legal education - Wisconsin REALTORS® Association
Transcription
legal education - Wisconsin REALTORS® Association
Legal Are you required to share buyer feedback on properties? Education Look who’s coming to the WRA Convention. September 2007 $5.00 Building Customer Loyalty in a Competitive Market No One Sells More. Become a RE/MAX Broker Owner. If you’re a real estate professional in search of a real opportunity, RE/MAX invites you to join our team of leaders. As a RE/MAX broker, you’ll partner with the world’s most successful real estate company. PROFESSIONAL REFERRALS RE/MAX referrals flow from one full-time professional to another, leading to increased client satisfaction and additional revenue. At RE/MAX, we help our brokers meet the practical challenges they face every day by developing programs to recruit and retain associates, and implementing initiatives to keep you ahead of the competition. COMMUNITY INVOLVEMENT RE/MAX gives back to the community through the Children’s Miracle Network, the Susan G. Komen Race for the Cure and other charitable efforts. GLOBAL PRESENCE The RE/MAX network has grown every single month since our inception in 1973 and we continue to pick up speed every year. So, if you’re looking for the best way to advance your career, follow the leader. Join RE/MAX. SUPERIOR TECHNOLOGY From our national and regional websites, to the RE/MAX Satellite Network, our technological tools help generate more listings, referrals and results. New Franchises Now Available. Learn more by calling 800.878.8138. EDUCATIONAL OPPORTUNITY A broad variety of advanced training programs help make RE/MAX professionals the highest producing in the industry. NATIONAL/REGIONAL ADVERTISING The RE/MAX hot air balloon is the most widely recognized symbol in real estate. Our images and messages deliver billions of impressions across the United States every year. Each office independently owned and operated. Outstanding Agents. Outstanding Results. remax.com Cover Story WISCONSIN September 2007 VOL. 23, NO. 12 How can you build customer loyalty in a competitive market? It’s a challenge, but there are ways to do it as our feature writer, Marcus Wally, spells out here with a number of methods you can use! ® A PUBLICATION OF THE WISCONSIN REALTORS ASSOCIATION MAGAZINE™ Features 13 To Share or Not to Share What are your obligations to share buyer feedback with the owner after showing a property? Find out here what obligations you may or may not have. 22 The Wisconsin Way Project The WRA is joining the effort to reduce the property taxes Wisconsinites pay while maintaining our high quality of life. Here are the details. 24 Four Cases Important to REALTORS ® Building Customer The state Supreme Court will soon hear four cases that affect property owners and our industry. Find out what these cases could mean to you. Loyalty in a Competitive Market Articles 4 10 14 6 news.wra.org Wisconsin Home Sales Fall in Second Quarter 19 Despite the drop, the good news is that they still outpace the nation and the Midwest! For more specifics, turn here. Best of the Legal Hotline 21 Procuring cause – what is it, and more importantly, who can claim it? While the facts need to be weighed on a case-bycase basis, here are some pointers. Sales Concessions 28 Assessors and appraisers need to be alerted when the sales price involves concessions or other creative financing to minimize the overvaluation of properties. Look Who’s Coming to Convention! We have some exciting programs planned for you at convention, including two outstanding speakers presenting at the Opening and General Sessions. A Guide to PC Security How can you protect your PC from adware, spyware, viruses and other maladies of modern computing? There are lots of options available as you’ll see here. Kagen vs. Gard It looks like former Wisconsin Assembly Speaker John Gard may try to regain his Congressional seat in the 8th District in the 2008 elections. 1 Inside the wra with Bill Malkasian W hat a difference a year or two makes in describing the status of the real estate industry. This month’s issue focuses on customer retention. A year ago, this topic would have called for a different set of stories than we feature this month in the current market. It’s a different market, so whether you’re new to the field or you’ve been around for a while, these articles are worth a quick read. Bill Malkasian WRA President 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 percent from the same quarter a year ago, however, the most important point is that Wisconsin is still outpacing the rest of the Midwest and the nation as a whole. Considering the flurry of news about the financial markets you’ve been reading and hearing about we’re quite pleased, as we told the press, to have a stable real estate market here in Wisconsin. As we turn the corner into the last quarter of 2007, you will want to take a look at Mike Theo’s article on page 22 on the Wisconsin Way Project. The WRA is working with other organizations on property tax issues, and there are some progressive and innovative suggestions on educating the public about the challenges elected officials face with these issues. I’m proud that we’re at the forefront of this effort. Speaking of politics, Joe Murray wrote a piece about the likely rematch between incumbent Steve Kagen and former Speaker John Gard in the 8th Congressional District. If you thought the 2006 race was tough, wait until the 2008 campaign gets under way. If you live and vote in the 8th Congressional District, you should take a moment and read this story. And on a final, personal note, there are several items I’d like to call your attention to: • The WRA’s Annual Convention is right around the corner, and there’s still time to register. It’s a great opportunity for us to welcome Mike Spranger, 2007-2008 WRA Chairman, and the rest of the 2008 leadership team and to say thank-you to Roger Rushman and the 2007 leadership group. • Speaking of Roger, I’d like to express my sincere thanks to him on behalf of the WRA staff and membership. Roger has personally led us through many challenges, and we’re all indebted to him for a great year. • AND LASTLY … congratulations to one of our WRA staff members on 30 years of service. Kitty Kuhl, senior vice president of business services, celebrates 30 years with the WRA this month. I wish to personally thank her for creating the foremost and premier real estate education program in the country. You can send your note of thanks to Kitty at [email protected]. See you at convention! Bill Malkasian And note Tom Larson’s article about recent Supreme Court cases that affect real estate, including economic development corporations being subject to open meetings/records laws, applying open records law to property assessment records, the application of the economic loss doctrine to residential real estate, and a case about the ripeness of declaratory judgment actions. These issues are so important to real estate – which is part of the reason the WRA Board of Directors voted affirmatively to continue to include $15 of member dues in support of the Legal Action Fund. The Legal Action Fund Program is one of the most important programs the association has today for members. You can find more information on the Legal Action Fund by visiting www.wra.org/legal/legal_action/legal_action_fund.asp. 2 Wisconsin Real Estate Magazine, September 2007 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. Roger Rushman, Chairman [email protected] Mike Spranger, ABR, CRS, GRI, Chairman-Elect [email protected] n o t e s f r o m t h e w r a Mike Mulleady, GRI, Treasurer [email protected] William E. Malkasian, cae, President [email protected] Instructor of the Year CRS of the Year Tom Lundstedt Eunice Beekman Tom Lundstedt Seminars, Ephraim VandeZande Real Estate, Inc., Waupon Editorial Staff: William E. Malkasian Publisher Robert Uhrina Managing Editor Terry O’Connor Publication Editor Nicole Breithaupt Graphic Designer Cover Design by: Nicole Breithaupt 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. 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. 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. Distinguished Service Awards 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 Roger Rushman Joyce Bytof Sue Decker legal hotline fax: (608) 242-2279 First Weber Group, Realtors, Delafield Coldwell Banker The Real Estate Group, Inc., Appleton Century 21 Gold Key Realty, Inc., Marshfield president fax: (608) 242-2267 e-mail: [email protected] Web site: www.wra.org 3 Wisconsin Real Estate Magazine, September 2007 3 Chairman’s Corner W Roger Rushman Chairman ow, what a year! My term as chairman is coming to a close, and I am amazed to look back and review how many great challenges and opportunities there have been this year. When I became chairman, my focus was on three significant tools that the WRA provides for its members: • Cooperation: REALTORS® get it! Nobody works together at making an industry the envy of the business world better than REALTORS®. Due to the hard work of many, the statewide datasharing initiative is just another example of how well REALTORS® work together. • Education: Kitty and her staff continue to be the best at what they do! Wisconsin is the envy of the country with our wide program offerings including QuickStart, continuing education, distance learning, forms, GRI, CRS and the annual convention. I hope you are taking advantage of these great educational opportunities to continually improve yourself and your business. I have truly enjoyed my time as your chairman. I have had the incredible opportunity to forge new friendships while renewing and strengthening old ones. I continue to be very proud of our organization and look forward to its new leadership carrying our momentum into the coming years. Toward that end, please join me in welcoming Mike Spranger as your incoming chairman, and offer him the same support and unity that you have so generously given me over the past year. • Legislation: Mike Theo, Tom Larson and Joe Murray are hard at work protecting and promoting REALTOR® issues. Piers, waterfront rights, condominiums and the transfer tax are just a few of the key issues they are working on today. And now with our new Political Strategy Group, we’ll be able to provide guidance to the WRA Board of Directors and our WRA staff to continually protect our issues. Respectfully, Roger C. Rushman Wisconsin Home Sales Fall in Second Quarter But Outpace the Nation and the Midwest By Dr. David Clark M adison – Wisconsin home sales moderated in the second quarter of 2007 according to recent figures released by the Wisconsin REALTORS® Association. Existing home sales in the state fell 7.2 percent in the second quarter of 2007 relative to that same quarter last year, yet this outpaced the nation, which fell 10.8 percent over the period, as well as the Midwest, which dropped 8.4 percent. In addition, unlike some regions, the median price of a home in Wisconsin remained slightly above the level of last year, increasing 1.2 percent to $168,000. “There is no doubt that Wisconsin’s housing market has softened this year, but we have maintained prices and we are weathering the changes in the lending markets better than many states,” said WRA Chairman Roger Rushman. He added that many of the market fundamentals give reason for optimism for the balance of the year. “There was slight growth in jobs over the period and even though 30-year fixed rate mortgage rates have inched up in the last three months, they remain in the 6.7 percent range which keeps housing affordable for new buyers,” he said. Second Quarter Regional Sales Data Comparing the second quarter of 2007 with the same quarter last year, existing home sales fell in every region in the state, although the regional decline varied somewhat. Specifically, home sales were down just 1.9 percent in the Northeast region, while they fell between 5.5 percent and 5.8 percent in the Western and South Second Quarter ... continued on page 12 QUARTERLY ACTIVITY – Q2 2007 Median Price Existing Home Sales Region Q2-2007 Q2-2006 % Change Q2-2007 Q2-2006 % Change Southeast $188,900 $184,400 2.4% 7325 8397 -12.8% South Central $183,600 $181,700 1.0% 4152 4406 -5.8% West $153,800 $153,300 0.3% 1610 1703 -5.5% Northeast $135,400 $135,400 0.0% 3280 3343 -1.9% Central $126,200 $121,400 4.0% 1002 1090 -8.1% North $128,900 $124,400 3.6% 1436 1611 -10.9% 4 Wisconsin Real Estate Magazine, September 2007 September 2007 R E A L T O R® NEWSWIRE Top News Stories in and Around the Industry Milwaukee Ranks Among Top Retirement Places REALTOR® Survey Reveals Increased Demand for MLS Consolidation Milwaukee Business Journal (WI) PRNewswire Milwaukee has been honored by AARP The Magazine as one of the top five places in the country for retirees to live. The publication judged a number of markets on such criteria as quality of local health care, presence of mass-transit systems, and the availability of mixed-use housing to deliver its rankings. The top five also included Atlanta; Boston’s Beacon Hill neighborhood; Chandler, Ariz.; and Portland, Ore. As far as Milwaukee was concerned, AARP The Magazine specifically cited the market’s recent condominium boom as reason for seniors to consider retiring there. The article added: “An example of urban renewal at its best, Milwaukee features picturesque river walks and affordable waterfront living.” Of the agents and Multiple Listing Service (MLS) executives polled by the National Association of REALTORS® for its 2007 REALTOR® MLS Technology Survey, the number in favor of a statewide MLS jumped to almost 33 percent from 19 percent in 2006. Twenty-seven percent, meanwhile, preferred having a metropolitan statistical area MLS, while 21 percent said a larger market region within their state would be ideal. The number of respondents reporting consolidation of their MLS with at least one other doubled to 30 percent from 15 percent. In terms of technology and security, close to 67 percent of MLS executives report the use of a RETS (or real estate transaction standard) interface to facilitate real-time data sharing regardless of the software they use. Finally, 27 percent employ twofactor authentication to ensure that only authorized parties are granted access to the database. Which States Have the Highest Closing Costs? Realty Times, Evans, Blanche New York has the most expensive closing costs in the country at $3,830, according to an annual report from Bankrate.com, but a borrower taking out a $200,000 mortgage in Indiana would pay an average of $2,339--or $1,491 less--for origination, title and closing costs. Topping Bankrate.com’s report for the third straight year, New York was followed by Texas. Florida, Pennsylvania, and Ohio followed No. 3-ranked Indiana. The national average in closing costs is $2,736, with 24 states and the District of Columbia having higher closing costs and another two dozen states having closing costs that are lower than the national average. Kickbacks and undisclosed referral fees have been problems for the closing industry, and some lenders are now introducing flat-fee pricing or products carrying no fees and no mortgage insurance in an effort to lower closing costs. HGTV Series Seeks Central Wisconsin Homes to Feature Wisconsin Daily Rapids Tribune HGTV’s “If Walls Could Talk” series is currently in production on its ninth season and is looking for Wisconsin homes to profile. Specifically, the show seeks houses with either unusual stories or interesting past histories. Often, the various episodes center around new homeowners who make surprising historical discoveries about their residences during restoration and repair efforts. Homeowners interested in having their properties featured on an upcoming show should call HGTV’s Jenna Friederich at 303-712-3146. More Communities Pass Offender Laws Milwaukee Journal Sentinel, Sink, Lisa More and more Wisconsin communities are passing laws that banish sex offenders from living in all but small pockets of their general area. The heat is now on elected officials not to be the last to pass such laws and thus become a “dumping ground” for deviants. Cudahy City Attorney Paul Eberhardy observes, “It’s the ‘everybody else is doing it so now we need to do it’ rationale. I don’t think that makes good law.” Among the numerous Wisconsin markets that have passed residency restrictions since last November are Algoma, Bayside, Glendale and Menomonee Falls. Meanwhile, no less than 30 states have approved varying restrictions on where sex offenders may reside or loiter, including all of Wisconsin’s neighboring states except Minnesota. Such laws have raised questions over whether they will so stigmatize sex offenders and force them away from support systems that they may commit new crimes. The laws also have some who live in those few “safe zones” for offenders concerned that their property values may suffer as a result. Wisconsin Real Estate Magazine, September 2007 Newspapers Feel Real Estate Woes Forbes, Sutel, Seth The nation’s leading newspaper publishers – Tribune Co., Gannett Co. and McClatchy Co. – watched revenues decline in the second quarter, which some observers believe can be attributed to a drop in real estate advertisements in the midst of a housing slowdown. However, others warn that newspapers are not going to get much of that revenue back when the market rebounds because realty companies are shifting more of their marketing budgets to online advertising. If real estate classifieds follow helpwanted ads to the Internet on a permanent basis, experts say newspapers could be in trouble, given that over 35 percent of their revenues are tied to classifieds. More and more property agents are turning to Realtor.org, Yahoo and other online home listings sites as well as blogs and other Web-based mediums, as home buyers and sellers log onto the Internet in increasing numbers. “With younger agents, there’s a trend of going online. There’s a realization that’s where they need to be,” says RE/ MAX Denver regional advertising director Abby Lee. According to Charlie Diederich, marketing and advertising director of the Newspaper Association of America, newspapers need to beef up their Web sites to offer more advanced tools if they hope to attract REALTORS® and consumers. Many Homeowners Near Lambeau Field Willing to Sell Property Green Bay Press-Gazette (WI), Zarling, Patti Some homeowners in the village of Ashwaubenon who live close to Lambeau Field, the beloved home stadium of the Green Bay Packers, are looking to sell their properties for the right price. Ashwaubenon officials recently held an informal gathering of homeowners to discuss the future of the local property market. Since numerous houses have either recently been sold or put on the selling block in the neighborhood, local leaders felt the time was right to craft a comprehensive plan to address future development. Several attendees expressed special interest in selling their homes to the Packers organization. The team recently purchased one home close to the stadium, which it plans to convert into additional parking. Jason Wied, the Packers’ vice president of administration, confirmed that he has recently fielded numerous calls from Ashwaubenon residents looking to gauge the team’s interest in buying their properties for similar purposes. Wied said the Packers would like to maintain the surrounding community feel as much as possible, stating, “The issue for us is we love the neighborhood just the way it is. We think we’ve got one of the best stadiums in the country.” Nevertheless, Wied said the team is interested in additional opportunities to expand its parking. 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 Building Customer Loyalty in a Competitive Market Building Customer Loyalty in a Competitive Market Building Customer Loyalty in a Competitive Market By Marcus a. Wally W owing customers and earning their loyalty is a challenge in our marketplace today. But finding the right formula can lead to “raving fans” and overwhelming success both financially and emotionally. Today REALTORS® are challenged with developing customer-endearing practices that create a powerful real estate experience and lead to a devoted customer base. We’ve all heard the slogan “under promise and over deliver.” As a salesperson, it comes naturally that I want to please everyone and promise the moon and stars. What happens when I am not able to deliver the goods? Well, I lose control of my business ethics and my customers/clients start to doubt me. Year after year, when the National Association of REALTORS® (NAR) conducts surveys, the public consistently states that working with an ethical professional is one of their top priorities. This is even more important than working with a top producer. One of my best tips is to always educate my clients/customers as to the value of my following the REALTOR® Code of Ethics. Today, NAR spends millions of dollars educating the public on the difference between working with a licensee and working with a REALTOR®. It is our job to affirm those differences and show the added value that we bring to the table. 6 Wisconsin Real Estate Magazine, September 2007 news.wra.org Being in the real estate industry has taught me that once I can “teach” my loyal customers/ clients how to refer me, my job becomes more manageable. In my 17-year career, I have noticed that the public does not understand how our business works and furthermore is not sure how we get paid. I make it my practice to explain the MLS (Multiple Listing Service) and how it functions. The public may be familiar with those three letters, but I can promise you they don’t understand the system or how we are paid. For many, they believe I am on a salary or that I will receive the entire sales commission. By teaching them I earn their loyalty and my long-term customer retention increases. I always ask for their commitment and thank them for their loyalty. I repeatedly use the word “loyalty” in my conversations to remind them of their promise to stick with me. This is just the beginning of my creating the distinctive personality that gives a brand its identity. I am the brand I want them to always choose. And brand identity is key to putting all the good things I do into a single impression that my customers can hold onto and identify with. The ability to increase customer retention is critical in our business. One can take either the shotgun approach, and try to work with everyone in the world one time, or one can take the approach of developing a close-knit group of loyal fans that can help you build your business. For me, the long-term approach is the right choice. Being in the real estate industry has taught me that once I can “teach” my loyal customers/clients how to refer me, my job becomes more manageable. But my “sphere of influence” must be taught how to refer me or the system will not work. They too must understand their value and how I need them to push me to the top. Together we create that success and without them, I am limited. A standard practice of mine has always been to ask the magic question right up front and that is, “Are you currently working with a REALTOR®?” The recently updated version of our Code of Ethics requires this question of us. If they do have a prior relationship, I know about it right up front – I do not violate my ethical duties and I am in a position to steer them back to the agent who has invested time with them. Being proactive in this area is critical to consumer retention. Cooperating agents will soon learn of your conscientious behavior, and you will become the “sought-out agent” that everyone wants to do business with. I try to follow the Code with every breath I take. It is my backbone and has contributed to my overall success. Another tip I perform consistently is to acknowledge my customers/ clients birthdays and anniversaries. I make it a point to call and sing on their special day. I call the home purposely, and leave the greeting on their answering machine. The follow-up call from them thanking me for making their day makes the effort all worthwhile. And believe me, most people think it is so corny they would never do it, so when I do, I stand out and they remember me! What am I Wisconsin Real Estate Magazine, September 2007 7 I try to never mention real really doing? I’m acknowledging that I care and making sure they feel important and special … which they are. If I don’t have them, I don’t have my groceries. estate. There is so much Forming habits is the secret to long term customer retention. For instance, each time I receive a referral I quickly mail a “THANK YOU FOR THE REFERRAL” card that lets the referring person know how much I appreciate his or her trust in me. I am reaffirming that he or she is appreciated and is contributing to my success. Each and every one of them is a vital part of my team. “asking for the business.” Along that same line, the tremendous power of personal notes comes to mind. One of my daily “to do’s” is to write one or two personal notes. Since our time is our most valuable asset, taking the time to sit down and write a personal note holds great value. These notes don’t have to be long and detailed, they can be as simple as: is a time and place for Hi Barbara, It was so good to bump into you yesterday at the grocery store. You look well and happy! Hope your summer has been filled with lots of fun activities for you and the kids. Trust the new job is working out and you are getting settled. Give me a ring and let’s grab a bite of lunch one day soon. I’d like to catch up with you and Steve. – Marcus Wally more to my career than Although I am a great proponent of asking for the business, there everything. Appropriate judgment is the key here. I’m building the relationship and that relationship is more than business! I try to never mention real estate. There is so much more to my career than “asking for the business.” Although I am a great proponent of asking for the business, there is a time and place for everything. Appropriate judgment is the key here. I’m building the relationship and that relationship is more than business! 8 Wisconsin Real Estate Magazine, September 2007 news.wra.org 5 tips to ensure customer loyalty 1. Include your clients/customers – Make sure they care. This can be developed when they can be a part and help you out. This allows them to feel like they are contributing to your overall success. Make sure they do not feel obligated and always remember to express your gratitude. 2. Give me the straight scoop – Ask questions of your clients/customers like, “If this were your real estate business, how would you …”? This approach is much better than a survey. Make sure you create an environment that makes them feel comfortable with telling you their real feelings … pro or con. 3. Share your knowledge/education – As a teacher, I tell all of my customers/clients up front that my approach is to share my skills with them so that they can make intelligent decisions. Giving people information about me and real property responds to their thirst for learning. The real estate company able to implant wisdom as part of the customer’s experience will win client devotion. A good example of this is my “Tax Time is Coming” letter that I send out right after the first of the year. I include a copy of their Settlement Statement (HUD1). Sending an item of value is the key here. Some agents send a 9-volt battery for the household smoke alarms to ensure they’re working properly. 4. Keep your promise – This involves making sure they know you care. Caring is a major part of earning loyalty. Customers today don’t expect perfection … I tell them that I am human and might make a mistake. I ask for their help and try not to fret a problem. Research shows that customers who have a problem with a company and have that problem spectacularly solved become more loyal to the company than customers who never experienced a problem. That’s because the effort to solve the customer’s problem firms the trust that was broken. And in certain cases, perhaps a mistake is acknowledged by a fee adjustment on our part. 5. Make their experience memorable – Do something unexpected! Create a memory that will last a life time. 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 man- Following these suggestions will ensure that your fans don’t just recommend you—they insist their friends do business with you, too. What’s more, they not only forgive you when you make mistakes, they defend you to others who have had bad experiences. They give you candid feedback when they spot a problem, and that’s feedback on which you can build a better business. ages coaching and facilitation of education classes around the world. He has an MBA from the University of North Florida in Jacksonville. Marcus is a member of the AT HOME WITH DIVERSITY faculty. Marcus can be Come and meet Marcus Wally in person at the WRA’s Annual Convention, September 23-25, 2007 at the Kalahari Resort and Convention Center. In addition to teaching the ABR e-Buyer elective, Marcus will present two workshops: Ten Tips for Exceptional Customer Service and I’ve Got the Power. reached at 904-669-1081 or by e-mail at [email protected]. For more information, visit www.wra.org\Convention07. entered the real estate profession in 1991. He is a NAR faculty member for the Certified International Property Specialist (CIPS) program, and Wisconsin Real Estate Magazine, September 2007 9 Best of the Legal Hotline Procuring Cause What is Procuring Cause? By Tracy Rucka Procuring cause is the standard by which commission offered by the listing broker through the MLS to cooperating brokers is earned. Generally speaking, the broker who is the procuring cause was involved in the uninterrupted series of events that resulted in a successful transaction. This determination is made by reviewing many factors in the transaction. no automatic decisions can be made based on the presence or absence of any one factor, and no predetermined formula will always decide whether a broker is the procuring cause of a sale. The facts need to be weighed on a case-by-case basis. Series of Events The listing agent held an open house on Sunday, and a couple drove by, saw the sign and stopped. The buyers spent an hour and a half touring the house, asking the agent questions and discussing their options. The buyers really wanted to make an offer on the house but had written an offer with another broker on another home, and had not yet heard back from that seller. The buyers left the agent with questions about utilities and assessments. On Monday, the listing agent gathered the information and gave it to the buyers. The listing agent would like to know if working with the couple gives the listing agent procuring cause for a purchase of the open house home? What happens if the other REALTOR® drafts an offer? There is not yet enough information to determine if the listing broker is the procuring cause of the sale. It will be up to the listing agent to maintain the relationship with the buyer and complete the sale to assure procuring cause. Being involved in the first contact or introduction of the property to the buyer establishes the beginning of the series of events, but does not automatically assure procuring cause. The 10 Wisconsin Real Estate Magazine, September 2007 fact that the listing broker introduced the home to the buyers (when the buyer drove by the open house sign and went into the home), had conversations with the buyers that helped build their interest and followed up with additional information will all be part of the series of events. It appears, but for the mitigating factor of the other outstanding offer, the buyers would have drafted an offer. The timely follow-up to the buyers’ questions is activity that maintains the series of events. Provided the listing agent continues on this path and does not abandon or estrange the buyers, the listing broker will probably be the procuring cause of the sale even if another broker enters into the transaction. Procuring cause here is the listing broker’s to keep or lose, even if another broker becomes involved in the transaction. In the absence of any demonstrable break in the continuity of events, such as abandonment or estrangement, a panel would most likely find in favor of the listing agent. Successful Transaction A cooperating MLS broker drafted a full price, no contingency offer that was rejected by the seller. The buyer wants the broker to pursue the selling commission. Can this be done? According to the terms and conditions of an offer of compensation made through the MLS, a successful transaction is required to earn the commission as the procuring cause of the sale. A successful transaction is defined as a sale that closes or a lease that is executed. The cooperating broker was instrumental in procuring the offer that triggered the listing broker’s right to commission according to the procurement provisions of the listing contract. However, there is no transaction between the buyer and the seller, so the cooperating broker is not entitled to the selling commission. Uninterrupted/ Estrangement A broker showed a property to a buyer and drafted an offer. The buyer and seller were unable to reach an agreement. The communications between the brokers and parties became adversarial and antagonistic, news.wra.org The analysis of procuring cause must be made on a case-by-case basis, considering dozens of factors and the activity of each of the agents involved in the transaction. Legal Hotline ... continued from page 13 so the buyer went to a broker from another company and looked at many other properties. The second broker suggested the buyer reconsider the first property and the second broker drafted a new offer. Is the second broker the procuring cause? An arbitration hearing panel will make the determination if the brokers are unable to resolve this by negotiation or mediation. The panel will consider why the buyer chose to work with the second broker. Estrangement results if the first broker engaged in conduct that caused the purchaser to terminate the relationship. Examples of actions that could be estrangement include: refusal to draft an offer; antagonistic behavior towards the buyer; acting without the consent of the buyer; acting in a manner contradictory to the buyer’s direction; or other bad faith actions. The failure of the negotiations, if due to the first broker’s interference, could be estrangement. If the buyer was estranged due to the first broker’s actions, the second broker’s actions can create a second series of events resulting in procuring cause for the second broker. The panel will look at the continuity or discontinuity of the original and final negotiations, which resulted in the successful transaction. The hearing panel may consider whether the transaction would have occurred without the actions of the second broker. The second broker’s encouragement to consider the subject property and drafting of the accepted offer supports the second broker’s claim for procuring cause. Uninterrupted/Abandonment The agent, who has the consumer’s present home listed, drafted an offer for the consumers to buy a condominium listed with another MLS company. The offer on the condominium was terminated because the sale of home contingency was not satisfied. The buyers told the condominium listing agent they would give him a call when they got an accepted offer on their home. Several weeks later, when their listing agent was out of town, the listing agent for the condominium wrote a new offer for the consumers, and the condominium seller accepted. The first agent wants a commission on the condominium sale as the procuring cause. The manager at the condominium listing company says the first agent abandoned the buyer as well as the property. Is there abandonment of the real estate or customers? Yes, abandonment may occur in relation to the buyer or a property. Even if a broker maintains contact with the buyer about properties Wisconsin Real Estate Magazine, September 2007 in general or, in this case, their listing, abandonment may occur with regard to a property if the broker does not maintain a series of events regarding that property. The brokers may consider whether the first agent’s conduct caused a break in the series of events leading to the rejection of the first offer, and whether the successful transaction was actually brought about through the initiation of a separate, subsequent series of events by the condominium listing broker. The key is: Did the first agent actively maintain ongoing contact with the consumers? Or, did the broker’s absence, inactivity or perceived inactivity cause the buyer to reasonably conclude that the first agent had lost interest or disengaged from the transaction? Given the amount of time that elapsed between the first agent’s negotiations and the time of the accepted offer, and the fact that the first agent was not available due to his vacation, there may have been abandonment. Buyer Agency A broker gets a call from a buyer that he has worked with in the past. The buyer tells the broker what he is looking for, and the broker identifies several MLS properties that would be suitable, one of which the buyer saw previously with the listing broker. The broker discusses agency with the buyer and the buyer chooses buyer agency. Can the buyer’s agent draft an offer on the property the buyer saw with the listing broker? There are two issues here, agency and procuring cause. The buyer agency agreement authorizes the buyer’s agent to provide brokerage services to the buyer. Unless specific properties are excluded from the buyer agency agreement, the buyer’s agent may draft the offer for the buyer. The WB-36 Buyer Agency/ Tenant Representation Agreement may be negotiated to allow the broker to accept compensation from an owner or an owner’s agent, reducing the compensation owed by the buyer. However, whether the buyer agent is procuring cause is a different matter. The buyer’s agent may draft the offer, but because the buyer worked directly with the listing broker on the subject property, the buyer’s agent will not necessarily be the procuring cause of the sale and earn the compensation offered through the MLS. Buyer agency does not equal procuring cause. The fact that the second broker is aware of the first broker’s activity does not prevent the second broker from becoming involved in the series of events. The Legal Hotline ... continued on page 12 11 Second Quarter ... continued from page 4 Central regions. Existing home sales were down 8.1 percent in the Central region of the state, and they slid 10.9 percent in the Northern region, which tends to be somewhat volatile as a result of the concentration of secondary homes in some areas. Finally, home sales fell 12.8 percent in the most heavily populated region, the Southeast. Second Quarter Median Housing Price Data Legal Hotline ... continued from page 11 question is whether the relationship with the listing broker has broken down due to abandonment or estrangement. The buyer’s agent enters into the transaction knowing full well that his efforts to finalize a sale between the buyer and seller are not necessarily enough to earn the compensation offered by the listing broker. Median home prices in the second quarter rose a modest 1.2 percent to $168,000, according to the REALTORS®’ report. This was similar to the 1.1 percent increase seen in the first quarter of the year. Across the state, median prices increased in five of the six regions and were unchanged in one region. “Despite the decline in home sales statewide, there remains no evidence of a Wisconsin housing bubble,” said WRA President William Malkasian. “Even though conventional 30-year mortgage rates have inched up almost 0.5 percent in the last two months, they remain around 6.7 percent, which is low by historical standards,” said Malkasian. “Given the overall health of the economy in the state, this is a good time to get into the market, especially for first time buyers,” he noted. Factors Is there a simple checklist for a broker to know if he or she is the procuring cause of the sale when thinking about going to arbitration? The analysis of procuring cause must be made on a case-by-case basis, considering dozens of factors and the activity of each of the agents involved in the transaction. When deciding whether or not to file for arbitration, the broker may consider the following questions: • Who made the first introduction of the property and how was it made to the ultimate purchaser? • Did the introduction evolve into a series of events that resulted in the sale? • Did the introducing agent maintain contact throughout the transaction? • Did the agent’s conduct prompt the buyer to look elsewhere for services? • Was a second broker invited into the transaction by the buyer because of the first broker’s abandonment or estrangement? • What did the agents know about the participation of other agents in the transaction? • Was the second broker’s participation necessary to complete the sale? The answers to these questions will help a broker decide whether or not to make an arbitration request. The full list of factors considered by a hearing panel during an arbitration is available on the National Association of REALTORS® Web site at www. realtor.org/LetterLw.nsf/pages/95procuringcausefactors?Open Document&Login. Tracy Rucka is a Staff Attorney for the WRA. 12 Wisconsin Real Estate Magazine, September 2007 of Wisconsin COMMISSION ADVANCES OVER $317,000,000 ADVANCED NO CREDIT CHECK SIMPLE APPLICATION All you need is a signed contract with no contingencies except financing. We do business with real estate agents throughout Wisconsin. Local Office... Personal Service CALL US NOW! 262-798-3820 www.ce-wisc.com Affiliate Member: NAR, WRA and Greater Milwaukee Association of REALTORS® Official Registered Supplier for Realty Executives International news.wra.org Buyer Feedback To Share or Not to Share By Kevin King F requently we receive questions from listing brokers and agents relative to the obligation of selling agents – both subagents and buyers’ agents – to provide feedback after showing a property. Obviously the seller wants to know how the showing went, if there is any interest on the part of the buyers, if the property is priced right in the opinion of the buyers and the selling agent, what can be done to improve the chances of sale, etc. With almost the same frequency, we receive questions from buyers’ agents wanting to know their legal obligation to respond to listing brokers and agents requesting feedback. They are concerned about compromising a clients’ negotiating position should they respond. A secondary concern is that they may be portrayed as unethical and uncooperative. Ultimately it is important to understand that a buyer’s agent’s obligation to provide feedback is at the discretion of the buyer’s agent – there is no law that requires it. It is not unethical for the buyer’s agent to decline to provide feedback, nor does it mean the buyer’s agent is refusing to cooperate. At the same time, buyers’ agents must recognize that it is perfectly permissible for the listing agent to request feedback. Making the request is not illegal or unethical. Professionals representing the interests of their clients must understand that, in attempting to do so, they must also respect the other professional’s duty to protect the best interests of their clients. Kevin King is General Counsel for the WRA. So where is the balance? First of all, everyone should understand that it is appropriate for the listing agent to request feedback from cooperating agents showing the property. Obtaining feedback from other agents and prospective buyers can be very beneficial to the marketing plan implemented by the seller and the listing agent. Prospective buyers are likely viewing many homes – and their comparative opinions as to price, condition, features and more can help make the seller more competitive. On the other hand, many of the questions that are asked in the name of showing feedback could have a negative impact on a prospective buyer’s negotiating position. When evaluating properties, buyers repeatedly ask their buyers’ agents for advice and counsel. Certain conversations between the buyer and agent are not expected to be shared. Should the buyer expect that the buyer’s agent would provide a professional opinion to the listing agent to be shared with the seller relative to the property or the possible transaction? I’m sure we can all agree that’s not the case. Under Wisconsin real estate law, all licensees have a duty to keep confidential any information given to them in confidence, as well as any information known by the licensee that a reasonable person would expect to be kept confidential (with certain exceptions, such as disclosure mandated by law). Thus, the selling broker, whether a buyer’s agent or not, must be careful when responding to requests for showing feedback that he or she does not breach this duty of confidentiality. Wisconsin Real Estate Magazine, September 2007 A STEP-BY-STEP GUIDE TO SELLING MORE SHOREWOOD PROPERTIES. To help you state your case about our amazing community, we’ve created a walking kit filled with village facts, a walking map and more. Get your free supply by calling 414-847-2700. Or visit walkshorewood.com. 199-2724 Reator WREM.indd 1 13 6/13/07 9:26:45 AM Are You Reporting Sales Concessions? By Debbi Conrad R EALTORS® often express concern over property values that appear to be artificially inflated through creative financing techniques. Properties frequently sell above the price originally agreed upon by the parties, with seller concessions netting the seller the original price. Higher purchase prices may permit buyers to obtain more favorable financing, but the buyers are left with higher assessed values, higher property taxes, potentially higher insurance costs and higher mortgage payments. When appraisers and assessors use the sales data from these transactions as comparables to 14 establish values for other properties, there may be a domino effect resulting in the overvaluation of other properties. This will stop if the assessors and appraisers are alerted that the sales price may involve concessions or other creative financing. The Uniform Standards of Professional Appraisal Practice (USPAP), in Standards Rules 1-2(c), requires appraisers to clearly identify sales or financing concessions and analyze their impact on value. In addition, some groups, such as Fannie Mae, specify how sales or financing concessions are to be addressed with the Wisconsin Real Estate Magazine, September 2007 news.wra.org Higher purchase prices may permit buyers to obtain more favorable financing, but the buyers are left with higher assessed values, higher property taxes, potentially higher insurance costs and higher mortgage payments. use of comparables in the appraisal. The Fannie Mae/Freddie Mac appraisal report forms, for instance, direct that, “Adjustments to comparables must be made for special or creative financing or sales concessions.” 452.133(1)(d) and Standard of Practice 1-9 of the REALTOR® Code of Ethics. Whether financing information is confidential may vary based upon the parties, lender, brokers and other circumstances, and thus cannot be determined on a wholesale basis. Appraisers are often frustrated because information regarding sales concessions is very hard to find. One potential source is the Wisconsin Department of Revenue (DOR) Real Estate Transfer Return (RETR). The RETR Instructions (PE-500a R. 7-07), found at www.dor.state.wi.us/ust/pe-500a.pdf, require that the total actual consideration paid be reported as the value, but also requires that a box be checked if there is any type of seller financing such as a credit, gift, donation to nonprofit/charity, second mortgage, land contract, etc. Similar instructions are given for the Wisconsin Electronic RETR, found at ww2.revenue.wi.gov/GenericFile/ help/eRetr/detail.htm. This will alert assessors and appraisers accessing DOR data to investigate further to see if concessions or creative financing had an affect on the sales price instead of just accepting the price on its face. Confidentiality is not a concern if the parties authorize the release of sales concession information. While the state-approved offers to purchase currently authorize licensees to give a copy of the offer to appraisers for purposes of the transaction, they do not authorize the post-closing release of concession information to appraisers researching comps for subsequent transactions. One source of additional sales concession information is the MLS sold data. Some MLSs have various fields for reporting sales concessions. Appraisers who are alerted by the RETR or MLS sold data that a sales concession was involved will, as required by USPAP and Fannie Mae standards, search for further transaction information so that the price may be appropriately analyzed and adjusted before using it as a comp for an appraisal. They will ask the brokers from the transaction for sales concession or financing information. Unfortunately, many brokers do not provide this assistance due to confidentiality or authorization concerns. REALTORS® have the duty to preserve confidential information under Wis. Stat. § Wisconsin Real Estate Magazine, September 2007 The best thing that REALTORS® can do to address all of these problems is to add a provision to each of their offers whereby the parties consent to the disclosure of the financing data needed by appraisers to adjust for sales concessions when using the sales price to appraise other properties. This alleviates the need for brokers to determine whether or not this information is confidential and helps appraisers set fair values. The following language could be added to each offer to purchase or offer addendum to obtain party consent: “Buyer and Seller authorize the agents of Buyer and Seller to report sales concessions and other financing information to the MLS sold database, as applicable, and provide appraisers or brokers researching comps, upon inquiry, with similar information to the extent necessary to adjust price to reflect market value.” Making creative financing information available to appraisers will help maintain accurate property values for the benefit of Wisconsin consumers, lenders and REALTORS® alike. Debbi Conrad is Director of Legal Affairs for the WRA. 15 Education login and visit: www.wra.org/myeducation ABR Designation and CE Courses Offered at Convention! Two-day Buyer Agency Course Looking to complete a designation or start working toward a new one? Or would you like to complete your 2007/08 continuing education (CE) requirements in three days? There are lots of designation classes planned for the WRA’s 2007 Annual Convention, as well as all four CE courses. Register Today! Stand out as an ABR® - join over 50,000 members who are succeeding as Accredited Buyer Representatives. Start your ABR® designation by attending the two-day mandatory class on September 23-24, 2007 in Wisconsin Dells and on November 7-8, 2007 in Sturgeon Bay. This is probably one of the hottest classes right now … because Buyer Agency is becoming more and more the way buyers want to do business. This two-day course covers agency, service delivery, marketing and promotion, and negotiation and risk management. Call 800-279-1972 and register today. Fulfills the 2007-08 CE4, • Council of Real Estate Brokerage Managers (CRB) Leading and Managing Teams • Accredited Buyer Representative (ABR®) • Seniors Real Estate Specialist (SRES® and ABR® Elective) • Accredited Buyer Representative (ABR®) Elective e-Buyer Course but does not fulfill NAR Ethics requirement. Do you need an elective course to complete your ABR® designation? Check out one of the following classes: • Certified Commercial Investment Member (CCIM) Introduction to Commercial Investment Real Estate Analysis (Fulfills 9 hrs of 2007-08 CE) SRES® - Seniors Real Estate Specialist September 23-24, 2007 – Wisconsin Dells Visit: www.wra.org/SREScourses • Graduate, REALTOR® Institute Course 2 (GRI) e-Buyer course September 23, 2007 – Wisconsin Dells Visit: www.wra.org/ABRcourses • Certified Residential Specialist: CRS 201 (CRS) Real Estate CE 1 Issues Relating to New Listings; Agency Agreements, Legal Advice, Binding Contracts and Defaults CE Real Estate CE 2 Issues Relating to the Offer to Purchase Confidentiality of Offers Real Estate CE 3 New Developments in the Profession Real Estate CE 4A Issues Relating to Real Estate Professionals, Ethics and Fair Housing Fulfills NAR Ethics requirement. Appraisal CE – USPAP Update Graduate, REALTOR® Institute Courses The Graduate, REALTOR® Institute (GRI) symbol is the mark of a real estate professional who has made a commitment to providing a superior level of professional services by earning the GRI designation. REALTORS® with the GRI designation are highly trained in many areas of real estate to better serve and protect their clients. GRI Course 1: You can complete GRI Course 1 in one of four ways: Test out of GRI Course 1 by taking an equivalency exam. Register for the exam and you can complete it on the Internet. Visit www.wra.org/GRIcourses Register for the GRI Course 1 Equivalency Exam at your local board/ association. Complete the four days of QuickStart and pass the exam. Call the WRA at (800) 279-1972 or (608) 241-2047. Visit: www.wra.org/GRIcourses Complete an approved company training program and pass the exam. GRI GRI Course 2 – September 22-25, 2007 This four-day program includes CRS201 (Listing Strategies for the Residential Specialist), so you can earn required credits toward your CRS designation while earning your GRI designation. GRI Course 2 covers environmental issues, personal promotion, business ethics, PDAs and digital cameras, creating a Web presence, e-marketing, tying technology together, selling new homes and “Listing Strategies for the Residential Specialist” from the CRS curriculum. GRI Course 2 is being offered during convention at the Kalahari Resort & Convention Center, Wisconsin Dells, September 22-25, 2007. Visit www.wra.org/GRIcourses 16 Effective Negotiating for the Real Estate Professional November 9, 2007 – Sturgeon Bay Visit: www.wra.org/ABRcourses Sales Pre-license 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 on September 10-13; 17-20, 2007 and November 5-8; 12-15, 2007 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 call and register today at (800)279-1972. This program is also available through self-study video or self-study Internet programs. Visit: www.wra.org/SalesPL QuickStart The QuickStart program 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. Modules 1 and 2 will be offered on October 4-5, 2007 and Modules 3 and 4 will be offered on November 1-2, 2007 at the WRA in Madison. Upon completion of the four modules and passing the exam, agents can receive credit for the completion of GRI Course 1. The fee is only $240, however, the WRA offers a new member discount of $40, making the cost of this course only $200 – a fantastic price for four days of instruction for your new agents. Visit: www.wra.org/QuickStart Broker Pre-license If you would like to get your broker’s license, the WRA has the course for you! The Department of Regulation and Licensing requires that you complete 36 hours of education and pass an exam to become licensed. Areas of study in this course include: fair housing; real estate practice; approved forms; trust accounts; and more. Prerequisite: must complete Sales Pre-license course and pass sales exam. This course will be offered on September 10-13 in Milwaukee or October 8-11 in Madison. This program is also available through a video self-study version (VHS or DVD) or a self-study Internet program. Completion of the broker pre-license program, passing the broker exam and applying for your broker’s license fulfills your 2007-2008 continuing education requirements. Does not fulfill NAR Ethics requirement. Visit: www.wra.org/BrokerPL Wisconsin Real Estate Magazine, September 2007 news.wra.org Appraisal CE 2006 National USPAP Update (7 hrs.) September 25 Kalahari Resort & Convention Center 1305 Kalahari Drive Wisconsin Dells, WI November 5 Sheraton Milwaukee 375 South Moorland Rd. Brookfield, WI November 6 Howard Johnson Plaza Hotel 3841 East Washington Ave. Madison, WI November 7 Radisson Paper Valley Hotel 333 West College Ave. Appleton, WI This one-day update course focuses on recent changes to USPAP requirements for ethical behavior and competent performance by appraisers. An appraiser must complete this seven-hour USPAP Update course every two years to meet the USPAP continuing education requirement. Appraisal CE through the WRA’s Distance Learning Program Procedures for the Unusual Residential Appraisal Assignment – 4 hrs. • • Economics of Residential Finance – 4.5 hrs. • Highest and Best Use – 4 hrs. Pitfalls-Residential (7 hrs.) October 11 Wisconsin REALTORS® Association 4801 Forest Run Rd. Madison, WI October 12 Radisson Paper Valley Hotel 333 West College Ave. Appleton, WI This seminar will give you tips that will help you avoid lawsuits and give you advice on which forms to use and when. • Internet Resources for Appraisers – 4 hrs. Wisconsin REALTORS® Association 4801 Forest Run Rd. Madison, WI Country Springs Hotel & Conference Center 2810 Golf Rd. Pewaukee, WI The adjustment grid is the most important part of any appraisal report and the one section that each and every client looks at with close scrutiny. Learn new methods and calculations for completing the adjustment grid. Topics covered include: • Need for adjustments for differences of personal property vs. financing in the sales approach • Ability to develop a time adjustment • Analyzing location differences within a market Fee per course: Appraisal Section Member - $60; WRA Member - $65; and Nonmember - $70 Visit: www.wra.org/APCEDistanceLearn Watch programs and events at your own pace, on your own schedule. Most live webcasts are offered on demand following the event. Script Doctor | Neenah, WI Best of the Legal Hotline LIVE: Mortgage Manipulation: It’s Not Nice to Lie to Lenders and Underwriters October 19, 2007 www.wra.org/hotlinelive-lending Wisconsin CRS Members also receive a $20 discount on Ninja Selling II. Visit www.wra.org/CRScourses for more information! December 6 December 7 Radisson Paper Valley Hotel 333 West College Ave. Appleton, WI This seminar will introduce you to a variety of detrimental conditions and explore the wide range of effects these conditions can have on property value. You will discuss strategies to calculate the damages caused by the detrimental conditions and analyze the detrimental condition based upon fundamental appraisal methodologies. Learn specialized techniques for collecting market data and drawing property-supported conclusions. and Webcasts ion d Educat On Deman For a complete list of programs, visit www.wra.org/ondemand. October 18, 2007 Members of the Wisconsin CRS Chapter can attend the October 18th session (Script Doctor) at NO CHARGE. (7 hrs.) Webcasts and On Demand Education On Demand Events Relevant Environmental Issues for Residential Appraisers – 4 hrs. Ninja Selling II | Neenah, WI Receive over 50 disclosures, addenda and disclaimers that will assist any appraiser in preparing more comprehensive reports to sail through underwriting and protect the appraiser from lawsuits. The Adjustment Grid (7 hrs.) December 3 • CRS Ninja Selling II Country Springs Hotel & Conference Center 2810 Golf Road Pewaukee, WI Valuations of Detrimental Conditions in Real Estate Appraising Two-to-Four family Properties – 4 hrs. Income Appraisal Techniques – 4 hrs. December 4 Other topics include: • Federal Acquisitions – follow the guidelines • FNMA Reports – a review of their proper use • Divorce Reports – how to avoid trouble • Visual Inventory – how to avoid lawsuits • • Disclosures, Addenda and Disclaimers to Appraisal Reports (7 hrs.) Best of the Legal Hotline LIVE: Legal Challenges in a Changing Market www.wra.org/hotlinelive WRA Technology Series: Notebook Computer Buyers Guide www.wra.org/ondemandtechnology Wisconsin Real Estate Magazine, September 2007 Distance Learning On Demand Courses Take full courses on your own schedule at your own pace from the comfort of your own home, office or wherever there is a broadband connection. www.wra.org/ondemand Real Estate Continuing Education 2007 / 2008 Real Estate Continuing Education Course 2 & Course 4a On Demand June 2007. Courses 1 and 3 available fall 2007. 17 Education Course Schedule Sales & Marketing Management Date (This class is FREE for all Wisconsin CRS Members) (Wisconsin CRS Members receive a $20 discount) (1) Fee represents cost of the 4 modules, new WRA members receive a $40 discount. w w w. w r a . o r g / C o u r s e S c h e d u l e Course QuickStart Module 1 & 2 Script Doctor Ninja Selling II QuickStart Module 3 & 4 October 4-5, 2007 October 18, 2007 October 19, 2007 November 1-2, 2007 Location Madison Neenah Neenah Madison $ Courses at 2007 Convention: **does not include convention GRI Course 2 September 22-25, 2007 Wisconsin Dells CRS 201 **September 22-23, 2007 Wisconsin Dells CRS 201 with convention September 22-25,2007 Wisconsin Dells CRB – Leading & Managing Teams September 23-24, 2007 Wisconsin Dells Intro to CCIM September 23-24, 2007 Wisconsin Dells ABR® – Buyer Agency September 23-24, 2007 Wisconsin Dells ABR® Elective – e-Buyer **September 23, 2007 Wisconsin Dells ABR® Elective – e-Buyer with convention September 23-25, 2007 Wisconsin Dells SRES – Seniors Real Estate Specialist September 23-24, 2007 Wisconsin Dells Appraisal continuing education modules available on VHS and DVD Early Reg. 240 (1) 49 169 240 (1) $ Regular Reg. 240 (1) 59 179 240 (1) $ ATD 270 79 199 270 Education Thru 9/5 $350 $300 $370 $535 $335 $295 $174 $243 $445 After 9/5 $360 $310 $380 $545 $345 $305 $184 $253 $455 ATD $380 $330 $400 $565 $365 $325 $204 $273 $475 Appraisal CE USPAP September 25, 2007 Avoiding Standard Two Pitfalls-Residential October 11, 2007 Avoiding Standard Two Pitfalls Residential October 12, 2007 2006 National USPAP November 5, 2007 2006 National USPAP November 6, 207 2006 National USPAP November 7, 2007 The Adjustment Grid December 3, 2007 Disclosures, Addenda & Disclaimers to Appraisal Reports December 4, 2007 Valuations of Detrimental Conditions in Real Estate December 6, 2007 Valuations of Detrimental Conditions in Real Estate December 7, 2007 Real Estate Continuing Education Additional fees for non-members Pre-license * Plus books 18 WI Dells Madison Appleton Brookfield Madison Appleton Pewaukee Pewaukee Madison Appleton Thru 9/5 154 109 v 109 v 140 v 140 v 140 v 109 v 109 v 109 v 109 v After 9/5 164 119 119 150 150 150 119 119 119 119 ATD 184 139 139 170 170 170 139 139 139 139 8:30 a.m. – 4:30 p.m. Cost 2 weeks prior to class Appraisal Section Member receives $10 discount v Date Course Location Time September 18, 2007 2007-08 CE 1 & 2 Kenosha 8:30 – 4:30 p.m. 262-942-0592 September 19, 2007 September 23, 2007 September 24, 2007 September 25, 2007 September 26, 2007 September 27, 2007 October 4, 2007 October 9, 2007 October 12, 2007 October 16, 2007 October 17, 2007 October 18, 2007 October 18, 2007 October 19, 2007 October 25, 2007 October 25, 2007 October 25, 2007 October 26, 2007 2007-08 CE 4A & 3 2007-08 CE 1 2007-08 CE 2 2007-08 CE 3 & 4A 2007-08 CE 4A & 3 2007-08 CE 1 2007-08 CE 1 & 2 2007-08 CE 1 & 2 2007-08 CE 3 & 4A 2007-08 CE 1 & 2 2007-08 CE 1 & 2 2007-08 CE3 & 4A 2007-08 CE 1 & 2 2007-08 3 & 4A 2007-08 CE 2 2007-08 CE 1 & 2 2007-08 CE 1 & 2 2007-08 3 & 4A Brookfield Wisconsin Dells Wisconsin Dells Wisconsin Dells Madison Racine Brookfield Appleton Kenosha Green Bay Madison Manitowoc Wausau Wausau Janesville Ripon Stevens Point Stevens Point 8:30 – 4:30 p.m. 1:00 – 4:30 p.m. 1:00 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 1:00 –- 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 12:00 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. Milwaukee Madison 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. September 10-13, 2007 Broker Pre-license September 10-13; 17-20, 2007 Sales Pre-license October 8-11, 2007 Broker Pre-license November 5-8; 12-15, 2007 Sales Pre-license Wisconsin Real Estate Magazine, September 2007 Register # 800-279-1972 24/m; $32 nm Register for Convention Register for Convention Register for Convention 800-279-1972 24/m; $32 nm 262-554-3940 800-279-1972 27/m; $35 nm 920-739-9108 262-942-0592 920-739-9108 800-279-1972 27/m; $35 nm 920-553-6227 800-279-1972 27/m; $35 nm 800-279-1972 27/m; $35 nm 608-755-4854 920-294-6850 800-279-1972 27/m; $35 nm 800-279-1972 27/m; $35 nm 255* 325* 255* 255* 255* 325* 255* 255* 265* 335* 265* 265* news.wra.org WRA Annual Convention September 23-25, 2007 Kalahari Resort & Convention Center, Wisconsin Dells Opening Session If You Can’t Stand Up, Stand Out General Session Becoming Preferred – How to Outsell Your Competition Monday, September 24, 2007 – 9:30 am Speaker: Mike Schlappi The only way you can predict your future is to create it. Mike’s message is a personal story – a story that began with a tragic shooting accident that evolved into a lifetime of lessons and victories. Although Mike is paralyzed, his dreams are not. Mike uses a media presentation and his Paralympic medals to teach his “Bulletproof Principles for Success.” Mike Schlappi, four-time Olympic medal winner and two-time World Champion, has proven that just because you can't stand up, doesn't mean you can't stand out. He is the only wheelchair basketball player in the United States to compete in the past four Olympic games in Seoul, Barcelona, Atlanta and Sydney. Mitt Romney, the President and CEO of the 2002 Olympic Games said, "Mike's accomplishments remind each of us of the power of the human spirit to rise above all adversity. Mike truly walks his talk as he verbally and visually inspires everyone to light the fire within.” Checkout Designation Classes at Convention! ABR and ABR Electives, CCIM, CRB, CRS, GRI, SRES Broker Track Workshops: • Creating a Self-Recruiting Office • Technology and Recruiting • Increase Your Listing Inventory Tuesday, September 25, 2007 – 8:45 am Speaker: Michael Vickers This program uses state-of-the-art strategies and tactics to give you competitive advantage and will help you outsell or out-service the competition. It will help place you and your company in the preferred position every time. Michael Vickers is a popular speaker, entrepreneur, educator and author. His dynamic, humorous and insightful sessions coach thousands of professionals to grow individual and organizational performance. Michael's unique gifts are his mastery of the art of influence and his ability to translate that mastery into practical, powerful techniques anyone can use. His sessions are educational, entertaining, intimate and unabashed – he is hilarious in his stories, boundless in his enthusiasm, and relentless in his message that success is available to everyone! $500 door prize will be awarded at the end of session – must be present to win. Sales Track Workshops: Commercial Workshop: • Critical Elements of Contact Management Systems • Moving Upward Regardless of Market Conditions • Business Planning and Team Building • Common Pitfalls Involving Commercial Real Estate Technology Workshops: Plus 30 Hot Topic Workshops: Covering foreclosures (The Art of Selling REO Properties), home staging, and A Senior’s Guide to Moving and Downsizing • ZipForm Made Easy • Smart Phones and the Real Estate Agent...A Good Combo Visit the WRA Convention Web site for more information on courses, events and registration www.wra.org/convention07 Kalahari Resort – Convention Site 1305 Kalahari Dr., Wisconsin Dells, WI 53965 (877) 253-5466 or (608) 253-5466 Overflow Hotels Alakai Hotel & Suites 1030 Wisconsin Dells Parkway S. Wisconsin Dells, WI 53965 608-253-3803 or 800-593-9392 Baker’s Sunset Bay Resort 921 Canyon Road Wisconsin Dells, WI 53965 800-435-6515 Ho-Chunk Casino & Hotel S3214 Highway 12 Baraboo, WI 53913 Rate: $85 9/22-24 release:9/15/07 800-746-2486 or 608-356-6210 Wisconsin Real Estate Magazine, September 2007 Holiday Inn Express (formerly Camelot Hotel & Suites) 1033 Wisconsin Dells Parkway S. Wisconsin Dells, WI 53965 608-253-3000 or 888-946-3000 Ramada Limited of Wisconsin Dells 1073 Wisconsin Dells Parkway S. Wisconsin Dells, WI 53965 800-845-2251 or 608-254-2218 19 nn u 0 7 A Registration n o W ALTORS ® As in RE so s ci on c at is i al Co nve n tion 0 ,2 5 -2 r 23 Septembe WRA Convention 007 WRA MEMBER 1-Day [Monday / Tuesday ] circle one Full Convention Unlicensed Spouse/Guest 1305 Kalahari Dr. Wisconsin Dells, WI 53965 (877) 253-5466 or (608) 253-5466 1-Day [Monday / Tuesday ] circle one Full Convention Designation Courses September 22 - 25, 2007 (includes convention, except*) GRI Course 2 (9/22 – 9/25) CRS 201 Only (9/22 – 9/23)* CRS 201 w/convention (9/22 – 9/25) CRB – Leading & Managing Teams CCIM – Intro to Commercial Investment RE ABR – Buyer Agency ABR Elective – E-Buyer Course* ABR Elective – E-Buyer Course w/convention SRES – Seniors Real Estate Specialist (ABR Elec.) HP10BII Calculator Calculator will be held for pickup at class; or Add $7.50 if you want calculator to be shipped $340 $350 $290 $300 $360 $370 $525 $535 $325 $335 $285 $295 $164 $174 $233 $243 $435 $445 $35 (includes tax) $360 $310 $380 $545 $345 $305 $184 $253 $455 $380 $330 $400 $565 $365 $325 $204 $273 $475 $94 $114 $30 $114 $134 $50 $104 $144 $114 $154 $124 $164 $144 $184 CONTACT INFORMATION Name_ _____________________________________________ Firm Name_ __________________________________________ Address_ ____________________________________________ City_ ________________________ State____________Zip_______ Phone (O) ( )_________________________ Phone (H) ( )_ ________________________ E-mail Address_ ________________________________________ WRA account #_________________________________________ Check here if you are an Executive Officer 7 Hour USPAP Update/Fees include USPAP book $134 $144 $144 $154 $154 $164 $174 $184 $144 $154 $154 $164 $164 $174 $184 $194 $154 $164 $164 $174 $174 $184 $194 $204 Real Estate CE Courses Check the courses you want to attend. Price included in registration. (limited seating) CE1 | 9/23, 1:00 pm CE2 | 9/24, 1:00 pm CE3 | 9/25, 8:30 am CE4A | 9/25, 1:00 pm ticketed events CRS/CRB Luncheon (9/25)............$20 Golf at Trappers Turn (9/23)...........$90 Chairman of the Board’s Dinner (9/24)....................$45 Basic Beading Techniques to Create Jewelry (9/24, 1:00 pm).. $30 (20 class limit) Basic Chain Maille Jewelry Techniques (9/24, 2:45 pm)......... $40 (20 class limit) 20 $84 $104 $30 NON - MEMBER Room rates and overflow hotel information on page 9. Appraisal Section USPAP Class Only USPAP w/convention Appraisal REALTOR® USPAP Class Only USPAP w/convention Appraisal Non-member USPAP Class Only USPAP w/convention $74 $94 $30 Thru 9/5 After 9/5 ATD Name of Spouse/Guest_____________________________________________ Kalahari Resort – Convention Site appraisal Course Thru 8/15 Wisconsin Real Estate Magazine, September 2007 PAYMENT Enclosed is my check made payable to the WRA_ _ Charge my VISA/Master- Card (circle one) Card Number__________________________________________ Exp. Date_______________ Special Services: Check here if you require special services to attend. Attach a written description of needs. CANCELLATION POLICY: The WRA reserves the right to cancel courses 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. Register by Mail: Wisconsin REALTORs® Association 4801 Forest Run Road, Suite 201 Madison, WI 53704-7337 Register by Phone: 800.279.1972 | 608.241.2047 Register by Fax: 608.241.5168 Online Registration: www.wra.org/convention07 news.wra.org Technology Corner The REALTOR’S® Guide to PC Security Y ou lock your car. You lock-box your properties. So why aren’t you locking down your computer? I don’t mean installing an actual lock to prevent By Rick Broida theft (though that’s always a good idea, especially if you use a notebook), but rather protecting your machine from adware, spyware, viruses, and other maladies of modern computing. The “locks” you need for this kind of protection come in the form of security software. You can get what you need without spending a fortune (or even a dime), but make sure to cover all the bases. Many users make the mistake, for instance, of thinking an anti-virus program will protect them from spyware. It won’t. IDENTIFYING THE THREATS Just what the heck is spyware? And phishing? And a firewall? Before you can take steps to protect yourself, you need to understand your enemies – and the tools that fight them. Here’s a quick glossary of key security terms: Adware This is advertising-supported software that automatically plays, displays, or downloads advertising material to a computer after the software is installed on it or while the application is being used. It’s mostly an annoyance, except when it crosses into the realm of spyware, in which case it tries to gather information about your activities. Phishing An attempt by criminals to obtain sensitive information – usernames, passwords, creditcard numbers, Social Security numbers, etc. – by masquerading as a legitimate entity, such as a bank or well-known Web site (like eBay or PayPal). Spam Junk e-mail. Initially just an annoyance, spam is now also a security concern, as most phishing attempts are conveyed via e-mail. Spyware Currently the Web’s most serious security problem, spyware is software that gets installed without your knowledge. It’s designed to intercept or take partial control over your interaction with the computer. These programs can collect various types of personal information, but can also interfere with the computer in other ways, such as installing additional software, redirecting Web browser activity, and making the system run like molasses. Virus A computer program that can copy itself and infect a computer without your permission or knowledge. Some viruses are programmed to damage programs, delete files, or even reformat the hard drive. CHOOSING SECURITY SOFTWARE To fully protect your PC, you need the following items: an anti-virus program, an anti-spyware program, anti-phishing tools, and a firewall. There are software suites that provide all these tools under one roof, which is a fine way to go. If you’re looking to save a few bucks, however, consider the following programs, all of which are free and fully capable. Ad-Aware 2007 (www.lavasoftusa.com) Widely regarded as one of the best spywareremoval tools on the planet, Ad-Aware can clean most, if not all, the gunk from your PC. The free version offers spyware scanning and removal, but you have to activate it yourself; the $26.95 Plus version provides real-time scanning and will automatically update itself with the latest threat data. Wisconsin Real Estate Magazine, September 2007 AVG Anti-Virus Free Edition (free.grisoft.com) Why shell out big bucks for security software when you can get free software that accomplishes the same thing? AVG Anti-Virus offers free protection from and removal of viruses. While you’re at it, grab AVG Anti-Spyware Free and AVG AntiRootkit free. What’s the catch with all these freebies? Technical support is available only with the paid versions. Blink Personal Edition (tinyurl.com/ztslf) This full-fledged security suite promises total protection from viruses, spyware, phishing, and other Internet nastiness. As of press time, the developer was offering a free oneyear subscription for personal and homeoffice use. TrendSecure TrendProtect (tinyurl.com/2xz7vu) This browser plug-in (available for Firefox and Internet Explorer) analyzes the Web pages you view and alerts you if it detects anything malicious. It also analyzes Google, MSN, and Yahoo search results, flagging each link with a familiar red-light/greenlight color code. You can mouse over any link to see more information. TrendProtect is like an extra layer of protection on top of the browsers’ own tools, and it’s available free of charge. One last tip: Make sure you don’t overlap your protection. For example, don’t run two anti-virus or anti-spyware utilities at the same time; that can actually create problems instead of solving them. To find out more about security software and how to use it, visit Download.com’s Security Center (tinyurl.com/lwkmh) and PC World Spyware & Security (tinyurl.com/jddo2). Tech guru Rick Broida writes for CNET and PC Magazine. He is the author of over a dozen books, including How to Do Everything with Your Palm Powered Handheld, 6th Edition. 21 Public Affairs The Wisconsin Way Project By Michael Theo and Jim Wood T he Wisconsin REALTORS® Association (WRA) has joined with the Wisconsin Counties Association (Counties Assocation), the Wisconsin Builders Association, the Wisconsin Education Association Council and others in an unprecedented statewide effort dedicated to achieving significant and permanent reductions in the amount of property taxes Wisconsin property owners pay each year while, at the same time, protecting the services that help ensure our state’s unique quality of life. The project is timely because it needs to be done and because it can be done. It needs to be done because we need to change how we fund local services. In-depth market research conducted over the past two and a half years by the WRA, the Counties Association, Wood Communications Group and the League of Wisconsin Municipalities reveals significant demand for, satisfaction with and support for local services, including K-12 public education. But, the research also identified three serious concerns that affect the way in which Wisconsin currently funds its local services. First, there is growing concern about the public’s ability to pay for the services they want. Most Wisconsin citizens believe, for example, that they are considerably more financially strapped than they were even a few years ago. Three years ago, a little more than half said they had less money at the end of each month than they had had the previous year. Today, three-fourths say they have less. Second, the public is increasingly skeptical about the true progressivism of property taxes. Significant majorities of the public in numerous polls indicated, for example, that they thought property taxes were the most unfair tax people had to pay, were based on inflated property values, often did not reflect 22 people’s ability to pay and affected elderly people more adversely than others. And third, while most people do not believe that we are spending too much money on local services, they do believe that local governments and school districts could deliver services more effectively. In most cases, taxpayers believe that government is spending the right amount or not enough money, rather than spending too much money on most services. In addition, a clear majority of taxpayers think local government is doing a good job of holding the line on taxes and still delivering services, but most also believe that significant cost-savings are still available and that governments could do more with less. In short, the data suggests that the real issues in governmental finance are not the appropriateness of current spending levels, but: a) the affordability of the taxes; b) the cost-effectiveness of the service delivery; c) questions about whether or not the appropriate governmental entity is in charge of delivering and paying for the service; and, d) concerns about the actual progressivism of the taxes being levied to fund the services. This effort is particularly timely because there is growing public awareness that the property tax is a failed funding mechanism and that Wisconsin needs to explore other options. The polls indicate that the public knows or senses it. The media is coming to the same conclusion, and a growing number of legislators are looking for a more productive strategy than the Taxpayer Bill of Rights (TABOR). Perhaps most importantly, the public is interested in finding alternative methods for financing local public services, including K-12 education. There is a growing realization that the failure to identify and market alternative approaches to financing local government services will inevitably result in either higher Wisconsin Real Estate Magazine, September 2007 property taxes or lower levels of service. The public’s willingness to entertain new ideas and approaches to financing governmental services makes the search for better ways to manage and finance governmental services the single most important challenge we, as citizens, now face. This effort will take time. We have to engage the public in a discussion that focuses on alternative financing as a thoughtful, responsible, credible approach to a significant public policy issue. Out of that public dialogue we believe we can build a strong statewide base of understanding and support for alternative financing proposals that are realistic and equitable. To these ends, the project will organize a carefully coordinated series of “town hall meetings” in as many major media markets as possible over the next six months to talk about the issues, identify elements in the current financing and service delivery system that need to change, and suggest possible new approaches to address the challenges. At the end of, and based on, that process, a “citizens agenda for change” will be developed, and a smaller number of regional “town hall meetings” will be held to review and refine the agenda. That process will generate a formal set of proposals that we will then concentrate on making one of the major focal points of the dialogue between citizens and their elected officials during the 2008 electoral process. Why REALTORS® Support the Wisconsin Way Project Wisconsin’s tax system is over-reliant on property taxes to fund vital services and infrastructure. From a REALTORS®’ perspective, this creates two problems. First, it hurts Wisconsin families and businesses by making housing less affordable – especially regrettable for young families trying to buy news.wra.org Public Affairs their first home and elderly families trying to stay in their homes – and by significantly increasing operational costs for Wisconsin businesses. Secondly, high property taxes pit property owners against the very public services and investments they support, like good schools, good roads, good police and fire protection, and good technical colleges. These two problems are not little irritants but rather major tribulations that directly impact our quality of life in Wisconsin. That’s why we need to change the way we fund our state’s essential services and infrastructure. Wisconsin REALTORS® have been at the vortex of these issues for decades because real estate markets rely on far more than nice structures. They depend on the quality of life of a neighborhood, a community, a region and the state. This “context” within which real estate markets soar or suffer means we must care about all the inputs that determine our quality of life. This means balancing seemingly contradictory priorities like providing vital government services, including schools, with the taxpayers’ ability to pay. This means protecting both the environment and private property rights. And this means growing our state economy and, with it, our job and tax bases, while having an adequate and equitable tax system. We firmly believe that while it is difficult, finding the right balance of these priorities is possible. Take schools for example. No one cares more about having a great school system than REALTORS®. A quality school is essential to a desirable neighborhood, which is a prerequisite to good housing. Indeed, the first question most homebuyers ask REALTORS® relates to the quality of the school district. Conversely, without desirable and affordable housing, neighborhoods can quickly deteriorate and, often with them, their schools. Thus to REALTORS®, good schools and good real estate markets are one and the same. But because schools make up the majority of Wisconsin’s sizable property tax bills, homeowners are currently confronted with having to choose between their desire for excellent schools and their desire for affordable taxes on their homes and businesses. It shouldn’t be that way. This is why REALTORS® support the Wisconsin Way project. We are pleased to join organizations like builders, teachers, county officials, transportation interests and others in search of a significant and permanent reduction in the amount of property taxes Wisconsin homeowners and property owners pay each year, while at the same time protecting and providing for essential government services and infrastructure. We fully understand the difficult policy choices this endeavor will eventually entail. We may have to consider new revenues to replace property taxes and new ways to limit government spending and make it more efficient. But every successful journey begins with a first step. The first step of this journey was our mutual recognition that our current property tax-dependent system is unsustainable. Our next steps will be to engage the public in a meaningful dialogue about the problem and potential solutions. And our final steps will be to design, propose and promote a solution. A strong and growing real estate market is a prerequisite to the well being of both Wisconsin families and the economy. Indeed, our quality of life is fundamentally defined by the homes we live in and the jobs and economy in which we work. And so our public policies related to real estate markets – be they residential, commercial, industrial or agricultural properties – have a direct and significant impact on our quality of life in Wisconsin Real Estate Magazine, September 2007 Wisconsin. Changing our current over-reliance on property taxes will not only promote property ownership and protect property owners, it will also do more to protect and promote Wisconsin’s unique quality of life. We’re eager to get started. Editor’s Note: Jim Wood is president of Wood Communications Group, a longtime public affairs consultant to the WRA and partner in the Wisconsin Way Project. Michael Theo is Vice President of Legal and Public Affairs for the WRA. The Wisconsin Way project will host 12 public forums throughout the state this fall to solicit public opinion regarding the problems and proposed solutions for insuring both affordable property taxes and desireable public services. Additional details will be provided for each in the near future. All REALTORS® are encouraged to attend these forums and make your views known. La Crosse – Wednesday, October 10 Wausau – Monday, October 15 Eau Claire – Thursday, October 18 Appleton – Monday, October 22 Green Bay – Tuesday, October 30 Superior – Thursday, November 1 Oshkosh – Tuesday, November 6 Waukesha – Janesville Thursday, November 8 – Tuesday, November 13 Milwaukee – Tuesday, November 27 Kenosha – Tuesday, December 4 Madison – Thursday, December 6 23 Public Affairs Four Cases Important to REALTORS® O By Tom Larson ver the next nine months, the Wisconsin Supreme Court will hear several cases that are important to property owners and the real estate industry. These cases involve legal issues ranging from economic development to property tax records to the constitutionality of zoning ordinances. Because the Court’s decisions in these cases could have a direct impact on the state’s real estate industry, the Wisconsin REALTORS® Association has filed an amicus (“friend of the court”) brief in each of these cases. An amicus brief allows the WRA to communicate with the court on various issues without taking sides in the particular case. Economic Development Corporations Subject to Open Meetings/Records Laws In State v. Beaver Dam Area Development Corporation, the Wisconsin Supreme Court will decide whether the Beaver Dam Area Development Corporation (BDADC), a nonprofit corporation organized as a private entity to promote business development around the city of Beaver Dam, is a quasi-government entity that is subject to open meetings and records laws. The primary responsibility of EDCs is to attract private companies and new economic development opportunities to their respective communities. The communications between the EDC and private companies are often confidential so that competitors are not aware of the companies’ future plans. Like other economic development corporations (EDC), the BDADC is (a) comprised of a majority of private citizens (business owners, bankers, real estate professionals, etc.), with one or two local government officials serving as board members, but who have no voting authority on EDC matters; (b) funded primarily by the private sector; and (c) contract with both public and private entities to provide economic development services. 24 Wisconsin Real Estate Magazine, September 2007 Why This Case is Important – If EDCs are subject to the open meetings and open records laws, private companies would be reluctant to work with EDCs and may be less likely to locate in Wisconsin. This could have a devastating impact on jobs and our local economies. Applying Open Records Law to Property Assessment Records In WIREdata, Inc. v. Village of Sussex, et al, WIREdata, a wholly owned subsidiary of the Multiple Listing Service, Inc., requested property assessment records from several communities for purposes of sharing the information with members of the MLS. Independent contractors who maintained the files electronically in a computer database performed the assessments in each of these communities. The assessor denied WIREdata’s requests and indicated that WIREdata could (a) purchase the records for lump sum payment of $6,000 plus additional costs for each property identified and placed restrictions on WIREdata’s use of the data, or (b) receive the records in a PDF format. WIREdata sued the communities and their assessors claiming violations of Wisconsin’s open records law. Why This Case is Important – The ability to obtain public records and property-related data in a usable format from local units of government is important to REALTORS® and other members of the real estate industry, who provide consumers with information about the costs associated with owning real estate. Application of the Economic Loss Doctrine to Residential Real Estate In Below v. Norton, a buyer discovered after she moved into her home that the sewer line between her home and the street was broken. The seller had represented no plumbing defects on the real estate condition report. The buyer filed a lawsuit, alleging, among other things, that the news.wra.org Public Affairs seller had engaged in intentional misrepresentation, negligent misrepresentation, and misrepresentation in advertising. The trial court dismissed all the misrepresentation claims based upon the “economic loss doctrine,” which prohibits parties from receiving damages for misrepresentation claims unless such damages were specifically agreed to in the contract between the parties. Why This Case is Important – Application of the economic loss doctrine to residential offers to purchase would substantially limit the remedies available to most parties. This may lead to more parties misrepresenting defects, an increased need for inspections and testing, increased costs for homebuyers, and increased expectations for real estate brokers. Ripeness of Declaratory Judgment Actions In Walter Olson v. Town of Cottage Grove, the town of Cottage Grove enacted a zoning ordinance that establishes a communitywide transfer of development rights (TDR) program. The town conditioned its approval of Walter Olson’s subdivision plat upon the condition that Olson purchase and transfer 10 development rights to the town and county. This would require Olson to purchase 350 acres of farmland at a cost of approximately $750,000. Wisconsin Real Estate Magazine, September 2007 Olson filed a declaratory judgment action against the town, asking the court to invalidate the TDR ordinance on constitutional grounds. The circuit court ruled that Olson had not yet incurred any financial injury and, therefore, his case was not yet ripe for review. The court of appeals rejected the circuit court’s ruling, holding that a property owner can test the validity of an ordinance prior to incurring an injury. Why This Case is Important – If property owners do not have the ability to ask a court to determine whether an ordinance is legal or constitutional before submitting a formal development proposal to the community and having it formally rejected, property owners will be required to waste considerable time and money in preparing development proposals just to determine their rights under zoning ordinances and other land-use regulations. For more information on these or other cases, please contact Tom Larson ([email protected]) at (608) 212-0066. Tom Larson is Director of Regulatory and Legislative Affairs for the WRA. 25 Classifieds FRE E! 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"ECKY!LEXANDER 3/,$ Boulder Junction • Mercer • Minocqua Manitowish Waters • Area Referrals Jim Tait III Boulder Jct. 877-385-2077 &ULLTIME2EAL%STATE!DVISORS#ONSULTANTS 3PECIALIZINGIN s"UYER2EPRESENTATION Jim Tait Sr. 7ATERFRONT0ROPERTIES 6ACANT,AND s Minocqua 800-677-8248 s WWW2EAL%STATEBY2OBINCOM www.jimtaitrealestate .com 4ATEREALESTATE?INDD !- Public Affairs Kagen vs. Gard By jOE mURRAY I n one of the most expensive, bitter and highly competitive congressional races last November, political newcomer Steve Kagen (D) of Appleton defeated former Wisconsin Assembly Speaker John Gard (R) of Peshtigo in the open Northeast Wisconsin congressional district, which includes all or parts of 14 counties. end up a “top-tier” contest for both sides due to several political factors, including: In the November 2006 general election, Kagen defeated Gard 51 percent to 49 percent – a margin of 5,948 votes – to win the seat for Democrats. John Gard also raised a record amount in his 2006 campaign. However, Gard no longer holds public office and, having lost the first contest, he will likely find fundraising for a rematch with Kagen to be more difficult than in 2006. At this point it looks certain that former Speaker Gard is gearing up for another run against Kagen in 2008. The 8th District, which includes Green Bay and Appleton, leans toward the Republican side, but can be quite competitive. Tommy Thompson, Mark Neumann and George W. Bush carried this District by comfortable margins. And Mark Green, who represented the District from 1998 to 2006, carried the 8th District without breaking a sweat. Steve Kagen had the good fortune of running in a bad year for the GOP. But Kagen is now an incumbent member of Congress in the majority party. By the time voters head to the polls in 2008, the firstterm Democrat will have campaigned on his voting record that, we should assume, will include important votes on key issues that reflect the political leanings of the 8th District. Either way, this race will likely 28 • As the incumbent, Steve Kagen will be able to raise far more money in 2007 and 2008 than he did in his first race. In his 2006 campaign, Kagen largely self funded his own election. He finished June with $337,000 in his campaign account, and his fundraising operation is up and running for 2008. • Kagen’s incumbency will be running up against the electoral history of the 8th District. Including Kagen, the 8th District has elected a Democrat for Congress only six times, and only one of these winners (Robert J. Cornell, 1974-1978) served more than one term. This District has a habit of electing Republicans and Gard, running in a highly toxic political environment for Republicans in 2006, nearly won anyway. Kagen can win in 2008, but he will be swimming against historical currents. • Kagen had the good fortune of running against embattled President George W. Bush, a very unpopular war and a Republican Congress that was knee-deep in one scandal after another. This time Kagen will have to defend the work product of a Democrat-controlled Congress and his votes on numerous controversial issues. Kagen will have to run on his record, and Gard (or any other Republican challenger) will be sure to highlight those votes that seem contrary to the political leanings of the 8th District. Wisconsin Real Estate Magazine, September 2007 Gard will once again have to defend the votes he took on all kinds of issues over his long tenure in the state Assembly, and some Kagen insiders relish a rematch with the well defined political style of John Gard. • Wisconsin is a highly competitive state in presidential races, and the 8th District is a major battleground in both sides’ efforts to carry the state. Lots of money will be spent to identify and turn out voters in November 2008.A larger voter turnout could work more favorably for Gard this time around given the voting history of the District. Perhaps the best way to view this upcoming rematch was stated by Stuart Rothenberg, editor and publisher of the nonpartisan Rothenberg Political Report. “Until Gard officially gets in and we see the residual effects of the 2006 race, Kagen deserves to be favored. But it has the potential to develop into a top-tier contest, and a real Democratic headache.” Well said. Stay tuned. Joe Murray is Director of Political and Governmental Affairs for the WRA. news.wra.org N_XkdXb\jÔijk$k`d\_fd\Ylp\ij _Xggp_fd\fne\ij6 EF;fneGXpd\ek% For a limited time in select rural Wisconsin counties WHEDA® has grant assistance available for 50 WHEDA Home Loans to help cover down payment, closing costs, home buyer education, and counseling expenses. :XccN?<;8KF;8Pkfj\\`]pfliÔijk$k`d\_fd\Ylp\ihlXc`Ô\j]fik_`jgif^iXd N@J:FEJ@E?FLJ@E>8E;<:FEFD@:;<M<CFGD<EK8LK?FI@KP )'(N%NXj_`e^kfe8m\%®DX[`jfe#N@,*.'*®/''%**+%-/.*®nnn%n_\[X%Zfd