2006 wisconsin realtors® association
Transcription
2006 wisconsin realtors® association
PETS IN RENTAL PROPERTIES Tips on eliminating landlord and tenant issues. BEST OF LEGAL HOTLINE Security deposits, unpaid utilities and broken leases. March 2006 WISCONSIN $5.00 A PUBLICATION OF THE WISCONSIN REALTORS® ASSOCIATION MAGAZINE TM NEWS.WRA.ORG ���������� ��������� ���������� ���������������������� YO U R S O U R C E F O R T H E L AT E S T R E A L E S TAT E N E W S 20 06 THE YEAR OF OPPORTUNITY If you’re a real estate broker in search of a genuine opportunity, RE/MAX invites you to join our team. As a RE/MAX franchise owner, you’ll partner with the world’s largest and most successful real estate company. How does RE/MAX attract so many new franchisees? By helping our broker/owners meet the practical challenges they face. As the only major privately owned franchise network, RE/MAX remains solely accountable to our people. We’ve developed dozens of initiatives proven to help broker/owners recruit, develop and retain the best agents in the business. And we’ve created a unique solution to controlling overhead costs. RE/MAX’s position as an industry leader means we’re a catalyst for change in the business, innovating and implementing new programs designed to keep you ahead of the competition. Perhaps best of all, our marketing and advertising programs deliver hundreds of millions of impressions, making RE/MAX one of the most recognized brands in the world. Make 2006 your year of opportunity. Take the next step toward your success, with RE/MAX. Learn more by visiting RE/MAX & You at HomesToTheMax.com or calling 952.897.0447. Outstanding Agents. Outstanding Results. HomesToTheMax.com Each office independently owned and operated. WISCONSIN REAL REAL ESTATE ESTATE MAGAZINE MAGAZINE WISCONSIN THE OFFICIAL OFFICIAL PUBLICATION PUBLICATION OF OF THE THE WISCONSIN WISCONSIN REALTORS REALTORS®® ASSOCIATION ASSOCIATION THE MARCH 2004 2006 MARCH VOL. 20, 22, NO. NO. 76 VOL. Contents FEATURES COVER 10 Pets in Rental Properties 13 2005 Profile of Wisconsin Home Buyers and Sellers 19 REALTORS® Carry Message to the Capitol Protect yourself against pet concerns in rental properties and create a mutually respectful relationship with careful planning and documentation. What impact is the Internet having on real estate? Learn more in part two of this month’s Home Buyers and Sellers report. Pier regulation, health insurance for independent contractors and eminent domain top the list of issues brought to lawmakers at REALTOR® & Government Day. ARTICLES 8 Property Management 18 Get answers to recent questions regarding property management issues including security deposits, unpaid utilities, vacation home rentals, and broken leases. Enhancing and Maintaining Value In today’s market, knowing more can give Best of the Legal Hotline – Property Management Issues Product Showcase – Turbo Tax Software Need a quick way to get your taxes done on time? Turbo Tax software is quick, easy, affordable and confidential, and it stores your information for next year! 12 Landlords May be Liable 22 Lautenschlager vs. Falk 14 Education and Products 26 Another Record Year as Housing Sales Remain Solid you the competitive edge. Use a property manager to manage properties you own, or add property management to your list You may still be liable for security deposits even after you sell a property unless you include release language in your leases. of services. Learn more in this month’s Why the WRA is endorsing Attorney General Peg Lautenschlager over Kathleen Falk… Get a full update on the Democratic primary race for attorney general. feature by Fred Prassas, President of PCM Management Group, La Crosse and current President of IREM. 4 We’re in the second year of the real estate CE biennium. Cross off CE from your “to do” list and get ahead of the game. WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 Fourth quarter housing statistics are in! 2005 marks consistent growth and another record year in Wisconsin. 1 Real Estate n o t e s f r o m t h e w r a Rick Staff to Serve as Consultant to WRA T he Wisconsin REALTORS® Association (WRA) is happy to announce that effective February 1, 2006, Rick Staff, former Vice President of Legal Services, moved to an outside consultant role with the WRA. Rick has been living in La Crosse and commuting to Madison for some time. Rick has discussed a change in his relationship with the WRA to accommodate his family life. Given his long successful history with the Association, the officers of the WRA have enthusiastically approved this new arrangement. Rick will serve as a consultant to the WRA for a period of three years. He will use his skills and talents to provide consulting services for the WRA on issues such as DRL forms, DRL Curriculum Council, legislative issues and lobbying, etc. While his formal relationship with us has changed, we are very pleased that we will continue to benefit from Rick’s expertise, experience and friendship as he pursues his family interests and life in La Crosse. Rick has opened a consulting firm called Rick Staff Consulting and, when appropriate under his agreement with the WRA, will also provide consulting services to real estate firms, franchises and local associations. Rick will mentor his replacement as well as assist other legal staff at the WRA to insure continuity in all legal services to members. Contact Mike Theo at the WRA with any questions regarding Rick’s role with the WRA or other member legal services issues. Rick can be reached at the WRA for a limited time at [email protected], but after that his contact information will be: Rick Staff Consulting 237 South 10th Street La Crosse, Wisconsin 54601 E-mail: [email protected] Business Phone: 608-785-7525 Cell: 608-575-2799 2006 GRI Scholarship Recipients The Wisconsin REALTORS® Foundation would like to congratulate the following 2006 GRI Scholarship recipients: Darwin Scoon Otto Bytof Coldwell Banker The Real Estate Group Katie Drescher - Coldwell Banker The Real Estate Group Janalee Hahn - Success Realty, Inc. Otto Bytof REALTORS® Association of Northeast Wisconsin Gretchen Johnson - Properties of Door County, LLC Francine Kitkowski - Place Perfect Realty Washington Board Donald Hovde Robert Schneider - First Weber Group Amy Baumann - Century 21 Tri City Realty Waupaca Shawano Al Petrie Benjamin Lyons - Shambeau and Lyons Real Estate Lacy Doleshal - Century 21 Gold Key Realty Gary Schierl - Coldwell Banker The Real Estate Group 2 Wendy Nichols - Century 21 Olympia Wisconsin Real Estate MagazineTM is published by the WISCONSIN REALTORS ASSOCIATION. ® Trademark issued pursuant to Wisconsin state statute; federal trademark is pending. Jeff Kitchen, CRS, GRI, Chairman [email protected] Roger Rushman, Chairman-Elect [email protected] Mike Spranger, ABR, CRS, GRI, Treasurer [email protected] William E. Malkasian, CAE, President [email protected] Editorial Staff William E. Malkasian Publisher Robert Uhrina Managing Editor Terry O’Connor Publication Editor Nicole Breithaupt Graphic Design & Layout Wisconsin Real Estate Magazine, USPS 597-850, ISSN 1548-0526, 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 WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 Inside F Bill Malkasian WRA President the wra with Bill Malkasian or REALTORS®, March signals the start of spring and anticipation of a new selling season. For the WRA, March means we’re halfway through our fiscal year. It’s a time when we evaluate the first half of the fiscal year and make adjustments as necessary for the second half. Property management is one of the most important income producing/retirement vehicles for REALTORS®. Since many members don’t have pension plans or retirement accounts, real estate is an integral part of their portfolios. In addition, the rental market helps drive the Wisconsin economy and contributes heavily to the tax base. Our issue this month includes lots of statistics – all supporting what most of us have experienced: 2005 was a very good year for real estate. First, there’s part two of the report on The Wisconsin 2005 Profile of Home Buyers and Sellers. I encourage you to look at the statistics regarding what buyers and sellers are saying about how and why they use REALTORS®. The report also indicates a spike in the use of the Internet by buyers searching for homes online. And it’s an important issue for us at the WRA. Commercial and residential tenant/landlord issues are in the forefront for our public policy team – just after residential real estate. The team keeps a keen eye on those issues. The second article dealing with statistics is a summary of the fourth quarter housing statistics for Wisconsin. Here again, the statistics seem to point out the obvious – 2005 was the best year on record for home sales in our state. Visit www.wra. org/Q405PressRelease to view the entire press release. I’m also pleased to announce that the March edition of Corporate Report Wisconsin magazine features a 16-page color insert of a roundtable discussion between editor Scott Klug and our executive committee. If you’re not a subscriber, pick up a copy of this magazine to hear from industry leadership. This month our feature is property management, with a cover story by Fred Prassas. Fred is the current president of the Institute of Real Estate Management (IREM), a professional organization with nearly 17,500 individual members and 525 corporate members. We’re honored that a WRA member is president of this prestigious organization, which promotes ethical real estate management practices. Also, I want to take a moment to say a few “thank you’s.” First, thank you to all of you who renewed your membership with us for 2006 – over 90 percent! I’m grateful to all of you, because without you, the WRA would not be as strong as it is today. Also, thank you to all of you who attended REALTOR® & Government Day on February 15, and attended Designation Week, February 2124. Both events were held in Madison and were well attended – and we managed to dodge the snowstorm that hit February 16. The Appraisal Conference is next on our list of events. It will be held March 21-22 at the HoChunk Casino, Hotel & Convention Center in the Wisconsin Dells. We traditionally have large representation from Wisconsin and the Midwest at this conference – it’s one of our largest events, and an important part of the WRA’s education program. In April, Chairman-elect Roger Rushman and I will head out to hold a series of broker focus groups around the state, so stay tuned. I’m anxious to visit and hear what’s on your mind. Sincerely, Bill Malkasian, WRA President WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 news.wra.org 3 Enhancing Property Management and Maintaining Value BY FRED PRASSAS, CPM PRESIDENT, PMC MANAGEMENT GROUP Investors in all types of properties often credit their investment success to the quality of their real estate management organizations. O nce considered a service offered only to investors in large apartments or commercial properties, property management is impacting more real estate transactions than ever before. Increasingly, for example, REALTORS® and property managers are crossing paths in both single family and small residential transactions. As a consequence, REALTORS® who take the time to learn the fundamentals of property management will serve themselves and their clients well – particularly if they represent a client or customer in a transaction where property management becomes an issue. Property Management Basics First, let’s start with the fundamentals. Property management is about maintaining and enhancing value for the owners of real estate. It involves the administration, operation, marketing and maintenance of real estate to achieve the goals of its owners. For income producing properties, the primary goal usually is for the property to reach its highest and best use, meaning that it generates the highest Net Operating Income (NOI) possible and is being used in the best possible way based on its location, size and design. The specific responsibilities of property managers vary greatly; they depend upon the position they hold, the organization that employs them, and the type of real estate they manage. Investors in all types of properties – including residential condominiums, large and small apartment buildings, shopping centers, office buildings and even resorts and industrial properties – often credit the success of their investment to the quality of their real estate management organizations. Condo Sales Often Bring REALTORS® and Managers Together The listing and sale of condominium units that are part of a Condominium Association are among the transactions in which REALTORS® and property managers most often interact. REALTORS® involved in the purchase or sale of properties in a Condominium Association will benefit from being familiar with the facility’s governing documents and how it is operated, both physically and fiscally. They should be aware that although the board of directors officially manages the condominium, many boards contract with professional managers to handle the day-to-day operation and administration of the Association. The Association is responsible for providing all of the services that are specified in the Declaration and Bylaws. In Wisconsin, Condominium Associations must comply with the requirements specified under Chapter 703 of the Wisconsin Statutes. WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 Property managers of condominiums work with the boards to set the operating budget; to collect the homeowner assessments; to maintain or arrange for maintenance of the property; to select, train and manage on-site staff; and to meet with or conduct meetings with the board and the homeowners. Managers also are responsible for helping the boards operate their property according to the governing documents of their Association. The bottom line is that a well-run condominium association operates within its budget, takes excellent care of the property, plans for the future, and enforces rules and regulations; property managers play a key role in all of these functions. Managers work with boards to establish the annual budget for their property. Budgets need to factor in annual revenues and operating expenses, but also must take into account future needs. Managers should know when major items such as roofs and elevators should be replaced and help the boards plan for these expenses through an intelligent reserve policy. As well, managers should assist the boards in determining these longterm needs through a reserve study that estimates the remaining life of major capital items and predictable operating expense increases. Managers also should prepare detailed, periodic financial statements and provide them to the boards on a regular basis. These statements should show all income, expenses, and how well the property is operating as compared with the budget. Management of an Association is a property management specialty. Therefore, it can require specialized training in both physical, fiscal and human resources operations as well as the unique governance issues that arise when volunteer boards make key decisions. Small Investment Properties Another Meeting Ground In recent years, investors with smaller amounts of cash have turned to real estate as an alternative to the more limited investment returns offered in the stock market. This has provided an opportunity for REALTORS® who may not specialize in commercial sales to work with smaller-portfolio investors and come in contact with the professional property managers that many of them employ. Here again, REALTORS® working with small investors can add value to their services by having a working knowledge of what it takes to manage their clients’ investments successfully. Several types of properties are attractive to smaller-portfolio investors – including single-family homes, two-to-eight unit apartments and some commercial properties. Of noteworthy importance, growing numbers of investors are becoming interested in resort condominiums. These properties often 5 Recognizing quality management and danger signs of an undermanaged property can give you an edge in today’s transactions. can generate both high appreciation and investment income. But, they require an understanding of two types of property management skills; one is condominium management, as noted above; the other calls for specialized marketing and maintenance skills if the property is offered for rent on a daily or weekly basis. Some properties allow rental of units by the Homeowner or Agent; others require that Homeowners participate in the property-endorsed rental management program. When assisting clients in either scenario, we will want to assure that our clients have a full understanding of the rental management program, the costs and the restrictions. Also, they should know that legal restrictions prevent most developers from providing income projections. As a consequence, understanding the market and the techniques necessary to manage rental properties successfully are critical to the properties’ solid financial performance. Recommending a Property Manager There are many characteristics to consider when asked to evaluate or recommend a real estate management practitioner or firm. And if you are working with small portfolio investors, a number of practitioners and firms in Wisconsin may meet your clients’ specifications. 6 Here are some questions that can elicit valuable information to guide the selection process: 1. How long have you been a manager? 2. What level of experience do you have in this particular market and with this type of property? 3. What professional designations do you hold and from whom? 4. Can you provide examples of the asset improvement you have achieved with some of the properties you’ve managed? 5. What are your educational credentials? 6. Can you provide some professional references? WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 The profession of property management is both an evolving and rapidly expanding field. Indeed property management has emerged as a highly technical and specialized segment of the real estate industry. Adding Property Management to Your Menu of Services In light of the growth in the field of property management, you may want to offer these services to your clients. Many REALTORS® are adding management activities to their menu of services, providing them with an additional source of income. Numerous educational and other resources are available to them to help ensure their success. One leading resource provider is the Institute of Real Estate Management (IREM®), an affiliate of the NATIONAL ASSOCIATION OF REALTORS®. IREM has been the source for education, resources, information and membership for real estate management professionals for more than 70 years. It is the most respected education provider for commercial and residential real estate managers, providing a comprehensive curriculum of introductory through advanced courses that cover the core disciplines of real estate management and the latest management techniques. IREM promotes ethical real estate management practices through its credentialed membership programs, including the CERTIFIED PROPERTY MANAGER® (CPM®) designation, the ACCREDITED RESIDENTIAL MANAGER® (ARM®) certification, and the ACCREDITED MANAGEMENT ORGANIZATION® (AMO®) accreditation. These esteemed designations certify competence and professionalism for those engaged in real estate management. IREM has chapters in Milwaukee and Madison and offers courses throughout Wisconsin every year. For information on these course offerings and the other resources available from IREM, visit the organization’s Web site at www.irem.org. In addition, two introductory real estate management courses are offered periodically through the Wisconsin REALTORS® Association and the NATIONAL ASSOCIATION OF REALTORS®; they are “Introduction to Managing Single Family Homes and Small Residential Properties” and “Introduction to Managing Small Business Properties.” These introductory courses provide a great opportunity for REALTORS® to get their feet wet regarding property management, even if they don’t plan to practice in the field. More course information can be found at www.coursecalendar.com or www.wra.org/courseschedule. Fred Prassas, CPM is President of the Institute of Real Estate Management, Chicago, IL, and was the 1992 President of WRA. He is President of PMC Management Group, La Crosse, which, through various operating companies, manages apartment, condominium and resort rental properties in Wisconsin and Minnesota. end Property management is about enhancing and maintaining value for the owners of real estate. Best of the Legal Hotline The following property management questions were recently asked of the Legal Hotline. Property Management BY DEBBI CONRAD AND TRACY RUCKA Automatic Renewals A lease has an automatic renewal provision whereby the tenant must give a 60-day notice if the tenant does not wish to renew. What happens if the tenant does not give the nonrenewal notice? What happens if the tenant does not leave? An automatic renewal provision is not enforceable against the tenant unless the landlord gives the tenant written notice pointing out the automatic renewal provision in a residential lease. Wis. Stat.§ 704.15 requires that the landlord give this notice to the tenant at least 15 days, but not more than 30 days, prior to the tenant’s deadline for giving a non-renewal notice to the landlord. If the landlord gives the § 704.15 notice and the tenant does not give the non-renewal notice, the lease would apparently be renewed as specified in the lease. If the tenant gives the nonrenewal notice, then the lease would end at the stated expiration date. If the landlord does not give the § 704.15 notice, then the lease again would end at the stated expiration date. If a tenant remains in possession of the premises after the end of the lease term, the landlord may begin eviction action, enter into a new lease, or accept rent from the tenant, thereby creating a month-to-month tenancy per Wis. Stat. § 704.25. Breaking the Lease The tenant’s lease goes through the end of August. The tenant gave notice in the middle of March indicating that he is moving out on or before May 15. The tenant is requesting that the security deposit be mailed to him at his new address. Is he allowed to break the lease? Unless the tenant and landlord agree to early termination of the lease, the tenant may not break the lease without legal consequences. The tenant remains liable for the rent due on the balance of the lease term, subject to the landlord’s duty to mitigate as described in Wis. Stat. § 704.29. Rent that is currently due or past due may be withheld from the security deposit. 8 The return of security deposits is regulated by Wis. Admin. Code § ATCP 134.06. A detailed statement of claims must be given with a return of any security deposit balance owed within 21 days after the tenant “surrenders the premises,” as defined in the rule. Failure to comply is a violation of Wis. Stats. § 100.20(5), which allows the recovery of double damages, costs, and attorney fees. See Legal Update 03.07, online at www.wra.org/LU0307, for further discussion of security deposit rules. In cases where the amount withheld from the security deposit does not cover the landlord’s actual damages, the landlord may choose to proceed with a small claims action against the tenant for remaining damages. The landlord may not sue for future rent, that is, rent that is not yet due. Tenant Buying a House A real estate broker is working with a buyer who has a oneyear lease. The buyer/tenant gave the landlord a 60-day notice to vacate. The buyer feels that he should be able to get out of the lease because he is purchasing a home. Is that correct? There is no state law allowing a buyer to terminate a lease to buy a home. However, the lease agreement between landlord and tenant could have been negotiated to allow for such a termination. The broker should advise the buyer to consult with an attorney, as real estate licensees cannot provide legal advice. Utilities Not Paid The tenant is not paying the utilities that are part of the tenancy. He has acknowledged that he needs to pay them, but he has not and continues to refuse to do so. Does the landlord have the right to give the tenant a five-day notice to pay those bills or vacate? The tenant is a month-to-month tenant so there is no written lease agreement. The terms of the tenancy are based upon a verbal agreement and any other indications of the parties’ agreement. WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 Without a written rental agreement, there is always the risk of a disagreement and the tenant might deny that he has acknowledged that he must pay the utilities as part of his tenancy. Wis. Stat. § 704.17(1)(b) provides that if a month-to-month tenant commits a breach other than not paying rent, the landlord may terminate the tenancy by giving the tenant at least 14 days’ notice to vacate the premises. This notice terminates the tenancy and the landlord may commence eviction proceedings in small claims court if the tenant does not move out. § ATCP 134.04(3) provides that the landlord must disclose to the tenant before entering into a rental agreement or accepting any security deposit or earnest money if the charges for water, heat or electricity are not included in the rent. If this was not done, the tenant might be able to file a complaint with the Department of Agriculture, Trade and Consumer Protection. Vacation Home Rentals If you open a vacation home rental service, must you have a real estate license? Negotiation of lease terms, advertising and promotion of rental units, or entry into a lease by the rental agent are acts of real estate brokerage, and therefore require licensure. However, rental agents who merely show residential rental property, accept applications and provide information to prospective tenants are not regarded as within the definition of “broker.” If a real estate license is required, then there must be an agency agreement with the property owners. See the discussion of the WB-37 rental listing and the WRA Property Management Agreement in Legal Update 01.02, online at www.wra.org/ LU0102. Before providing brokerage services, the property owners should check the local ordinances to make sure that rentals are permitted under local zoning. Certain vacation WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 rental businesses may also need to determine whether any lodging licenses may be required, for example, if they are deemed to be rooming houses or bed and breakfast establishments. For more information regarding lodging licensing, visit dhfs.wisconsin. gov/fsrl/index.htm. Timing the Return of the Security Deposit The tenant gave a 30-day notice but moved out sooner. When does the 21-day window to return the security deposit begin? The security deposit or a statement of claims shall be mailed or delivered within 21 days after the surrender of the premises. § ATCP 135.06(2)(b) provides that a tenant surrenders the premises on the last day of tenancy provided under the rental agreement, except that: 1. If the tenant vacates before the last day of the tenancy and gives the landlord written notice that the tenant has vacated, surrender occurs when the landlord receives the written notice. If the tenant mails the notice to the landlord, the landlord is deemed to have received the notice on the second day after mailing. 2. If the tenant vacates the premises after the last day of the tenancy, surrender occurs when the landlord learns that the tenant has vacated. 3. If the tenant is evicted, surrender occurs when a writ of restitution is executed, or the landlord learns that the tenant has vacated, whichever occurs first. Failure to comply with the security deposit rules may lead to penalties of double the amount of the deposit plus attorney fees. 9 Dealing with Pets in Rental Properties Planning and Documentation Help Protect Property Managers BY DEBBI CONRAD W hile many property managers and landlords are reluctant to allow pets in their rental units, others have found that careful screening and thoughtfully planned pet policies can create a mutually respectful relationship. The owner or property manager may protect him or herself against many pet concerns with careful planning and documentation. • Ask for a written pet “résumé” and references vouching for the pet’s good behavior and the responsible attitude of the pet’s owner. • Put tenants with pets on month-to-month rental agreements so that the tenancy may be quickly ended if there are problems. This agreement may be documented on the WRA Residential Rental contract form, which was designed for use either as a lease or a monthto-month tenancy. • Have written pet rules that, for instance, set limits on the type and size of animal; require that pets be neutered or spayed and that cats be de-clawed; require that all pets be leashed when outdoors and relieve themselves only in designated areas; require the tenant to immediately pick up any pet waste; and prohibit any excessive pet noise or disturbances. Ask to see documentation, when appropriate, and enforce the rules that are established. • Require an additional pet deposit (extra security deposit for pet damage) or extra monthly rent for each animal residing in the rental unit. If you charge both, carefully and clearly indicate the purpose of the extra charges in the rental agreement and pet policies. Some tenants may contend that if monthly pet rent is intended to cover pet damage, then any repair costs for damage caused by the pet should not also be deducted from the pet deposit because double charging is illegal. • Most owners may charge pet owners higher security deposits, but not in Madison and Fitchburg where local ordinances limit the amount of the total security deposit to one month’s rent. All deposits, no matter what they are called, fall under these restrictions. Owners should make sure there are not any local ordinances limiting pet deposits for rental properties. Do the same policies apply if a tenant has a disability and has a service animal? No, the rules change dramatically when it comes to service and support animals. Service animals that assist persons with disabilities are considered to be auxiliary aids and generally are exempt from many of the owner’s pet restrictions, pet deposits and extra pet rent. Service animals include guide dogs for persons with vision impairments, hearing dogs for people with hearing impairments, and emotional assistance animals for persons with chronic mental illness. WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 In Wisconsin, Wis. Stat. § 106.50(2r)(bm) includes specific rules about animals assisting persons with vision, hearing or mobility disabilities. It is illegal for an owner or property manager to refuse to rent to a tenant, evict the tenant, require extra compensation or harass a tenant because he or she keeps an animal that is specially trained to lead or assist a tenant with impaired vision, hearing or mobility, provided that: • Upon request, the tenant shows to the owner or property manager credentials issued by a school recognized by the Department of Workforce Development as accredited to train animals for vision, hearing or mobility assistance. • The individual will be liable for any damage caused by the animal and agrees to maintain sanitary practices with respect to the animal’s toilet needs. However, the owner is not required to accommodate the service animal in owner-occupied rental housing if the owner, or a member of his or her immediate family occupying the housing, has been certified to be allergic to the type of animal the prospective tenant possesses. While seeing eye and hearing dogs are generally recognized and accepted by the public, the idea of emotional support animals is often met with some resistance. However, recent research has demonstrated that emotional support animals can be extremely effective at ameliorating the symptoms of emotional disabilities, such as depression and posttraumatic stress disorder. The federal Fair Housing Act and the Americans with Disabilities Act (ADA) protect the right of people with disabilities to keep emotional support animals, even when a landlord’s policy explicitly prohibits pets. The law generally requires the owner or property manager to make an exception to his no pet policy as a reasonable accommodation. As long as the requested accommodation does not constitute an undue financial or administrative burden for the landlord, or fundamentally alter the nature of the housing, the landlord must provide an accommodation. If a prospective tenant needs an emotional support animal, he or she should request a reasonable accommodation, in writing, from the landlord or manager. The request should state that the tenant has a disability and demonstrate a relationship between his or her ability to function and the companionship of the animal. In addition, the tenant should include a letter or prescription from an appropriate professional, such as a therapist or physician, verifying the need for the support animal. The tenant need not disclose the details of the disability nor provide a detailed medical history. If a dog scratches the door or a cat ruins the carpet, what remedies does an owner have? Tenant Damages. Wis. Stat. § 704.07(3) (a) provides that the tenant is responsible for repairing any damage to the rental property caused by the negligence or improper use of the premises by the tenant – or the tenant’s pet. However, the landlord may choose to repair the property him or herself and have the tenant reimburse him for the reasonable cost of the repair work – this is what generally happens. The cost to the landlord is presumed reasonable unless proven otherwise by the tenant. The owner may only charge for damages that go beyond normal wear and tear. Tenant Waste. If the cat is allowed to use the carpet as a litter box and the bedroom carpet and sub-flooring are ruined, this will likely constitute waste. Tenant “waste” is a tenant’s unreasonable conduct that results in physical damage and a substantial decrease in the value of the owner’s property. Waste may result from a tenant’s intentional, voluntary activity or from the tenant’s negligence or failure to act. In Three & One Company v. Geilfuss, 178 Wis. 2d 400, 504 N.W.2d 393 (Ct. App. 1993), the Wisconsin Court of Appeals found that tenants who allowed their cats to use the unit as a litter box committed waste. If waste is found the owner is entitled to double the damages pursuant to Wis. Stat. § 844.19. Security Deposit Withholding. Wis. Admin. Code § ATCP 134.06 provides that owners may withhold from security deposits (including the pet deposit) for tenant damage, waste or neglect of the premises, provided the damage is in excess of normal wear and tear. Only actual repair costs (materials, work WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 the owner pays others to perform) may be offset against the tenant’s pet deposit and/or security deposit. If any portion of the security deposit is withheld, a detailed statement of the amounts withheld from the security deposit must be delivered or mailed to the tenant within 21 days of the tenant’s surrender of the premises. If the security deposit does not cover the amount of the damages, the owner may sue the tenant for the balance in small claims court. 11 RS Landlords May be Liable Even After They Sell a Property BY RICK STAFF R EALTORS® not only broker the sale of rental properties, they also own a large number of rental properties, which they sell from time to time. Few rental property sellers, REALTORS® or REALTOR® clients are aware that there is a very dangerous and little-known trap for sellers of these rental properties. As surprising as it may seem, if you sell a rental property and transfer the security deposits to the buyer, you may be sued a year later for double damages and attorney fees because the rental property buyer failed to return the security deposits to your old tenant! How can this be? Well, our legislature created §704.09(2) of the statutes titled: Effect of Transfer on Liability of Transferor. This section reads as follows: In the absence of an express release or a contrary provision in the lease, transfer or consent to transfer does not relieve the transferring party of any contractual obligations under the lease, except in the special situation governed by s.704.25 (5). What does this mean? If the seller of a rental property doesn’t have a “time of sale” release provision from the tenant in the lease or doesn’t obtain one separately at the time of closing, the seller is still the landlord as far as liability for failure to meet the landlord’s duties under the lease goes. Assuming that you and your rental property seller clients don’t want liability for the mistakes of the buyer of the rental property, you need to include language in your leases or get releases signed by all tenants at the time of closing. WRA lease forms include the necessary language: Upon voluntary or involuntary transfer of ownership of the Premises, Landlord’s obligations under this Agreement are expressly released by the tenant. The new owner of the Premises shall be solely responsible for the Landlord’s obligations under this Agreement. If you are brokering the sale of a rental property and the seller’s leases do not have the appropriate release language in them, you should refer the seller to legal counsel to have appropriate release documents drafted. Needless to say, the prospect of having to go to each of the tenants and beg for them to sign a release out of the goodness of their hearts is not something to look forward to. However, the seller has to decide if the task of getting individual 12 tenant releases is worse then the threat of liability that will hang over his head as long as any of his tenants are living in the property under the existing leases. On the bright side, REALTORS ® may be able to use information like this and other similar language found on the WRA Web site (www.wra.org) to develop relationships with local landlords. Who knows – in exchange for a bit of help on this matter, you may get the chance to list one of these rental properties … Rick Staff Rick Staff Consulting [email protected] 608-785-7525 of Wisconsin COMMISSION ADVANCES OVER $200,000,000 ADVANCED NO CREDIT CHECK SIMPLE APPLICATION All you need is a signed contract with no contingencies except financing. We do business with real estate agents throughout Wisconsin. Local Office... Personal Service CALL US NOW! 262-798-3820 www.ce-wisc.com Affiliate Member: NAR, WRA and Greater Milwaukee Association of REALTORS® Official Registered Supplier for Realty Executives International WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 2005 WI Profile of Home Buyers and Sellers I n February, we detailed the typical Wisconsin home buyer and the characteristics of the home search in 2005, based on findings from the 2005 NATIONAL ASSOCIATION OF REALTORS® Profile of Home Buyers and Sellers. In this issue we look at findings related to Wisconsin home sellers and the relationship between buyers, sellers and the real estate agent. Home Seller Profile The Wisconsin home seller in 2005 was 44, married, primarily Caucasian, with a household income of $61,943. Homes sold were largely in suburbs and small towns, and it took an average of six weeks to sell a home. A significant majority of sellers reported receiving more than 95 percent of the list price for their Wisconsin homes. Agent Interaction Agent and the Home Buyer The percentage of Wisconsin homes purchased through a real estate agent in 2005 remained the same as the previous year (78 percent). Those searching for a home searched for three weeks before contacting an agent, and eighty-two percent used only one agent in their search. Sixty-four percent of respondents said they would definitely use their agent again or recommend him/her to others. An agent’s reputation is the most important factor to the Wisconsin home buyer, followed by knowledge of the neighborhood.. A high percentage of Wisconsin home buyers were very satisfied with their agent’s people skills and knowledge of the purchase process. Seventy-nine percent said they benefited from the agent’s help in understanding the process, and fortyfour percent benefited from the agent’s efforts in pointing out unnoticed features and faults. Agent and Home Seller Eighty percent of Wisconsin home sellers used an agent or broker. Determining the listing price, scheduling showings, negotiating with buyers, managing paperwork and entering the property in a multiple listing service were the topnamed real estate agent-assisted tasks. Like home buyers, home sellers said the reputation of their real estate agent was the most important factor in choosing an agent. Of respondents who used an agent to sell their Wisconsin home, 91 percent indicated their agent utilized the Internet. Seventy-six percent said their home was listed on a multiple listing service. When the deal was done, 53 percent of Wisconsin sellers stated they would definitely use their agent again or recommend him/her to others. For Sale By Owner (FSBO) Seventeen percent of Wisconsin home sellers sold their own home in 2005, up from 14 percent in 2004. The median age of the FSBO seller was 42 with a median income of $42,500. Eighty percent of those who sold their home without using an agent or broker said they were very satisfied with the selling process. in an average of six weeks and the majority of sellers receiving more than 95 percent of the list price. Since Wisconsin home sellers and buyers find the Internet a valuable tool, agents are wise to integrate the Internet into their marketing and home search services. While Wisconsin home buyers and sellers express satisfaction with the services their agents provide, there is a slight increase in the number of homeowners who choose to sell their own homes. To view the complete report, go to www.wra.org/WisProfileRPT. Special Report Part 2 The median selling price of a FSBO home in Wisconsin was $129,900 compared to the agent-assisted selling price of $174,900. The number one reason stated by Wisconsinites for selling their home themselves was to avoid paying a commission fee. Only 14 percent of FSBO respondents said they used the Internet to market their homes. Forty-one percent stated they would also sell their current home themselves. Conclusion Home sellers continue to enjoy a healthy market in Wisconsin, with homes selling WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 13 Education & Products Earn Your SRES® Designation! More REALTORS® are realizing the benefit of earning the Senior Real Estate Specialist designation. With the increasing number of seniors in the market, you’ll be at an advantage with the SRES designation and you’ll have the knowledge, experience and expertise to successfully provide seniors with professional real estate consultation services. The WRA is offering the SRES course April 20-21, 2006 in Madison. To earn your SRES® designation, you must complete this two-day course and pass an exam. In addition, you must have documentation of at least three transactions with senior clients (50 years or older) completed in the last 18 months. If you do not have the required senior transactions, you’ll need to submit at least two senior transactions prior to your annual renewal date with the Senior Advantage Real Estate Council (the first year’s membership is included in the registration fee). Visit: www.wra.org/SREScourses CRS Elective Marketing with Microsoft Office This course is not computer training. It is a course in personal productivity designed to help residential real estate professionals utilize the specific features of Microsoft Office that unfortunately have been underutilized or ignored. You’ll learn the power of the seamless integration between Outlook, Word, Excel, and PowerPoint. This one-day workshop will demonstrate how Microsoft Office can streamline your work, improve your presentations, eliminate repetitive tasks, simplify your business, and increase your productivity tenfold or more! Marketing with Microsoft Office is a one-day CRS class that applies toward the designation upon successful completion. Join us April 26, 2006 in Madison. This course is co-sponsored by the CRS Chapter. Visit: www.wra.org/CRScourses Sales Pre-license Madison & Milwaukee The WRA is offering an eight-day accelerated 72-Hour sales program on March 6-9 and 13-16, 2006 at the WRA in Madison and on April 3-6 and 10-13, 2006 in Milwaukee. 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 – 1-800-279-1972! This program is also available through self-study video or selfstudy Internet programs. Visit: www.wra.org/SalesPLcourses 14 QuickStart As you recruit, don’t forget to send your new agents to the fourday QuickStart Program (offered in two, two-day sessions). The course contents include prospecting, open houses, incorporating technology into your business, creating a business plan, working with buyers and sellers, and money management, plus much more. Modules 1 & 2 will be offered on April 12-13, 2006 and Modules 3 & 4 on May 17-18, 2006 at the WRA, Madison. Upon completion of the four modules and passing the exam, agents can receive credit for the completion of GRI Course 1. Fee is only $240; however, the WRA offers a new member discount of $40, which makes the cost of this course only $200. It’s a fantastic price for four days of instruction for your new agents. Visit: www.wra.org/QScourses Broker Pre-license This course will be offered on April 3-6, 2006 and June 12-15, 2006 in Madison. This program is also available through a video self-study version or a self-study Internet program. Completion of this program, passing the broker exam and applying for your broker’s license fulfills your 2005-2006 continuing education requirements. Visit: www.wra.org/BKPLcourses Complete Your CE This Spring! The second half of the biennium is here and REALTORS® have until the end of the year to complete the necessary continuing education courses to renew their licenses. The WRA is offering several CE courses in the next few months. CE3 - New Developments, and CE4B - Agency Law Revisions: Bringing the Law to the Practice will be held in Milwaukee on March 16 and in Madison on March 23. CE1 - Issues Relating to Use of Approved Forms, Contract Law and Real Estate Practice: Agency Agreements, and CE2 - Issues Relating To Use of Approved Forms Contract Law and Real Estate Practice: Conveyance Documents will be held in Milwaukee on April 6 and in Madison on April 19. Register today so you can take continuing education off your “to do” list! Visit: www.wra.org/CEcourses Mark Your Calendar! WRA Annual Convention • September 25-27, 2006 Marriott Madison West WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 Education Registration Form CONTACT INFORMATION Attention Commercial Real Estate Brokers: Name ________________________________________________ Firm name ___________________________________________ The WRA is offering continuing education courses specifically designed for the commercial real estate broker. All courses will be held in Appleton. Choose one course or all four! Address _______________________________________________ On April 12 take commercial CE1 - Issues Relating to Use of Commercial Forms, Contract Law and Real Estate Practice: Agency Agreements, and CE2 - Issues Relating to Use of Commercial Forms, Contract Law and Real Estate Practice: Conveyance Documents. Then, on April 19, attend CE3 - New Developments, and CE4C - Issues Relating to Interaction with Other Real Estate Service Providers. Phone (W)______________________ (H)____________________ Two courses are offered each day - one in the morning and one in the afternoon. Each course earns three hours of Wisconsin real estate continuing education. City ______________________ State _______ Zip ___________ *e-mail address ________________________________________ WRA member # _______________________________________ DATES AND FEES – Fill in information for course attending Course _______________________________________________ Location ______________________________________________ Visit www.wra.org/CommercialCE for more information. Date _________________________________________________ Appraisal CE *Confirmation will be sent by e-mail, or you may check myWRA at www.wra.org to verify course registration. You can also complete some of your Appraisal CE through the WRA’s Distance Learning Program. Courses available include: Relevant Environmental Issues for Residential Appraisers This four-hour course is designed for residential appraisers interested in learning how current environmental concerns affect property values. Procedures for the Unusual Residential Appraisal Assignment PAYMENT Total $ ________ ❏ Enclosed is my check made payable to the WRA. ❏ Charge my VISA/MasterCard. (Circle one.) This four-hour course was developed for the experienced residential appraiser who wishes to gain insight to 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. Card number _________________________ Exp. date ________ 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 for residential valuation. Register by Mail: WISCONSIN REALTORS® ASSOCIATION 4801 Forest Run Road, Suite 201 Madison, WI 53704-7337 National USPAP Register by Phone: (800) 279-1972 or (608) 241-2047 This seven-hour course focuses on recent changes to the Uniform Standards of Professional Appraisal Practice (USPAP) (Mandatory course). Fee per course: Appraisal Section Member - $60; USPAP: $130 WRA Member: $65; USPAP $140 Non member: $70; USPAP: $150 WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 ❏ Special Services: Check here if you require special services to attend. Attach a written description of needs. Register by Fax: (608) 241-5168 Online Registration: www.wra.org CANCELLATION POLICY: The WRA reserves the right to cancel a course if not filled. Cancellations must be made in writing prior to the start of the course and will be refunded, minus a $25 administrative fee. Registrations cannot be transferred from person to person. 15 2006 WISCONSIN REALTORS® ASSOCIATION APPRAISAL conference Submitted for CE credits for WI appraisers and assessors, MI and MN appraisers March 21-22, 2006 Continuing education and updates on the latest developments in the appraisal industry. Ho-Chunk Casino, Hotel & Convention Center Wisconsin Dells ���������������������� ���������������������� ����������������������� �������������������������� � � � ������������������ 2006 Appraisal Conference Schedule �������������� ������������� ������������ ������������������������������������������������������������� �������������������������������������������������������������������������������������������� � ���������������������������������������������������������������������������������������������� � �������������������������������������������������������������������������������������������������� ��������������������������������������������������������������� ��������������������������������������������������������� �������������������������������� � � � � �������������������������������������������������������������������������������������� �������������������������������������������������������������������������������������� � ��������������������������������������������������������������������������������������������� � ����������������������������������������������������������������������������������������������� ������������������ ������������������ ����� ����������������������� �������������������������������� � � � ��������������������������������������������� �������������������������������������������������������������������������������������������������� ����������������������������������������������������������������������������������������������� ����������������������������������������������������������������������������������������������� � ��������������������������������������������������������������������� �������������� ����������������������� ���������������������� ���������������������� ������������� ������������ ���������������������������������������� ���������������������������������� � � � ���������������������������������������������������������������������������������������������� ������������������������������������������������������������������������������������������ � �������������������������������������������������������������������������������������� � ������������������������������������������������������������������������������������������� ������������������ ����� ���������������������� �������������������������� � ������������������������������������������������ ��������������������������������������������������������������������������������������������� ����������������������������������������������� Sales & Mktg Management Pre-license Education Calendar Date March 6-9; 13-16, 2006 April 3-6, 2006 April 3-6; 10-13, 2006 May 1-4; 8-11, 2006 June 12-15, 2006 Course 72-Hour Sales 36-Hour Broker 72-Hour Sales 72-Hour Sales 36-Hour Broker Date April 12-13, 2006 April 20-21, 2006 April 26, 2006 Course Quickstart Module 1 & 2 SRES Marketing with Microsoft Office–RS elective Location Madison Madison Madison May 17-18, 2006 June 7-8, 2006 July 13-14, 2006 August 3-4, 2006 August 9-10, 2006 August 23-24, 2006 August 25, 2006 Quickstart Module 3 & 4 Quickstart Module 1 & 2 Quickstart Module 3 & 4 SRES Quickstart Module 1 & 2 Buyer Agency Buyer Agency Elective: Effective Negotiating for RE Professionals Quickstart Module 3 & 4 Madison Madison Madison Brookfield Madison Appleton Appleton $240 (1) $240 (1) $240 (1) $400 $240 (1) $260 (1) $130 (1) $240 (1) $240 (1) $240 (1) $410 $240 (1) $270 (1) $140 (1) Madison $240 (1) $240 (1) September 7-8, 2006 Real Estate CE Conferences Conventions www.wra.org/CourseSchedule Time 8:00 a.m. – 5:00 p.m. 8:00 a.m. – 5:00 p.m. 8:00 a.m. – 5:00 p.m. 8:00 a.m. – 5:00 p.m. 8:00 a.m. – 5:00 p.m. Location Madison Madison Milwaukee Madison Milwaukee Regular Reg.** $325 ❂ $255 ❂ $325 ❂ $325 ❂ $255 ❂ Early Reg. Thru Early Reg. $240 (1) $400 $149 Regular Reg. $240 (1) $410 $159 March 21, 2006 Appraisal Conference March 22, 2006 Appraisal Conference Ho-Chunk, Baraboo 800-279-1972 Call to register Real Estate Fraud: The Appraiser’s Responsibility & Liability (7 hrs) or- Appraising Environmentally Damaged Residential Properties (3.5 hrs) and Challenges of 2-4 Unit Residential Properties Ho-Chunk, Baraboo 800-279-1972 Call to register Reviewing Residential Appraisal Reports (7 hrs.) or- Scope of Work: Expanding Your Range of Services (7 hrs.) Date March 9, 2006 March 14, 2006 March 16, 2006 March 16, 2006 March 21, 2006 March 23, 2006 April 3, 2006 April 4, 2006 April 6, 2006 April 6, 2006 April 11, 2006 April 11, 2006 April 11, 2006 April 12, 2006 April 12, 2006 April 12, 2006 Course 2005-2006 CE 1 & 2 2005-2006 CE 3-video 2005-2006 CE 4A-video 2005-2006 CE 3 & 4B 2005-2006 CE 2-video 2005-2006 CE 3 & 4B 2005-2006 CE 1 & 2 2005-2006 CE 3 & 4 2005-2006 CE 3 & 4 2005-2006 CE 2 & 1 2005-2006 CE 1-video 2005-2006 CE 3 & 4B 2005-2006 CE 1 & 2 2005-2006 CE 3 & 4B 2005-2006 CE 3 commercial 2005-2006 CE 1 & 2 Time 8:30 a.m. – 4:30 p.m. 9:00 a.m. – 12:30 p.m. 9:00 a.m. – 12:30 p.m. 9:00 a.m. – 5:00 p.m. 9:00 a.m. – 12:30 p.m. 9:00 a.m. – 5:00 p.m. 8:30 a.m. – 4:30 p.m. 8:30 a.m. – 4:30 p.m. 8:30 a.m. – 4:30 p.m. 9:00 a.m. – 5:00 p.m. 5:00 p.m. – 8:30 p.m. 8:30 a.m. – 4:30 p.m. 9:00 a.m. – 5:00 p.m. 8:30 a.m. – 4:30 p.m. 8:30 a.m. – 12:00 p.m. 8:30 a.m. – 4:30 p.m. Location Kenosha Manitowoc Manitowoc Brookfield Manitowoc Madison Hayward Hayward Friendship Brookfield Manitowoc Beaver Dam Rhinelander Rhinelander Madison Appleton Registration Member* Non-Member* 262-942-0592 Call for information 920-553-6227 Call for information 920-553-6227 Call for information 800-279-1972 $24/course $32/course 920-553-6227 Call for information 800-279-1972 $24/course $32/course 877-644-2265 Call for information 877-644-2265 Call for information 920-787-4611 ext. 150 Call for information 800-279-1972 $24/course $32/course 920-553-6227 Call for information 920-887-1733 Call for information 800-279-1972 $24/course $32/course 800-279-1972 Call for information 608-238-4445 Call for information 800-279-1972 $25/course $35/course April 18, 2006 April 19, 2006 2005-2006 CE 1 & 2 2005-2006 CE 3 & 4C 8:30 a.m. – 3:45 p.m. 8:30 a.m. – 4:30 p.m. La Crosse Appleton 608-785-7744 800-279-1972 April 19, 2006 April 20, 2006 April 24, 2006 April 25, 2006 April 27, 2006 May 4, 2006 May 9, 2006 May 9, 2006 May 10, 2006 May 11, 2006 May 17, 2006 May 24, 2006 May 24, 2006 2005-2006 CE 2 & 1 2005-2006 CE 3 & 4B 2005-2006 CE 1 & 2 2005-2006 CE 3 & 4B 2005-2006 CE 3 & 4B 2005-2006 CE 3 & 4B 2005-2006 CE 3 & 4B 2005-2006 CE 1 & 2 2005-2006 CE 3 & 4B 2005-2006 CE 4B & 3 2005-2006 CE 2 & 1 2005-2006 CE 4B & 3 2005-2006 CE 4B & 3 9:00 a.m. – 5:00 p.m. 8:30 a.m. – 4:30 p.m. 8:30 a.m. – 4:30 p.m. 8:30 a.m. – 4:30 p.m. 8:30 a.m. – 4:30 p.m. 8:30 a.m. – 4:30 p.m. 8:30 a.m. – 3:45 p.m. 8:30 a.m. – 4:30 p.m. 8:30 a.m. – 4:30 p.m. 9:00 a.m. – 5:00 p.m. 8:30 a.m. – 4:30 p.m. 8:30 a.m. – 4:30 p.m. 9:00 a.m. – 5:00 p.m. Madison Sturgeon Bay Rice Lake Rice Lake Kenosha Marinette La Crosse Duluth Duluth Brookfield Cedarburg Cedarburg Madison 800-279-1972 $24/course $32/course 920-743-9651 Call for information 877-644-2265 Call for information 877-644-2265 Call for information 262-942-0592 Call for information 920-897-2899 Call for information 608-785-7744 Call for information 218-728-5676 Call for information 218-728-5676 Call for information 800-279-1972 $24/course $32/course 262-338-8114 or 262-375-4730 262-338-8114 or 262-375-4730 800-279-1972 $24/course $32/course commercial commercial Call for information $25/course $35/course Nonmembers pay an additional fee for all courses. (1) Fee for all four modules. * Must be postmarked or received by the WRA 14 days prior to start of class. ** Fee until day of class – additional fee charged at the door. # Group discount for six registrations mailed in one envelope. ┼┼ Includes 2005 USPAP book. ❂ Plus books. WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 17 productSHOWCASE REALTOR ® Turbo Your Return BY LEAH CALL Attention last-minute tax filers … did you know there’s a quick and easy way to file your 2005 tax return before the April 15 deadline? work and come back later. When you’re ready to dive in again, simply enter your User Id/Password, and Turbo Tax picks up where you left off. File your return quickly using Turbo Tax Premier, ranked #1 in its category by PC Magazine. Best of all, you don’t have to pay until you’re ready to file. Then Turbo Tax submits your return directly to the IRS. Electronic filers typically get their refund quicker than snail-mail filers. 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Turbo Tax Business Manufacturer: Intuit Web site: www.turbotax.com Pricing: $99.95 Download for Windows / $99.95 CD Rom for Windows (optional) REALTORS® Carry Message to Capitol Hundreds Attend WRA REALTOR® & Government Day H BY MICHAEL THEO undreds of REALTORS® from all corners of Wisconsin took to the state capitol on February 15 to talk about key real estate and homeowner issues with their legislators, as part of the 2006 REALTOR® and Government Day program. This annual event provides legislators the opportunity to hear firsthand the impact of important pending legislation directly from their REALTOR® constituents. The gathering also heard speeches at the end of the day from Governor Jim Doyle and Attorney General Peg Lautenschlager. The day ended with a reception that allowed the attendees to unwind, debrief on the day’s activities and network with fellow REALTORS®. • The intent of these new rules is to limit the size and length of piers, based on the assumption that all such structures have a detrimental impact on water quality and aquatic habitat. • The new proposed rules create new dimensional standards that will be applied not only to all new piers, but also retroactively to all existing piers. • While the DNR admits that this will likely make thousands of existing piers illegal, they don’t know how many for sure. In fact, they are not sure how many existing piers we have in the state. • The DNR claims that 99 percent of the existing piers will be “grandfathered,” but this estimate is based upon a study of only 35 lakes (Wisconsin has over 15,000 lakes) during September 2005 (toward the end of the boating season). Prior to this study, the DNR estimated that only 80 to 85 percent of the piers would be “grandfathered.” On behalf of the leadership and staff at the WRA, we thank every REALTOR® who took the time from his or her busy schedule to participate. Your investment of time is an investment in your business, your industry ® and your customers and WRA Chairman Jeff Kitchen addresses members at REALTOR & Government Day. clients. All members are strongly encouraged to attend next year’s event • In December, the DNR made some positive in early spring. changes to the rules that will seemingly For the majority of members who could not attend REALTOR® and Government Day, here are the key messages attendees delivered to lawmakers in Madison. New Pier Regulations WRA Message to Legislators: Pass legislation to permanently grandfather existing piers that were lawful when originally placed. • The Department of Natural Resources (DNR) is proposing new administrative rules to regulate new and existing piers. grandfather more piers. However, the rules contain a provision (called the “recapture provision”) that gives the DNR broad discretionary authority to require EVERY pier in the state (even those piers considered to be “grandfathered”) to obtain an individual permit, if the DNR determines the pier will cause (a) significant adverse impacts to the public’s rights or (b) material injury to neighbor’s rights. The standards are not defined, and the DNR has broad latitude in interpreting them. REALTOR® & Government Day ... continued on page 20 & 21 WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 19 • Over the last several weeks, Representative Scott Gunderson and Senator Neal Kedzie have brought all the interested parties together in hopes of resolving the outstanding issues on piers. Through their leadership, a compromise may be reached within the very near future. • The WRA is asking the Legislature to pass legislation that prevents (a) new standards from being applied retroactively to existing piers that were legal when placed, and (b) creating vague standards that give the DNR broad discretionary authority to require any pier in the state to obtain an individual permit and cause waterfront property owners tremendous uncertainty. Taxpayer Protection Act WRA Message to Legislators: Support legislation to place before the voters a constitutional amendment establishing reasonable spending limits on state and local governments. • Legislative leaders in both Houses have promised a vote this spring on legislation to limit state and local government spending in the state constitution. The legislation has yet to be introduced. • Proposals currently being discussed would accomplish this by placing limits on revenues derived from most taxes and fees, and would be based on CPI (the Consumer Price Index) with adjustments for growth in population, students and new development. • Voters would be allowed to change these limits by referendum. • A budget stabilization or emergency fund would be established. • The WRA supports reasonable spending/revenue limits so long as they are consistent with the following principles: Simple. The constitutional language should be general and not overly detailed to provide maximum flexibility for statutory execution. 20 Limits tied to taxpayers’ ability to pay. Spending limits should be based on personal income growth and should restrain the rate of growth in spending without eliminating essential services critical to Wisconsin’s quality of life. Fees. Limits should be included on revenues generated from fees as well as taxes to avoid potentially dramatic shifts in revenue sources. Bonding. The ability to issue bonds for economic development purposes at the local level must be preserved. Growth. New growth should be encouraged by allowing communities to retain the additional tax revenues realized from new construction and development. Referendum. Local voters should retain the authority to override any spending limits by referendum. Health Insurance for Independent Contractors WRA Message to Legislators: Support SB 7 and AB 4, legislation allowing contributions to individual Health Savings Accounts (HSAs) to help individuals who do not have employerprovided health insurance coverage. Support other legislation that helps make health insurance more affordable and accessible for self-employed individuals. • Many of America’s 45 million uninsured citizens are self-employed or work for small employers that cannot afford to offer health insurance benefits. are independent • REALTORS® contractors, not employees, many of whom cannot afford individual health insurance policies. Most receive insurance coverage under a spouse’s plan or have no coverage at all. • SB 7 and AB 4 allow individuals to contribute to a health savings account on a pre-tax (tax deductible) basis to cover qualified medical expenses, helping to make health insurance more affordable to self-employed individuals like REALTORS®. • This legislation is similar to provisions vetoed by Gov. Doyle in the last state budget, so even if passed by the Legislature, it’s uncertain whether it will become law. • This legislation is part of the Senate Republican spring agenda and is expected to be voted on before the end of March. Eminent Domain WRA Message to Legislators: Support Assembly Bill 657, legislation designed to protect homeowners from condemnation, without hurting economic development. • Last summer, the U.S. Supreme Court in Kelo v. City of New London held that single-family, owner occupied homes could be condemned by government and transferred to a private third party for purposes of economic development. • In a dissenting opinion, Justice O’Connor noted that under the Court’s ruling all private property is now vulnerable to being taken and transferred to another private owner so long as it will be put to a higher and better use. She stated, “Nothing is to prevent the state from replacing any Motel 6 with a Ritz Carlton, any home with a shopping mall, or any farm with a factory.” • Strong public outrage to this decision resulted in an immediate and emotional reaction by federal and state legislatures to limit the use of eminent domain for purposes of economic development. • While the WRA opposes the decision in Kelo, we recognize that eminent domain is an important economic development tool used to redevelop our existing communities. • Accordingly, we have encouraged the Wisconsin Legislature to develop narrow legislation that protects homeowners without hurting economic development. • Assembly Bill 657 restricts the ability of government to: – Condemn single-family, owner-occupied homes; and – Transfer them to a private third party. WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 • The bill has passed both Houses, but the version passed by the Senate was slightly different due to two amendments. The bill is now back in the Assembly, as both Houses must pass the same version of the bill. • The WRA is asking the Legislature to pass, and the Governor to sign, an agreed-upon version of the bill, and protect homeowners from condemnations that directly benefit private third parties. Nonconforming Structures Destroyed By Natural Disaster WRA Message to Legislators: Support SB 253, legislation intended to protect the rights of homeowners to rebuild their nonconforming structures if destroyed by natural disaster. • A “nonconforming structure” is a home or building that does not meet one of the dimensional requirements found in the current zoning ordinance (e.g., height, setbacks, lot coverage ratio, etc.). • Generally, a building becomes nonconforming because a community changes the regulations after the home or building is constructed. • Current law protects the right of property owners to rebuild their homes, but only if the home is: – Located in a shoreland area regulated by county shoreland zoning; and – Destroyed by wind, fire, flood or vandalism. • However, if a home is not located in a county shoreland zoning area, no protections at the state level exist. Furthermore, if the WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 home is destroyed by any other causes (e.g., mold, infestation or something else outside the control of the property owner), the home cannot be rebuilt. • These restrictions impact the value of the property because purchasers are obviously unwilling to pay the same amount for a home with these restrictions as they would for the same home with no restrictions. • Lenders and insurance providers are also reluctant to offer financing or issue insurance policies because these homes are considered risky due to the fact that, if destroyed, they cannot be rebuilt to the same configuration. • Senate Bill 253 would: – Allow ALL nonconforming structures to be rebuilt if destroyed by natural disaster (e.g., violent wind, vandalism, fire, or flood), no matter where the structures are located. – Expand the list of conditions under which a property owner could replace his or her nonconforming structure to include destruction by mold, snow or ice. • The bill has passed both Houses and was awaiting Governor Doyle’s signature into law. And, to the delight of all attendees, the Governor actually signed the bill into law right there at REALTOR® and Government Day! 21 Lautenschlager vs. Falk T he WRA Board of Directors and REALTORS® Political Action Committee Trustees have endorsed incumbent Peg Lautenschlager in the Democratic primary for attorney general over her challenger, Dane County Executive Kathleen Falk. BY JOE MURRAY While this is the first major political announcement for 2006, it certainly will not be the last. The REALTORS® Political Action Committee Trustees and WRA Board will review virtually every state candidate in every race from the governor and U.S. Senate to the state Assembly, and make recommendations in favor of those candidates who best support the REALTORS®, homeowners and property owners of Wisconsin. One of the most important races this year is the contest for attorney general. The Lautenschlager-Falk primary contest will be hotly contested, expensive, and in the end, very close. Why Peg Lautenschlager? The logical question is why did the board of directors decide to support Peg Lautenschlager over Kathleen Falk? After all, both candidates appear very similar on paper. Both have strong environmental credentials and a reputation as solid progressives. But there are important differences between the two candidates, which makes our endorsement clear. The WRA has enjoyed a close working relationship with Peg Lautenschlager dating back to her days in the state Legislature as a Democratic state representative What’s the Difference? from Fond du Lac. When she was first elected to the Assembly in 1988, the WRA did not support her. But this didn’t stop her from working with us on important housing issues. By the time she decided to leave the Assembly in 1992, she had established herself as a solid, pro-homeowner legislator. Lautenschlager received an 80 percent rating on key WRA issues in her last term in the state Legislature. Peg Lautenschlager. Photo by: Michael DeVries, The Capital Times. That same positive working relationship between the WRA and Peg Lautenschlager exists today in her role as attorney general. For example, when the WRA asked for her support on the agency modernization bill, our top priority for this session, Lautenschlager and her staff studied the bill immediately and carefully. Convinced the bill was “consumer friendly,” she put her support in writing. With the strong endorsement of the attorney general, the agency legislation went on to receive overwhelming bipartisan support in the Legislature and was signed into law by Governor Doyle in December. The attorney general’s support for this legislation was critically important to our success. Earlier in 2005, Peg Lautenschlager again demonstrated her interest in homeowner rights when the U.S. Supreme Court announced the controversial “Kelo” decision regarding eminent domain – a ruling that dramatically expanded the power of government to take private property. This ill-advised ruling gave local governments the power to confiscate private homes not for a public purpose, but in order to give it to another private owner for commercial development. Lautenschlager immediately understood the negative implications of such a ruling and began holding public hearings to both educate the public on the issue and to receive feedback on what should be done in response. As a result, Lautenschlager and a bipartisan group of legislators have drafted state legislation to address the issue and protect homeowners in Wisconsin. So, for more than two decades, the WRA and Peg Lautenschlager have worked together on issues of serious importance to Wisconsin homeowners, property owners and REALTORS®. Lautenschlager has always shown a willingness to listen and work toward agreeable solutions. This receptivity to different and diverse ideas is the primary reason we support Peg Lautenschlager. Lautenschlager’s primary opponent on the other hand, Dane County Executive Kathleen Falk, has presided over county government for nine years and made restrictive land use policies her signature issue. Lautenschlager vs. Falk ... continued on page 26 WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 The Wisconsin Homeowners Alliance (WHA) is a 501(C)(4) THE VOICE OF THE WISCONSIN HOMEOWNERS ALLIANCE organization dedicated to representing the interests of Wisconsin homeowners and protecting Wisconsin’s quality of life ALLIANCE one home at a time. As part of this effort, W I S C O N S I N the WHA conducts a series of statewide Homeowner Insights for Wisconsin Decision public opinion surveys designed to help us V O L U M E Homeowner Insights for Wisconsin Decision Makers V O L U M E 1 • I S S U E 5 • M A R C H 2 0 0 6 1 • I S S U E 4 • F E B R U A R understand what homeowners are thinking and talking about. This monthly publication is intended to share issues of importance The Wisconsin Homeowners Alliance (WHA) is a 501(C)(4) organization dedicated to representing the and concern to homeowners with decision interests of Wisconsin homeowners and protecting Wisconsin’s quality of life one home at a time. As part of s a 501(C)(4) organization dedicated to representing the makers around the state. this effort, the WHA conducts a series of statewide public opinion surveys designed to help us understand what ing Wisconsin’s quality of life one home at a time. As part of homeowners are thinking and talking about. This monthly publication is intended to share issues of importance wide public opinion surveys designed to help us understand what Home Ownership concern homeowners decision makers around the state. his monthlyand publication isto intended to sharewith issues of importance loan. People ages 45 to 54 are most likely to carry a home equity Home ownership is a goal that the vast majority of Wisconsin families loan (33%). In making the decision to purchase a home, buyers are able to achieve. Eight in 10 respondents in the most recent Wisconsin under age 45 are most likely to be influenced by the size of Homeowners Alliance survey report that they own their home. And when their mortgage payment, while those over 45HOMEOWNER weigh both theirSATISFACTION TRENDS they buy those homes, Wisconsinites are inclined to stay put. Slightly When it comes to perceived barriers and incentives to buying mortgage payment and the actual price of the home equally. moreHOME than half (55%) say that their current home is the only TRENDS one they HOMEOWNER SATISFACTION OWNERSHIP OWNERSHIP ast majority of owned, Wisconsin have anda49home percentin have lived in their there homes for years Wisconsin, are10indications thatmen women arelikely to be influenced HOME Moreover, are more by the Wisconsin residents feel there Overall, HOME entering OWNERSHIP 10 respondents in the most young ormore more. Predictably, people, recently the men. market Women are many incentives to purchasing a hom pricemore of a home, while an affordable mortgage sensitive to economic issues were likely A vast majority than of Wisconsinites are able to actual there is a clear difference in the significantly more likely to be first-time homebuyers—almost threerealize the American Dream—owning a report that they own their payment has a greater influence on women. than ofmen to seeages four economic measurements as barriers rather percentage of women and men who home. And, most these homeowners fourths respondents 25 tomajor 34 have owned justofone home. But, sinites are inclined to stay perceive current factors in Wisconsin have positive views about how things are perhaps surprising, 61 percent of people 45 in to 54Wisconsin. and almost than more as incentives to home buying For example, while as wages, the economy and local serv going inages their community. Education r current home is the only incentives or barriers when buying a half ofpercent those 55 and older are still living in the first home they bought. community One 40 of men saw the economy in their as a barrier to When asked about the importance of highn their homes for 10 inyears homeowner three (35%) has no mortgage. Forty-one percent of people EDUCATION home 50 percent women said it was a barrier. By aeducation, smallersurvey respondents QUALITY OF EDUCATION quality public Survey respondents continually emphasize ages 55 tobuying, 64 and 80 percent of those of 65 and older have no mortgage. ring the market are signifthe importance of a strong education The percentage of residents who agr have historically said that it is a top priority While just one homeowner in six (16%) who has aagree mortgage also has a margin (51% to system 47%), were more likely to see the curandwomen that Wisconsin can’t —almost three-fourths of compared quality public schools are an importa for their families and for the local economy. compete without second mortgage, one in four (27%) reports taking outa first-class a homepublic incentive to home buying varies from statemore economy as a barrier. A majority ofequity both men women were a high level of home. But, rent perhaps school system. Stateand residents also express region to region. nd almost half of those 55about current wage levels in Wisconsin, concerned women satisfactionbut with the quality of their local THE ECONOMY public schools. wages In the mostasrecent survey, ought. One homeowner in men 57 percent THE ECONOMY outnumbered to 51of the percent current The condition state and in local seeing econoResidents 65 years of age and older r respondents emphasize the importance my plays an important role when deciding of people ages to 64 and a 55 barrier. And, while 53to purchase percent ofandmen the availability of concerns about rising economic cost a home, the cost saw and of Wisconsin’s education system. Eight many do not feel things will get bett of mortgage can be a significant age. While just one homepeople in 10 agree that Wisconsin affordable housing as an amount incentive, only 44 percent of women saw it barrier when deciding to buy. them in the next year. a second mortgage, one in cannot compete economically in the same light. without first-class public schools— . People ages 45 to 54 are TAX ISSUES TAXES Many Wisconsin homeowners say that the 58 percent agree strongly. A significant amount of Wisconsin Interestingly, while clear majorities saw local services and the quality of kers around the state. � � � � � � tax deduction for mortgage interest was an influence when purchasing a home and More than two-thirds of people with do not want to see it go away. wi ho all residents worry about the affordabilit � � property taxes. However, many distin local schools ers under age 45 are most as incentives, higher percentages of men were likely to see exist between age, gender and regio household incomes of $60,000 to groups. these items men, compared to gage payment, while thoseas incentives. For example, 79 percent of$80,000 and 61 percent of women 70price percent of home women, saw the quality of local services an incentive, nd the actual of the equally. agree asstrongly that Wisconsin needs a first-class public school d by the actual price of a home, while an while 79 percent of men and 71 percent of women saw the quality of local schools system in order to compete. ence on women. as an incentive. of high-quality public education, survey majorities of all Wisconsin residents see the quality of local While significant at it is a top EDUCATION priority for their families and public schools as an incentive to home ownership in their communities, there s a high level of satisfaction with the qualare interesting regional variations. Statewide, 75 percent of us classify the quality of our ecent survey, respondents emphasize the public as canan incentive to home buying. However, in the Milwaukee area a ght people inlocal 10 agree thatschools Wisconsin smallerpercent majority of strongly. residents (66%) see their local schools as an incentive as compared to ublic schools—58 agree other regions. of I the class publicW university percent WW . system—46 H O For M Eexample, O W N E82Rpercent SALL A Nresidents C E . OofR the G La Crosse-Eau Claire region, 79 percent respondents in the Madison area, and 80 percent of those in the Fox d-class technical school system inoforder to wisconsin homeowners alliance wisconsin homeowners alliance The Economy Indications are that the economic situation in the state, in our communities and in our homes are presenting challenges to homeowners and aspiring homeowners. In this most recent survey just 44 percent of respondents say the state is on the right track and 40 percent say things are off on the wrong track. One person in five expects that things will get worse for them in the coming year, while 45 percent expect things to stay the same. While economic conditions are not the only criteria that people use to rate the direction the state and their communities are moving, money is a key factor. Half of respondents report that the current economic situation in Wisconsin is a barrier to buying a home, and 45 percent say the community economy is a barrier. Almost two-thirds of homeowners say the cost of most homes in their market is an obstruction to home ownership. One homeowner in five reports having difficulty making his or her mortgage payment at least once in the past year. The bottom line? Fully 70 percent of state residents think it is either very difficult (16%) or somewhat difficult (54%) for individuals and families to own a home in Wisconsin. Taxes While taxes are a critically important factor affecting the affordability of homes for the vast majority of Wisconsin residents, the tax deduction on interest helps to mitigate the other barriers to home ownership. Almost half (46%) of homeowners report that the tax deduction on interest influenced their decision to purchase their home a great deal or somewhat. At the same time, half of homeowners and two-thirds of renters say they have not heard or read about the Federal Tax Study Commission report that recommends changes to mortgage interest tax deductions. Among all respondents, 40 percent strongly oppose a Study Commission recommendation to replace the current home mortgage tax deduction with an amount equal to 15 percent of the mortgage interest, and 43 percent strongly oppose eliminating the tax deduction for home equity loans. More significantly, this data suggests that middle-class families would feel the effects of these changes more strongly. Two-thirds of people ages 45 to 54 oppose the 15 percent substitution recommendation (50% strongly oppose). Middle income respondents are also more strongly opposed to this idea. Almost half (48%) of people earning $40,000 to $60,000 strongly oppose this recommendation and a total of 66 percent oppose the idea. Moreover, 72 percent of families with household incomes of $60,000 to $80,000 oppose the change. The Wisconsin Homeowners Alliance is a 501(c)(4) organization dedicated to representing the interests of Wisconsin homeowners and protecting Wisconsin’s quality of life one home at a time. W W W . H O M E O W N E R S A L L I A N C E . O R G wisconsin homeowne alliance ������������������������������������������������������������ ��������������������������������������������������������������������� ����������������������������������������������������������������� �����80������������������������. Help-U-Sell is now the ��������������� Real Estate company in America.*� ��������������������������������� �������������� ���������������� �������������� ����������� � � � � � � � � � � � � � � � � ������� ������� �� ������������������������������������������� �������������������������������������������� ���������������������������������������������� Help-U-Sell Real Estate ����������366�1177���� �������������������������������������������� ������������������� Help-U-Sell Wisconsin Regions 0505_HUStarheelv2.indd 1 ���������������������������������������� ��������������� � ����������������������������������������������������������� ����������� � ����������������������������������������������������������� ���������������� � ������������������������������������������������������������ ���������������� � ���������������������������������������������������� � ��������������������������������������������������������������� �������������� � � ���������������������� ������������������������ ������ 1-800-366-1177 � �������[email protected] � �������� HELPUSELLfranchise.com � ���������������������������� � ���������������������������� ����������������������� ��������������������������������������������������� ���������������EALTORS���������������������������� ���������������������������� 4/13/05 3:59:25 PM Another Record Year as Housing Sales Remain Solid in Fourth Quarter Lautenschlager vs. Falk ... continued from page 22 BY DAVE CLARK W isconsin’s residential home sales set another annual record as existing home sales in the fourth quarter of 2005 remained near the all time high pace established in the fourth quarter of last year, according to the most recent analysis of statewide existing home sales conducted by the Wisconsin REALTORS® Association (WRA). Sales of existing homes in Wisconsin for the fourth quarter of 2005 totaled an estimated 30,075 units, which is nearly unchanged from the strongest fourth quarter on record, which occurred in 2004. Indeed, existing home sales in Q4 2005 were just 0.3 percent off the Q4 2004 pace. Wisconsin’s home sales only differed slightly from the nation and the Midwest region, with sales up 0.3 percent nationally and homes sales down just 0.4 percent in the Midwest. “This is an amazing market,” said WRA Chairman Jeff Kitchen. “That home sales stayed near their fourth quarter 2004 levels even as mortgage rates inched upward in recent months is a true testament to the strength of this market,” said Kitchen. The two most important factors driving this market are still low interest rates and strong job growth, and he noted that although conventional 30-year fixed rate mortgages were up slightly from their levels of last year, they remain low by historical standards. Furthermore, the Wisconsin unemployment rate continues its downward movement, with fourth quarter unemployment in the state now just over 4.6 percent. Fourth Quarter Regional Sales Data Comparing Q4 2005 with the same quarter the previous year, existing home sales were up by solid margins in the less urban regions of the state. Specifically, home sales rose 18.1 percent in the Northern region and grew at an 8.6 percent pace in the Central region on solid vacation home activity. Sales volume was essentially unchanged in the South Central region, whereas the level of sales fell modestly in the Southeast (-4 percent) and at a faster pace in the Northeast (-7.2 percent) and Western (-10.4 percent) regions. Fourth Quarter Median Housing Price Data Home prices in Q4 2005 were up by more than the annual inflation rate. As compared to Q4 2004, median home prices increased 5.2 percent to $162,000, with four of the six regions experiencing median price appreciation, and one region essentially unchanged. “This is certainly an indication that the housing market remains healthy in Wisconsin and that real estate is an excellent way to grow family wealth,” said WRA President William Malkasian. He noted that although mortgage rates have increased a little more than a half percent since June of last year, this does not appear to have caused sales prices to fall statewide. “In fact, the only region in the state to see median values fall was the Northern region, and this was likely due to the growing popularity of lower priced second homes in the area, rather than systematic price discounting,” said Malkasian. Prior to being elected county executive, Falk’s support for extreme land use restrictions was evident from her years as the state’s public intervener. While that office no longer exists in the same form, for many years this office served as a taxpayer funded law firm for many environmental groups intent on stopping development. When the WRA supported rules to allow for new septic technology (Comm 83) that would better protect the environment while facilitating rural housing options, Falk and others opposed the new systems. As county executive, she continues to oppose rural subdivisions and township development in general. When the WRA announced its endorsement of Attorney General Lautenschlager, a spokesperson for Falk responded by noting that Falk “has been fighting sprawl in Dane County for nine years, so it’s not surprising that the conservative REALTORS® would endorse her opponent.” That’s an interesting response given the REALTORS® strong and continuing support for comprehensive land use planning and the state’s Smart Growth Law. Moreover, the statement implies that Peg Lautenschlager is an advocate of “sprawl,” despite Lautenschlager’s impeccable pro-environment record. Yet it’s a good example of the difference between Lautenschlager and Falk. The attorney general will look at all sides of an issue and make a decision on the merits of the discussion. Kathleen Falk starts with an agenda and philosophy that emphasizes ways to “control” housing, transportation and open space. In the coming months you will see additional information on this and other key races. In the meantime, help us spread the word on our endorsement of Peg Lautenschlager in the Democratic primary for attorney general. WRA Online Housing Statistics: www.wra.org/HousingStatistics 26 WISCONSIN REAL ESTATE MAGAZINE, MARCH 2006 REFERRALS �������� ��������� ��������� ������������� ���������� ��������� ���������������������� �������������������� �������� ��������������� ���� �������� � ����� ��������� ��������������������������� �������������� ��������������������������������������������� ��������� ���������������������� ����� ��������������������������������� ������������������������������������������������������ ������� ���������� � ����������� ����������� 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 Dane County Referrals ����������������� ������������������������������� �������������������������������������� ����������������������������������������������� ��������������������������� �������� ������ ������ ���� �������������������������������������������������������������������������������������������� �������������������������������������������� ���������������������� ����������������������� ����������� Cheryl L. Eskridge ����������������������� ����������������������������loves referrals! ��������������������� ����������������� ���������������������� ��������������� ������������������������ ���������������� �������������������� �������� www.RealEstateAmbassador.com direct: 715.297.1953 toll free: 866.348.5300 fax: 715.849.5301 ���������������������������������� �������������������� ����������������������� ������������������������ ������������������������������ ���������������������������������������� ������� ��������� ���������������������������������� ��������������������� ������������� ������������ ��������������������� ���� �������������������� ������ ������ ����� ��� ppraisers A s r e e n o ti Auc ������������������������ ��������� ������� ��� �������������������Services ���������������������������������������� ����������������������������������������� ����������������������� ����������� & ���������������������� ������������������������������������ ��������������������������������������������������� ��������������������� ����������������������������� ������������������������������������ Slow Moving Properties? Sellers Anxious? �������������� ������������������������� ��������������������� �������������������������� Use the auction method to sell property! For rates and additional information contact Ray Miller. W3410 Dore Rd., Suite A Lyndon Station, WI 53844 (608) 588-3200 or (608) 524-0365 [email protected] www.raymiller.ws auction company 265-053 Auctioneer 2070-052 Appraiser 1520-004 ����������������� ����������������������������� ��������������������������������� ������������������������������������������������������������������������������������� ��������������������� ������������ ��������������������������������������������������������������������������������������������������� ��������������������������������������������������������������� ����������������� ������������������������������������������������������������������������������� �������������������������������������������������������������� ������������� ������������������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������� ������������������������������������������������������������������������������ ������������������������������������������������������������� ��������������������������������������������� ������������� � �������������������� ����������������������� ������ �������������� WI.indd 1 � � � ���������������������������������� ��������������������������������� ���������������������������������������������������������������������������������������������������� � ���������������������������������������������������������������������������������������������������� ����������������������������������������������������������������������� ������������������������������������������������������ 12/19/05 11:19:32 AM A GOOD SIGN OF GREAT SUCCESS Just Sold Century21careers.com 1-888-21Career This is not an offer to purchase a CENTURY 21® LLC Franchise. Offers made only upon delivery of the current CENTURY 21 LLC Franchise Offering Circular which contains all relevant information concerning the costs, expense, and commitments involved in purchasing a franchise. ©2005 Century 21 Real Estate LLC. CENTURY 21® is a licensed trademark to Century 21 Real Estate LLC. Each Office Independently Owned and Operated. Equal Opportunity Company. Equal Housing Opportunity. There is no guarantee that positions are available in your local area and submitted information does not necessarily mean you are qualified for any positions. All employment decisions will be made by CENTURY 21 franchised offices and not by Century 21 Real Estate LLC. Source: 2004 Ad Tracking Study. The survey results are based on 1560 telephone interviews (via computer assisted program) with a national random sample of adults (ages 25-54) who have either bought or sold a home within the past two years or plan to purchase or sell a home within the next two years. Brand awareness questions are based on a sample of 1560 respondents with a margin of error of +/- 2% at 90% confidence level. The study was conducted between January 11th - October 2nd, 2004 by Millward Brown, a leading global market research organization. 1 Are you ready to take your business to the next level? Consider a business affiliation with the CENTURY 21® System. With more than 6,600 independently owned and operated real estate offices and over 110,000 sales professionals in 30 countries and territories, the CENTURY 21 System is part of the largest real estate referral network in the world. Joining the CENTURY 21 System makes you a part of one of the most recognized names in real estate.1 And with the CENTURY 21 System, you’ll have access to advanced business management tools, comprehensive training programs, national marketing support, exclusive service pledges, innovative technology, specialty market expertise and rewarding recognition for your achievements. For more information about franchising opportunities or a career in the CENTURY 21 System, contact one of our local Great North offices, log on to www.Century21careers.com or call 1-888-21Career. Build greater success with the CENTURY 21 System! HOME Plus Loan THINK YOU need a down payment TO PURCHASE YOUR first home? Think again. Check out WHEDA ������������������������������������������������ ���������������������������������������������� ���������������������������������������������� ��������������������������������������� Call 1-800-334-6873 or go to www.wheda.com