buyers, builders and REALTORS® should be aware that compliance with UDC requirements will be required for all one- and two-family homes constructed in the state, regardless of the size of the community. For further information, contact the Department of Commerce, Safety and Building Division, by calling (608) 266-3151 or go to their Web site: www.commerce.wi.gov/SB/SBOneAndTwoFamilyInfo.html. Under the new legislation, the UDC must be enforced regardless of the municipality’s population. Municipalities under 2,500 that previously chose to not enforce the UDC, will now have three options: 1. Adopt an ordinance and enforce the UDC locally. 2. Delegate enforcement to the county, provided the county is willing to provide the service. 3. Delegate enforcement to the Department of Commerce, Safety and Building Division, which will be required to enforce the UDC for new homes in the municipality. WISCONSIN REAL ESTATE MAGAZINE, March 2004 77 Best of the Legal Hotline & Purchases Personal Sales BY DEBBI CONRAD AND TRACY RUCKA T Commission: Agency: Incentive: Can a real estate licensee buy or sell his or her own property as an agent for him or herself? Since a commission is not paid, how can a licensee get an incentive when acting as a buyer? No. An agency relationship is created between a buyer or seller and a real estate broker when they enter into either a buyer agency agreement or listing contract. The agency agreement allows the broker to act on behalf of the principal, that is, the buyer or the seller. The broker earns the commission by providing real estate brokerage services as an agent for the principal. The license should first review office policy to see what guidance is there as far as the personal real estate transaction. Depending on the policy, it may be possible for the licensee to proceed independently and request an incentive from the listing broker or the seller. In that case, the licensee drafts the offer to purchase on his or her own behalf. The licensee should cross out line one of the offer to purchase because the licensee is the principal and not an agent in the transaction. An incentive negotiated with the seller would be paid directly to the licensee as a party, and is not subject to the provisions of the independent contractor agreement or to the Wis. Stat. § 452.14(3)(f) prohibition against accepting compensation from anyone other than the broker. Hotline he following recent Legal Hotline questions relate to the proper procedures to follow when a licensee buys or sells real estate for his or her own personal use or investment. The first thing the licensee typically wants to know is whether he or she can get paid a commission in the transaction. Unfortunately, the answer is no. However, the licensee may receive an incentive or referral fee if the transaction is structured properly. Black’s Law Dictionary defines an agent as, “A person authorized by another (principal) to act in place of him; one entrusted with another’s business. One who represents and acts for another under the contract or relation of agency.” The essence of the definition is that the agent acts on behalf of another. By definition, two people are required before one person can be an agent. Thus, a real estate licensee who is a principal in the transaction cannot also be his or her own agent. 8 Can a real estate licensee earn a commission as an agent in his or her own personal transaction? When a real estate licensee is a party to the transaction, the licensee cannot concurrently act as his or her own agent and thus cannot earn a commission in that capacity. The licensee, however, may negotiate for an incentive, but it is a misnomer to say that the licensee is paid a commission. In the alternative, the licensee’s broker/ company may provide brokerage services WISCONSIN REAL ESTATE MAGAZINE, March 2004 Legal Hotline to the licensee as a principal and proceed with the licensee as the client or customer. In this scenario, the licensee may negotiate an incentive is negotiated with the broker/owner. 1. Office policy. Policies are designed to limit broker liability as well as outline appropriate strategies for agents to follow when seeking incentives or referrals in personal transactions. Some brokers require that personal transactions be handled though the company, while others do not. When setting office policy, two major issues are raised in the analysis of an employer-broker’s potential liability for damages resulting from a salesperson’s purchase or sale of personal real estate. The first issue is related to satisfying the rules of the DRL; the second focuses on civil liability resulting from damages suffered by sellers. While § RL 17.08 requires a broker to supervise the activities of his or her agents, the DRL has interpreted this to be limited to only those activities requiring licensure under Wis. Stats. § 452.01. Because § 452.01 generally does not require a license for the purchase or sale of personal real estate, the DRL does not require supervision under its rules (except for certain patterns of sales, per § 452.01(2)(b)). However, potential still exists for the broker/employer to be subject to liability for parties injured by the licensee’s “personal transactions.” This liability results because third parties may assume from their contacts with the licensee that they were dealing with the broker/company through the agent. This misperception may be created, for example, when the licensee meets the other party in career apparel, hands out company business cards, accepts phone calls at the office or corresponds on company letterhead. To avoid this appearance, office policy may prohibit the use of the office, company business cards, office phones, etc. to try to keep the personal real estate activity of licensees separate and apart from the office. Brokers may require licensees to give all parties in personal transactions a disclosure letter indicating no involvement by the broker. Alternately, a broker might require all personal real estate transactions to be handled under office supervision, so the licensee becomes a client or customer of the company. The licensee’s broker would function as a subagent of the seller or as a buyer’s broker, write the offer for the licensee/buyer, and claim the cooperative commission as the “procuring cause” of the sale. In such cases, the broker must fulfill his or her normal agency duties by properly representing the interests of the parties. If the broker acts as a buyer’s broker, pursuant to § RL 24.07(8)(a) and Standard of Practice 16-11, the buyer’s broker must disclose the buyer agency upon first contact. In addition, pursuant to § RL 24.05(2) and Article 4 of the Code of Ethics, the selling broker must disclose that the buyer is a licensee and obtain the written consent of the parties in the offer. The broker and the licensee/buyer may have an agreement whereby the broker pays the licensee/buyer an incentive, or this may be required by the broker’s office policies and procedures. In deciding what approach to use, a broker/employer should consult with private counsel. Once approved, the policy should be incorporated into the office policy and procedures manual. The greatest risk of broker liability is in those offices that do not address the issue in any fashion. WISCONSIN REAL ESTATE MAGAZINE, March 2004 news.wra.org 2. Incentive from the listing broker. If the buyer/licensee is going to write his or her own offer to purchase, the buyer/licensee may first negotiate an incentive with the listing broker. The agreement would be documented on a separate sheet of paper and signed by the buyer/licensee and the listing broker: “As an inducement to Larry Licensee to purchase the property at 123 Main Street, Salestown, Wisconsin, Real Good Realty, Inc., promises to pay to Mr. Licensee an incentive in the amount of $2,000 at the time of closing provided the closing occurs on or before December 31, 2004. It is agreed that this incentive shall be paid in lieu of any commission offered on the MLS or otherwise, that commission being hereby declined.” Including the waiver of MLS commission, although extraneous, clearly informs the listing company that there is no expectation of any commission offered via the MLS. 3. Incentive from the seller. A licensee may negotiate for an incentive. The agreement should be documented in the offer to purchase. For example, the license may provide, in the offer: “As an incentive for Lucy Licensee to purchase the property at 234 5th Street, Anytown, Wisconsin, the seller promises to pay Ms. Licensee an incentive in the amount of $3,000 at the time of closing.” 4. Incentive from the licensee’s broker. Some office policies require that the broker or office manager act as the agent on behalf of the licensee buyer or seller. In this scenario, the broker drafts the offer to purchase on behalf of the licensee and earns any commission offered by the listing broker. The broker and the licensee may enter into their own incentive agreement regarding the transaction. 9 Legal Matters REALTOR® Affiliations with Title Companies BY RICK STAFF A number of recent calls to the Legal Hotline have asked whether it is legal for a REALTOR® to form an entity which would enter into a relationship with a title insurance company, enabling the entity formed by the REALTOR® to receive payment for services provided in connection with the issuance of title insurance. These types of relationships are possible, but only if the entities involved meet a number of requirements. Prior to entering into these relationships, REALTORS® may want to obtain an opinion from private legal counsel that the relationship between the entity created by the REALTOR® and the title insurance company does not violate federal or state laws, including those prohibiting the payment of unearned fees and kickbacks for referrals. Often the Hotline caller is being asked to create an LLC, obtain a license as a title insurance agent, and perform certain services in connection with the title insurance transaction. One question that must be addressed in these situations is whether the fees paid to the LLC are reasonable in relation to the services provided that entity. RESPA states in Sec. 2607: ”Prohibition 10 against kickbacks and unearned fees. No person shall give and no person shall accept any portion, split, or percentage of any charge made or received for the rendering of a real estate settlement service in connection with a transaction involving a federally related mortgage loan other than for services actually performed.” Wis. Admin. Code § Ins 3.32(4)(j) states: Paying or offering to pay a fee to a producer of title insurance for services unless the fee bears a reasonable relation to the services performed is prohibited. The determination of whether a fee bears a reasonable relation to the services performed means a recognition of time and effort spent, risk and expenses incurred, and an allowance for a reasonable level of profit. After June 30, 1987, for purposes of this paragraph, a payment determined by applying a percentage amount or formula to the premium paid for title insurance is presumed, unless rebutted, not to bear a reasonable relation to services performed. The presumption may be rebutted in a particular case by satisfying the commissioner that the service to be performed and the compensation to be received, with recognition of time and effort spent and risk and expenses incurred, are substantially comparable to the services performed and compensation received by agents, or to the services performed by underwriters, in this state who are not producers of title insurance.” In addition, REALTORS® contemplating this type of arrangement and their legal counsel should review HUD Statement of Policy 1996-2, “Regarding Sham Controlled Business Arrangements.” This text of the policy is available at www.hud.gov/offices/hsg/sfh/res/ res0607c.cfm, and is discussed on pages 6-9 of Legal Update 96.08, “1996 RESPA Regulations,” at www.wra.org/LU9608. To date, each of the relationships presented to the Legal Hotline have required further investigation and all members have been referred to legal counsel. REALTORS® considering such a relationship are reminded that penalties for RESPA violations include the payment of attorney fees in civil actions. For additional information about RESPA, go to www.hud.gov/offices/hsg/ sfh/res/respa_hm.cfm. WISCONSIN REAL ESTATE MAGAZINE, March 2004 Home Loans for Wisconsin Veterans BY JOHN A. SCOCOS, WDVA SECRETARY S ince 1974, the Wisconsin Department of Veterans Affairs has offered home mortgage and home improvement loans to qualified veterans. More than 54,000 veterans have used WDVA loans to purchase their homes. When the program began it was targeted at first-time homebuyers with low and moderate incomes. There were restrictive limits on income, assets and reuse, and the program was not available to peacetime veterans. In 1997 there were several important changes. The income and asset limits were removed, the program can now be used multiple times, and it has been expanded to all veteran homebuyers including over 100,000 peacetime veterans. To be eligible, veterans must meet certain basic eligibility requirements, including active duty service and Wisconsin state residency. Veterans who served on active duty are now considered residents after living in Wisconsin for only 12 consecutive months. Eligibility can be established by visiting the County Veterans Service Office or simply by going online to the WDVA Web site at http://dva.state.wi.us. With a certificate of eligibility from WDVA, the veteran can use one of the over 500 lenders across Wisconsin who offer WDVA mortgage loans. The local lender will handle all of the necessary arrangements for the mortgage loan. The WDVA Home Loan offers a 30-year fixed rate loan on the veteran’s primary residence, with no private mortgage insurance. There is a requirement for a five percent down payment and closing costs. Interest rates are generally below the current market rate, and are always available on the WDVA WISCONSIN REAL ESTATE MAGAZINE, March 2004 Web site. The loan is limited to a maximum of 2.5 times the median price of a home in Wisconsin, currently $342,250. This limit is revised every July. Current law prohibits WDVA from refinancing loans but there are no restrictions on refinancing existing WDVA loans through another lender. WDVA uses Fannie Mae rules and desktop underwriting, allowing the department to turn around complete loan packages rapidly. Home mortgage loans approved by the local lender and submitted to WDVA enjoy a 99 percent approval and commitment rate. Once a loan is approved, the department will commit funds to the local lender, who will close the loan. Servicing of the loan is usually done through the local lender as well. Local lending institutions receive a one percent origination fee and a 3/8ths of one per cent servicing fee. Principal and interest payments from WDVA home loans are used to support this self-sufficient program and provide other benefits to Wisconsin Veterans such as the WDVA Home Improvement Loan. This loan offers a 15-year term with a low fixed rate, currently 5.65 percent and up to 50 percent of the improvement project can count towards the required 10 percent equity. Home improvement loans are submitted through the County Veterans Service Office and soon the home improvement application will be available online through our Web site. For more information on WDVA Mortgage loans and WDVA Home Improvement Loans visit dva.state.wi.us and check home mortgage loans under benefits or contact [email protected] or 1 800-947-8387. 11 SPECIAL REPORT: GOVERNOR DOYLE’S Vision for Wisconsin’s Future R ecently, I delivered my second, state-of-thestate address to the legislature, and this year, Wisconsin’s citizens have much to celebrate. Gone is the $3.2 billion state deficit that I faced as your new governor. The state’s worst fiscal crisis is over, and we managed this crisis and balanced the budget without raising taxes. That was job one of my plan to help stimulate the economy and create good-paying jobs. We did that and achieved many other goals set in my Grow Wisconsin plan. We ended the jobs tax on corporations, for example, one of several victories that eluded my predecessors. Many other bipartisan measures have been enacted under my leadership. For once, Democrats and Republicans are working together to get the people’s business done. But what I really want to address in this forum is the state of the neighborhood. After all, that’s what concerns us most. We all want safe, friendly neighborhoods, quiet streets with attractive homes, close to good schools, set in thriving communities. You have a way of putting it succinctly, “Location, location, location.” 12 For all the attention to the state economy, global markets, the need to compete and create high-end jobs, the real focus continues to be the children and families of Wisconsin, their needs and their future. For they are Wisconsin’s future. With Grow Wisconsin, we want to lend assistance to existing businesses where we can, build our economy, and above all, lay a foundation for new, promising ventures to sustain growth for years to come. But the primary goal is to see that Wisconsin remains the best place to live, work, buy a home, raise a family and enjoy all that the Badger State has to offer. As I said in my state address, I’m a pretty basic guy. When it comes right down to it, there’s no better social program than a good paying job. The educational needs of our children also are pretty elementary: a classroom with a good teacher, high expectations, a small class so learning excels, and a roof that doesn’t leak. Good jobs and schools equal good neighborhoods. Jessica and I were married a number of years before we realized the American dream of owning a home. Right after college, we joined the Peace Corps, went to North WISCONSIN REAL ESTATE MAGAZINE, March 2004 news.wra.org grow wisconsin Africa and taught English for two years at a desert outpost in Tunisia. Once back in the states, I earned my law degree in Boston; then we were off to Arizona to work on the Navajo Indian Reservation. Not until 1975 did we come home to Madison, richer for the experience. We left as teachers in 1967, but returned students of the world. We were the ones who learned the most, and that was the real reward. By then, we also had a family, our first son, Gus. Soon, Gabe followed. Now, as Governor, I’m determined to see that this generation and their children have all the opportunities we had and more. Most of all, we want all who follow us to find those opportunities right here in Wisconsin. Let them see the world and all its possibilities. But let Wisconsin be home for them, and others who won’t settle for less. We’re well on our way. Even in fiscal crisis, we increased funding for education, and my task force on education is studying new ways to support our schools and provide every child the opportunity for an excellent education. To prepare our children for the challenges of tomorrow, we need to retain and recruit the best teachers today. Toward that end, I announced a single-family housing initiative last fall. Homes for Our Heroes provides low interest mortgages not only to teachers, but police officers and firefighters, allowing them to buy homes in the communities they serve. In two months, qualified applicants have received commitments for nearly $5 million, half the amount available. The initiative opens other doors to potential homebuyers with low to moderate incomes. To help others realize their dream, we are working hard to grow the economy and create the good paying jobs. Among the many achievements of Grow Wisconsin so far is regulatory reform. These changes, which I signed into law recently, will allow economic growth without harm to the environment that we prize most in this state. Yet WISCONSIN REAL ESTATE MAGAZINE, March 2004 even with that and other achievements, we have much more to do. Clearly, one thing we must do to ensure economic growth in the decade ahead is create a $300 million venture capital fund. With $10 million a year, we can leverage another $20 million annually to help launch new businesses. Also high on my Grow Wisconsin list is a $10 million job-training fund. Companies can qualify for free job training, if they create a significant number of new, high-paying jobs or they need to introduce new technologies to keep the jobs they have and compete. Providing $1.5 million to fully fund the youth apprenticeship program will help meet the increasing demand for skilled workers. And while we address these needs, we must not forget those who toil at the lowest level for a minimum wage of $5.15 an hour. They have not had a raise in nearly seven years. Many of them are single mothers, working, yet living in poverty. That is shameful, and it must change. None of the Grow Wisconsin proposals taken separately will ensure long-term prosperity. But taken as a whole, these initiatives and my larger agenda for children will make Wisconsin the envy of other states, enhancing our role as national model. This is my vision. But we all must do our part for Wisconsin to truly be a land of promise and opportunity, whether it’s for a young entrepreneur, seeking capital and a community to start a business, or a new family, searching our neighborhoods to buy their first home and live the American dream. Working together, we can make it happen. Sincerely, Governor Jim Doyle 13 Affordable missing out? H EALTH I NSURANCE For Individuals and Families * YOUR AD COULD BE HERE. *Underwritten by Mid-West National Life Insurance Company of Tennessee. Medical | Vision | Dental Choose Your Own Doctors and Hospitals On and Off the Job Protection 24/7 Can’t Be Singled Out for Rate Increase Can’t Be Singled Out for Cancellation Benefits Paid on Usual and Customary Charges Keep Your Coverage Regardless of Your Job Situation Steve Boyer Endorsed by: Insurance Agent 262-662-1676 or TOLL-FREE 866-662-1676 CALL TM For more information or to place an ad call 800-279-1972. Technology The 2004 Technology To-Do List Part 1 of 2 BY STEPHEN CANALE Too Many Choices With constant advances in technology, the most difficult question facing the average real estate agent today is exactly which technologies to take advantage of first, which come last, and which ones might be a waste of time altogether. It would be easy for most of us to assemble a “to-do” list of technology that we would like to begin using this year. Unfortunately, that list would most likely exceed both our budget and our ability to implement. Investing In Technology Rather than thinking about buying all the technology you need at once, you should consider technology as an on-going investment, and budget accordingly. Successful business people invest in education, marketing and technology on a continual basis. Like it or not, technology is an ever growing part of our future, and the future is not something you buy all at once. How much to invest every year is going to depend on where you are on the technology curve right now, where you want to be, and when you plan to make the investment. As a rule of thumb, I’d suggest that you budget as much on computer-related technology as you spend annually on your personal communications, meaning the total you spend on your business phone line, long distance, cell phone, fax and any paging or messaging services combined. What To Do & When To Do It The following lists represent the most logical order of technology implementation for most sales people. However, there is no set order within each group, as this will vary from person to person. For most, completion of the “A List” should occur before investing in the “B List” though there is no reason to believe that you must, or even should, implement all of the follow- WISCONSIN REAL ESTATE MAGAZINE, March 2004 ing. What follows is simply a ranking of what technology investments are most likely to result in increased production, and therefore yield a positive return. The A List: These represent the core technologies that any salesperson that takes the future seriously must fully exploit. Each of these tools are just about guaranteed to be worthwhile investments, as long as they are thoughtfully, and aggressively used. Notebook Computer - For most salespeople, the days of needing a desktop computer are over. Today’s notebooks have more than enough power to run entire businesses, and can also plug into all of the commonly desired accessories such as: monitors, keyboards, printers, scanners, back-up drives, etc. As long as you’re running any Pentium or AMD processor that’s less than two years old, and have an “active” display, you can operate as a truly mobile professional. Portable Printers - If you’re going to go portable with your technology, then a portable printer is an eventual must-have purchase. While showing buyers and sellers property flyers and MLS searches in their living room is a great use of technology to enhance customer service, nothing matches the lasting professional impression made by actually printing color copies to leave behind. When you realize that a good portable printer can be had for under $300 and that these units really are portable, it doesn’t take much calculation to realize their true value. Cannon, HP and Pentax all made excellent portable printers. Technology cont. on pg.. 22 15 Education & Products 2004 GRI Scholarship Recipients Congratulations to the 2004 GRI Scholarship recipients: Darwin Scoon Sue Fietzer - Mau Realty & Builder’s John R. Flor - Six Lakes Realty Dawn Kent - Mau Realty, Inc. Susan May - ERA Starr James Mulleady, Jr. - Coldwell Banker Mulleady, Inc. Robert Poggemann - Williams Realty of Minocqua Deborah Walker - ERA Krause Real Estate Al Petrie Chris Klein - Coldwell Banker The Real Estate Group Western Wisconsin Sue Alt Michelle Schwechler, RE/MAX Team 1 Realty Ozaukee REALTORS Shirley Hanson Audrey Emerson - Schmidt Realty, Inc. Washington Board Kim Behling - Integrity Real Estate Services Beverly Ehley - Century 21 DoerfertLopas Waupaca Shawano Angela Hanson, Coldwell Banker The Real Estate Group James Leland - Coldwell Banker The Real Estate Group Steffanie Myers - Coldwell Banker The Real Estate Group Jill Schneider - Coldwell Banker The Real Estate Group CRS Need Another CRS Course? Attend CRS 210 on Aug. 16-17 in Madison. “Building an Exceptional Customer Referral Business” is a highly interactive course designed to deliver all the essentials for refocusing the student’s business plan to a customer service centered repeat and referral business. The information provided will help identify the expectations of the “new consumer,” the “new behaviors” necessary to meet those expectations and specific systems to make the agent’s business more productive, profitable and enjoyable. The WRA for All Your CE Needs: 2003-2004 Real Estate CE – Live or Distance Learning You can complete your 2003-2004 continuing education requirements by attending one of the WRA’s numerous live courses held throughout the state. Get personal attention from top instructors through Wisconsin’s largest real estate CE provider. See page 18 for a schedule of classes. The WRA also provides distance learning options for completing real estate CE – a video or DVD course or a self-study booklet, each with a corresponding Internet exam. Go to www.wra.org/distancelearningce or call the WRA at 800-279-1972 for more information. 2001-2002 Continuing Education is still available! You can also complete the 2001-2002 continuing education requirements by using either our Video-Internet version or the Self-Study Booklet/Internet version. Call to register today! 16 CE for Commercial Real Estate Brokers The WRA is providing real estate CE courses specifically designed for the commercial real estate licensee. These courses cover issues relating to commercial practice, allowing commercial brokers to stay current with recent developments in the industry. CE 3 & 4C will be offered March 3, 2004 at RANW, Appleton, Wisconsin. Las Vegas Appraisal and Real Estate CE Wisconsin real estate and appraisal CE courses will be offered in Las Vegas on March 15-16, 2004. Attend any of the four 2003-2004 real estate CE classes or attend any of the four 2004-2005 appraisal CE classes. All courses will be held at the Stardust Resort and Casino. Call the WRA or visit www.wra.org for details. WISCONSIN REAL ESTATE MAGAZINE, March 2004 Upcoming Prelicense Courses Sales Prelicense Education & Products Education Registration Form To obtain a real estate license in the state of Wisconsin, you must first complete 72 hours of approved education courses such as our sales and licensing course. Second, you must pass a state-administered exam. The WRA is offering an eight-day accelerated 72-Hour sales program May 3-6 and 10-13, 2004 at the WRA in Madison. Brokers can purchase a $50 discount coupon for only $10, which entitles your new recruit to a $50 discount on the registration fee. Your new recruits can be ready to take the exam as soon as they complete the class. Ask them to register today at 800-279-1972. CONTACT INFORMATION Name ________________________________________________ Firm name ___________________________________________ Address_______________________________________________ City ______________________ State _______ Zip ___________ Phone (W)______________________ (H)____________________ e-mail address_________________________________________ Broker Prelicense SS# or WRA member # _________________________________ If you are interested in obtaining your broker’s license, you must complete 36 hours of education. Areas of study include: fair housing, real estate practice, approved forms, trust accounts, and more. This course will be offered on April 12-15, 2004 and July 26-29, 2004 in Madison. This program is also available through a video self-study version or a self-study Internet program. Completion of this education, passing the exam and applying for the broker license fulfills the 2003-2004 real estate CE requirements. DATES AND FEES - Fill in information for course attending Course _______________________________________________ Location ______________________________________________ Date _________________________________________________ PAYMENT Total $________ It’s a Great Time to Earn Your ABR ® As buyer agency is becoming the way more Wisconsin home buyers want to do business, it is becoming a more lucrative part of the market. Start earning your Accredited Buyer Representative (ABR) designation by attending the two-day ABR course on August 11-12, 2004 in Madison. This course covers agency, service delivery, marketing and promotion, and negotiation and risk management This course fulfills Course 4 of your 2003-2004 continuing education requirement. Attended the Two-Day Course? Now Complete an ABR Elective! On August 13, 2004, the WRA will offer “Innovative Marketing Techniques for the Buyer’s Representative” in Madison. This one-day program also meets the ABR elective course requirement. You will learn to create novel marketing approaches for our personal “brand” that grab homebuyers’ attention. Develop market awareness and vision for your real estate practice that helps you define differentiating marketing opportunities. Topics include: marketing to build relationships, attracting new unreferred prospects, image building and branding, marketing ideas and philosophy, and building a trophy database. WISCONSIN REAL ESTATE MAGAZINE, March 2004 Enclosed is my check made payable to the WRA Charge my VISA/MasterCard (circle one) Card number_________________________ Exp. date ________ Register by Mail: WISCONSIN REALTORS® ASSOCIATION 4801 Forest Run Road, Suite 201 Madison, WI 53704-7337 Register by Phone: (800) 279-1972 or (608) 241-2047 Register by Fax: (608) 241-5168 Online Registration: www.wra.org CANCELLATION POLICY: The WRA reserves the right to cancel a course if not filled. Cancellations must be made in writing prior to the start of the course and will be refunded, minus a $25 administrative fee. Registrations cannot be transferred from person to person. 17 See Page 17 to register Continuing Education Sales & Marketing Management Prelicense Education Calendar 18 Education & Products Nonmembers pay an additional fee for all courses. ~ Appraiser section members receive a discount. * Must be postmarked or received by WRA 14 days prior to start of class ** Fee until day of class – additional fee charged at the door. ## Group discount is available. (1) Fee for all four modules. Date Course Time Location Regular Reg.** March 1-4; 8-11, 2004 72-Hour Sales 8:00 am - 5:00 pm Madison $325 (plus books) April 12-15, 2004 36-Hour Broker 8:00 am - 5:00 pm Madison $255 (plus books) May 3-6; 10-13, 2004 72-Hour Sales 8:00 am - 5:00 pm Madison $325 (plus books) July 26-29, 2004 36-Hour Broker 8:00 am - 5:00 pm Madison $255 (plus books) Date Course Location Early Reg.* Regular Reg.** March 25-26, 2004 Quickstart Module 3 & 4 Madison $240(1) $240(1) April 7 & 8, 2004 Quickstart Module 1 & 2 Madison $240(1) $240(1) May 19-20, 2004 Quickstart Module 3 & 4 Madison $240(1) $240(1) August 11-12, 2004 Buyer Agency (ABR) Madison $260 $270 August 13, 2004 ABR Elective (Innovative Marketing Techniques) Madison $125 $135 August 16-17, 2004 CRS 210 Madison $275 $285 Date Course Time Location March 3, 2004 2003-04 CE 3 & 4C (commercial) 8:30 am - 4:30 pm Appleton March 4, 2004 2003-04 CE 1 & 2 8:30 am - 4:30 pm Beaver Dam March 8, 2004 2003-04 CE 3 (video) March 9, 2004 Registration Member** Non-Member** $27/course $37/course 920-356-1100/ 920-885-33312 Call for details 9:00 am - 12:30 pm Manitowoc 920-553-6227 Call for details 2003-04 CE 4A (video) 9:00 am - 12:30 pm Manitowoc 920-553-6227 Call for details March 9, 2004 2003-04 CE 3 & 4A 8:30 am - 4:30 pm La Crosse 608-785-7744 Call for details March 11, 2004 2003-04 CE 3 & 4A 8:30 am - 4:30 pm Beaver Dam 920-356-1100/ 920-885-33312 Call for details March 11, 2004 2003-04 CE 3 & 4A 9:00 am - 5:00 pm Brookfield 800-279-1972 March 11, 2004 2003-04 CE 1 & 2 (video) 9:00 am - 4:00 pm Janesville 608-755-4854 Call for details Las Vegas 800-279-1972 Call for details Call for details $24/course $32/course March 15-16, 2004 2003-04 CE 1, 2, 3 & 4A 8:30 am - 4:30 pm March 16, 2004 2003-2004 CE 4B (video) 9:00 am - 12:30 pm Manitowoc 920-553-6227 March 24, 2004 2003-2004 CE 3 & 4A 9:00 am - 5:00 pm Madison 800-279-1972 March 25, 2004 2003-2004 CE 1 & 2 8:30 am - 4:30 pm Kenosha 262-942-0592 Call for details March 31, 2004 2003-2004 CE 3 8:30 am - 12:00 pm Sheboygan 920-457-7908 Call for details April 7, 2004 2003-2004 CE 3 & 4A 8:30 am - 4:30 pm Sturgeon Bay 920-743-9651 Call for details April 14, 2004 2003-2004 CE 1 & 2 8:30 am - 4:30 pm Elkhorn 262-723-6851 Call for details April 21, 2004 2003-2004 CE 2 & 1 9:00 am - 5:00 pm Madison 800-279-1972 Aprl 21, 2004 2003-2004 CE 2 (video) 9:00 am - 12:30 pm Janesville 608-755-4854 $24/course $24/course $32/course $32/course Call for details WISCONSIN REAL ESTATE MAGAZINE, March 2004 WRA Member Benefits New Health Insurance Options WRA Members Have Great UPS Benefits WRA members receive the following discounts off of UPS published rates: for REALTORS ® from REGIT • $1.50 off Next Day Air Letters. There is no weight limit on UPS Next Day Q: What is the Health Savings Account (HSA) touted by the president in the State of the Union address? A: An HSA combines a high-deductible health insurance policy with a tax-exempt savings account established exclusively to pay qualified medical expenses. The savings account is controlled by the insured person to pay health care expenses. Q: Who is eligible to establish an HSA? Air Letters. Delivery is guaranteed by the next morning. Letter-size and legal-size envelopes are available. • 10% Off Next Day Air packages (guaranteed delivery by the next morning) • 10% off Second Day Air a.m. letters and packages (guaranteed delivery on the second business day by noon – available to most cities) • 20% off Worldwide Express Letters and packages (international delivery guaranteed in one to two business days to most cities) A: To receive a tax deduction for contributions to the account, an individual must be covered under a qualified high deductible health plan. The person must also be below Medicare eligibility age (65) and not be covered under any other health plan with benefits similar to their qualified plan. Receive reliable, guaranteed on-time delivery for your overnight documents for less with your WRA discounts! Shipping with UPS couldn’t be simpler. When you have documents to go out, just stop by one of the convenient drop boxes or UPS can pick them up. Give UPS a call at 1-800-PICK-UPS or go to www.ups.com for drop box locations, to request a pickup, and for ordering free shipping supplies. For further information contact: Krista Lumpp at UPS by either phone-262-789-7052 or e-mail at [email protected]. Q: Who contributes to the HSA and how much may be contributed? AMI Announces Rate Reduction! A: Any eligible individual may contribute to an HSA. (In the case of an employer-sponsored HSA, the employer and/or employee may contribute.) The maximum annual contribution to an HSA is determined by number of months covered by the qualified plan, but on annual basis it is the amount of the annual deductible to a maximum of $2,600 for an individual and $5,150 for a family. AMI Communications, the company currently providing many WRA members with savings on their long distance service, is proud to announce an across-the-board rate reduction effective this month. Here are the details: Q: What is the tax treatment? A: Contributions made by an eligible individual are deductible by the individual in determining adjusted gross income (i.e., an “above the line” deduction). Interest accrues tax free in qualified HSAs and there are no maximum limits on the account accumulation. Q: What can the HSA funds be used for? A: Account distributions are tax free for qualified medical expenses and prescription drugs, to pay premiums for long-term care insurance, COBRA continuation, and Health insurance while unemployed. Q: Where can I get more information? A: Contact WRA’s insurance partner, REGIT, at 800537-9786. They will provide complete details on HSAs, traditional medical plans, as well as life and dental plans. AMI Long Distance Plan for WRA Members Usage Type Cost/Minute Outbound Intrastate & Intralata $.049 New! Outbound Interstate $.049 New! Inbound Toll-Free Intrastate $.049 New! Inbound Toll-Free Interstate $.049 New! Calling Card $.13 New! • No term or volume commitments involved. • Rates are the same 24 hours a day, 7 days a week and are guaranteed for two years. There may even be periodic rate decreases. • No monthly plan fee. • Detailed easy-to-read billing statements with usage summaries and management reports. • Calls are carried on the state-of-the-art network of a major carrier. • Accounts are managed by customer service personnel committed to providing the highest level of service. Any concerns are always handled promptly. Take advantage of this member benefit now. Give us a call, tell us you’re a WRA member, and begin enjoying the savings and quality of service this plan provides! Call AMI at (800) 254-3202 or visit www.ami.net. WISCONSIN REAL ESTATE MAGAZINE, March 2004 19 Public Policy WRA Legislative Agenda Moving On All Fronts A BY MICHAEL THEO s the legislative session races to a scheduled mid-March adjournment, key REALTOR® issues are receiving lots of attention in the capitol these days. While WRA priorities must compete with hundreds of other issues for consideration, many appear headed for enactment before legislators leave Madison to run for re-election in the fall. Regardless of how many WRA-supported bills become law, the fact that so many bills are receiving serious consideration is a positive development compared to the past several sessions. In previous sessions when the two houses of the Legislature were controlled by different parties, many REALTOR®-backed bills passed the State Assembly only to stall in the State Senate. This session is markedly different as WRA lobbyists are working closely with the Republican-controlled legislature and the Democratic governor. As we enter the final weeks of session, all REALTORS® are encouraged to watch for possible Calls To Action (by mail, phone or e-mail) that will provide instructions on contacting your legislators regarding important pending issues. In preparation for this, here’s a quick scorecard on the status of our legislative agenda. As always, please feel free to contact us with any questions or comments you might have. And thank you, in advance, for your willingness to help! 20 WISCONSIN REAL ESTATE MAGAZINE, March 2004 Public Policy Legislation Passed Legislation Moving Regulatory Reforms - Known as the “Jobs Creation Act,” this bipartisan legislation which has been signed into law by Gov. Doyle provides for streamlined air and water permitting without weakening environmental regulations. (AB 655/AB 313) Constitutional Spending Limits - This legislation will impose spending limits on state and local governments to better reflect the taxpayers’ ability to pay. This legislation must pass two legislative sessions, then be approved by voters in a statewide referendum in 2006. While there appears to be widespread legislative and public support for this concept, the exact language for this legislation is far from settled. The WRA is seeking to insure that spending limits do not inhibit community growth or economic and job development. (AJR 55) Tax Incremental Financing Districts (TIFs) - Legislation to expand the use of TIFs, including restoring residential housing TIFs has been signed into law. TIFs are perhaps the best economic development tools available to local governments. (SB 305) (see feature story on pg. 23) Municipal Fees - This legislation codifies existing case law by limiting fees charged by local units of government to an amount equal to covering the cost of providing that service to the public and no more. The bill has passed and is on the governor’s desk. (AB 728) Trans 233 - The Legislature has suspended key elements of this Dept. of Transportation rule governing development and use of private property along highway right of ways. The WRA has been seeking changes to this rule for years. It is hopeful that this action will lead to revised rules that respect private property rights while insuring highway safety. Health Insurance Cooperatives - This legislation creates five regional health insurance cooperatives that allow individuals, potentially including independent contractors like REALTORS®, to purchase affordable health insurance. The law is now in effect and meetings to define participants are underway. License Reciprocity - Legislation authorizing the state to create reciprocal real estate licensing agreements with other states to allow Wisconsin licensees to practice in other states and vise versa. This legislation has passed both houses of the Legislature but will likely be vetoed by the governor based on a procedural issue with Assembly Democrats. A separate Senate bill with no such procedural disagreement will likely pass and signed by the governor. (AB 733/SB 369) Electronic Commerce - Legislation adopting the Uniform Electronic Transaction Act (UETA) has passed the Assembly and is now pending in the Senate. This legislation will facilitate expanded electronic real estate transactions in Wisconsin. This legislation will receive bipartisan support and is supported by the governor. (AB 755/SB 404) Smart Growth - This legislation refines the existing law to clarify the consistency requirements between local comprehensive land-use plans and state guidelines. The changes should help many smaller communities comply with state land-use planning goals that promote, among other things, housing and economic development needs. The bill has passed the Assembly and is awaiting final Senate action.(AB 608) Condominium Law - The first major rewrite of laws governing the sales and operations of condominium laws in decades, this legislation was created by a special committee last session but was introduced too late for consideration. The bill will receive a public hearing in late February but it is uncertain that enough time remains in the session to pass both Houses. (AB 254) Legislation Potentially Moving Campaign Finance Reform - Legislation to regulate issue ads and provide additional public financing to candidates for state office, consistent with new federal laws and the new U.S. Supreme Court ruling. The WRA supports reforms but only those that protect the constitutional rights of REALTORS® to remain politically active and involved. (SB 12) Tax Exemption for Nonprofit Housing - This legislation will restore tax exemptions for low-income housing provided by nonprofit organizations. This exemption was jeopardized in a recent state Supreme Court decision. While the WRA supports non-profits tax exemptions for such housing, the Court decision has raised legitimate issues regarding competition between nonprofit and for-profit housing for low-income families which should be addressed in future legislation. ...Agenda cont. on pg. 22 WISCONSIN REAL ESTATE MAGAZINE, March 2004 21 ...Technology cont. from pg. 15 Contact Management - This is the must have software for sales productivity. These are the programs that enable you to keep track of every detail regarding your prospects, sphere of influence, geographical farm and past clients. Managing thousands of contacts is amazingly simple. The ability to mass mail personalized prospecting and follow up letters is just the beginning of their power. ACT!, Agent Office and Top Producer are good choices for effective contact managers. Smart Phones - Now that most major wireless carriers support at least one Palm Operating System based Smart Phone it’s time to take this technology seriously. The benefits that come from combining a cellular phone with a fully functional Palm OS are endless. Having access to every contact, appointment and to-do list on the very same device that you’ll use to contact and manage this information is a perfect example of what I call “efficiency through convergence.” Kyocera, Palm, Handspring and Samsung all make excellent models with a wide range of features. Professional E-mail - Any technology that enables salespeople to contact more prospects, while providing better follow up communication, is a valuable one indeed. The telephone, pager, fax machine, voice mail and cellular phone have all been examples of how technology can improve productivity. With professional e-mail software such as Eudora Pro or Outlook, e-mail has the potential to rival the function of all of these devices combined. As e-mail becomes more important to serving customers and clients, no business professional should rely on anything less than the best available e-mail software. A Personal Web Site - In short, web pages provide an amazing return on investment. For a fraction of the cost of a quality classified ad, you can have an effective web page on the Internet. As long as you include your page’s “address” in absolutely all of your marketing materials, (so that the readers of all your marketing material know how to find your web page) you really cannot fail to receive value on this kind of investment. You should not expect to make a living solely off of Internet leads, though some do. For the money, you can easily generate far more business from this investment than from any other form of advertising. However, it’s no longer sufficient to simply have a “page” on someone else’s site. You now need your own complete Web site. You need one that’s professionally developed. And, you need to own your domain name. Without these key ingredients you will not truly benefit from everything that Internet marketing has to offer. Digital Cameras - Few technologies are as satisfying to use as the digital camera. Not only does it save both time and money, it also represents one of the few technologies that can directly impress your customers and clients. When you tour a prospective listing taking digital photos, then import them into a marketing flyer right before the seller’s eyes, you’re building credibility in the process. And, when you e-mail a photo of your new listing to an out-of-town buyer the same day the home comes to market, they’re going to be impressed with you and the service you have to offer. Any digital camera will get the job done, but you’ll find the best results with those that offer wide-angle lenses. In addition to instructing GRI programs for a number of state associations, Stephen Canale has spoken at hundreds of conventions and seminars in 45 states over the last several years; covering a variety of subjects relating to real estate, sales and technology. For information on seminars, software or Canale’s Tips & Tricks newsletter, visit: www.canale.com. Part 2 will be continued in the April edition of Wisconsin Real Estate Magazine. ...Agenda cont. from pg. 21 Mold Inspectors - Legislation to create a voluntary state certification for mold inspectors. The regulations will be difficult to construct given the lack of scientific specificity on identifying dangerous mold on a case-by-case basis. However, the need to provide consumer protection against unqualified inspectors requires state action. (AB 660) School Financing - The persistent macro-issue on school financing is heating up again as the governor’s task force on K-12 funding is finalizing proposals for Gov. Doyle’s consideration. The WRA is actively participating in these 22 discussions with the goal of lowering property taxes while providing the funding necessary to create world-class neighborhood schools in Wisconsin. While this list of issues is immediate, it is not exhaustive. There are over 100 separate pieces of legislation currently being monitored and lobbied by the WRA. For more information on these and other issues, see the WRA Web site (Public Affairs; Bills Tracker), and/or contact Michael Theo [email protected], Joe Murray [email protected] or Tom Larson [email protected]. WISCONSIN REAL ESTATE MAGAZINE, March 2004 Public Policy New TIF Law to Provide Needed Boost to Economic Development in Wisconsin BY TOM LARSON O n Feb. 20, 2004, Governor Doyle signed into law Senate Bill 305, tax incremental financing (“TIF”) legislation that is designed to provide local communities with the tools necessary to attract new and retain existing employers, jobs, and housing opportunities to Wisconsin. Touted as the most significant changes to the TIF law since it was first enacted in the 1970’s, this legislation was authored by Senator Cathy Stepp (R-21 Sturtevant) and Representative Mickey Lehman (R-99 Hartford), and received strong bi-partisan support in passing both houses of the Legislature. Most of the changes will go into effect on June 1, 2004, while the effective date on the others will be delayed until Oct. 1, 2004. Background TIF is an extremely important economic development tool for local communities. In fact, it is one of the only tools Wisconsin communities have to promote job growth and attract new businesses to their communities. Without TIF, local communities would have an even more difficult time competing with communities in other states and countries for economic development. Unfortunately, the current TIF law is inadequate to meet the challenges facing the state and local economies. With the loss of over 90,000 manufacturing jobs in Wisconsin over the last several years and more companies considering moves to China or Mexico, local communities need more tools to continue to attract economic development opportunities. For additional information on the new changes to the TIF law, contact Tom Larson ([email protected]) at (608) 240-8254. WISCONSIN REAL ESTATE MAGAZINE, March 2004 news.wra.org T o enable Wisconsin communities to compete more effectively for economic development, SB 305 makes a number of key changes to the TIF law including: • Increases municipal TIF capacity to 12 percent of equalized value. Many communities are currently unable to approve new tax increment districts (“TIDs”) because they have reached the five percent/seven percent maximum capacity allowed under the old law. This provision applies to new TIF districts created after Oct. 1, 2004. • Allows newly-platted residential development to be TIF eligible. Recognizing the cost and proximity of housing to the workplace is often an important consideration for companies when deciding where to locate, a new type of TID is created – “mixed use” – which authorizes up to 35 percent of the project to be used for newly platted residential development. To qualify, the residential development must meet certain density (3 units per acre) and design requirements. • Extends the life of redevelopment TIDs to 27 years and the life of industrial and new mixed-use TIDs to 20 years with an option for a three-year extension. This provision applies to TIDs created after Oct. 1, 2004. • Repeals the seven year expenditure rule and allows expenditures up to five years before the termination date of the TID. • Restricts annexations for the purpose of creating TIDs. Land annexed after Jan. 1, 2004 cannot be including in a TID unless one of the following occur: (1) at least three years have elapsed since the annexation; (2) the city/village has entered into a boundary agreement with the town; or (3) the city/village agree to pay the town the equivalent of the town’s portion of the property taxes on the annexed parcels for five years. This provision applies to TIF districts created after Oct. 1, 2004. 23 Public Policy RPAC AWARDS As we begin the process of raising money for the REALTORS® Political Action Committee (RPAC) and Direct Giver Program in this important election year, we must first take a moment to look at the incredible results from the 2003 fundraising campaign and pat ourselves on the back for a job well done. Through the hard work of local board RPAC chairs, local board staff, and WRA member contributors, we set a new record in 2003, smashing the old record set in 2002. Combined RPAC and Direct Giver fundraising totaled $433,212 in 2003: $281,479 in RPAC and $151,733 in Direct Giver. Total fundraising in 2002 reached $375,000. Wow! Now it’s time to announce the winners of the RPAC fundraising awards for 2003. With record setting fundraising the last three years, it almost seems unfair to single boards out for awards when our collective effort has proved so successful. But we do have awards for most dollars raised, highest per capita contributions and highest percent participation in all board sizes. Most Dollars Raised: X-Large Board Large Board Medium Board Small Board Greater Milwaukee Association of REALTORS® Central Wisconsin Board of REALTORS® Ozaukee REALTORS® Association Dodge County Board of REALTORS® Highest Per Capita Contribution: X-Large Board REALTORS® Association of South Central Wisconsin Large Board LaCrosse Area REALTORS® Association Medium Board Jefferson County Board of REALTORS® Small Board Dodge County Board of REALTORS® Highest Percent Participation: X-Large Board Greater Milwaukee Association of REALTORS® Large Board Kenosha REALTORS® Association Medium Board Ozaukee REALTORS® Association Small Board Adams, Marquette, Waushara Board of REALTORS® Congratulations to the 2003 winners. In a fantastic year all the way around, you were truly special. And thank you to all local board RPAC chairs, committee members, and staff for making 2003 a huge success . Let’s do it again in 2004. 24 WISCONSIN REAL ESTATE MAGAZINE, March 2004 REFERRALS Northern Wisconsin Wisconsin Referrals Referrals Northern Not all referrals...... result in a referral fee! Door County Referrals? Call “Corky” Hellyer Serving Vilas and Oneida Counties Have confidence knowing that your buyer’s or seller’s referral to Appleton and the Fox Cities area will have a great result. Karl is the #1 Coldwell Banker agent in Wisconsin. CRB, CRS (866) 898-6444 Serving: Appleton, Neenah, Menasha, Greenville, Darboy, Kimberly, Kaukauna, Hortonville and (920) 993-7311 | karlvolkman.com Pete Rondello and Becky Sanderson P.O. Box 17– 1009 Bayshore Drive, Sister Bay, WI 54234 [email protected] 1-800-472-3410 www.WeSellTheNorthwoods.com Coldwell Banker Mulleady, Inc. | Minocqua, Wisconsin YOUR NORTHWESTERN Wisconsin Connection! Unlock your POTENTIAL John Flor 1-800-657-4507 Butch Flor www.SixLakesRealty.com www.JohnFlor.com [email protected] CLASSIFIEDS Visit my web site: www.corkyhellyer.com WITH A REALTOR® REFERRAL AD The Wisconsin Real Estate Magazine offers you a place to post a REALTOR® Referral advertisement for your business. Don’t miss out! It’s your opportunity to let all of the members know who you are while generating referral business from other areas of the state. Place your Referral ad today by contacting Rob Uhrina at 608-241-2047 or 800-279-1972. als ® Referr R O T L A E R R Y T E R LEY VANDER S s Karen Adam www.adams.com ars Over 18 Ye dison Ser ving Ma ® R , CR REALTO -555-5745 Office: 715 -555-5744 Fax: 715 of Service HERN NORTO NSIN C WIS e and Servic Expertise Integrity, Ray Pooforle26 Years inelander Serving Rh 724 478-555-8 le.com oo ray@rayp and Middleton 34 800-555-12 ll with Buy & se DENCE! CONFI rral Fee 30% Refe Appleton ers Jon Sand s nne e.cHomarri Dia nne@dan dia 5 (608)555-615 nal e professio ed will receiv inform Your clients you will be kept s. ser vice adnt the entire proces hou oug thr CRS m realtor.co jsanders@ with Savings ice Full Serv ounty Dane C 194 800-555-3 s A ss o ci a te H a rr is &L ESTATE REA erty? p on Pro Vacati Grames Amanda -2698 904-555 ealtor.com agrames@r r handle you Prepared to ers’ needs. sell buyers and d Pai ls 25% Referra Radisson Paper Valley Hotel Appleton Mark the Date! October 10-12, 2004 WISCONSIN REALTORS® ASSOCIATION Annual Convention All That Jazz! �������������� ���������� ������������������������������������������ ��� ������ ���� �������� ���������� ����� ���� ���� ������� ����� �������������������������������������������������������� ����������������������������������������������������������� ������������������������������������������������������������ ���������� ��� ���� ��������� �� �������� ��� ���� ��������� ��� ������ �� ���� ������������ ���� ����� ������ ��� ���� ������� ���� ����� ����� ������� ���� ���� ���������� ������������� ��� ���� ����� �� ��������������������������������������������������������������� �������������������������������������� ������������������������������������������������������������ ����������������������������������������������������������� ������������������������������������������������������������� ��������������������� Low Down Payment 20% DOWN 10% DOWN 5% DOWN 3% DOWN Check out WHEDA ��������������������������������������� ������������������������������������������������ ������������������������������������������������ ������������������������������������������� Call 1-800-HOUSE (1-800-334-6873) or go to www.wheda.com