What Your Buyers and Sellers are Really Saying
Transcription
What Your Buyers and Sellers are Really Saying
BEST OF LEGAL HOTLINE GPS BUYING GUIDE Foreclosures, mortgage defaults and short sales. What’s the buzz and how much should you spend? May 2007 $5.00 What Your Buyers and Sellers are Really Saying From Online Business Models to Raised Expectations of REALTORS®, Consumers Speak About the Challenges Facing our Industry Follow The Leader. 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 May 2007 VOL. 23, NO. 8 ® A PUBLICATION OF THE WISCONSIN REALTORS ASSOCIATION From Online Business Models MAGAZINE™ to Raised Expectations of REALTORS®, Consumers Speak About the Challenges Facing Features our Industry What Your Buyers and Sellers are Really Saying 9 Consumer Tips for Finding a Good Mortgage 24 Supreme Court Races will Never be the Same Finding good mortgages clients can afford with no hidden fees or penalties can lead to happy homeownership. Learn how to make “smart shoppers” out of your clients by helping them wade through the myriad of information and resources available. Judge Annette Ziegler’s victory over Madison attorney Linda Clifford for a seat on the state Supreme Court was defined by personal charges and record spending on both sides. Get an in-depth look at the campaign trail and an analysis of what’s in store for Wisconsin and Annette Ziegler in this month’s political recap. Articles 12 19 NEWS.WRA.ORG REALTORS® are relying on the Internet as a transactional and marketing tool more than ever. Arising are questions and concerns about what is and what is not ethical. Now as we look to the National Association of REALTORS®, should we consider an “Internet” Code of Ethics or alternate approach to keeping the industry in check? 11 15 5 Marketing and the Internet Best of the Legal Hotline 20 2007 Designation Guide Now Available 21 Product Showcase 23 Foreclosures, mortgage defaults and short sales. Sound familiar? The month’s Legal Hotline investigates the changing financial climate of consumers and homeownership. Too many designations to remember? Grab a copy of the WRA’s Designation Guide and get plain English descriptions of these often confused acronyms. Streamline the exchange of critical real estate documents between you and your clients with electronic signatures from ZipForm. GPS Buying Guide What’s the buzz and how much should you spend? Prime your knowledge of GPS navigation and discover the latest bells and whistles in this month’s Technology Corner. Sales Tip Who’s got the balance of power? Many consumers are feeling the effects of a buyers market. Get details on the latest swing and fine tune your skills with an ABR designation. Pier Protection Bill More than just De Ja Vu! It’s back. Pier protection... Get the scoop on how current Wisconsin legislation is trying to protect existing piers from pending DNR regulations. 1 Inside the wra with Bill Malkasian A pril is when we do our strategic planning for the upcoming fiscal year. The process allows us to look at challenges of the future, what programs to offer, and where to allocate dollars in our budget. We’ve been doing strategic planning for years, but this year we decided to do something different. We included input from the staff and leadership of the Illinois, Minnesota and Wisconsin state and local associations, as well as selected brokers from those states. Bill Malkasian WRA President The goal of this year’s process was to break down commerce barriers between states and forge partnerships to further the Midwest regional economy. The group looked at three areas where our states can work together: licensing reciprocity, data sharing and legislative issues. Licensing Reciprocity • Developing a Midwest-level housing report, starting with Wisconsin, Illinois and Minnesota, that can be released to membership and the media periodically. This would track current market conditions and future market trends; • Creating a seminar series for market areas such as DuluthSuperior, Minneapolis-Wisconsin and Wisconsin-Illinois for participants from those states to learn the practices of professionals in both locations; • Examining all MLS rules and regulations for out-of-state access and usage. Legislative/policy issues And finally, the group discussed areas where our states can work together on legislative and policy issues. Some ideas include: Although some reciprocity already exists between states, there are areas where we can simplify the process. The committee came up with the following ideas: • Affordable housing • Identify areas where Wisconsin and Illinois, and Minnesota and Wisconsin can move closer in terms of licensing and continuing education; • Regional MLS development • Develop a Web site that outlines licensing in the various states and how to be eligible to work in the other neighboring states; • Tax policy • RESPA issues • Litigation environment • Developing strategies that support job formation • Offer courses that outline the licensing requirements of each jurisdiction and facilitate licensure in those jurisdictions; The next step is to present these findings to the WRA Board of Directors and determine a course of action for 2008. • Develop a working document that outlines the differences in state requirements to provide a guideline for multi-state licensure requirements. Turning to this month’s issue of Wisconsin Real Estate Magazine, look for a special feature and focus group recap of “What your homebuyers and sellers are really saying.” Facilitated by Sharon Chamberlain of Chamberlain Research, you’ll hear from focus group participants on their recent real estate transactions and gain insight on how the business climate is changing from a consumer perspective. Data Sharing Sharing data across state lines already occurs in some cases. For example, the MLS system in western Wisconsin serves both that area as well as eastern Minnesota. Other areas proposed for further investigation that may facilitate data sharing include: • Developing links that enable brokerage firms and MLSs to share each other’s listing databases; Last, you may have seen a new service from the WRA called REALTOR® Newswire, a weekly e-mail update on late breaking news in the real estate industry. We are glad to arm you with the latest market information as it becomes available from the WRA. As always, we appreciate your comments and feedback and wish you the best of luck gearing up for the summer selling season. Sincerely, 2 WISCONSIN REAL ESTATE MAGAZINE, MAY 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] Editorial Staff: William E. Malkasian Are You Paying Too Much for Your Phone Service? 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. Contact Us: 4801 Forest Run Rd., Suite 201 Madison, WI, 53704-7337 (608) 241-2047 • (800) 279-1972 legal hotline: (608) 242-2296 • (800) 799-4468 general fax: (608) 241-2901 products/education fax: (608) 241-5168 legal hotline fax: (608) 242-2279 president fax: (608) 242-2267 e-mail: [email protected] Web site: www.wra.org The Wisconsin REALTORS® Association endorses AMI Communications as a member benefit. This company is a full-service telecommunications company offering a long-distance plan for your company. AMI Communications’ long-distance service plan features the following discounted rates: Outbound and Inbound (800) Service Rates: Interstate (state-to-state) – $0.045/min Intrastate (in-state) – $0.045/min If you would like AMI to review your current service arrangement, contact them at (800) 254-3202 and ask for Brett McCullough, or e-mail your inquiries to him at [email protected]. Intralata (local toll) – $0.045/min Other features of this plan include: • No term or volume commitments involved. • No time-of-day restrictions. Rates are the same 24 hours a day, seven days a week. • No monthly plan fee. • Detailed easy-to-read billing statements • Calls are carried on the extensive, state-of the art network of a major carrier. • Teleconferencing solutions to voice and data circuits. • Service is available for your office and residence. with usage summaries and management reports. 3 WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 3 May 2007 R E A L T O R® NEWSWIRE Top News Stories in and Around the Industry “IRS Cracks Down on Real Estate Agent Classification” “Federal Home Loan Bank Sets Aside Millions for Wisconsin Affordable Housing” A growing number of licensed real estate agents and brokers are being audited by the Internal Revenue Service. Those who are unable to prove that they meet the definition of a real estate professional under the Internal Revenue Code (IRC) are classified as passive real estate investors and prohibited from deducting their job-related losses, including depreciation as well as office and travel expenses, in full. The IRC dictates that real estate professionals must be a material participant in real property trades or businesses, to which over 50 percent of their personal services or more than 750 hours must be tied. Appointment books, calendars and narrative statements can be used to prove material presentation, and daily time reports and logs may be helpful as well. The Federal Home Loan Bank of Chicago has agreed to allocate $27 million to fund affordable housing programs in Wisconsin and Illinois. Last year, the government-sponsored wholesale bank set aside $21 million for such initiatives. The Federal Home Loan of Chicago currently counts over 200 Wisconsin banks among its members. Inman News, Butters, Robert D.; Fayne, Adam “U.S. Foreclosure Activity Seen Rising 33 Pct” Reuters, Christie, Jim RealtyTrac Inc. predicts that rising subprime mortgage defaults will push foreclosures up 33 percent this year from 2006. During the year-over-year period ended in February, RealtyTrac reports a 12-percent surge in foreclosure filings nationwide to 130,786, or one per 884 households. Nevada led the nation in new foreclosures, which shot up 24 percent there to 3,124 last month--or one per 278 households--from January. Also in the top 10 were Colorado, Florida, Georgia, Michigan, Tennessee, Ohio, Texas, Arizona and Indiana. “Wi-Fi Worry: Laptops at Risk of Attack” Seattle Times, Abdollah, Tami Hackers are increasingly targeting laptop users who connect to the Internet via wireless connections in their homes or at Wi-Fi outlets located in cafes, hotels, and airports. These attacks can take one of several forms. An “evil twin” attack, for instance, entails hackers creating Wi-Fi access points using names such as “Free Airport Wireless” or Linksys or D-Link, two commercial brands of wireless routers. If the victim’s computer is set up to automatically connect to a wireless access point, it could connect to the fake access point, or “evil twin,” created by the hacker without the victim’s knowledge. The hacker could then get into the victim’s personal files, steal passwords, and/or plant a virus on the victim’s computer. A “man in the middle attack,” meanwhile, occurs when hackers route a victim’s Internet connection through a false access point to a legitimate wireless connection. This gives the hacker access to any information the unsuspecting victim enters, such as credit card information. Though this type of attack has been around for some time now, its use has increased in the past couple years because the necessary tools have become very easy to acquire, said Geoff Bickers, a special agent for the FBI’s Los Angeles cyber squad. “FEMA Re-Maps Wisconsin Flood Plains” WBAY-TV (Green Bay, WI) Alexander, Jeff The Federal Emergency Management Agency (FEMA) confirms that it is currently busy remapping the floodplain areas of Wisconsin’s 72 counties. Brown County appears to be one of the first jurisdictions targeted, with approximately 30,000 acres likely to be designated as floodplains. Because no new residential or commercial development is permitted in a floodplain, affected communities such as Bellevue and Humboldt on the upper reaches of Baird Creek have already begun hiring engineering firms to conduct more detailed research in hopes of convincing FEMA officials to ease some of the restrictions. Additionally, Brown County is urging homeowners in low-lying areas to find out if their property is now technically considered “floodplain.” Brown County Zoning Administrator Bill Bosiacki comments, “How that whole process is going to play out will all depend on FEMA and the meeting they’re going to have here in Brown County at some point, hopefully this year.” 4 4 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. Milwaukee Business Journal (WI) “Farm Credit System to Present Proposals to Congress” Ohio Farmer The Farm Credit System wants to expand its service to single-family, owner-occupied homes as a way to make competitive mortgages available to more rural families. Representatives from the Farm Credit System plan to present a proposal to Congress on Tuesday, with hopes of joining other USDA programs that are able to operate under the updated definition of rural--which is now an area with a population of up to 50,000 people. Currently, residents of towns with up to 2,500 people can only receive mortgages from the Farm Credit System. The proposal is part of a larger plan to improve access to capital for farmers, ranchers, and rural families. “Official: Rural Communities Face Many Challenges” Stevens Point Journal (Wis.) Gieseken, Carlos Wisconsin Department of Agriculture, Trade and Consumer Protection Secretary Rod Nilsestuen calculates that the state’s farmland is disappearing at about 30,000 acres a year. This would make Wisconsin the state with the most rapid loss of farmland in the entire Midwest region. Nilsestuen earlier this week gave a speech at the University of Wisconsin-Stevens Point during which he touched on the challenges rural communities in the state now face. He remarked, “I don’t think many of us want [Wisconsin] to look like [New] Jersey. The loss of land has had an impact economically and on its character as a place to live.” He also spoke of the huge potential of Wisconsin’s bio-economy. The state is among several leaders in the region in manufacturing alternative fuel sources such as ethanol and methane digesters on dairy farms, which can power up to 700 homes. “WHEDA Hands Out $100 Million in Housing Tax Credits” Milwaukee Business Journal (WI) The Wisconsin Housing and Economic Development Authority (WHEDA) reports that it is distributing more than $100 million in affordable housing tax credits for 37 projects statewide. These projects will add more than 1,300 affordable housing units in nearly two dozen villages and towns throughout Wisconsin. For the first time, a half-dozen Native American tribes will receive almost $19 million to build apartment complexes for low-income families living on tribal land. Meanwhile, two of those taking part in WHEDA’s mentor-protégé program--which teams an experienced developer with a minority developer on a tax-credit project--are set to receive $10 million in credits for housing projects on Milwaukee’s north side. WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 What Your Buyers and Sellers are Really Saying From Online Business Models to Raised Expectations of REALTORS®, Consumers Speak About the Challenges Facing our Industry BY THERESA O’ CONNOR A t the WRA’s Management Conference a unique program was offered to attendees – the opportunity to view and listen to a live focus group of 13 recent home buyers and sellers. The group represented a cross section of consumers from across the state who used different real estate business models to tackle their transaction. Sharon Chamberlain of Chamberlain Research in Madison facilitated the discussion, who asked the group about different business models they used, their expectations, how they used the Internet, and what additional “pay-for” services they would consider. The following are excerpts from the discussion. Moderator: The purpose of today is to explore your expectations when buying or selling a home – if some of you have done both, I’m anxious to hear your comments. First, let’s start with how many of you considered more than one real estate business model in purchasing or selling your home? Consumer 1: We had a house for sale that we listed with an online limited service broker, and then we switched to a fullservice REALTOR®. What Your Buyers and Sellers are Really Saying ... continued on page 6 5 I decided that if I was going to sell with a REALTOR® it was going to be through an agent whose name was out there in my neighborhood. What Your Buyers and Sellers are Really Saying ... continued from page 5 Moderator: Why did you switch? Consumer 1: Because our house was on the market for six months and we were already in our new home. Moderator: So did you pick her based on how many signs there were in the area? Consumer 3: Yes. Moderator: Then you were in a hurry? Moderator: You didn’t know her before? Consumer 1: Yes. Also, our old house was in Colgate and there was not a lot of drive-by traffic, and we were living out of the area and working full time. Consumer 3: No, never met her. Moderator: So you thought a REALTOR® would bring in traffic? Consumer 1: Yes, and the limited service model got to be too much with the showings and working full time. Consumer 2: We’ve sold three houses “for sale by owner”, but the last one we sold was kind of a unique situation. It was in Mequon, but in the country. There was not a lot of drive-by traffic. We needed a really good agent because it was going to take a certain kind of buyer that wanted to live out there (in Mequon) – and it worked out really great. It sold fast. I don’t think we would have gotten the same results if we had sold it ourselves. The real estate agent was someone we knew. I knew he did a lot of business in the area. He has the most exposure in Mequon – a name you see everywhere. Moderator: Anybody else consider different models? Consumer 4: We started out as a FSBO. We were looking for a new home and we had a vacant lot we were going to build on. Throughout the process we decided not to build on that lot, so we weren’t in any big hurry (to sell our house). We came across a spec home that we liked and we put in an offer and it was accepted. And so we had to get the ball rolling. I think that gave us about three or four months until move-in… so, we hired a REALTOR®. Moderator: How did you find that REALTOR®? Consumer 4: A friend of ours in the subdivision sold it for us. His name was plastered all over the subdivision. He knew the area well. Moderator: So that gave you some confidence that he could sell your home? Moderator: Do you pay attention to the real estate signs (with agent’s names on them)? If you see a lot of signs out there with one company, what does that say to you? Consumer 4: Yes. Consumer 3: That they know the market the best and they’ll be able to sell it the best and the fastest. Where I was in Wauwatosa, there were at least three agents whose names you saw constantly. I decided that if I was going to sell with a REALTOR® it was going to be through an agent whose name was out there in my neighborhood. I figured: one, she could bring the most clients to my house; and two, she knew the area so well that she could probably price it so it would sell fast. Consumer 5: I did. I was doing it on my own. I’m a widow. I was trying to get back to Milwaukee (from Anchorage), but I wasn’t in any hurry. I had my house up on FSBO but then I had to keep coming back here for health reasons and so I decided to go with a REALTOR®. One of my neighbors was with a firm and she came down and saw my sign and offered to help with open houses. It made a big impression that she would do that for free so WHEN I decided to go with a REALTOR®, I went with her. 6 WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 Moderator: Did anyone else have to struggle with choosing how to sell your home? NEWS.WRA.ORG I felt that since we were paying the full commission, our REALTOR® should handle everything – open houses, signage, communicating with us, and do the haggling back and forth so we wouldn’t have to get in the middle of it. Moderator: Ok, so she had proved herself ahead of time? Moderator: And how did you communicate – phone or e-mail? Consumer 5: Yes. And she lived in the neighborhood. I had quite a large house in the mountains overlooking Anchorage and it was in a neighborhood that people don’t drive through. You need contacts (interested prospects). Consumer 1: Both. Moderator: For those of you who used a real estate agent, what kind of services did you expect from him or her? Moderator: Talk to me a little about how you used the Internet in the process. Consumer 2: I felt that since we were paying the full commission, our REALTOR® should handle everything – open houses, signage, communicating with us, and do the haggling back and forth so we wouldn’t have to get in the middle of it. Consumer 3: We used a buyer’s agent to buy our house and we were in a time crunch. So we needed something really quick (because we sold our home). I used her because she could set up all the appointments for me rather than me trying to set them up myself. Moderator: So she made it go smoothly and handled all the details of getting in and out of the houses, so you just pretty much had to show up. Consumer 3: Right. Moderator: Who had a listing agent and what were your expectations? Consumer 1: My expectations were different for each part of the transaction. For example, for the vacant lot we have for sale, I rely on the agent. She keeps an eye on the other comparable lots in the area – whether they’ve sold, whether they’re dropping the price – and what she’s heard on the street. She also knows a lot of builders, which is important to me when you’re selling a vacant lot, because again, it’s those contacts you need. And the communication is really important to me. For me, it’s important that I know what’s going on in the neighborhood. I want to know what’s going on with my own house. I want to know what people said when they walked through it. That’s why my primary consideration is to sell it, but secondly to let me know what’s going on. WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 Moderator: How often? Consumer 1: We probably talked every other day. Consumer 4: I thought it was a nice timesaver because you put in your parameters, number of bedrooms, price, etc., and it spits out an entire list and you can eliminate the one’s that don’t interest you. I’d print them out and then let our REALTOR® know which ones we were interested in. Moderator: Anybody use the Internet a little differently? Consumer 2: I would look in the Sunday paper for the listings I was interested in. Then, I would go on the Internet to see the properties. You can’t really tell from the paper what the rooms look like – for example, the kitchen. One person’s version of the term “updated” is another person’s version of “needs a lot of work.” By going online, I could tell whether or not it was something I even wanted to see. Consumer 1: I didn’t use it to buy, but I used it to watch houses selling in my neighborhood. I’d put in what we were asking and I pictured myself as the buyer. If I’m going to spend “x” amount of dollars, what are my choices and how does my house look compared to the others listed. I also used it to see if (my neighbors) were dropping their prices. Moderator: If you recently put your house on the market or are looking for a new house right now, how many of you would use the same REALTOR® (as your previous transaction)? [Most focus group participants raised hands their hands.] What Your Buyers and Sellers are Really Saying ... continued on page 8 7 What Your Buyers and Sellers are Really Saying ... continued from page 7 Moderator: Ok, most of you. How many of you wouldn’t (use the same REALTOR®)? Consumer 6: Not for the commissions they get paid. Moderator: Do you think the commissions are too high? Consumer 6: I know they’re too high. Consumer 3: Yes, especially with the prices of houses these days. The average commission is five or six percent and now they’re talking about raising it to seven or eight. It just makes sense to put it out there as a FSBO if you’re not in a big hurry and see what happens. Consumer 2: We did about a million and a half (of business) with our agent in a matter of about two weeks and we never got a thank you, which is really terrible. The other time we used a real estate agent, she bought us a gift certificate. And it doesn’t need to be big, but when you spend that kind of money and you don’t get a “thank you, I appreciate your business,” I would NOT refer him to others. Moderator: What would you have expected? Consumer 2: Even just a handwritten note. He was always giving us information on people who came through the house, telling us what they liked, what they didn’t like, why they chose not to make an offer. That feedback is so important. Moderator: If you were going to sell your house, would you be willing to choose a REALTOR® who is not the cheapest, if he or she was going to give you additional services, and what would those services be? Consumer 8: It would depend on the services, but probably not. Consumer 6: Maybe some sort of incentive like, if they can sell it in the first week, they start with a higher commission, and the commission goes down the longer it takes to sell. Consumer 3: Perhaps having one of those staging agents that I’ve seen on TV. They come in and tell you how your house should look to sell it. Consumer 6: Especially when you see the checks that they’re getting! Consumer 2: There are a lot of agents out there. You pick the best one. Am I going to pay more for a good agent? Above and beyond the going rate? No. Consumer 7: (Buying a home) San Antonio was the best experience we had because they gave us a home warranty. Everyone who’s transferred down, we’ve referred to that REALTOR®, so he’s made his money many times over. Consumer 4: The one thing I would do – pair up with a cleaning service or get a discounted rate. The only thing I hear over and over from people is “if they’d clean my house.” Consumer 2: At least acknowledge the business. I don’t need to hear from them every six months, but just acknowledge the business. Moderator: Would the rest of you recommend a real estate agent to someone else? Consumer 4: Yes, I’m a sales rep, so I’m recommending him all day long. He was very professional the whole way through. I can’t say one thing bad about him. He met all our expectations. Moderator: Tell me a little more about that (about meeting expectations): Consumer 4: The open houses – the number he did. I didn’t expect an open house every week, but every time we expected an open house or expected something to happen, he just did it. The communication was always there. He was always giving us information on people who came through the house, telling us what they liked, what they didn’t like, why they chose not to make an offer. That feedback is so important. 8 WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 Consumer 5: Storage lockers for people who had too much furniture in their rooms. Items that need to be removed because a house shows better if there’s not too much clutter. Consumer 1: Inspection and other things can be at a reduced rate. Like a coupon book. Consumer 3: I’ll pay the higher commission for the faster sale. Consumer 6: (Have the) REALTOR® set up something with the appraiser and the inspector where you could get all of the services cheaper…. “come with me, and I’ve got a list of appraisers who will give you a 50% discount and an inspector who is going to give you a discount on these service” – a package deal. Theresa O’Connor is publication editor for Wisconsin Real Estate Magazine. Please note: The names of firms and individuals have been removed from this article to protect confidentiality. Focus Group responses are not necessarily the opinions of the WRA, but rather a record of how individuals responded to questions from the facilitator. NEWS.WRA.ORG Marketing & the Internet What are the Rules? BY KEVIN KING I t is no surprise that REALTORS® are relying on the Internet as a transactional and marketing tool more than ever. Arising are questions and concerns about what is ethical in many of these new activities. For example, over the past several years the National Association of REALTORS® Professional Standards Interpretations and Procedures Subcommittee considered whether a separate “Internet” Code of Ethics should be developed, or alternatively, whether the existing Code could be supplemented with Internet-specific Standards of Practice and other guidance. It is the current conclusion that a separate “Internet” Code would be potentially confusing and that appropriate guidance can be given within the framework of the existing Code of Ethics. The work has begun – as you can see from the changes made to the Code for 2007. One of the concerns raised is the agent Web site that appears to the consumer to be a separate company with little, if any, disclosure of the agent’s affiliation with the brokerage firm. As a result, new Standard of Practice 12-9 states, “REALTOR® firm websites shall disclose the firm’s name and state(s) of licensure in a reasonable and readily identifiable manner. Websites of REALTORS® and non-member licensees affiliated with a REALTOR® firm shall disclose the firm’s name and that REALTOR®’s or non-member licensee’s state(s) of licensure in a reasonable and readily apparent manner.” Internet Marketing ... continued on page 10 WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 9 Many who operate a weblog do not consider it advertising Internet Marketing ... continued from page 9 Another concern deals with the capture and use of consumers’ personal information when visiting REALTORS®’ Internet sites. New Standard of Practice 12-11 provides, “REALTORS® intending to share or sell consumer information gathered via the Internet shall disclose that possibility in a reasonable and readily apparent manner.” An important note of caution: would any of the consumer’s information collected via the Internet be considered “confidential”? If so, even with a disclosure of intent to share or sell information, any information that a reasonable person would expect to be confidential cannot be shared or sold absent the specific consent of the consumer. And there are more questions and concerns. We know that Article 12 requires REALTORS® to present a true picture in their advertising and representations to the public and to ensure that their professional status or status as a REALTOR® is clearly identifiable in such advertising. But what if the communication is not advertising? Estate Company. On his blog, he provides general information about the home buying or home selling process. Visitors to his blog can request additional information by providing contact information. If all that he is doing is providing information, does Article 12 apply? Is this advertising? Let’s say Kevin goes a bit further. In addition to information about home buying and home selling, he conducts “surveys” or provides an opportunity for visitors to exchange information. Currently on his blog he asks about the new listing at 123 Elm Street – has anyone seen it? What do they think of the kitchen remodel? Did they like the landscaping in the backyard? 123 Elm Street is not Kevin’s listing. Does that make any difference? What if some of the comments are subjectively negative? Someone doesn’t like the paint scheme and totally trashes the property. Is this advertising or just providing people a chance to give their opinions? Is there any obligation to respond to negative comments? As we are all experiencing, the market is changing – and new tactics are being created every day to address these changes In recent years, REALTORS® have made increased use of electronic newsletters and weblogs as part of their arsenal of marketing techniques. Now, most people would agree that electronic newsletters fit under “advertising.” Generally, advertising is considered to be the promotion of goods, services, companies and ideas by an identified sponsor. Advertising can be part of an overall promotional strategy that could include public relations, personal selling and sales promotion. Weblogs (blogs) have created a whole new concern. Many who operate a weblog do not consider it advertising. For instance, Kevin is a REALTOR® working for the ABC Real Estate Company as an agent. He has created “Kevin’s Blog” on the Internet. There is no identification of Kevin as a REALTOR® or even as a real estate licensee, and no indication that he is affiliated with the ABC Real What if Kevin’s survey asks visitors to rate area REALTORS®? What if information that was provided by other persons was defamatory and untrue? Does Kevin have any responsibility for this information? Can he defend himself by saying it’s not his words? Does this activity constitute advertising? As we are all experiencing, the market is changing – and new tactics are being created every day to address these changes, including very similar activities to those described above. In some instances, we may not yet have the defined rules or guidelines as to what constitutes professional and ethical behavior. For now, a safe harbor appears to be to present a true picture always (even if the “picture” is not yours) and disclose who you are, even if it is not “advertising.” In the end, the consumer will undoubtedly appreciate your honesty. Kevin King is general counsel for the WRA. It is the current conclusion that a separate “Internet” Code would be potentially confusing and that appropriate guidance can be given within the framework of the existing Code of Ethics 10 WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 NEWS.WRA.ORG Mortgage Mending How Can You Help Consumers? BY DEBBI CONRAD A n explosion over the past few years in adjustable rate mortgages (ARMS) and interest-only mortgages has recently led to a growing number of foreclosures and borrowers at risk. This phenomenon often corresponds to an upward adjustment in the interest rate or the payment amount that the borrower is not equipped to handle. Some borrowers are lucky enough to refinance, but if the home is no longer worth the purchase price, those homeowners often tumble into foreclosure. Lenders and regulators have reacted: Lending standards are tightening, which may make it difficult for many potential home buyers to find financing and for borrowers at risk to find refinancing. Loans with no or minimal down payments and small monthly payments up front -- many of which were granted with minimal to no documentation of income or assets in the past few years – are becoming rare. Home buyers with damaged or thin credit histories may have to postpone their plans until they can save money for a down payment and build better credit. Facing Foreclosure If approached by a consumer in trouble with his or her mortgage loan, urge them to immediately contact their lender’s loss mitigation department or seek a qualified credit counselor or attorney to assist. Many lenders will refinance or try to work out some other solution if the consumer’s financial situation is salvageable. Warn consumers about offers to “save” homeowners who are at risk of defaulting on loans or whose houses are already in foreclosure. Perpetrators mislead the homeowners into believing that they can save their homes in exchange for a quitclaim deed and up-front fees. The FBI warns that these companies profit from these schemes by re-mortgaging the property or pocketing fees paid by the homeowner without preventing the foreclosure. The victim loses the property and the up-front fees. Refinancing Rules Changing Loan officers taking applications will now demand income and asset verifications and proof, not always the case over the past few years. Without evidence of real income, some borrowers will be unable to refinance. If they can’t resell, they may lose the fight and succumb to foreclosure. National Association of REALTORS® President Pat Vredevoogd Combs has strongly urged the Department of Housing and Urban Development to change Federal Housing Administration (FHA) rules and waive the existing requirement that a homeowner’s mortgage be “current” in order to refinance into an FHA loan product. This would permit a significant subset of borrowers behind in their payments and facing the prospect of foreclosure to safely refinance into an FHA mortgage. How Can REALTORS® Protect New Buyers from Bad Mortgages? for financial and legal assistance and by providing information – like the “Consumer Tips for Finding a Good Mortgage” on page 10. Buyers who are educated about the basics of consumer credit, mortgage loans and homeownership are less likely to be tricked by unscrupulous lenders. Make sure they know there are alternative lenders and mortgages if they shop around. • Help buyers find out how to obtain their credit score and a copy of their credit report. For information about obtaining credit reports and credit scores, see the Mortgage Loan Assistance REALTOR® Resource page or the Fair Isaac site at www.myfico.com. • Insist that buyers be pre-qualified before they hunt for homes so that they know what they can afford and do not overextend themselves. • Encourage first-time home buyers and home buyers with no credit history or a marginal credit standing to attend credit counseling or home buyer counseling classes. Lists of counseling services appear in the Consumer Resources section of the WRA Mortgage Loan Assistance REALTOR® Resource page at www.wra.org/mortgages. • Use the Mortgage Loan Consumer Handout and the Predatory Lending Consumer Handout that appear in the Consumer Resources section of the WRA Mortgage Loan Assistance REALTOR® Resource page at www.wra.org/mortgages. REALTORS® can copy these pages back-to-back on one sheet of paper and distribute them to the buyers they work with. REALTORS® can try to protect their clients and customers from risky loans and assist those in jeopardy with their current loans by guiding them to the proper counselors WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 11 Best of Legal Hotline Sellers with Financial Hardships Foreclosures and short sales Timing of Sheriff’s Sale BY TRACY RUCKA A buyer’s agent wrote an offer for a buyer. After the offer was accepted, they found out that the home is going to a sheriff’s sale due to a bank foreclosure. The sheriff’s sale and judicial confirmation are scheduled to occur before the closing date on the offer to purchase. What can be done for the buyer? The buyer and seller may renegotiate the closing date on the offer to purchase to complete the transaction before the sheriff’s sale and confirmation. If this is not possible, the buyer may wish to consult an attorney. The buyer may consider purchasing the property at the sheriff’s sale. Alternatively, if the lender is the high bidder at the sheriff’s sale, the buyer may later attempt to purchase the property from the lender. As a buyer’s agent, the agent may help the buyer negotiate with the lender. This situation might have been avoided with timely disclosures. A seller cannot close a transaction after judicial confirmation of the sheriff’s sale because the seller no longer has title. The listing broker (if there is one) should have disclosed that the transaction outlined in the offer could not close before judicial confirmation of the sheriff’s sale, making the transaction, as negotiated, futile. Licensees are required to disclose material adverse facts, which includes “information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a contract or agreement made concerning the transaction.” Lender Approval A listing broker has a property that is on the verge of foreclosure, but the bank may consider a short sale. The bank is requiring the seller to get its approval for a 12 WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 short sale. A number of offers have been received, but the bank has not approved any of them yet. Can the seller accept an offer before the bank approves? The fact that the bank is willing to consider a short sale may forestall the commencement of the foreclosure action, but it will also limit the terms and conditions under which the seller may accept any offer. If the bank will not give prior approval before the acceptance of an offer, the offer may need to be drafted with a lender approval contingency. The seller may be referred to legal counsel for advice on the most appropriate way to respond to offers and to obtain a lender approval contingency appropriate for the transaction. The seller is in default on the mortgage for a home the broker has listed. The bank is asking the seller for a deed in lieu of foreclosure and has also agreed to do a short sale. There are two offers, and the bank has told the sellers to do nothing because the bank wants to counter both offers. The seller authorized the broker to talk to the bank. The title is still in the seller’s name, not the bank’s name, so who should sign the counter offers? Although the seller may need to negotiate with the bank to get approval for a short sale, the bank is not a party to the transaction. As long as the seller holds title, the seller is the party with the authority to counter the offer. The bank may, however, recommend the terms and conditions that would meet with their approval. The seller may then direct the listing broker regarding the provisions and language that should be included in the counter-offer. If the seller elects to provide the bank with a deed in lieu of foreclosure, then the bank becomes the owner. NEWS.WRA.ORG In such a case, the listing broker would have to enter into a new listing contract in order to continue to provide brokerage services for the property. Although a licensee may attempt to assist in negotiations regarding the short sale between the seller and bank, this activity is arguably outside the scope of real estate brokerage services. Regarding the deed in lieu of foreclosure, the broker may not provide legal advice to the seller regarding his rights and obligations to the bank and whether electing to accept the deed in lieu of foreclosure is in the seller’s best interest. See Legal Update 07.01, “Avoiding Foreclosure,” online at www.wra.org/LU0701 for more information about the seller’s options when there is a pending foreclosure. Listings Can a broker enter into a listing with a seller if the seller is in foreclosure? Yes, the property may be listed. However, the seller and the broker may need to work with the lender, the seller’s attorney and potential buyers to create strategies to complete the transaction prior to the completion of the foreclosure action. A prudent broker will begin by asking the seller about the status of the foreclosure, whether the seller has attempted to negotiate with the lender and if they have consulted with a financial advisor. The broker may also order a search and hold from the title company to obtain more information regarding what other liens may be on the property and the seller’s ability to complete the transaction. See Legal Update 04.02, “Listing Procedures for the Prudent Broker,” online at www.wra.org/LU0402. WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 Timing of Disclosures If a broker enters into a listing where there is a pending foreclosure, a possible short sale or the possibility of bankruptcy, does that have to be disclosed to all potential buyers? Whether the possibility of a short sale, foreclosure or bankruptcy needs to be disclosed as an adverse material fact is a judgment that only the broker can make after considering all of the facts and circumstances in the transaction. For example, the fact of a short sale itself may not require disclosure if the transaction is going to come together and close. On the other hand, a short sale may need to be disclosed if it appears that the seller will not be able to complete the transaction. A foreclosure may not need to be disclosed if the buyer can close before judicial confirmation of the sheriff’s sale. A bankruptcy may cause the property to come under the control of the bankruptcy trustee. Although disclosure may not need to be made initially based on the information available at the commencement of the transaction, facts and circumstances may change, resulting in the obligation of the broker to make timely written disclosures. If the listing broker knows that the seller is not able to or does not intend to meet his or her obligations under the contract, then the short sale constitutes an adverse fact that must be promptly disclosed to the parties in writing. Alternatively, Wis. Admin. Code § RL 24.07(3) states that a broker is practicing competently if he or she promptly discloses the information suggesting the possibility of a short sale, in writing, to all parties, recommends that the parties obtain expert assistance to investigate or evaluate the situation and, if directed by the parties, drafts appropriate contingencies. 13 Consumer Tips for Finding a Good Mortgage F inding a good mortgage that you can afford and that has no hidden fees or penalties leads to a happy homeownership experience without the fear of foreclosure lurking around the corner. Be A SMART Consumer! If you need assistance or don’t understand something, ask a credit counselor, a home buying counselor, an attorney or your REALTOR®. Your REALTOR® cannot give you legal or financial advice, but he or she can help you obtain the information or the assistance that you need. Information about credit, mortgages and home buying, including articles to read and interactive Internet lessons, are available on the WRA Web site at www.wra.org/mortgages. Knowledge gives you power! Manage your money wisely A borrower’s credit history is his or her responsibility. Review your income and expenses, monitor your credit report and borrow within your budget. Remember there are more costs associated with buying a house than just the mortgage cost. Find out your credit score FICO scores (the most commonly used system) range from 300-850. The higher the score, the lower your interest rate and monthly payments will be on a mortgage loan. Scores over 700 or 720 are very good and mean you qualify for the best interest rates, while scores below 620 or 600 are considered high risk, leading to much higher interest rates or rejection of your application. Low scores can be improved by paying bills on time and keeping credit card and other debt balances low. 14 Shop around for the best loan available Talk to several lenders to find the best loan for which you can qualify. Compare the APR (annual percentage rate) and other fees charged. If a lender says that they are your only chance of getting a loan or owning your own home, keep on looking. Tell the truth Don’t inflate your earnings or falsify other information to qualify for a loan -- you can end up with payments you cannot afford to make. A mortgage professional who falsely alters information to qualify you for a loan is committing fraud. Borrowers should never sign documents that they know to be false – that too is fraudulent. Say NO to “easy money” If someone claims, “Guaranteed Approval” or “No Income Verification,” regardless of employment, credit or assets, they are not telling the whole story about other fees and loan terms and don’t care whether the consumer can afford to make the payments. Beware of “No Money Down” loans, which may be a scheme to entice consumers to purchase property that they likely cannot afford or are not qualified to buy. Understanding Loan Terms Borrowers should compare loan terms from different lenders to evaluate what is affordable and the best loan. Know the loan application fee Is it refundable? Know the annual percentage rate (APR) This is the cost of your credit, stated as a yearly rate. WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 Know the finance charge The finance charge is the cost of the credit, stated as a dollar amount. Know the amount financed This is the dollar amount of the loan or credit that is provided by the lender. Is the interest rate fixed or adjustable? Some adjustable rate mortgages start out with very low “teaser” rates and steeply rise after two or three years. Know if you are paying “points” “Points” are prepaid finance charges to obtain a secured real estate loan and are not refundable. Know the total number and exact dollar amount of each payment Do monthly payments include property taxes and insurance? Does the payment amount change? Also consider any “balloon payments,” which occur when the scheduled payments do not pay off the amount financed. Are there prepayment penalties? Prepayment penalties should be a choice, not a requirement. Know the payment due date This is the date the payment must be received by the lender. Know about collateral Collateral is property that is used to secure a loan. If you default on the loan, the lender may take your collateral. In a real estate loan your home is your collateral. Ask about additional fees Ask what other fees are involved and question any items you didn’t ask for. Beware of inflated fees! Review every fee and compare different lenders to ensure the most competitive loan terms. NEWS.WRA.ORG adison, 2007 Designation Guide Available! A ABR CRS ABRM e-PRO ALC N 200NS7IN REALTORS ASSOCIATIO atioidne n g i s e d gu ® GAA AMO GRI WISCO ARM CBR MAI C-CREC PMN CCIM RAA CIPS REPA CLHMS RRS CPM SIOR SRA SRES re you searching for a single source on designation information? Search no more. To cut through the confusion of the various designations, the Wisconsin REALTORS® Association has put together the Designation Guide. This handy guide is perfect for new and experienced REALTORS® seeking additional information on: ABR, ABRM, ALC, AMO, ARM, CBR, CCIM, C-CREC, CIPS, CLHMS, CPM, CRB, CRE, CRP, CRS, e-PRO, GAA, GRI, MAI, PMN, RAA, REPA, RRS, SIOR, SRA and SRES. What sets the WRA Designation Guide apart from similar titles is that it lists all of the information you need when making a decision about pursuing a designation. This includes not only the general educational requirements and whether or not an exam is required, but also the estimated cost of courses, the availability of continuing education credit, application fees and annual membership dues to maintain a designation, and more. CRB Learn the benefits a designation has to offer and what the requirements are to attain it. Order your copy today! Cost of the Guide is $7.00 (includes shipping and tax). An order form is available to print out at www.wra.org/deshandbk, which you can fax to (608) 241-5168, or mail to 4801 Forest Run Road, Suite 200, Madison, WI, 53704. CRE CRP 79.1972 800.2 4 ph: WI 5370 Wisconsin Restaurant Association Gift Certificates of Wisconsin COMMISSION ADVANCES the Perfect client Gift � Dine out at thousands of participating member � � � � 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! restaurants throughout Wisconsin. Easy to use! Available in any denomination from $10 to $75. Discounts for large orders. Add your logo to each certificate FREE! 262-798-3820 Order Today! Affiliate Member: NAR, WRA and Greater Milwaukee Association of REALTORS® Official Registered Supplier for Realty Executives International 800.589.3211 or www.wirestaurant.org WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 www.ce-wisc.com 15 Education Education Education & & Products Products Two-day Buyer Agency Course 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 August 15-16, 2007 in Madison and September 23-24, 2007 in Wisconsin Dells. 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 and register today. Do you need an elective course to complete your ABR designation? Check out one of the following classes: SRES - Seniors Real Estate Specialist August 9-10, 2007– Madison or, September 23-24, 2007 – Wisconsin Dells Visit: www.wra.org/SREScourses Innovative Marketing Techniques for Buyer’s Representative August 17, 2007 – Madison Visit: www.wra.org/ABRcourses E-buyer course September 23, 2007 – Wisconsin Dells Visit: www.wra.org/ABRcourses The SRES class will be offered August 9-10, 2007 in Madison The Seniors Real Estate Specialist designation, now recognized by NAR, is the only designation and marketing program specially designed to serve senior property owners. SRES designees demonstrate requisite knowledge and expertise to counsel senior clients through the major financial and lifestyle transitions involved in relocating, refinancing, or selling a house. Just announced: the SRES course qualifies as an ABR Elective. This two-day SRES course will be offered August 9-10, 2007, in Madison, and on September 23-24, 2007 in Wisconsin Dells. Visit: www.wra.org/SREScourses Procedures for the Unusual Residential Appraisal Assignment This four-hour course was developed for the experienced residential appraiser who wishes to gain insight into the nuances of valuing unusual residential properties. It is based on the use of case studies developed to illustrate the unique challenges that can arise from these residential assignments. Economics of Residential Finance This four and a half hour course outlines the basics of the mortgage lending and brokerage industries and how they provide the background of residential valuation. Fee per course: Appraisal Section Member - $60; WRA Member - $65; and Nonmember - $70 You can also complete some of your Appraisal CE through the WRA’s Distance Learning Program. For more information visit: www.wra.org/APCEDistanceLearn 16 WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 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 offered August 6 through 10, 2007. 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 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 you GRI designation. GRI Course 2 covers environmental issues, personal promotion, business ethics, PDAs and digital cameras, creating a Web presence, Internet marketing, tying technology together, selling new homes and Listing strategies for the Residential Specialist from the CRS curriculum. GRI Course 2 will be offered during convention at the Kalahari Resort & Convention Center, Wisconsin Dells, September 22-25, 2007. Visit www.wra.org/GRIcourses. CRS 206 Technologies to Advance Your Business Technologies to Advance your Business demonstrates the latest tools and systems that enable sales associates to become more productive, increase their profits and differentiate themselves in the marketplace. Topics include: taking e-mail to the next level for various marketing campaigns, learning new ways to use digital imaging, examining a variety of virtual tours and their marketing applications, understanding the power of PDAs and other handheld computing technologies and much more. Course Content: • Using a contact manager • Creating printed and multimedia presentations • Online services, e-mail and the Internet • Improving time management This course is being co-sponsored by the Wisconsin CRS Chapter and the Wisconsin REALTORS® Association on August 2-3, 2007 in Wisconsin Dells. Members will receive a $20 discount. Visit: www.wra.org/CRS206 NEWS.WRA.ORG Sales Pre-license – Madison 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 May 7-10; 14-17, 2007 and July 16-19; 23-26, 2007 both 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 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. This course will be offered on June 4-7, 2007 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. Visit: www.wra.org/BrokerPL QuickStart As you start to recruit, don’t forget to send your new agents to the four-day QuickStart program (offered in two two-day sessions). The QuickStart program assists agents in learning the business of real estate. The program begins with building relationships with buyers and sellers including prospecting, pricing properties, responding to concerns and making presentations to buyers and sellers. The course includes contract issues, agency relationships and negotiating strategies. The QuickStart program also discusses various methods of communication, goal setting, time management and incorporating technology into a real estate agent’s business plan. The program is designed to help agents become confident in their practice as well as focused on their personal business plan. Modules 3 and 4 will be held on May 23-24, 2007. Modules 1 and 2 will be offered on June 13-14, 2007, and Modules 3 and 4 will be offered again on July 12-13, 2007 at the WRA. 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, which makes the cost of this course is only $200 - a fantastic price for four days of instruction for your new agents. Visit: www.wra.org/QuickStart Don’t Just Sell… Exchange Capital gains tax on the sale of business or investment real estate can be deferred with a 1031 exchange. Depend on Patrick and the LandAmerica family of companies including PATRICK HARRIGAN, ESQ. VICE PRESIDENT Commonwealth and Lawyers Title for all your 1031 exchange questions. Phone: 651.223.9598 Email: [email protected] www.1031landam.com ©2007 LandAmerica is a registered trademark of LandAmerica Financial Group Inc. WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 17 Casino RoyaLe Costume judging for: Best Bond Girl, Best James Bond, Best Bond Villain, Best 007 Group. Icebreaker Party Join us for casino night with music, entertainment and prizes! September 23, 2007 WRA Convention Must be registered for convention to attend. Register at: w ww. wra. org / c o nv en t i o n 0 7 Would you like to contribute to a Casino Night prize? Contact Kitty Kuhl at [email protected] or Debbie Thacker at [email protected] for more information. Winners do not need to be present to win, however, unclaimed prizes will be used as giveaways at the General Session on the second day. Sales & Marketing Management Date Course (Co-sponsored With the WI CRS Chapter) May 23-24, 2007 June 13-14, 2007 July 12-13, 2007 August 2-3, 2007 QuickStart Module 3 & 4 Madison QuickStart Module 1 & 2 Madison QuickStart Module 3 & 4 Madison CRS206-Technologies to WI Dells Advance your Business 2-day SRES Madison 2-day ABR Madison 1-day elective-Innovative Madison Marketing Techniques for Buyer’s Representative August 9-10, 2007 August 15-16, 2007 August 17, 2007 Location $ Early Reg. $ Regular Reg. $ ATD 240 (1) 240 (1) 240 (1) 285*** 240(1) 240(1) 240(1) 295*** 270 270 270 315*** 375 260 130 385 270 140 405 290 160 144 154 184 Appraisal CE Appraisal continuing education modules available on VHS and DVD September 25, 2007 USPAP Real Estate Continuing Education WI Dells Date Course Location Time May 10, 2007 May 10, 2007 May 16, 2007 May 23, 2007 May 24, 2007 May 24, 2007 June 28, 2007 2007-08 CE 3 & 4A 2007-08 CE 3 & 4A 2007-08 CE 1 & 2 2007-08 CE 3 & 4A 2007-08 CE 3 2007-08 CE4A 2007-08 CE 2 Friendship La Crosse Cedarburg Cedarburg Racine Janesville Racine 8:30 – 4:30 8:30 – 3:45 8:30 – 4:30 8:30 – 4:30 1:00 – 4:30 8:30 – 12:00 1:00 – 4:30 Register # 920-787-4611, ext. 150 608-785-7744 262-375-4730/262-338-8114 262-375-4730/262-338-8114 262-554-3940 608-755-4854 262-554-3940 Pre-license *Plus books 18 May 7-10; 14-17, 2007 Sales Pre-license Madison 8:00 – 5:00 p.m. 325* 325* 335* June 4-7, 2007 Broker Pre-license Madison 8:00 – 5:00 p.m. 255* 255* 265* July 16-19, 23-26, 2007 Sales Pre-license Madison 8:00 – 5:00 p.m. 325* 325* 335* August 13-16; 20-23, 2007 Sales Pre-license Milwaukee 8:00 – 5:00 p.m. 325* 325* 335* September 10-13, 2007 Broker Pre-license Milwaukee 8:00 – 5:00 p.m. 255* 255* 265* *** Members of the Wisconsin CRS WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 www.wra.org/CourseSchedule NEWS.WRA.ORG Product Showcase Electronic Signatures New Version of ZipForm Automates Electronic Signatures & Exchange of Critical Documents A s consumers become more tech savvy, naturally they expect agents to keep pace. For these consumers, sharing documents via mail or fax is antiquated. They expect documents to be e-mailed to them for review and signatures. Sending documents via traditional e-mail software or ZipForm’s e-mail feature for review and signature is easy, as long as the proper disclosures are included. Agents and brokers need to make federal e-commerce disclosures, including procedures for consent to use electronic documents and signatures, the process for withdrawal of such consent, system requirements and changes in contact information, visit www.wra.org/ecommerce. This requirement adds a layer of complexity to the process. Another option, ZipForm’s electronic signatures, simplifies the process by providing e-mail functionality and the required disclosures in one package. The feature is available for a fee and works with both versions of ZipForm, Online and Desktop. How do ZipForm’s electronic signatures work? This process is similar to sending paper copies, just much quicker. When a document is ready for delivery, you simply select File > Electronic Signatures to print to a “document envelope” that was automatically added to your list of printers during account setup. A series of screens will prompt you for the party’s e-mail address, level of security desired, any additional non-ZipForm documents to upload and where to place “sign here” sticky tabs. When an agent sends an envelope, the party receives an e-mail to authenticate, review and sign the documents using a unique “Electronic Signature Stamp” created by the software. Prior to being able to do so, however, the party must agree to the use of electronic documents and signatures, as well as receive the required disclosures of the federal e-commerce law. What do customers need? Customers need only an e-mail account and Web browser access. What is the cost? Several subscription plans are available for purchase. Plans start at $12.95 per month, which includes 60 signer pages and 120 CC pages. Signer pages are documents you send to people for signature. For example, the WB1 Residential Listing Contract, which is four pages, counts as four signer pages. CC pages are copies sent to other people involved in the process. Once a document is signed, the people copied in the process receive an e-mail message with a link to the completed document. How do I set up an account? An “electronic signatures” icon exists in both versions of ZipForm. When selected, users create an account and then download a small WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 application to their system. Once an account is established, a printer named “Send in Docusign Envelope” is added to your list of available printers. No other software is needed. Are there other benefits to ZipForm’s electronic signatures? Yes. ZipForm’s electronic signature feature provides an electronic record of a transaction thus eliminating the need to scan documents for storage. The program also ensures accuracy in the signing process by eliminating missed signatures. And finally, agents and other parties need no special software or training. For more information on including screen snapshots of visit www.zipform.com/signit. ZipForm’s Electronic sending and signing Signatures, documents, 19 Garmin’s pricey Nuvi 360 offers a wealth of features, including a hands-free speakerphone for use with Bluetooth phones. Technology Corner GPS Buying Guide W hen it comes to finding your way from point A to point B (make that property A to property B), nothing beats a GPS navigation system. It’s a fairly no-frills GPS, but it provides all the essentials. Maps for all of North America come preloaded on a memory card, so the Voya’s ready to roll right out of the box. You don’t get much in the way of documentation, but using the Voya isn’t difficult. These devices provide real-time driving directions, showing your position on a moving map and prompting you when it’s time to turn. The Garmin Nuvi 360 (www.garmin.com) is at the opposite end of the pricing scale: $749.99 list. You can save hundreds by shopping online (many vendors sell it for under $500), but it’s still the most expensive model in the group. BY RICK BROIDA I recently had the chance to review four different models, with prices ranging from $300 to $750. Here’s the good news: You don’t need to spend a fortune to get a wellrounded, reliable navigation system. What’s more, all of these models are designed to be portable, meaning you can easily move them from one car to another. To me that’s a smarter move than spending $2,000 on a built-in GPS that’s hardwired into the dashboard. They’re all compact enough to fit in a pocket. And they’re all equipped with touchscreens, meaning you no longer have to fiddle with complex, button-driven interfaces; entering an address is as simple as tapping out letters and numbers on an onscreen keyboard. Another improvement: They all come preloaded with map data, so they’re ready to roll right out of the box. You don’t have to go through the hassle of installing software on your PC and copying maps to the GPS. In my tests, most of the GPS units were able to establish a satellite fix within a minute of powering up (older models usually took 3-5 minutes), and all four maintained their lock even after I’d pulled the car into the garage. So, let’s get to the receivers themselves. The bargain to beat is the Averatec Voya 320 (www.averatec.com), which sells for $299. 20 A handful of advanced features help justify the price. For instance, the Nuvi offers text-to-speech, meaning it pronounces street names. Even better, it doubles as a Bluetooth speakerphone: Pair it with your Bluetooth-equipped cell phone and you can make and receive hands-free calls. It’ll even absorb the address book from your phone so you don’t have to manually enter names and numbers. Love it. No doubt about it, the Nuvi 360 is one of the most full-featured GPS receivers on the market, and also one of the easiest to use. The same can’t be said of the $650 Mio C710 (www.miogps.com). Although it matches almost all the Nuvi’s features (including the Bluetooth speakerphone), I found the user interface awkward and the navigation inconsistent. Finally, there’s the TomTom One (www.tomtom.com), which rivals the Nuvi in simplicity but has a more limited feature set. Its price was recently lowered to a very compelling $299. Although it does support Bluetooth connections, for instance, it doesn’t have a speakerphone function. Instead, it links to your cell phone to fetch traffic updates. You can also download new voices to take the place of the standard female voice. How cool would it be to have John Cleese or Mr. T tell you when to turn? Well, you can. My only real complaint with the TomTom One is that nearly one-fourth of the navigation screen is occupied by non-map data, like arrival time and distance to next turn. Other receivers show you more of the map, which is important given the relatively small screen. One last piece of advice: Please don’t interact with your GPS while driving. The devices take your eyes off the road enough as it is. Be safe and let a passenger fiddle with the settings, or at least wait until you’re at a stoplight. 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. Its ace in the hole is an included FM antenna that pulls in live traffic data and automatically routes you around congested areas. The Nuvi can do that, too, but you have to buy a $160 accessory. Even so, I can’t really recommend the Mio. A GPS receiver is only as good as its navigation capabilities, and this one comes up short. WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 With a price of just $299, the Averatec Voya 320 offers affordable GPS navigation. NEWS.WRA.ORG tip sales WALLY’S WISDOM IT’S THE BUYERS TURN!!! MARCUS A. WALLY Marcus A. Wally, MBA, GRI, CIPS, AHWD, RSPS, TRC, is an active Florida REALTOR® in St. Augustine, Florida – “OUR NATION’S OLDEST CITY.” Marcus is the founder and broker of NEW WORLD REALTY, which manages coaching and facilitation of education classes around the world. He has an MBA from the University of North Florida in Jacksonville. Marcus entered the real estate profession in 1991. He is a NAR faculty member for the Certified International Property Specialist (CIPS) program, and is a member of the AT HOME WITH DIVERSITY faculty. Marcus can be reached at 904-669-1081 or by e-mail at [email protected]. T he life cycle of real estate is fascinating. When times are good, they can be really good and when times are tough they can be really rough. For most of the United States and Wisconsin, we are in a different real estate market than we were 3 to 5 years ago. Having gone through some incredible times when sellers were commanding “top dollar” for their properties and inventory was tight, we now find the tables turned and just the opposite. Today, buyers are calling the shots. In such a market, it is increasingly important to consider an ABR (Accredited Buyers Representative) designation, which hones our skills to truly represent the buyer in every capacity of the transaction. More importantly it helps us understand the true meaning of “buyer representation” and helps make sure we are not violating any fiduciary duties. Also, competition is fierce and being able to differentiate ourselves from the pack is key in today’s market. Preparing for an ABR designation puts you in workshops covering such topics as: Agency Relationships in a real estate transaction, Relationships between Real Estate Brokerage companies and consumers, Standard of Care and Risk Management, How to work with Buyers, Care and Due diligence to Protect the Buyer-client, Recognizing Conflicts of Interest, Developing a presentation strategy, Negotiating for your Buyer client and a host of other topics. Most importantly, I learned how to get the buyer broker agreement signed!!! Once you become designated as an ABR, a number of benefits and perks come your way. WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 First, the monthly magazine titled “THE BUYERS REPRESENATIVE” is mailed to you from REBAC. Additionally, a small handy pamphlet is also included in your annual dues. This publication is always packed with value. There is a specific logo to identify yourself as an ABR and it is wise to use it in all your marketing efforts. So make the commitment to join the team of buyer’s agents who specifically know the wants and needs of our buyer clients and follow our responsibilities to the letter of the law. Now is the time to be in this position as buyers are setting the market and a good buyer’s rep is hard to find!! Second, I can not stress enough the importance of having scripts in your head. We must be positive that buyers will see our value and will be willing to pay for it. We must also separate the “customer” from the “client”. As the old saying goes, “Why pay for the cow if you can get the mile for free?” We as a professional organization of 1.3 million must STOP giving away our services for free!! We all want our buyers qualified, serious and loyal!!! And in return, we should spend our time with the buyers who are willing to make a written commitment. I work by written authorization only!! Today, it is so important that we work off our professional calendar and keep our selves booked with appointments. Appointments put us faceto-face with buyers. In turn, that leads to sales, and sales lead to commissions. Sales Tip ... continued on page 22 21 Having now earned the ABR designation a number of benefits have come my way Sales Tip ... continued from page 21 As a buyer’s agent, each time I interview a new buyer to see if I wish to make them a client, I offer the following when asked about my services: 1. I will follow your lawful instructions pertinent to the transaction. 2. What ever you tell me, I will keep confidential. 3. I’m going to watch out for your interests above mine. 4. I will give you advice and guidance. 5. According to law, what I know, you’ll know. 6. I’m an excellent secret keeper. 7. I’m accountable to you by law for all funds…...in addition to the other minimum standards of care for my state…..IF YOU READ MY RESUME, YOU’LL GET A LOT MORE!! Having now earned the ABR designation a number of benefits have come my way. In addition to the consumer and industry respect for and recognition of the ABR designation, I am constantly provided with tools to help me promote my business to consumers and other real estate professionals. As an ABR you will also be listed in REBAC’s on-line directory at www.rebac.net. Explore www.wra.org to find an offering near you and get yourself in the drivers’ seat to making your self a valuable asset to the buyers that control our market today!! And remember, “I’m not in Sales, I’m in Service when I represent you!!” Wisconsin Veterans Home Loans Available � Low 6%, 30-year fixed rate loans � Only 5% down payment required � No private mortgage insurance (PMI) required � No income limits For current rates and a list of local lenders, see our Web site at wisvetloans.com, or email us at [email protected]. Call us toll-free with loan related questions at 1-800-WIS-VETS (947-8387). Wisconsin Department of Veterans Affairs 22 WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 NEWS.WRA.ORG Legislature to Consider the “Pier Protection Bill” … Again T BY TOM LARSON AND THE GOVERNOR he Wisconsin Legislature is once again looking to permanently protect most existing piers from new pier size standards. This has been a very controversial issue over the last several years in light of proposed DNR regulations that would have made thousands of existing piers illegal. While key stakeholders were close to reaching a compromise during the last legislative session, we are hopeful that both houses in the Legislature will agree to compromise legislation (“The Pier Protection Bill”) intended to protect both the rights of waterfront property owners and the public use of our waterways. Background In 2004, new pier standards were inserted in the Wisconsin Statutes as part of the “Job Creation Act.” These standards required a permit for any pier that: (a) Extends beyond a 3-foot water depth or deep enough to moor a boat; (b) Is wider than 6 feet, or; (c) Has no more than two boat slips for the first 50 feet of shoreline frontage, and one boat slip for each additional 50 feet of shoreline frontage. However, the language was silent as to whether the standards were to be applied to new piers only or whether they were to apply retroactively to existing piers as well. Legislative authors of the “Job Creation Act” maintain that the standards were to apply to new piers only, while others claim that they were to apply to both new and existing piers. If applied retroactively, tens of thousands of existing piers would be illegal and owners would be required to bring them into compliance or obtain a special permit from the DNR. Over the last several years, the DNR has made several attempts to address this issue through administrative rules. However, each draft of the rule continued to make thousands of piers illegal, resulting in strong public backlash and opposition to the proposed rule. Last session, a compromise was reached … almost. Representative Scott Gunderson and Senator Neal Kedzie negotiated a compromise that was supported by Governor Doyle, the DNR, the Wisconsin REALTORS® Association, the Wisconsin Builders Association, and environmental groups. The Senate version of the bill WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 Pier Protection Bill ... contined on page 28 23 Supreme Court Races Will Never W BY JOE MURRAY ashington County Circuit Court Judge Annette Ziegler defeated Madison attorney Linda Clifford for a seat on the state Supreme Court 58 percent to 42 percent on April 3, in a race defined by personal charges and record spending on both sides. And much to the dismay of campaign finance reformers and the media, it’s unlikely Wisconsin Supreme Court races will ever return to the genteel affairs they used to be. According to the Wisconsin Democracy Campaign, which tracks election spending in Wisconsin political campaigns, total spending by the candidates and third-party groups could end up in the $5 to $6 million range when all the numbers are compiled. The most expensive state Supreme Court race prior to this year’s contest was the 1999 battle between Chief Justice Shirley Abrahamson and Green Bay attorney Sharren Rose, with combined spending at $1.4 million. The Ziegler-Clifford race is four times that figure. Be the Same elected to the state Supreme Court, may very well have found herself deciding liability cases of profound importance to the trial bar and her husband. The media was harshly critical of Annette Ziegler’s failure to excuse herself from cases before the court where she may have had personal conflicts of interest involving herself and her husband. But the same media were very slow, and in many cases simply not interested, in covering the potential conflict of interest on Clifford’s part had she been elected to the Supreme Court. Both campaigns took the ethics issue and used it extensively in their advertising, so it quickly became the focal point of the spring campaign. Intensity The 2007 race between Ziegler and Clifford was a heated race, primarily because the ideological balance of the seven-member court was at stake. With conservative Justice John Wilcox retiring, the court was evenly divided between the left (Shirley Abrahamson, Ann Walsh Bradley and Louis Butler) and the right (Dave Prosser, Pat Crooks and Pat Roggensack). Ziegler’s election victory maintains a slightly right-of-center court in Wisconsin. The conflict of interest issue was another charge that drove the intensity of this year’s race. Ziegler’s husband sits on the board of directors for West Bend Savings, and Ziegler, as a circuit court judge, was called upon to rule on small claims cases involving the bank. Clifford is married to the past president of the Wisconsin Academy of Trial Lawyers and, had she been 24 WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 NEWS.WRA.ORG While many in the media and those who are pushing for campaign finance reforms imply that independent spending by the business community won the seat for Judge Ziegler, they fail to focus on one major reason Clifford lost. Perhaps the biggest reason the Clifford campaign failed is that it was almost completely void of any campaign message beyond criticizing Ziegler’s ethics. Successful campaigns, for any race, must contain a message beyond criticizing your opponent. Clifford had none and she lost by a substantial margin as a result. In the end, voters decided to elect Ziegler given her background and experience on the Washington County Circuit Court. Campaign Finance Reform? After every election cycle, reformers point to the escalating costs of political campaigns and continue to beat the drum for taking “money out of politics.” to provide 100 percent public financing for state-level campaigns, including the Wisconsin Supreme Court. Is this a good idea? The answer depends on your point of view, of course. But detailed survey data (and WRA member focus groups) indicate that the public is not supportive of taxpayerfinanced campaigns. Opponents of this idea point to the declining participation in the number of taxpayers who contribute to the Presidential Election Campaign Fund at the federal level and the state election fund in Wisconsin. Participation in both funds has declined steadily for the last 15 years. The conflict of interest issue was another charge that drove the intensity of this year’s race. This year’s Supreme Court race did in fact break all the old records. The 1999 Supreme Court race spending totaled $1.4 million; this year’s contest will fall into the $5 to $6 million range. Third party spending had never been a big factor in Wisconsin Supreme Court races prior to this spring, now it is. Third parties spent an estimated $3 million on the 2007 Ziegler-Clifford race. What is the goal of reformers? Taxpayer-funded campaigns. The latest proposal calls for a $12 million a year “Clean Elections” fund WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 For over-exposed campaign finance reformers like Mike McCabe of the Wisconsin Democracy Campaign, the 2007 state Supreme Court race was a “cash-soaked, special-interest-contaminated smear fest.” For others it was a hard fought contest that decided, for now, the ideological balance of the court. Negative campaigns have been around as long as the history of the republic and they aren’t likely to go away any time soon. No doubt, this isn’t what voters want to hear. But voters should be very careful to buy into the argument that reformers make to use taxpayers’ money to fund political campaigns. After all, democracy isn’t always cheap or pretty. Joe Murray is Director of Political and Governmental Affairs for the WRA. 25 Classifieds FREE! PRESENTATION FOLDERS Customized and Personalized Referrals ��������������������������� �������� ������ ������ ���� �������������������������������������������������������������������������������������������� High Quality Glossy Finish! REALTOR® direct: 715.297.1953 toll free: 866.348.5300 fax: 715.849.5301 ����������������������������������� ���������������������������� WEST-CENTRAL ������������������������������ ���������������������� serving Eau Claire, Chippewa & Dunn counties Paul Canfield Tel: (608) 628 - 9459 715-828-0819 Email: [email protected] ChippewaValleyHomes.com ������������������ ��������������������������� �������������������������� � ������������������������ � � ������������������������� � ������������ � ����������������������������� ������������������������������������ ������������������������������ ��������������������������� �������������������������������������� ���������������������������� ��������������������������� ���������������� �������������� ����������������� Unlock Your Potential Call to Book Your Referral Ad NOW! Ads start at just $50 Contact Rob Uhrina 26 WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 at 608-241-2047 ������������ ��������� ��������������������� ���������� ����� ������������� ������������� ��������������������� ������������������ Cheryl L. Eskridge ABR,CRS,GRI A HEART FOR REAL ESTATE loves referrals! Serving Vilas, Oneida & Forest Counties ��������������������������������� ������������������������������ ������� ���������� � ����������� ����������� ������ �� ��� ���� �� �� �� � ���� ������ Contact: Direct: 715.617.7727 wildfl[email protected] Cheryl L. Eskridge Real Estate P.O. Box 237 �������� ��������� Conover, WI 54519 Dane County ����������������������� � ��������������� � ������������������������� ������������ ������������� �������������� ������������ ����������� ���������������� �������������������� ���� ������ ��������� ��� ������ � ������ ��� Boulder Junction • Mercer • Minocqua Manitowish Waters • Area Referrals ��������������������� ��������������� ������������ ������������������� ���������������������������������������������� ���������������� ����������������������� ���� ��� ������� ���� ������������ ������������ ��������������������� Jim Tait III ������������ Boulder Jct. 877-385-2077 ������������ ������������ Jim Tait Sr. ���� ���������� ����������������� ��������������� Minocqua 800-677-8248 www.jimtaitrealestate .com ���������������������������� ���������������������� Pier Protection Bill... continued from page 23 Without this legislation, waterfront property owners will continue to be uncertain whether their existing piers are illegal and may be subject to DNR enforcement actions. (Assembly Bill 850) passed the Senate with strong bipartisan support (30 to 3 vote). The bill was then modified slightly by the Assembly and the compromise was gone. Governor Doyle eventually vetoed the bill. Because no compromise has been reached over the last three years, many waterfront property owners are uncertain whether their current pier is legal or not. The Pier Protection Bill The Pier Protection Bill (LRB 3718/2) is a reintroduction of legislation passed by the state Senate last session, which was supported by all key stakeholders. The bill protects the rights of property owners, while preserving the public’s use of our waterways. Although the bill does not grandfather all existing piers, it does create a fair process for property owners with piers larger than the grandfathering standards to keep their pier by obtaining a permit. Here are some of the key provisions relating to the grandfathering of existing piers: Grandfathering standards – Grandfathers all piers less than 8-feet wide, with a deck that is no larger than 300 square feet and no wider than 10 feet. If the deck is 200 square feet or less, there is no width limitation. Existing piers that exceed grandfathering standards – Non-grandfathered piers would require an individual permit, but the DNR can deny the permit only if it can prove the pier interferes with public rights in the waterway or the rights of neighboring property owners. This is a reasonable alternative 28 WISCONSIN REAL ESTATE MAGAZINE, MAY 2007 to grandfathering all existing piers, as it recognizes that existing piers (some of which have been placed in the water for decades) should be given the benefit of the doubt and presumed to be legal unless the DNR can prove otherwise. This is one of the most important provisions in the bill because it ensures that property owners will be in no worse position than they are today. Repair, maintenance and replacement – Owners of grandfathered piers may repair, maintain or replace an existing pier, but cannot enlarge it. The owner may also relocate or reconfigure the pier if the DNR does not object to the relocation or reconfiguration. Registration requirements – To be eligible for grandfathering, existing piers must be registered with the DNR within 36 months after the legislation goes into effect. Fees – No fee will be charged for any permit necessary for existing piers. Without this legislation, waterfront property owners will continue to be uncertain whether their existing piers are illegal and may be subject to DNR enforcement actions. It is time to bring closure to this issue. Please contact your legislators (1-800-362-9470) and ask them to support the Pier Protection Bill. If you have questions, please feel free to contact Tom Larson ([email protected]) (608) 240-8254. Tom Larson is Director of Regulatory and Legislative Affairs for the WRA. NEWS.WRA.ORG ������������������ ���������������� ����������� ��������������������� ���������������������� ���������������������� It is getting harder for working families to save for a down payment. WHEDA now offers first-time home buyers an affordable mortgage with NO down payment. ������������������������������� ����������������� ������������������������������� ��������������������� ����������������������������������� �������������������������������������������������������������������������������������������������������������������������������������������������